Mass Mutual Insurance Company Review
Mass or Massachusetts Mutual has long billed itself as one of the financially strongest insurance companies. Among its claims to fame are reports that it has paid dividends on its whole life insurance policies since the 1860s.
In recent decades the company has moved beyond insurance by acquiring Oppenheimer Funds and Baring Asset Management Limited. Mass is also one of the few major US insurers that has chosen to remain a mutual company, which means that it pays dividends on its insurance policies.
Mass Mutual is one of the most stable insurance companies in the United States. It still maintains its headquarters in Springfield, Massachusetts, where the company was founded in 1851. Most of its CEOs and other leaders have come from the company ranks. During its first century of operations, Mass Mutual emphasized insurance policies and policy loans which helped many families survive the Great Depression. It moved into universal life insurance in the early 1980s and has entered the group pension, mutual funds, and asset management arenas.
Mass Mutual Financial Ratings
Mass Mutual carries impressive financial strength ratings. All four of the major US financial ratings firms have given it high marks for financial strength.
A.M. Best's experts felt that the company was very strong and gave it a rating of A++. This means they think the firm is strong enough to meet any sort of financial storm.
Fitch rated Mass Mutual at AA+, its second highest level. This means that Fitch's analysts felt that the company's business model and risk management strategy were ensuring financial strength.
Moody's gave Mass Mutual a grade of Aa2, or excellent, which is also close to the top. Like their coworkers at the other ratings firms, Moody's analysts believe that the company is financially strong and capable of weathering any future financial downturns.
S&P (Standard & Poor's) rated Mass as AA+, or very strong. This indicates the firm's analysts think the company is in a good position to prosper in today's economy.
Getting high ratings from all of the Big Four is a true achievement for an insurance company. There are quite a few major insurers that have not achieved such ratings. This indicates Mass Mutual seems to be more stable than a lot of its competitors.
Mass Mutual Annuities
Mass Mutual is to be commended for being straightforward about its annuities. It does not attempt to give ordinary products confusing or impressive sounding, as other do.. Nor does it try to hide important details as surrender charges.The company's web site divides its annuity products into the deferred and immediate categories. This makes it easy for shoppers to choose a product and see exactly what is being offered. Both fixed-rate immediate and split annuity products are available. Mass Mutual calls its split product the immediate fixed and variable annuity, and markets it as the Mass Mutual Retire Ease Select.
There are some advantages to the split product because it comes with inflation protection and a flexible premium after the initial investment is made. The sub account gives purchasers a chance to invest part of the proceeds in highly rated mutual funds.
Both variable and fixed deferred annuities are also available. These also have some pretty good features including a Guaranteed Minimum Accumulation Benefit. These features provide some guaranteed returns and inflation protection. Other good features include a free 10% withdrawal feature and optional 20% withdrawal of funds on all the deferred plans. Another good benefit is the nursing home waiver which allows a person who has entered a nursing home to withdraw all or most of the funds.
The Mass Mutual annuities seem to be a pretty good deal. They offer flexibility and good benefits for the price. The straight forward marketing approach is also refreshing.
Mass Mutual Life Insurance
Mass Mutual offers a fairly good variety of life insurance options, including term, permanent, whole, universal, variable, and survivorship plans. Details about the policies available on the company's website are limited but an insurance calculatoris provided. This calculator does not seem to provide information beyond projected income at retirement age and life time economic value, so its usefulness is limited.
Mass Mutual could do a better job of providing information about its life insurance online. The life insurance features are not as detailed or as comprehensive as those related to other products such as annuities.
Retirement and Financial Planning from Mass Mutual
Mass Mutual provides a wide variety of retirement and financial planning products, including 529 plans, disability income insurance, IRAs, long term care insurance, trust services, and mutual funds to name a few.
Mass Mutual is a good resource for retirement products such as annuities. Its insurance products are a little harder to evaluate because insufficient information is provided. The company's financial stability means that it is well worth a look even if information about some of its products is limited.