National Life Group vs Penn Mutual
🛡️ National Life Group vs. Penn Mutual: Life Insurance Comparison for Affordable Coverage
When choosing a life insurance provider, National Life Group and Penn Mutual are both strong mutual companies that emphasize long-term value, living benefits, and financial stability. Let’s explore how they compare for budget-conscious clients.
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🏢 Company Overviews
National Life Group has been serving clients since 1848 and is known for its Living Benefits focus, which allows policyholders to access funds in case of chronic, terminal, or critical illness. It’s ideal for families and small business owners wanting protection and flexibility.
Penn Mutual, founded in 1847, is a mutual life insurance company with a strong reputation for its participating whole life policies and high dividend payouts. It emphasizes financial planning and long-term wealth accumulation.
💼 Financial Strength & Ratings
| Rating Agency | National Life Group | Penn Mutual |
|---|---|---|
| AM Best | A (Excellent) | A+ (Superior) |
| Moody’s | N/A | Aa3 |
| S&P | N/A | AA- |
| Fitch | N/A | Not Rated |
📊 Penn Mutual holds stronger ratings, indicating greater financial strength and a long-term commitment to policyholder dividends.
📋 Policy Types Offered
| Policy Type | National Life Group | Penn Mutual |
|---|---|---|
| Term Life | ✅ | ✅ |
| Whole Life | ✅ | ✅ (Participating) |
| Universal Life | ✅ | ✅ |
| Indexed Universal | ✅ Strong offering | ✅ Strong offering |
| Variable UL | ❌ Not offered | ✅ |
| Final Expense | ❌ Not offered | ❌ |
💡 Both providers offer a full suite of policies, but Penn Mutual adds VUL, and National Life Group leans heavily into IULs and Living Benefits.
🔄 Coverage Options & Flexibility
National Life Group offers Living Benefits across many policies, giving early access to funds in case of serious illness.
Penn Mutual emphasizes cash value growth, flexible payment options, and high long-term dividends.
✅ If you’re looking for built-in living benefits, National Life Group is a standout. For long-term policy value, Penn Mutual is hard to beat.
📝 Underwriting & Application Process
| Feature | National Life Group | Penn Mutual |
|---|---|---|
| No-Med Exam Options | ✅ On select policies | ✅ Available |
| Accelerated Underwriting | ✅ For healthy applicants | ✅ Streamlined process |
| Online Application | ⚠️ Agent-assisted mostly | ⚠️ Advisor-guided |
| Health-Focused Discounts | ✅ Living Benefits, not lifestyle-based | ❌ Not offered |
📲 Both companies still rely on advisor-guided applications, but underwriting has been modernized to support faster approvals.
💲 Pricing & Affordability
National Life Group offers competitive pricing, especially for indexed universal life with living benefits.
Penn Mutual is less focused on term affordability, but provides high long-term value through dividends.
💸 For lower initial premiums, National Life Group may be better. For wealth-building whole life, Penn Mutual justifies the cost.
🔄 Alternatives to Consider
Mutual of Omaha – Great for term and simplified issue
Protective Life – Known for affordable term rates
Guardian Life – Excellent dividend-paying whole life
Banner Life – Flexible underwriting for budget-minded clients
🛠️ Riders & Customization
| Rider | National Life Group | Penn Mutual |
|---|---|---|
| Accelerated Death Benefit | ✅ Standard | ✅ Standard |
| Chronic/Terminal Illness | ✅ Living Benefits | ⚠️ Optional |
| Waiver of Premium | ✅ | ✅ |
| Children’s Term Rider | ✅ | ✅ |
| Guaranteed Insurability | ✅ | ✅ |
| Return of Premium | ❌ | ❌ |
🔧 National Life Group excels in built-in Living Benefits, while Penn Mutual provides flexibility in traditional riders and stronger long-term performance.
🎯 Best For…
National Life Group is best for:
Clients looking for affordable coverage with living benefits
Families wanting early access to policy funds for illness
IUL buyers who want value and protection
Penn Mutual is best for:
Individuals interested in whole life with strong dividends
Long-term planners looking for cash value accumulation
High-net-worth individuals wanting custom permanent life
📊 Pros and Cons (Comparison Table)
| Feature | National Life Group | Penn Mutual |
|---|---|---|
| Financial Ratings | A (AM Best) | A+ (AM Best), AA- (S&P), Aa3 |
| Living Benefits | ✅ Built-in | ⚠️ Optional |
| Term Life Pricing | ✅ Competitive | ⚠️ Higher premiums |
| Whole Life Dividends | ⚠️ Limited history | ✅ Strong & consistent |
| Digital Application | ⚠️ Limited | ⚠️ Advisor-led |
| Custom Riders | ✅ Solid rider menu | ✅ High customization |
| IUL Options | ✅ Robust | ✅ Also available |
| VUL Options | ❌ Not offered | ✅ Yes |
🤝 Customer Experience & Support
National Life Group offers personalized service through independent agents and has invested in tools to explain Living Benefits.
Penn Mutual is praised for its financial planning support, strong advisor network, and high policyholder satisfaction.
📞 Both are service-driven companies, but Penn Mutual leads in advisor-based planning, while National Life focuses on flexibility and speed.
🏁 Final Verdict
✅ Choose National Life Group if you want:
Affordable term or IUL
Living benefits built into your policy
Flexibility with chronic/terminal illness access
✅ Choose Penn Mutual if you want:
Strong whole life with reliable dividends
Financial planning through an advisor
High long-term policy performance
💡 How to Get a Quote or Apply
National Life Group: Work with a licensed agent or independent broker who partners with National Life. Some quotes available through online platforms.
Penn Mutual: Must apply through a licensed Penn Mutual financial professional for quotes and coverage options.
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Get Started💬 Frequently Asked Questions
Which company is more affordable for life insurance: National Life Group or Penn Mutual?
National Life Group is often more affordable for term life and indexed universal life policies, while Penn Mutual’s whole life policies may cost more but offer strong long-term value.
Does National Life Group offer Living Benefits?
Yes. National Life Group is known for including Living Benefits (accelerated access to death benefits) for terminal, chronic, and critical illness in many of its policies.
Which company pays better dividends on whole life insurance?
Penn Mutual has a long track record of high, consistent dividend payouts on participating whole life policies, making it a strong option for long-term cash value growth.
Can I get a no-medical-exam life insurance policy from either company?
Yes. Both companies offer accelerated underwriting or no-med-exam policies for qualifying applicants, typically based on age, health, and coverage amount.
Do either companies offer Variable Universal Life (VUL)?
Penn Mutual offers VUL policies. National Life Group currently does not offer VUL but focuses heavily on indexed universal life (IUL).
Which company is better for IUL policies?
Both offer strong IUL options, but National Life Group is often more competitive in pricing and integrates Living Benefits more widely.
Can I apply online with National Life Group or Penn Mutual?
Not directly. Both companies rely on financial advisors or independent agents to assist with applications, though some parts may be digitized.
Are both companies financially stable?
Yes. Both companies are financially strong, but Penn Mutual holds higher ratings from agencies like AM Best, S&P, and Moody’s.
Who should choose National Life Group over Penn Mutual?
Choose National Life Group if you value affordability, Living Benefits, and flexibility with less emphasis on long-term dividends.
Who should choose Penn Mutual over National Life Group?
Choose Penn Mutual if you're looking for long-term whole life performance, high cash value growth, and consistent dividends.
Blake Insurance Group
Phone: (888) 387-3687
Email: [email protected]
Hours: Mon-Fri 9:00 am to 5:00 pm
Sat-Sun: Closed
Blake Nwosu
Owner & Principal Agent