Provider Reviews: Physicians Mutual Life Insurance

Today we are taking a closer look at Physicians Mutual Life Insurance. Life insurance is a tool that may help you to leave money behind for specific causes or family members. This tax-free income could help your loved ones to build wealth over time. It may even provide for generations to come.

Yet, not all life insurance providers are the same. It’s not always easy to know who you should choose to buy a policy from nor what makes one different from the other. Let’s dive into the features, benefit amounts, rates, and other details you should know about this provider before you decide to work with them.

Related: Complete Guide to Life Insurance

Who Is Physicians Mutual Life Insurance?

Physicians Mutual was founded in 1902. Since that time, it has provided life insurance to surgeons and physicians across the U.S. Headquartered in Omaha, Nebraska, the company now offers a number of health insurance policies to meet the needs of numerous groups.

Though it began by selling insurance to medical professionals in 1962, the company made the switch to include the general public in its offerings. In 1970, it expanded to provide life insurance products to its clients. Today, the company offers annuities, Medicare Supplement Plans, funeral pre-planning services, term and whole life insurance, as well as other insurance products.

Physicians Mutual has an A rating from A.M. Best and an A- rating from Weiss Ratings for its life insurance company’s products. It also has an A+ rating with the Better Business Bureau. Physicians Mutual carries $1.75 billion in assets and has $163.2 million in total claims paid out annually. It is a private, non-public, funded company.

Read this: Life Insurance Claim Denied? Here’s What to Do.

What Type of Life Insurance Does Physicians Mutual Life Insurance Offer? 

Physicians Mutual Life Insurance offers both term and whole life insurance. Take a look at some of its main products.

Modified Whole Life Insurance

Physicians Mutual Life Insurance’s whole life insurance, a type of permanent life insurance, is a guaranteed renewable policy. This means that the policy does not cancel as long as you continue to make payments on it consistently. It does not change due to health changes or a person’s age. The company offers guaranteed coverage if a person is between the ages of 45 and 85. During that age, a person cannot be turned down for this type of policy.

This type of whole life insurance policy provides up to $15,000 to your named beneficiary. It does not require health questions or a medical exam to be completed.

This type of whole life insurance policy builds cash value over time. As a result, a person can borrow from it during their lifetime if they need to do so. This could provide a good option for those who need financial help in an emergency. There are also discounts available to those who sign up.

Term Life Insurance

Physicians Mutual Life Insurance offers a term life insurance policy that offers up to $50,000 of coverage. This policy is designed to provide a bit more flexibility. People can sign up for policies that are 10 or 20 years in length. Like with their other policies, there are no medical exams required to obtain this coverage. Individuals have to answer two health insurance questions to qualify for this policy related to the diagnosis of illness.

At the end of a term life insurance policy, a person is able to convert that policy to a whole life insurance policy if they would like to do so. It may also be possible to purchase another term life insurance policy if they continue to meet the requirements and eligibility for it.

Term life insurance policies are available in 10-year terms for those who are 18 to 70 years of age. The 20-year-term policy is available to those who are 18 to 60 years of age. Users pay the same monthly rate for the term of the policy. When that term ends, the rate can change depending on factors such as age and health conditions.

Read More: Term vs. Permanent: A Physicians Life Insurance Comparison Guide

High Benefit Term Life Insurance

Physicians Mutual Life Insurance also offers a high benefit term life insurance policy. This policy allows an applicant to obtain up to $250,000 in coverage. This coverage is not available throughout the U.S., only in states where the company has an agent. At the time of those writing, it’s available in:

  • Arizona
  • Alabama
  • California
  • Colorado
  • Iowa
  • Illinois
  • Indiana
  • Louisiana
  • North Carolina
  • Nebraska
  • Nevada
  • Ohio
  • Oklahoma
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Wisconsin
  • Wisconsin

It may require a medical exam and health questions for most people.

Coverage for Health Care Professionals

Though Physicians Mutual Life Insurance started out providing coverage just to health care providers, today it offers options for many Americans. They do not offer a specialized policy just for those who are doctors or other medical providers.

What Is Physicians Mutual Life Insurance Known For?

