Mutual Trust Life Insurance Company Review [Pan-American Life]

Beginning long ago in 1904, Mutual Trust Life Insurance Company has been providing life insurance policies to U.S. consumers for over a century.  During that time, the company grew and expanded rapidly.  Today, Mutual Trust Life sells insurance and annuities in nearly all of the states in the U.S., including the District of Columbia.

Today, Mutual Trust’s headquarters is located in Oak Brook, Illinois.  The insurance provider is also solely owned by Pan American Life Insurance Group (PALIG), a financial conglomerate known for their financial and insurance services nationwide. Mutual Trust is a major player among the major life insurance companies.

 

Whole Life Policy Dividends

As their name implies, Mutual Trust operates as a mutual insurance provider.   The company does not utilize shareholders, but is supported by and for the policyholders.  Although not guaranteed, policyholders of Mutual Trust might be eligible to receive dividends when declared by the company.  These dividends can be taken as a single payment or applied to the policy to purchase additional insurance protection.

 

Good News for Dividends in 2019
Mutual Trust has just announced that their dividend scale will increase in 2019 meaning a higher payout to policyowners.  Mutual Trust has paid dividends throughout their 114 year history without missing a year.  Strong dividends are an important benefit that only mutual life insurance companies can offer.  The dividends are not guaranteed but Mutual Trust has a proven history of paying them.  Strong guarantees of a participating whole life insurance policy plus dependable dividends makes Mutual Trust/Pan-American Life insurance a top player. 

 

Mutual Trust Life Insurance Company Ratings

 

To date, Mutual Trust Life Insurance Company has earned an “A” (Excellent) rating from A.M. Best and an “A” (Stable) rating courtesy of Fitch. These ratings are indicative of the insurance company’s financial strength and stability.

 

Currently, Mutual Trust Life Insurance Company is not accredited with the Better Business Bureau (BBB). However, the organization has given Mutual Trust the highest grade of “A+”, based on their A+ to F grading scale.  Impressive in the products they provide, Mutual Trust has had only one customer complaint in the past three years.

Mutual Trust Life Insurance Product Line

The life insurance provider provides a wide array of life insurance policies to pick from, including permanent and term life coverage.   The difference between the two is chiefly that term life insurance provides only a death benefit with no cash value component, which makes it more affordable than permanent life insurance coverage.  Let’s briefly review these coverages:

 

Term Life Insurance 

Mutual Trust term product is called SelecTerm and runs durations of 10, 15, 20 and 30 years.  Term life insurance covers the policyholder for a specified number of years.   The premium will remain level during the term and the death benefit amount is guaranteed.

Mutual Trust Life SelecTerm Features:

Once the policy reaches its original duration period of 10 – 15 – 20 or 30 years, the insured will be given the option of an annual renewable policy in order to keep their coverage.  The premium will increase each year, but the death benefit will remain level until the age of 98.  As with many term life insurance policies, this one can be converted into a permanent form of life insurance, without the need to prove insurability. 

 

Whole Life Insurance

Mutual Trust currently offers 4 traditional whole life insurance products.   These plans guarantee that the death benefit will never decrease and the premiums will never increase.  These whole life policies will also see cash value accumulation and also participate in dividends when available.  

The cash value portion of the policy has the ability to grow on a tax-deferred basis.  No tax will be due on any gains made until those gains are withdrawn.  The funds inside the cash value account are frequently used by the policyholder to create a private banking situation allowing them to avoid traditional banks and use the policy to finance items such as vehicles, homes, college and business.  The cash value can also be used as a tax-free retirement supplement or anything else desired. 

At the end of the day, life insurance is meant to be there when you die and to leave a tax free death benefit to your beneficiary.   

 

Mutual Trust Horizon Value

Horizon Value, a quality participating whole life insurance product, is a leader in providing quick, guaranteed, tax-deferred cash value growth. In most cases, the cash value will exceed the policy’s annual premium as soon as the fourth year. Policyholders will be able to access their cash throughout their lives through policy loans and withdrawals. The Mutual Trust Horizon Value™ provides guaranteed level premiums, guaranteed death benefit, an accelerated death benefit rider for chronic and terminal illness, which is available at no additional premium. There are also additional optional riders and benefits available to the policyowner.

Mutual Trust Horizon Guarantee

Mutual Trust Horizon Guarantee is a participating whole life policy designed to provide a guaranteed death benefit at a guaranteed level premium. The Horizon Guarantee is often priced lower than other whole life policies available and still offer guaranteed cash value growth. A great choice for anyone looking entirely for life insurance with options to customize with riders. Horizon Guarantee also includes the accelerated death benefit rider for chronic and terminal illness without any additional cost.

