MassMutual Guaranteed Universal Life Insurance Review

MassMutual is considered one of the best mutual life insurance companies in the world.  They are mostly known for their whole life products, but they also have competitive guaranteed universal life (GUL) products – in some situations.  You will see sample rates and learn where and when MassMutual’s GUL could be a very good fit.

Please use the quote engine on this page to compare term and guaranteed universal life (Lifetime Term) insurance.

Note:  Several top rated companies do not appear on this (or any) quoting tool.  You can receive customized quotes – showing MassMutual – and all carriers.  Just complete the form or give us a call. 

MassMutual History, Reputation and Financial Ratings

Before we jump into the guaranteed universal life insurance rates and plan information, let’s look at MassMutual, the company. This company is sometimes referred to as Mass Mutual, MassMutual (with no space) or Massachusetts Mutual.

MassMutual was founded in 1851 and it’s headquarters is based in Springfield, Massachusetts. MassMutual is one of the strongest and largest mutual life insurance companies.  They are owned by their policyholders.  Dividends are paid out each year to policyholders and they have a history of paying higher-than-average dividends.

• AM Best : A++ (Superior; top category of 15)
• Fitch Ratings: AA+ (Very Strong; second category of 21)
• Moody’s Investors Service: Aa2 (Excellent; third category of 21)
• Standard & Poor’s: AA+ (Very Strong, second category of 21)
• Comdex Score: 98

MassMutual is one of very few carriers with an A++ rating by AM Best.  They have a reputation as one of the strongest life insurance companies in the world and have consistently received excellent scores from all independent rating agencies.

Massachusetts Mutual offers a full suite of insurance and investment products.  They are well known for having competitive whole life policies, but they also have very good disability and long term care insurance.  They aren’t necessarily known for their guaranteed universal life insurance, but we’ll learn more about this below.

Is an A++ carrier important for a GUL (term for life) policy?

We think financial ratings are important, but even more so when choosing a policy with non-guaranteed components.  This would hold true for most permanent life insurance policies, but not GUL.  Guaranteed universal life is unique in the sense that all components are fully guaranteed.

With whole life or other types of universal life, there are not guaranteed components, such as interest rates or dividend payments.  With those policies, the financial strength of the carrier is very important.

MassMutual Hasn’t Been in our Top 10 for Guaranteed Universal Life Plans

Although Mass Mutual is a top-notch company, their GUL products were simply too expensive.  Why pay 20% to 30% more?  There were several highly rated carriers with similar (or better) product designs at a much lower cost.  Occasionally, we would run comparison quotes, but every time, Mass Mutual was not competitive.   This recently changed – as of April 2018.

Minimum face amount increase. MassMutual changed the UL Guard minimum face amount from $50,000 to $100,000.

Premium Decreases

MassMutual  lowered prices for both UL Guard and SUL Guard to offer lower guaranteed premiums at most ages and issue classes. The new products will be more competitive in the secondary-guarantee universal life insurance market.

• Premiums for most ages decreased by 10 to 20 percent for UL Guard and 10-15 percent for SUL Guard

We received the announcement above and decided to run numerous comparison quotes to see how they stacked up to the competition.  Here’s the bottom line:

MassMutual is most competitive for people in their 50s, 60s, and 70s.

If you’re under age 50, it’s not likely Mass Mutual will be good option.  We ran quotes for various face amounts, ages, and underwriting classes.  In fact, we spent a few hours running quotes! Mass Mutual’s GUL wasn’t in the lowest five carriers in any scenario for people in their 30s and 40s, irrespective of gender, underwriting class, or face amount.

They have fair underwriting, but aren’t known for being more lenient with certain health conditions.

SWEET SPOT:  Age 65 and older / Lower Face Amounts

However, when we look at rates for people over age 50, they are much more competitive.  As you will see in tables below, Mass Mutual is most competitive for people age 65 or older.  Their “sweet spot” is for people in their 70s, especially for lower face amounts – between $100,000 and $250,000.  Additionally, they are among the lowest three carriers in many scenarios for people in their 70s.

Where Mass Mutual has among the lowest 5 rates out of all carriers, the numbers will be in bold green.

SAMPLE MONTHLY RATES:  Lifetime Guarantee / Paid to 100 / No Extra Riders

Comparing Lower Rates:  $100,000 and $250,000

Riders

Many carriers now offer a compelling accelerated death benefit rider.  MassMutual’s GUL rider is basic.  You can accelerate the death benefit only if you are diagnosed with a terminal illness with less than 12 to 24 months to live (depending on your state’s guidelines).

The minimum amount allowed to be accelerated under any one policy is $25,000. The maximum amount allowed to be accelerated is the lesser of $250,000 or 75% of the Eligible Amount.

The maximum amount eligible to be accelerated under all policies on the life of an insured is $250,000.

Other carriers have a more comprehensive accelerated death benefit that can be used for critical illness, chronic illness and long term care.

Waiver of premium Rider:  This optional rider will waive the policy premiums in the event of your total disability.

CAVEAT EMPTOR: Comparison Quotes Engines for GUL are Only a Good Starting Point

Like many top tier carriers, you won’t find MassMutual on any comparison quote engine for GUL.  So, if you simple received a side-by-side quote comparison, that’s not enough.  Yes, it is a good starting point if you just want to get an idea of the cost.  However, if you want to see all the top carriers, then you will need to request a customized quote.

Many agencies use a quick quoting service like Ebix’s VitalQuote.  We use VitalQuote along with three other quote engines.  More importantly, we quote directly with the leading carriers.  If you rely on quote engine for guaranteed universal life rates, then you will only see a small sampling of the leading carriers offering GUL.

Whenever we are notified of any product or rate changes, we check it out thoroughly.  Now that we have determined where MassMutual is competitive, we can better serve our clients.  Some carriers simply are not competitive; others are competitive in only certain cases or niches.

Survivorship GUL

This product is also known as a “second-to-die” policy and will only pay after the second insured’s death.  For this reason, the rates are better than a standard GUL.  This product can be useful for estate tax purposes or if you have special needs child.

This product can ensure that your estate transfers intact to your heirs.

If you would like a customized SGUL quote, please let us know.

MassMutual Guaranteed Universal Life Insurance Review – Conclusion

If you are in your mid to late 60s or older, you certainly want to see how Mass Mutual rates compare to other leading carriers. Since they are most competitive in that age range, make sure you ask to see illustrations.  They don’t have very attractive riders, but this might not be important to you.

As with any life insurance product, make sure you work with someone who is experienced and knowledgeable. Additionally, be certain your agent is independent and offers all the best carriers on the market.

We will be glad to provide you with a free consultation and a customized quote.  Please complete the quote request form or call us anytime.