Last Updated: March 2020
If you are considering purchasing a guaranteed acceptance life insurance policy through MassMutual, you are in the right place.
In this article, we will review MassMutual’s guaranteed acceptance policy details, their company ratings, as well as the pros and cons of this policy. Then you’ll be able to compare them to other carriers to find the best life insurance company for your needs.
- MassMutual Company Ratings
- What is Guaranteed Acceptance Life Insurance?
- MassMutual Guaranteed Acceptance Life Insurance Policy Features
- MassMutual has High Rates for Guaranteed Life Insurance
- Pros and Cons of MassMutual Life Insurance
- MassMutual Guaranteed Acceptance Life Insurance: Takeaways
Life Insurance is Boring. Let’s Get To The Root Of It! Here are the key takeaways…
MassMutual’s Guaranteed Acceptance Life Insurance policy usually has higher rates than other companies. MassMutual has an “A++“ (superior) rating with A.M. Best and is a fantastic life insurance company. However, for a guaranteed acceptance policy, other carriers like Gerber & AIG are better.
MassMutual Company Ratings
Here are the financial ratings for MassMutual, along with several other metrics that we use to review carriers.
- A.M. Best: “A++” (superior) rating
- Affordability Index: 6.1
- Ease of Applying: 9.2
- Customer Service: 9.9
- COMDEX Ranking: 97
A.M. Best is the industry benchmark for financial strength in the life insurance industry. The other three metrics are based on a number of factors including our industry knowledge of MassMutual compared with other companies. The COMDEX ranking is a composite score that considers A.M. Best and other top ratings agencies.
Learn more about our process for reviewing life insurance companies here.
What is Guaranteed Acceptance Life Insurance?
In a nutshell, guaranteed acceptance life insurance is life insurance that is guaranteed to anyone as long as you’re a member of a certain age group, usually around 50 to 80.
Unlike many other types of insurance policies, no medical exam is required. This means you can’t be denied for any medical reasons.
There are a few drawbacks though.
- It usually only comes in coverage amounts up to $50,000.
- There is also a 2-year waiting period before your policy will be 100% paid out. If you passed away in the first 2 years, you usually get your premiums paid to that point plus 10%.
- These policies are also more expensive than most other types of life insurance.
This form of life insurance is ideal for applicants who cannot qualify for more traditional insurance policies due to a pre-existing medical condition or age ineligibility.
MassMutual Guaranteed Acceptance Life Insurance Policy Features
Below are several features of MassMutual’s guaranteed acceptance policy.
- You must be between the ages of 50-75 to qualify.
- You must reside in the United States.
- MassMutual offers coverage ranging from $2,000 to $25,000.
- 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).
This two-year waiting period is right in line with other insurance carrier requirements for guaranteed acceptance policies. However, MassMutual and other carriers, don’t make it very clear in their advertising. 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 the best price.
If you are looking for guaranteed acceptance life insurance, compare MassMutual alongside other top life insurance carriers like John Hancock Final Expense Life Insurance before purchasing a policy.
We have also reviewed over 50 life insurance carriers and agencies here to help you compare rates and find the right company for your specific needs.
MassMutual has High Rates for Guaranteed Life Insurance
MassMutual is only one of many life insurance companies offering a guaranteed acceptance policy.
MassMutual does not have the best rates for guaranteed acceptance life insurance.
For example, a 66-year-old male looking for $10,000 of coverage can get the following rates.
- MassMutual: $96.50 per month
- Gerber: $70.77 per month
- AIG: $75.69 per month
MassMutual is over 25% more expensive in this particular instance.
After surveying over a dozen different ages and coverage amounts, MassMutual consistently fluctuated between being 22% to 30% more expensive than other top competitors.
Pros and Cons of MassMutual Guaranteed Life Insurance
Before moving on, let’s review the main advantages and disadvantages of MassMutual’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 guaranteed 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 MassMutual’s plan, policyholders are offered coverage ranging from $2,000 to $25,000. These 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, guaranteed acceptance 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: MassMutual’s guaranteed 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 MassMutual’s TV ads.
- Includes Higher Monthly Rates: Compared to similar life insurance companies, MassMutual’s monthly rates are typically more expensive. As mentioned previously, MassMutual consistently fluctuated between being 22%-30% more expensive than other top competitor packages.
- Lacks Robust Features: In relation to more traditional life insurance packages, guaranteed coverage lacks a full range of robust features. These policies are designed to more so cover final expenses than serve as a financial planning tool.
MassMutual Guaranteed Acceptance Life Insurance: Takeaways
Before purchasing a MassMutual policy, sit down and research the following.
- See if you can qualify for life insurance (without taking a medical exam still) other than guaranteed acceptance life insurance. In terms of priority, guaranteed acceptance life insurance should be a last resort.
- If you can’t qualify for other types of life insurance, compare all the top guaranteed acceptance life insurance companies based on your age and coverage amount (or budget) desired to compare prices.
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, you can find full coverage from reputable companies, such as Gerber or AIG, at a much lower cost.
If you’re considering a MassMutual Guaranteed Acceptance Life Insurance policy, please contact us by filling out the form on the side of the screen or calling us. Our network of independent agents will likely find you lower rates.
Compare MassMutual to Other Life Insurance Companies
Below are several other guaranteed acceptance life insurance companies to consider.
Read more about the 10 Best Life Insurance Companies here.
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