Is Physicians Mutual Life Insurance Good? An In-Depth Review

Physicians Mutual is a life insurance company that has been in business for over 100 years. They offer guaranteed issue whole life insurance, which means acceptance is guaranteed regardless of your health.

But is Physicians Mutual a good option for life insurance? In this comprehensive review, we’ll look at their financial strength, customer service reputation, policy details, pros and cons, and alternatives to help you decide if their guaranteed coverage is right for you.

Overview of Physicians Mutual

Physicians Mutual Insurance Company was founded in 1902 and is based in Omaha, Nebraska. They market life insurance, Medicare Supplement, and other supplemental health insurance products.

Some quick facts about the company:

• Rated “A” (Excellent) for financial strength by A.M. Best

• Over $3 billion in assets

• Provides coverage in 50 states

• Sold primarily through independent agents

• Offers personalized service and educational resources

So on paper, Physicians Mutual seems to check the right boxes as a reputable life insurance company with strong financials and nationwide availability. But let’s take a deeper look at their customer satisfaction and products.

Physicians Mutual Ratings and Reputation

Two key indicators of an insurer’s service quality are ratings from A.M. Best and the Better Business Bureau (BBB).

A.M. Best Rating

As mentioned above, Physicians Mutual currently holds an “A” (Excellent) Financial Strength Rating from A.M. Best. This means the company has an excellent ability to meet its ongoing financial obligations to policyholders.

An “A” rating is the second highest out of 15 categories, so this firmly places Physicians Mutual as a stable and reliable life insurance carrier.

BBB Rating

With the Better Business Bureau, Physicians Mutual has earned an A+ rating. The BBB considers factors like transparent advertising, honoring promises, and responding effectively to customer complaints when assigning a grade.

Again, an A+ is the best possible rating from the BBB. This confirms Physicians Mutual upholds high standards for customer service.

Online Reviews

Checking third-party review sites can also provide insight into customer experiences. Physicians Mutual earns consistently positive feedback across sites like Trustpilot and ConsumerAffairs. Most compliments mention the easy and fast application process.

Overall, the ratings paint Physicians Mutual in a very favorable light regarding financial stability, ethical practices, and service quality. But how does their product stack up?

Details of Physicians Mutual’s Guaranteed Issue Life Insurance

Physicians Mutual offers one type of individual life insurance – a guaranteed issue whole life policy.

Some key facts about their guaranteed coverage:

• Pricing – Monthly rates range from $15 to $95 per month depending on age, gender, and coverage amount.

• Coverage – They offer death benefits from $3,000 up to $20,000.

• Policy Term – Their guaranteed issue policy provides permanent, lifetime coverage.

• Underwriting – No medical exam or health questions. Approval is guaranteed.

• Exclusions – No payout if death occurs in first two years except for accidental death.

Availability – Offered to applicants aged 45 through 85 in most states.

So in a nutshell, it’s an easy-to-get permanent life insurance policy with minimal coverage relative to regular underwritten options. How does this stack up in terms of pros and cons?

Pros of Physicians Mutual Life Insurance

Physicians Mutual’s guaranteed issue life insurance policy has several advantages:

Guaranteed Acceptance

The biggest benefit is that acceptance is guaranteed. There is no medical exam or health questionnaire to go through. Applicants cannot be denied based on age or medical history.

Good Option for Seniors in Poor Health

For older seniors with serious health conditions, Physicians Mutual may be the only life insurance option available. Those unable to qualify for underwritten coverage can get this policy.

Builds Cash Value

As a whole life insurance product, it accrues cash value. This can be borrowed against in later years.

Longstanding Company

With over 100 years in business, Physicians Mutual is a proven and trustworthy insurance carrier.

Fairly Inexpensive

Compared to other guaranteed issue policies, Physicians Mutual’s rates are very affordable, especially at younger issue ages.

For some applicants, the guaranteed acceptance and pricing may outweigh the limitations. However, there are some potential drawbacks.

Cons of Physicians Mutual Life Insurance

Here are a few downsides to weigh with a Physicians Mutual guaranteed policy:

2-Year Waiting Period

No death benefit is paid if you die of natural causes within the first two years. Only premiums plus 10% interest are refunded.

Low Coverage Maximum

The $20,000 maximum coverage is low compared to regular life insurance policies that go up to $1 million or higher.

Higher Cost than Underwritten Policies

For applicants who can medically qualify through underwriting, pricing is significantly higher than a standard term or whole life policy.

No Riders or Living Benefits

There are no accelerated death benefit riders allowing you to access the policy’s death benefit while alive if terminally or chronically ill.

Not Available in All States

This policy is not sold in New York, Vermont, Massachusetts, or Washington. Other options must be considered for residents of those states.

While guaranteed acceptance is the main appeal, applicants should weigh the trade-offs. For some, the restrictions may not make it worthwhile.

Physicians Mutual Guaranteed Issue Policy Pricing

To give an idea of pricing, here are sample monthly premiums at various ages:

So at age 70, a $10,000 policy would cost $30 to $37 per month. The exact premium charged factors in age and gender.

While certainly not cheap life insurance, these guaranteed issue rates are competitive for applicants who require this type of coverage.

Alternatives to Physicians Mutual

There are companies that offer similar guaranteed acceptance life insurance policies but with higher death benefits. Here are a few good alternatives to consider:

AIG – American General

• Up to $25,000 Coverage

• Available Ages 50 – 85

• Also Guaranteed Issue

Gerber Life

• Up to $25,000 Coverage

• Available Ages 50 – 80

• No Waiting Period

Great Western

• Up to $35,000 Coverage

• Available Ages 50 – 85

• No Waiting Period

These insurers provide options for applicants who need or prefer immediate protection in the first two years. They are also available for purchase in all states.

Is Physicians Mutual Good for Guaranteed Life Insurance?

Physicians Mutual is a highly reputable company with excellent financial strength and customer service ratings. Their guaranteed issue whole life insurance offers simple acceptance for older and unhealthy applicants in need of small coverage amounts.

While not the right fit for everyone needing life insurance, Physicians Mutual provides a worthwhile option for qualifying seniors given its:

• Competitive pricing
• Permanent lifetime coverage
• Trusted brand name and history

Yet the two-year waiting period, limited death benefit, and lack of living benefit riders are notable drawbacks to weigh. Overall assessment:

• Excellent choice for seniors in very poor health
• Consider alternatives if you can medically qualify
• Compare guaranteed issue policies for best rates

So is Physicians Mutual good for life insurance? Yes, in the right situation for applicants who require their guaranteed issue product. But make sure to explore all your options for potential best value based on your health and budget.