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MassMutual Insurance Review 2018

January 24, 2018

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MassMutual

  • NerdWallet ranking: No. 2 life insurance company (out of 18)
  • Offers immediate term life insurance online
  • Provides a full range of financial products and services

Overview

Massachusetts Mutual Life Insurance Co. is one of the largest U.S. life insurers. As a mutual company, MassMutual is owned by its policyholders. Customers who buy certain products, such as whole life insurance, are eligible to receive dividend payments when the company does well. The company estimates it will pay out a dividend of $1.6 billion to eligible members in 2018.

NerdWallet rank: NO. 2

MassMutual ranked No. 2 out of 18 large companies scored by NerdWallet. The ranking is a composite based on its A.M. Best financial strength ratings, J.D. Power customer satisfaction score and the number of complaints to state regulators against the company, adjusted for market share.
» MORE: The best life insurance companies

A.M. Best financial strength rating: A++ (Superior)

MassMutual’s financial strength is “superior,” according to ratings agency A.M. Best.

Financial strength is important because it indicates how well an insurer can pay claims. It’s especially important when choosing a life insurance company, because claims might not be made until many decades after a policy is purchased.

Consumer complaints: Better than the median

MassMutual drew significantly fewer than the median number of complaints to state regulators in 2015 for a company of its size, according to the latest data from the National Association of Insurance Commissioners.

The association assigns a complaint ratio score to insurance companies, based on the number of complaints to state insurance commissioners, adjusted for market share. The median score is 1. A score less than 1 means fewer complaints. MassMutual’s score for individual life insurance in 2016 was .04.

J.D. Power ratings: ABOUT AVERAGE

MassMutual scored about average in all five categories of the J.D. Power 2017 U.S. Life Insurance Study for customer satisfaction. Among the 24 life insurance companies included in the study, MassMutual was ranked No. 10.

MassMutual Life Insurance customer satisfaction scores
Overall satisfaction About average
Billing and payment About average
Price About average
Policy offerings About average
Interaction About average
Source: J.D. Power 2017 U.S. Life Insurance Study

More about MassMutual

Types of life insurance soldOther products & services
  • Term life
  • Whole life
  • Universal life
  • Variable universal life
     
     
  • Annuities
  • Disability insurance
  • Long-term care insurance
  • Workplace benefits
  • Investment, wealth management and trust services
  • LIFE INSURANCE OPTIONS

    Immediate term life insurance: MassMutual’s Direct Term is available online, and coverage takes effect immediately if the application is approved. Applicants must take medical exams within 90 days. After the exam results are in, the coverage price is adjusted if necessary. You can cancel the policy and get a refund, or change the coverage amount if the price goes up. MassMutual also offers term life insurance online through a subsidiary Haven Life. Haven Life uses medical information to set rates, but most younger and healthy applicants don’t need to take a medical exam. In addition, MassMutual sells term life offline through its advisors.

    Permanent life insurance: MassMutual offers whole, universal and variable universal life through its advisors. Whole life policy owners are eligible to earn dividends. The company also offers guaranteed-acceptance insurance online to people age 50 to 75 to cover final expenses. No medical exam is required.

    Special-needs planning: MassMutual runs the American College MassMutual Center for Special Needs in partnership with The American College of Financial Services in Bryn Mawr, Pennsylvania. The center educates financial professionals on how to help parents and caregivers financially plan for loved ones with disabilities and other special needs.