Let me take a guess: you probably saw the advertisement on TV and are now searching for reviews on this fairly new offering from Mass Mutual.
Well, I’ve got good news for you – you’ve come to the right place to learn more.
Undoubtedly, Mass Mutual is a fantastic life insurance company.
However, when assessing other top agencies, Mass Mutual’s Guaranteed
Acceptance Life Insurance offerings just aren’t nearly as competitive.
Before we get into Mass Mutual specifics, let’s clarify what this type of life insurance entails. It’s important to understand the basics of a certain life insurance plan in order to make a well-informed decision for yourself and your family’s future.
What is “Guaranteed Acceptance Life Insurance?”
In a nutshell, “Guaranteed Acceptance Life Insurance,” also referred to as GALI, is life insurance that is pretty much “guaranteed” to consumers as long as you’re a member of a certain age group.
If you are currently between the ages of 50-75 and reside in the United States, you would qualify for Mass Mutual’s insurance package. Another perk is that unlike other types of insurance policies, no medical exam is required. This means you can’t be denied for any medical reasons.
This form of life insurance is ideal for applicants who want to avoid placing an unnecessary financial burden on their family but cannot qualify for more traditional insurance policies due to a pre-existing medical condition or age ineligibility.
Like other insurance policies, though, the policyholder must list one or more beneficiaries. The beneficiary or beneficiaries may choose to allocate the eventual payout in whatever way they see fit.
These types of policies aren’t meant to help individuals generate retirement income or cash value, so most policyholders choose to set aside the funds for final expense purposes.
GALI policies, by nature, are also more flexible for family financial planning, so many applicants find this form of insurance more appealing and manageable for handling final expenses.
However, guaranteed acceptance life insurance plans typically aren’t as robust in their offerings compared to more traditional plans, and coverage amounts are designed primarily for taking care of final expenses.
Mass Mutual’s Offerings
Mass Mutual offers coverage ranging from $2,000 to $25,000, and there’s also a standard two-year waiting period (this is cleverly hidden in the fine print, though, and isn’t actually mentioned in any of their TV ads).
However, this two-year waiting period is essentially right in line with other insurance carrier requirements. We just wish Mass Mutual had made a concerted effort to include this important feature in their TV ads instead of solely burying the details in fine print.
With that being said, there are a lot of guaranteed acceptance life insurance companies trying to entice you with well-executed advertisements on TV.
Companies such as Colonial Penn, AARP, Mutual of Omaha, Gerber, and AIG may come to mind. They’re all essentially offering the same product, but with a different company name behind it.
In other words, you can think of guaranteed acceptance life insurance as truly a commodity, so if you aren’t already you should be shopping around for agencies offering the most comprehensive GALI plan for the best price.
Should I Choose Mass Mutual?
Mass Mutual is only one fish in a sea of life insurance companies. We tell all of our clients the same advice: exercise due diligence and conduct your own research while keeping your family needs and budget in mind.
Let’s get one thing straight – Mass Mutual is NOT the best bang for your buck.
There are other insurance agencies offering more attractive and more affordable GALI packages than Mass Mutual. The following example will help clarify what we mean here.
How Mass Mutual Compares
Making things simple let’s say Bob, a 66-year-old male, is looking for $10,000 of coverage. Bob wants to make an informed decision, so he does some research online to perform a comparative analysis of top competitor GALI packages.
After determining the best rates on the market, he compiles the information:
- Mass Mutual: $96.50 per month
- Gerber: $70.77 per month
- AIG: $75.69 per month
The numbers suggest that Mass Mutual is over 25% more expensive in this particular instance. I don’t know about you, but that’s probably much higher than Bob would prefer.
After surveying over a dozen different ages and coverage amounts, Mass Mutual consistently fluctuated between being 22%-30% more expensive than other top competitor packages.
There is absolutely NO REASON to buy Mass Mutual Guaranteed Acceptance Life Insurance when other companies offer the same exact insurance coverage at a less expensive (and therefore more reasonable) price.
Those who specifically call us for guaranteed acceptance life insurance often might not even need it.
Many “final expense” companies take some pretty high risks, which will be much less expensive than buying a full guaranteed acceptance life insurance policy. It’s also important to note that you’ll get first-day coverage instead of waiting for 2 years before the full benefits kick in.
We must say that we were quite surprised to hear of a Mass Mutual “Guaranteed Acceptance” life insurance offering. Mass Mutual has been laser-focused for years on their own agents selling whole life insurance and other financial products, such as disability insurance. To see the company stray away from core offerings and go around their agent base was quite shocking to many in this industry.
Weighing the Options
Before moving on, let’s review the main advantages and disadvantages of Mass Mutual’s Guaranteed Life Insurance plan. Remember to always conduct your own research when making any important financial decisions directly affecting family members.
- Avoids Medical Examinations: Unlike more traditional life insurance plans, with GALI policies you cannot be denied due to medical reasons. This type of policy may work well for an applicant worried about a pre-existing medical condition affecting insurance premiums.
- Offers Coverage and Flexibility: With Mass Mutual’s plan, policyholders are offered coverage ranging from $2,000 to $25,000. GALI policies, by nature, are also generally more flexible and manageable (compared to more traditional policies) when it comes to making monthly payments.
- Includes Beneficiary Payout: Like other insurance policies, GALI plans involve listing one or more beneficiaries. Although the listed beneficiary or beneficiaries may allocate the eventual payout however they see fit, most allocate the funds toward any final expenses on their plate.
- Mandates 2-Year Waiting Period: Mass Mutual’s GALI plan mandates a standard two-year waiting period for all policyholders. This important feature was hidden in fine print, though, and not mentioned in any of Mass Mutual’s TV ads.
- Includes Higher Monthly Rates: Compared to similar life insurance companies, Mass Mutual’s GALI monthly rates are typically more expensive. As mentioned previously, Mass Mutual consistently fluctuated between being 22%-30% more expensive than other top competitor packages.
- Lacks Robust Features: In relation to more traditional life insurance packages, Mass Mutual’s GALI plan lacks a full range of robust features. These policies are designed to more so cover final expenses than serve as a financial planning tool.
The Bottom Line
As an independent life insurance agency offering Gerber, AIG, and other less expensive insurance options (even offered at the same price as if you purchased directly through the company), it makes sense to work with us. Our process, quite simple in nature, is outlined below:
- See if you can qualify for life insurance (without taking an exam still) other than guaranteed acceptance life insurance. In terms of priority, guaranteed acceptance life insurance should be last resort.
- If you can’t qualify for other types of life insurance, we’ll compare all the top guaranteed acceptance life insurance companies based on your age and coverage amount (or budget) desired.
- We don’t work for or associate with any specific life insurance company. Instead, our philosophy is simple: we entirely work on behalf of YOU, our valued clients.
If you’re truly in the market for a life insurance policy to cover any important final expenses, such as funeral costs or medical bills, we can get you full coverage from reputable companies, such as Gerber or AIG, at a much lower cost. We’ll take out the guesswork for you and present only the best options on the market.
If you’re considering a Mass Mutual Guaranteed Acceptance Life Insurance policy, please contact us by filling out the form on the side of the screen or calling us. We’ll provide you with much better options from highly reputable life insurance companies – it’s guaranteed.