Physicians Mutual Life Insurance Review

Limited policy options, low coverage limits, and lots of complaints

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Physicians Mutual

Physicians Mutual

Investopedia’s Rating
2.8

Our Take

Physicians Mutual Life Insurance does not make our best life insurance provider list because it offers limited policy options and not enough riders to help policyholders customize coverage to suit their needs. Customer complaints are twice the number expected for a company its size, and the low coverage limits offered are not particularly suited for today’s high-inflationary environment.

  • Pros and Cons
  • Company Overview
  • specifications
Pros and Cons
Pros
  • No medical exams required

  • Online quotes and application

Cons
  • Low coverage limits

  • Limited policy selection

  • Very few riders

Company Overview

Headquartered in Omaha, Nebraska, Physicians Mutual Life Insurance was founded in 1902 to provide health insurance to medical professionals. Over the decades, it expanded into other insurance products, including life insurance with the formation of Physicians Life Insurance Company in 1970. Physicians Mutual had $2.6 billion in assets as of December 2020, and is licensed to sell life insurance in all 50 states and Washington, D.C.

specifications
AM Best Rating
A
NAIC Score (avg.)
N/A
Years In Business
120 Years
Policy Types
Final Expense, Term
Accepts Credit Cards
Yes
Why Trust Us We collected over 5,000 data points from 91 life insurance companies to measure financial stability, customer satisfaction, product and feature variety, and the overall buying experience. We then evaluated each company based on 55 metrics to develop unbiased, comprehensive reviews. Read our Full Methodology
91 Companies reviewed
55 Features considered
5,005 Data points analyzed
Physicians Mutual

Physicians Mutual

Investopedia’s Rating
2.8

Physicians Mutual is not one of our top-rated life insurance companies. You can review our list of the best life insurance companies for what we think are better options.

Pros Explained

  • No medical exams required: If you’re looking for a no-med-exam life insurance policy, Physicians Mutual might be a good option. None of the company’s life insurance policies require a medical exam to get approved.
  • Online quotes and application: Physicians Mutual makes it easy to get a life insurance policy without working with an agent. You can apply online or get a quote any time.

Cons Explained

  • Low coverage limits: Physicians Mutual’s life insurance policies have very low coverage limits. Regular term life policies are capped at $50,000 and final expense policies are capped at $15,000. 
  • Small selection of policies: The only types of life insurance available from Physicians Mutual are term life insurance, final expense whole life insurance, and children’s life insurance.
  • Very few riders: We wouldn’t recommend Physicians Mutual if you want to customize your life insurance policy with riders. The company makes very few riders available relative to its competitors.

Complaint Index

Physicians Mutual receives more complaints than expected, according to data from the National Association of Insurance Commissioners (NAIC) Complaint Index. The complaint index is a calculation that indicates how many complaints a company receives annually based on its size or market share. 

Companies that receive an expected number of complaints for their size have an index of 1.00, whereas those with fewer complaints than expected have an index below 1.00. Those with more complaints than expected have an index above 1.00.

To gain a deeper understanding of customer experience at Physicians Mutual, we averaged the company’s annual complaint index over a three-year period, resulting in a score of 1.963. That means Physicians Mutual has almost twice as many complaints as expected. As a reference point, most of the best life insurance companies we reviewed have an index below 1.00.

Third-Party Ratings

Physicians Mutual has an A (Excellent) rating from AM Best for financial strength, which means that it has an excellent ability to meet policyholder obligations and pay claims. Financial strength ratings are important because they indicate how likely the insurer will be able to deliver on its promises in the future.

AM Best is a credit ratings agency that assigns letter grade scores to companies based on factors like total debt, balance sheet strength, and overall operating performance. AM Best uses a grading scale to rate companies, with the highest score being A++. 

Out of the 90 life insurance providers we reviewed, most have a minimum AM Best rating of A. Our top-rated life insurance carriers each have a minimum rating of A+. 

Policies Available 

Physicians Mutual offers a handful of life insurance policies, including children’s life insurance, a type of whole life insurance. None of Physicians Mutual’s life insurance policies require a medical exam, but the maximum available coverage amount is $50,000.

Term Life Insurance

Term life insurance provides coverage over a fixed period of time. During the term, the premiums remain consistent, and the death benefit is guaranteed. If you pass away during the term, your beneficiary receives the death benefit. Most term life insurance policies do not build cash value, which is a common feature of permanent life insurance policies.

Physicians Mutual’s term life insurance policy, with a benefit amount up to $50,000, is renewable and convertible. Before the initial term ends, you can convert your coverage to a whole life policy, without taking a medical exam. Or, you can renew coverage on an annual basis once the initial term expires (the premium will increase).

Children’s Life Insurance

Children’s life insurance offered by Physicians Mutual is whole life insurance for your children. It provides a small death benefit and does not expire when the child reaches adulthood, unlike many child riders that you can add to your own life insurance policy. The coverage amount doubles when your child reaches 21 years old, and they’re eligible to increase coverage by up to $100,000 between ages 22 and 27. 

Final Expense Insurance

Physicians Mutual offers a modified whole life policy for up to $15,000 in coverage. Your health won’t disqualify you from coverage, which makes it a type of guaranteed issue life insurance; your application will be approved as long as you’re between 45 and 85 years old. There are no medical exams or health questions. 

The policy provides a small amount of coverage that may be used to pay for end-of-life expenses, like a funeral. Final expense policies have fixed premiums and build cash value, which can be borrowed or withdrawn.

Final expense policies have much higher premiums than policies that require a medical exam or health questionnaire. They also have a graded death benefit period that generally lasts for two years. During this time, your beneficiaries will not receive the full death benefit if you die of natural causes.

Available Riders

Physicians Mutual has a limited selection of riders. Life insurance riders are endorsements that can be added to your policy for additional protection and to fill gaps in coverage.

Physicians Mutual offers an accidental death benefit rider, which is optional. This rider will pay out a second death benefit if you pass away and your death is caused by a qualifying accident. 

Customer Service

To reach Physicians Mutual, you can call (800) 228-9100 during business hours, which are Monday through Friday from 8 a.m. to 5 p.m. CT. To find an agent in your area, you can use the online search tool and enter your zip code. 

Our Methodology: How We Review Life Insurance Carriers

We designed a comprehensive ranking methodology based on consumer priorities and life insurance company fundamentals to rank more than 90 insurers across five general categories: financial stability, customer satisfaction, product and feature variety, the overall buying experience, and cost.

In order to do this, we collected over 5,000 data points and scored each company based on 55 metrics. We grouped metrics by category to see how insurers performed in each; we then weighted category scores to determine how companies performed overall.

To learn more, read our full Life Insurance Methodology.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. NAIC. “Consumer Insurance Search.”

  2. AM Best. “Guide to Best’s Financial Strength Ratings - (FSR).”