Mutual Trust Life Insurance Company Review

There are hundreds of life insurance companies in the US, some of which brokers such as myself haven’t heard of before. We feel an obligation to our readers to review as many life insurance companies as possible. There are two vital reasons to do so. The first is to educate our readers about the product and services a company offers.

The second is to make sure an independent broker such as myself doesn’t miss out on an excellent opportunity to provide competitive products to our clients. Today, we review Mutual Trust Life Insurance Company by looking at their rates and life insurance products. Currently, we are not appointed to sell their products (we can if there is a value to our clients). However, we have all the life insurance products’ material and current rates.

What is the Mutual Trust Life Insurance Company history?

Mutual Trust Life Insurance Company is a subsidiary of Pan-American Life Insurance Group, a leading provider of health, life, and annuities insurance products. It was established in 1904 as a mutual company that favours its policyholders as opposed to stockholders. The goal of a mutual company is to share profit with members by offering dividends or premium reductions. Mutual Trust Life’s (MTL) goal has remained the same for more than 100 years: to remain strong financially and have sound management so they can keep paying dividends. MTL is licensed in all states except New York to sell its products and services.

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What are Mutual Trust Life Insurance’s financial ratings?

• A.M. Best: A (Excellent)
• Fitch: A

What products are offered by Mutual Trust Life Insurance (MTL)?

MTL insurance offers annuities, permanent, and temporary life insurance policies. This MTL review will go over the term and whole life coverages. Let’s get to it!

What is Select Term?

Level term life insurance presents the most economical protection and is preferred by young individuals and healthy individuals. Its lowest cost, when compared to a permanent solution, is a result of two factors: term life has no cash value accumulation, and its protection lasts for a limited period of time.

Essentially, you pay for “pure insurance” and nothing else. Mutual Trust Life provides level premiums for 10, 15, 20, and 30 years. At the end of the term, you may convert the term life policy to any Mutual Trust permanent life insurance product prior to age 65, or you can set an annual renewable term until the age of 98 (never advisable as the premium becomes astronomical).

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What is Horizon Value?

Horizon Value is a participating whole life product. This means, as a policyholder, you are eligible to receive dividends each year. Although not guaranteed nor required by law, the Mutual Trust Life Insurance Company has been paying them for more than 100 years.

As the name implies, whole life lasts for as long as the insured is alive. The premium and life insurance death benefit remain fixed through your life, building guaranteed cash value that grows on a tax-deferred basis. You can access the cash in the future through a loan, withdrawal, or if you cancel your life insurance coverage (surrender your policy).

Plan Highlights

• Issue ages: 0–75
• Minimum face amount:
  • $25,000 for ages 0–39
  • $10,000 for ages 40–75
• Paid up at age 90 (no needed payments after the age of 90—your policy is paid up)

What is Horizon Guarantee?

Horizon Guarantee is one of the other participating whole life insurance plans available, just like Horizon Value. However, Horizon Guarantee is geared towards anyone whose priority is the death benefit, and the cash value component is secondary. This is because the premium is lower than other whole life coverage, which makes it challenging to build cash fast. That doesn’t mean that you are not entitled to dividends and cash accumulation. It means that it’s moderately done. Find out how much whole life insurance costs.

Plan Highlights

• Issue ages: 0–85
• Minimum face amount: $50,000

What is Horizon Blend?

Horizon Blend is a unique product. It merges both permanent and temporary coverage into one. It’s a 50% participation whole life and 50% 20-year term life insurance. At the end of the term period, the insured can convert the term policy to whole life should the need arise, without evidence of insurability.

This policy is a useful choice for families who don’t have a large budget for buying one whole life policy. By keeping 50% as term life, they can save on costs and have adequate protection.

Plan Highlights

• Issue ages: 18–65
• Minimum face amount: $100,000

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What is Legacy One?

Legacy One is a single premium, participating whole life insurance. Single-premium life (SPL) insurance means that you pay one premium to have a paid-up policy. Simply put once and done. With SPL, your cash is accumulated faster than other types of whole life because the policy is already funded, and there is more cash to earn interest and dividends when compared to coverage that you pay monthly.

Besides, SPL guarantees life insurance death benefit coverage to be paid tax-free to your heirs, and tax-deferred growth on the cash in your account. You can access the money in the cash account through loans and withdrawals of dividends.

Plan Highlights

• Issue ages: 0–85
• Minimum face amount: $5,000
• Guaranteed interest rate of 4% yearly

What riders are available?

Most insurance companies provide riders or provisions on their policies. Life insurance riders are an added benefit to your current coverage. With riders, you can customize your policy to fit your individual needs. Most riders are sold at an extra charge, though, so they may cause your life premiums to go up. Here are MTL’s riders:

• Chronic Illness: The policyholder can accelerate 24% of the death benefit amount (maximum of $240,000) if he is diagnosed by a physician to be permanently chronically ill.
• Terminal Illness: The policyholder can receive 50% of the total death benefits (maximum of $250,000) if he is diagnosed to have a terminal illness with life expectancy of 12 months or less.
• Waiver of Premium: MTL will waive future premiums and keep the policy in force should the insured become totally disabled and unable to work. It’s also offered in 2- and 5-year periods.
• Accidental Death Benefit: Offers an additional death benefit amount on top of the base amount should the insured die as a result of an accident before the age of 70.
• Children Insurance Rider: Provides life insurance coverage for all children under age 20.
• Guaranteed Purchase Option: This rider guarantees the policyholder the opportunity to purchase additional coverage without proving eligibility before pre-set anniversary ages.
• Term Rider: A provision to allow the policyholder to purchase a 7- or 15-year term. This coverage can be attached to any whole life coverage and can be added at the time of policy issue or on an anniversary date after the policy is in force (subject to underwriting).
• Single-Premium: Enables the policyholder to increase the death benefit amount, at the time the coverage is issued, by purchasing one lump-sum premium between $1,000 to $500,000.
• Flex Pay: This rider allows the flexibility to increase the death benefit and cash value in the account if the insured selects the maximum premium he wants to pay. As long as he pays $100 per year, the money goes to earn dividends and increase the death benefit (restrictions apply). This is also only available for cash value policies.

What are Mutual Trust Life vs. other carriers’ sample monthly rates?

*All rates quoted on this page are for a super-preferred healthy individual who does not use tobacco. Monthly rates are updated as of Jan 2019 and are subject to underwriting approval.*

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The Bottom Line on Mutual Trust Life Insurance Company

Mutual Trust Life Insurance Company has been around for more than 100 years and is financially stable. If you look for whole life insurance, they have many options from which to choose, and I like the fact that they are a mutual company that pays dividends to its policyholders rather than investors.

When it comes to its term life, they aren’t as competitive price-wise as other companies (see table above). They don’t offer different types of coverages such as universal life or term life insurance without an exam. If you are after these types, you’re out of luck and need to look elsewhere.

Buying the right life insurance policy isn’t as easy as comparing rates online and choosing the one that has a lower price. The rates are in direct reflection of factors such as your health, age, gender, and family history to name a few.

We at Effortless Insurance represent more than 50 companies, we have no allegiance to anyone but our clients. Use the form on the right to get instant term life quotes.

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