Today we’re delving into one of the few remaining mutual life insurers in the marketplace, Mutual Trust Life Insurance Company. While they can’t quite compete with the top mutual life insurance companies in the industry, Mutual Trust Life has a good selection of life insurance types, including their flagship product, whole life.
Let’s take a look at the company who calls themselves, “The Whole Life Company.” This is our Mutual Trust Life Insurance review, and is our opinion. Before making a buying decision, consider getting a quote from the sidebar to compare several other comparable companies.
Our Mutual Trust Life Insurance Review
For more than 110 years now, Mutual Trust Life Insurance Company has kept its focus on providing high quality, whole life insurance to its policyholders. Even today, it continues to offer this participating life product, a kind few carriers offer, which keeps policyholders at the helm of the decision making and profits within the company, not stock holders.
As a part of the Pan American Life Insurance Group, a national and multi-national collective of life and health providers, Mutual Trust has grown to greater than $2 billion in assets. Their conservative focus on investment grade bonds and long term returns has amassed them $288 million in surplus, with $11 million in annual net profits.
Mutual Trust is among the top life insurance companies based on financial strength ratings, having achieved a rating of “A” from A.M Best, and an “A” from Standard and Poor’s. These two declarations of financial stability rank 3rd best, respectively, at each institution. In comparison to other life insurance companies, these are great scores.
One of the things which differentiates Mutual Trust from most other carriers is their mutual status, meaning they do not have stock holders and are not publicly traded. They are owned completely by their policyholders. Growth and interest, as well as excess funding from the year, are returned back to policyholders by way of dividends, which are accounted to cash value policies.
Mutual Trust Life Insurance company has three types of life insurance policies to offer:
Their term product is called the SelectTerm and consumers have the option to choose level premiums for 10, 15, 20, or 30 years. All SelectTerm plans are convertible to more permanent solutions up to the insured’s 65th birthday.
Among their permanent insurance products are the Economax, the Covenant, and the Legacy One.
The Economax is actually a combination product, made up of 70% term insurance to cover major needs, and the remainder 30% being whole life for both cash accumulation and life long coverage. Premiums stay level to age 100, so it acts as a universal life product with both cheaper death benefit costs per thousand, and long term growth, as well.
The Covenant, the companies’ flagship whole life product, is a true whole life policy with guaranteed level premiums, guaranteed minimum death benefits, and a separate cash value portion. There are minimum interest rates tied to this cash value account, and because of the mutual nature of the company, dividends are also added, though they are never guaranteed.
Finally, the Legacy One is an estate planning and charitable giving type of product, where a single lump sum payment not only leverages into a death benefit, but grows on a tax-deferred basis. While this type of life insurance has a less broad use, it’s unmatched in its ability to instantly create a tax-advantaged, growth situation with just a single payment, all the while offering the tax free benefits of life insurance.
As with almost all mutual life insurance companies we’ve reviewed, term products tend to be over priced when compared to the marketplace as a whole.
However, for anyone looking at permanent coverage options, there are significant benefits to working with provider, such as Mutual Trust Life Insurance Company; financial strength, diversity in product, and unique policyholder benefits are top notch.
|Company Name (and Subsidiaries)||Pan American Life Insurance Group (PALIG)|
Mutual Trust Life Insurance Company
|Company Ratings||A.M. Best (A)|
Moody’s Investors Services (N/A)
Standard & Poor’s (A)
|Headquarters (Address, Phone, Web)||1200 Jorie Boulevard|
OakBrook, Illinois 60523-2269
|Policy Types Available||Term|