Penn Mutual Life Insurance Review

Term life insurance buyers should check quotes from Penn Mutual, as it often offers very good rates for a variety of face amounts and term lengths.

For cash-value life insurance buyers, Penn Mutual offers a great combination of financial strength, competitive internal policy costs, and reliable policy illustrations. For seniors especially, this helps maximize the death benefit for the premium that’s paid.

Pros and Cons


  • Very competitive rates for term life insurance for its non-convertible policy
  • Penn Mutual term life insurance policyholders who choose to convert their policies to permanent life can choose from any Penn Mutual permanent life insurance policy available.
  • Many of Penn Mutual’s cash value policies are cost-competitive, so you can buy a higher death benefit for the premium you’re paying.
  • Penn Mutual has a good track record of strong financial strength, and its investments have performed very well.


  • Term life insurance buyers will have to pay a term life insurance policy that is convertible to permanent life insurance in the future. Penn Mutual’s convertible term policy is much less price-competitive.
  • Not all Penn Mutual permanent life insurance policies build cash value well early on. That may not be important to a buyer who’s using life insurance for estate planning and who wants to buy a high death benefit for beneficiaries.

Types of Life Insurance Sold by Penn Mutual

  • Term life
  • Whole life
  • Variable universal life
  • Indexed universal life
  • Guaranteed universal life
  • Penn Mutual’s term life insurance

Term life insurance is life insurance for people seeking steady rates for a level term period. For example, if you have 30 years left on your mortgage and want life insurance to cover it if you die, a 30-year term policy could be a good option. You can renew or buy a new policy after the level term expires, but you should prepare for a significant increase in premiums.

Term life insurance does not build cash value.

Penn Mutual’s Guaranteed Convertible Term life insurance is available in 10-, 15-, 20- and 30-year terms depending on your age (20 to 69) and tobacco use. The minimum face amount for this product is $250,000. Policyholders have the option to convert this term policy into a permanent policy during the level premium period and before age 70. You can convert all or part of your term life coverage amount. Converted policies come with Penn Mutual’s Chronic Illness Rider included in the first five years of the policy.

Protection Non-Convertible Term is similar but is available to buyers up to age 70. It does not offer the ability to convert from a term policy to a permanent policy.

Penn Mutual’s guaranteed universal life insurance

Guaranteed universal life (GUL) insurance offers the potential for flexible premiums and death benefit amounts up to specified limits, but the ability to accumulate cash value may be minimal. Since policyholders can expect minimal gains from this type of universal life insurance, it is usually cheaper than other universal life products.

For buyers seeking the flexibility and guarantees GUL has to offer, Penn Mutual’s Guaranteed Protection Universal Life is a possibility for buyers up to age 85. Face amounts start at $50,000, depending on your age and rate class. There is a no-lapse guarantee up to age 121. For cash value accumulation, it guarantees a minimum interest rate of 2%. This product comes with a few built-in riders and the option of adding up to five more.

Penn Mutual’s whole life insurance

Whole life insurance is an option for people looking for a low-risk life insurance policy with guaranteed cash value accumulation and fixed premiums.

Penn Mutual’s Guaranteed Whole Life II is a whole life insurance option for buyers up to age 85 and guarantees a death benefit to age 121. The minimum face amount available to buyers up to age 70 is $50,000—or $100,000 for buyers age 71 and up—and is dependent upon health classification. Penn Mutual offers 13 riders that can supplement its Guaranteed Whole Life II.

Penn Mutual’s indexed universal insurance

If you’re looking for a death benefit that will grow (or decline) with an index, like the S&P 500, indexed universal life (IUL) insurance is an option. Even though this type of life insurance connects your cash value to an index, it includes participation rates and caps that may keep the cash value from the biggest gains. Keep in mind if your cash value gets too low to cover policy expenses and fees, the IUL policy could lapse.

Accumulation Builder Flex is an IUL product and is available to buyers up to age 85. Its cash value accumulation is tied to the S&P 500 but also includes the option for a lower-risk fixed-rate account with a guaranteed minimum rate of 2%. Minimum face amounts are either $50,000 or $100,000, depending on your age and rate class.

Guaranteed floors for Penn Mutual’s Accumulation Builder Flex range from 1% to 2% and are determined based on the indexed account options chosen. Caps, also dependent upon the account options chosen, ranging from 6.75% to 10%, but there is also an uncapped option. Participation rates for this product are 100%.

Penn Mutual’s variable universal insurance

Variable universal life (VUL) insurance provides cash value investment choices among sub-accounts. There’s also the flexibility to vary premium amounts, frequency of payment, and death benefit amount. This type of permanent life insurance is intended to stay in place throughout your lifetime.

VUL insurance includes the ability to borrow tax-free or withdraw from your cash value. However your policy could lapse if your cash value gets too low to cover policy expenses and fees, so you have to keep an eye on this type of policy. VUL insurance policies typically include significant fees and are best suited for people comfortable with higher risk because of the investment component.

Diversified Advantage VUL is Penn Mutual’s variable universal life insurance product. It is available to buyers up to age 85 with face amounts starting at $50,000, depending on age and health classification.

It offers 29 variable investment options, three indexed fixed account options, and one fixed account option to accommodate different risk tolerances and stages of life. The indexed account options include a 100% participation rate, caps ranging from 0% to 10.5%, and guaranteed floors from 0% to 1%. For those seeking a bit less risk, the fixed-rate account guarantees a minimum interest rate of 2%. The Diversified Advantage VUL is highly customizable, with 13 riders available to supplement coverage. Penn Mutual made Forbes Advisor’s list of the best life insurance companies, especially for seniors.

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