Penn Mutual Life Insurance Co. is owned by its policyholders, which means that customers who buy whole life insurance can share in dividend payouts when the company does well. The company set its 2018 dividend payout at $70 million. Founded in 1847, Penn Mutual sells life insurance through its national network of financial advisors and does not provide quotes online.
Â» MORE: The best life insurance companies
Find out more about each element that goes into our Penn Mutual review by clicking below.
Penn Mutual ranks No. 7 out of 20 life insurance companies. NerdWalletâ€™s ranking is based on a composite score that takes into account the companyâ€™s A.M. Best financial strength rating, J.D. Power customer satisfaction scores and the number of complaints against the company to state regulators, adjusted for market share.
Penn Mutualâ€™s financial strength is â€śsuperior,â€ť according to ratings firm A.M. Best. Itâ€™s important to consider a companyâ€™s financial strength because it indicates an insurerâ€™s ability to pay claims.
Penn Mutual drew significantly fewer than the median number of complaints to state regulators in 2017, compared to life insurers of its size.
The National Association of Insurance Commissioners calculates a â€ścomplaint ratio scoreâ€ť for insurance companies, which is based on the number of complaints to state regulators, adjusted for market share. The median score is 1, and a score of less than 1 means fewer complaints. Penn Mutual had a complaint ratio score of 0.04 for individual life insurance.
Penn Mutual ranked 9th out of 24 life insurance companies for customer satisfaction in the J.D. Power 2017 Life Insurance Study. The company scored three out of five stars, or â€śabout average,â€ť in each of the studyâ€™s main categories.
Term life: You can choose a term of 10, 15 or 20 years and can convert a portion or all of the coverage to a permanent life insurance policy. The annual price stays level through the term, but increases if you make the coverage permanent.
Universal life: Three types of universal life insurance policies are offered, including indexed universal life, which lets you base the cash value growth on an index, such as the S&P 500.
Variable universal life: The policyâ€™s cash value is based on investments you choose. You can build your own portfolio from a selection of 24 investment funds or choose one of five diversified funds to match your risk tolerance.
Whole life: Like all whole life policies, the cash value grows at a guaranteed rate. Because Penn Mutual is a mutual insurer, the policy has the potential to accumulate additional money in years when the company pays out dividends.
Survivorship life insurance: A couple can both be covered under one whole life or indexed universal life policy. The death benefit is paid after the second person dies.