 

Mutual Trust Horizon Blend

The Mutual Trust Horizon Blend is a combo policy with a 50/50 blend of dividend paying whole life insurance and term life insurance. Since this product has a mix of term and whole life, the cost is lower than other full whole life policies. This policy provides guaranteed death benefit protection and cash value growth for 20 years. During and after the 20 year term period the policy holder may convert all or some of the term life insurance. The Horizon Blend fits in for business owners and families that are on a tight budget but want the benefit of what a participating whole life insurance policy offers.

 

Mutual Trust Legacy One

The Mutual Trust Legacy One is a single premium whole life insurance policy.  This policy is mainly used as a wealth transfer vehicle allowing policy owners to max out the amount to be left to their beneficiaries.  They are also able to maintain control of their money since there are no surrender charges.  The cash value growth in this policy increases with participating dividends and a guaranteed interest rate off 4%.  Traditional savings accounts and fixed annuities can’t compare with the Legacy One when it comes to wealth transfer.

 

Mutual Trust Life Insurance Riders Are Available

Accelerated Death Benefit Rider and Terminal Illness Provision

Policyholders are able to personalize their insurance coverage further by adding the accelerated death benefit rider with provisions for terminal and chronic illnesses.  These riders are available free of charge, and they make it possible to accelerate a significant part of the death benefit should the insured become permanently, terminally, or chronically ill.  The accelerated benefit could be utilized to pay medical expenses, or any other expense desired.

 

The Applicant Waiver of Premium Benefit Rider

This  rider waives premiums in the event that you are permanently disabled before the age of 60.  Mutual Trust also provides a waiver of premium due to occupation for two and five years.  You can also add 7-year and 15-year term riders in order to supplement your life insurance coverage.

Some other important riders to take note of are:

  • Accidental Death Benefit Rider
  • Children’s Insurance Rider
  • Disability Benefit Rider for Flex Pay PUA Rider
  • Flexible Premium Paid-Up Additional Insurance Rider
  • Guaranteed Purchase Option Rider
  • Single Premium Paid-Up Additional Rider
  • Waver of Premium 2 year own occupation rider
  • Waver of Premium 5 year own occupation rider
  • 7-Year Term Rider and 15-Year Term Rider

 

Mutual Trust Retirement Annuities

Not only does Mutual Trust offer a full product line of life insurance, they also offer 3 annuities.  Mutual Trust Life offers both immediate annuities and deferred annuities.  

Mutual Trust Immediate Annuity

Designed to provide policy holders a guaranteed income for however long they live or for a certain period of time.  The immediate annuity is a very flexible income vehicle when income streams are needed.

 

Mutual Trust IntegrityPlus Flex I and II

These are flexible premium deferred annuities that earn a compounded interest and can help policy owners accumulate funds to provide income during retirement.

 

Mutual Trust IntegrityPlus Single Premium III and IV

A single premium annuity providing a vehicle to take lump sum deposits.  All it takes to open an account is $5,000 but deposits can only be made in year one.

An annuity can be a great provider of income for a retired individual by providing a fixed income for the remainder of their lifetime.  Another attractive incentive is that these annuities provide tax advantages during and after the accumulation phase.  

 

Final Thoughts – Mutual Trust is a winner at whole life insurance

As is the case with all other insurance providers, your personal situation is going to determine the price of the policy that you select.  While there will be cases where Mutual Trust Life Insurance is the appropriate and most affordable choice among available policies, this is no way suggestive that it will be helpful in all situations. 

Determining which life insurance company is right for you is not always easy to figure out.  The reason being is that every life insurance provider assesses risk differently.  Where one life insurance provider might be harsher when rating a smoker, another company may offer favorable rates on life insurance for a diabetic.  Talk with a qualified, reputable independent insurance agent about whether Mutual Trust Life Insurance is right for you.

Don’t trust your loved one’s well-being with just any policy.  Be sure to have a clear view of what you anticipate your coverage needs being in the future, as well as your budget.

We are Here to Listen and Serve
We know Mutual Trust Life.  If you would like a personalized proposal, please call InsuranceQuotes 2Day at (800) 712-8519 during normal business hours or contact us through our website at your convenience.
About Doug Mitchell
About Doug Mitchell

Doug Mitchell, CLU holds a BA degree in Finance from Auburn University as well as having obtained a Chartered Life Underwriter (CLU) designation from The American College in Bryn Mahr, PA.  Doug has spent over 20 years in the life insurance industry and has also held licenses to sell securities, long-term care insurance, home and auto insurance.  For two years, Doug served as President of the Auburn Opelika Association of Financial Advisors and has been a member of the Million Dollar Round Table.  He obtained Life Millionaire status at Horace Mann Insurance Company and was awarded the Life Agent of the Year Award.  Later in his career with New York Life he was an Executive Council Member.  Doug currently serves as President of Ogletree Financial, a life insurance marketing organization with over 1000 life insurance agents.  Today, Doug’s main focus is servicing 1000s of policyholders and growing his agency through the reach of www.insurancequotes2day.com.

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