We are living in such specific times when not having life insurance becomes a severe inconvenience. Car accidents, unexpected life events, sudden illness – without a secure insurance plan, those concepts may really darken our day-to-day living. That is why it is, without a discussion, essential to get interested in the life insurance world.
‘But how can I choose appropriate life insurance, suitable for all of my needs, that will not make me spend all of my life savings?’ – you may ask. Here, at Wealth Nation Blog, we are reviewing popular Life Insurance Companies and try to help you find the best offer possible. Today we are coming to you with an in-depth review of Mutual Trust Life Insurance Company.
To shed some light on this company, here are some basic facts. Mutual Trust Life Insurance Company is owned by a Pan-American Life Insurance Group (PALIG), a leading provider of health, life, and annuities insurance products. It was founded in 1904 as a mutual insurance organization that prioritizes policyholders over stockholders. Mutual Trust Life has its headquarters at Jorie Boulevard, Oak Brook, in Illinois but can be accessed online on mutualtrust.com.
A joint company’s purpose is to distribute profits to its members in the form of dividends or premium reductions. For more than a century, Mutual Trust Life’s (MTL) mission has been the same: to maintain financial strength and competent management in order to continue providing dividends, to nurture partnerships with their clients. MTL is licensed to sell its products and conduct services in all states except New York.
This relatively old company with a long history of providing people with security offers multiple types of life insurance. The Mutual Trust Life Insurance is rated A+ (Superior – second-highest grade) by an independent insurance company rating party A.M. Best. A.M. Best rates the insurance company’s financial strength and ability to pay out the insurance coverage to the policyholder’s loved ones. Moreover, it received an A from Fitch (an American credit rating agency) and an A+ from The Better Business Bureau (BBB) has given the business an A+ rating. In the course of three years, MTL received only one customer complaint regarding ]issues with the company’s products and services.
In today’s article, we will try to determine whether Mutual Trust Life lives up to its company name and if it is suitable for all of your needs and can become a permanent part of your financial planning. The topics covered are subsequently:
- Available policies, riders and rating
- Coverage guidelines
- Examples for price and coverage
- Alternative to Mutual Trust Life Insurance – The Infinite Banking Concept
Mutual Trust Life Insurance Company provides a diverse range of life insurance plans. Both term and permanent coverage are available. Term life insurance provides death benefit protection without the accumulation of cash value or savings.
Mutual Trust Life Insurance Company offers multiple term lengths of the term policy:
- 10 year
- 15 year
- 20 year
- 30 year
The death benefit on the insurance will remain constant for the time period indicated, and the premium amount will not increase.
Mutual Trust offers the conversion of the rem insurance into the permanent one without the requirement of proving insurability. This conversion can happen at 65 years old or at the insured’s issue age plus the length of the level premium period plus five years.
Permanent life insurance is an available type of policy offered by Mutual Trust. There is a death benefit as well as a cash value gain in this type of life insurance. Through its Horizon Value plans, Mutual Trust Life Insurance Company focuses on providing whole life insurance.
For example, Horizon Value whole life insurance policies from Mutual Trust come with a number of extra features, including non-forfeiture, which means that if the policyholder’s plans or budget change, they can choose between a reduced paid-up policy or a term policy.
Individual riders can be added to a term life insurance policy through Mutual Trust as well.
Conversion is guaranteed with the optional waiver of premium rider, for example, even if the term insurance policy is under a waiver claim. The premiums on the permanent policy can continue to be waived in this instance (provided that certain conditions have been met).
This means that when your money grows, you won’t have to pay taxes on the profit until you withdraw it. This allows funds to compound and snowball over time.
The company ensures that no matter what are the swings in the market, your money will remain safe inside the annuity.
The entire amount of the money you deposited can begin working and earning interest right away due to the lack of upfront sales charges or commissions to pay.
You can still buy an annuity from Mutual Trust if you don’t have a lot of money, to begin with. This is due to the benefits that flex annuities provide. The monthly premiums can be as low as $300. Moreover, the single premium annuity offers are available for the minimum contribution of $5,000.
When the time comes to start taking money out of the annuity, you have a number of options to select from. You can take out:
- the entire amount at once
- create an income stream on an annual, semi-annual, quarterly, or monthly basis
- the lifetime income option – which means the insurance company will pay you an income for the rest of your life no matter how many more years you will live. It is a perfect option for people concerned about outliving their retirement income.
The accumulated annuity value can pass straight to a named beneficiary/beneficiaries upon the owner/death.
Mutual Trust comes with different insurance plans that have their own requirements. Here is the list of the whole life insurance plans with details.
- For people aged: 0–75
- The minimum worth of the policy
- $25,000 for ages 0–39
- $10,000 for ages 40–75
- No payments after turning 90- your policy is paid-up
- For people aged: 0–85
- The minimum worth of the policy: $50,000
- For people aged: 18–65
- The minimum worth of the policy: $100,000
- For people aged: 0–85
- The minimum worth of the policy: $5,000
- A guaranteed interest rate of 4% yearly
Male 20-year Term $250,000 monthly premiums:
Age 30: $18,90
Age 40: $27,45
Age 50: $64,58
Age 60: $185,18
Female 20-year Term $250,000 monthly premiums:
Age 30: $15,98
Age 40: $26,10
Age 50: $45,90
Age 60: $115,20
Infinite Banking allows you to imitate how a traditional bank operates and borrows money, but without the need to depend on a third party. You will be both a creditor and a lender.
Instead of borrowing from a bank, you borrow money against yourself and single-handedly dictate cash flow while still allowing your whole life insurance policy to earn dividends (money) even though you are using that money elsewhere. In other words, you build wealth while borrowing and repaying the money held in the cash value of your permanent life insurance policy.
That being one of the most significant advantages of the whole life insurance policy, you will never have to deal with banking fees or interest rates on loans. As a policyholder, you can borrow money using your own policy’s cash value. Using this borrowing setup, you would never have to borrow money from a bank again and instead would borrow for yourself (your whole life insurance policy) and pay yourself back over time. Thus, being your own bank.
The goal of Infinite Banking is to duplicate the process as much as possible to build the value of your own bank. The duplication process happens by lending and repayment of money typically held in the cash value of a permanent life insurance policy.
Infinite Banking allows you to better work towards your individual and unique financial goals for yourself and your family and have control over your finances without dealing with banking fees or interest rates on loans.
- Overfunding (with after-tax funds) a high cash value whole life insurance policy from a life insurance company
- Accumulation of Cash Value(tax-free) throughout the years you are a policyholder of your Whole Life insurance policy.
- Tax-Free Loans taken out against your whole life insurance policy’s cash value to use for your financial expenses.
By the process of borrowing for yourself, repaying, and so on – simply by being your own bank, you earn the financial freedom and control of your money.
Implementing this banking strategy into your life gives you much better control over your finances and helps you build wealth using the life insurance policy.
We hope we brought the topic of Mutual Trust closer to you and helped you make a decision if they are the right company for you.
Consider Infinite Banking if you want to receive life insurance while also changing your life and gaining financial freedom. We wish you luck on your financial journey!