Top Mutual Life Insurance Companies at a Glance
Mutual life insurance companies are owned by their policyholders, not external shareholders. This means policyholders are both customers and owners of the company. NerdWallet has rated the following mutual life insurance companies based on their financial strength, coverage options, consumer complaints, and dividend payouts.
Best Mutual Life Insurance Companies
- Guardian: Best for people with health conditions. Guardian stands out for its lower than expected consumer complaints and coverage options for people with health issues. It has been paying dividends since 1868.
- MassMutual: Best for flexible payment options. MassMutual offers a variety of whole life policies with different payment structures. It has been paying dividends every year since 1869.
- Northwestern Mutual: Best for low consumer complaints. Northwestern Mutual has the lowest complaint ratio among the life insurers reviewed. It has been paying dividends since 1872.
- New York Life: Best for fast applications. New York Life offers a wide variety of policies, including whole life insurance with an expedited underwriting process. It has been paying dividends each year since 1854.
- Penn Mutual: Best for rider options. Penn Mutual offers a broad slate of riders and has been paying dividends for over 175 years. It provides term lengths up to 30 years and an extensive universal life insurance lineup.
Key Considerations When Choosing a Mutual Life Insurance Company
When selecting a mutual life insurance company, consider the following factors:
- Financial Strength: Check financial strength ratings from agencies like AM Best to ensure the company will be around to pay out your policy.
- Coverage: Ensure the company offers the type of policy and riders you need.
- Consumer Complaints: Look up complaint data from the National Association of Insurance Commissioners or NerdWallet’s life insurance reviews.
- Dividends: Review the company’s history of dividend payouts, though keep in mind that dividends are not guaranteed.
NerdWallet’s ratings are based on consumer experience, complaint index scores, and financial strength ratings. The top-rated companies have fewer complaints than expected and high financial strength ratings.
Frequently Asked Questions
- Which life insurance companies pay dividends?: Mutual life insurance companies typically pay dividends to participating policyholders.
- Why choose a mutual life insurance company?: Mutual companies offer potential dividend payouts and are owned by their policyholders.
- Which is the largest mutual life insurance company?: Northwestern Mutual is the largest life insurance company in the U.S., followed by New York Life and MassMutual.