Physicians Mutual Life Insurance is a well-recognized company. While all of its insurance policies are equally valuable, the company’s whole life policies are some of the most recognized. This policy aims to remain in place long term, up to 35 years, for the same monthly payment. That provides an individual with an easy way to cover their final expense costs and other needs.

Keep in mind that this whole life insurance policy option is capped at $15,000. That is unlike a true whole life insurance policy that may last for many more years and offer other benefits such as dividends.  Many traditional life insurance policies offer far more in compensation. That may include $100,000 to $1 million or more. This policy is significantly smaller and may not meet all of the needs of the family members receiving it or achieve the core goals some have for life insurance benefits such leaving behind a financial legacy. True whole life insurance policies also may offer core benefits like sharing dividends during a person’s lifetime as the underlying investments grow in value.

Which Is the Best Type of Policy from Physicians Mutual Life Insurance?

For those who are looking for a way to cover financial expenses at the end of life, the whole life insurance policy from Physicians Mutual Life Insurance can provide that. This policy is ideal for those over the age of 45 (it is not available in this form under that age). For those who are seeking a policy for final expenses under the age of 45, the term life policies work well for this as long as a person can meet the health question screenings.

One of the key reasons the whole life insurance is a solid option is because it does not require the policyholder to reapply for coverage. Also, it locks in the rate paid at the lowest rate possible today. Once locked in, the policy’s rate does not go up as long as the policy remains in place (not missing payments or otherwise canceled). Those who buy younger will likely get a lower rate.

What Are Physicians Mutual Life Insurance’s Monthly Premiums Like?

Physicians Mutual Life Insurance does not publicize the rates they charge. There are a few reasons for this. First, many of their rates are location based. Some people live in an area where there is more risk or a shorter lifespan likely than those who live in other areas. Additionally, there is a lot of other information that they take into consideration when setting rates. Here is what you should know about each:

Type of Policy Costs

Whole life insurance locks in a set rate depending on your age and where you live at the time of your application. If you wait and apply in a few years, your rate is likely higher. Once locked in, the rate does not change as long as the policy remains in place.

Term life insurance rates are dependent on location and the type of term. In addition, the company asks a few health questions. These may determine what you pay for coverage as well (those with health risk factors could pay more).

Coverage Amounts

The amount of coverage available depends on the type of policy. Options include:

  • Term life insurance policies for 10 or 20 years: $25,000 minimum, up to $50,000
  • Whole life insurance policies for those 45 to 85: $15,000
  • High benefit term life insurance (where applicable): Up to $250,000

Read More: How Much Life Insurance Do You Need?

Age and Health Conditions

Physicians Mutual Life Insurance’s term life insurance policies are available to those who pass their health screening questions. There is no required medical exam for these policies, though. The whole life insurance policy does not require any medical exams or any health questions.

In all situations, age plays a role in the cost a person pays. Also, note that:

  • Term life insurance policies are available to those who are between the ages of 18-70 for a 10-year policy or between 18 and 60 for a 20-year policy.
  • Whole life insurance policies are only available to those 45 to 85 years of age.

Optional Riders

Physicians Mutual Life Insurance offers an Accidental Death Benefit Rider. This is an addition to your policy (which means it may add cost to your coverage). It allows for a higher level of coverage for qualified individuals. This rider allows for the death benefit (the coverage amount) to apply in situations where the individual dies in a covered accident. There are numerous exclusions and limitations to this type of rider. Be sure to read through this on the disclosures before purchasing the rider.

What Do Beneficiaries Need to Do to Collect Benefits?

If a covered party dies while the policy is in place, they will file a claim directly with Physicians Mutual Life Insurance. This process is simple and straightforward. They will need to submit a death certificate in the individual’s name to the insurer. The policy’s death benefit is then processed and sent to the named beneficiary on the policy

Read this: How to Avoid or Overcome Life Insurance Fraud.

How Do Premiums Compare to Others?

It’s not possible to know what Physicians Mutual Life Insurance’s rates are. The company requires applicants to file a specific quote with information about location, age, and in some cases, health to obtain a quote. Rates vary significantly. The company does not publish rates outside of this.

Pros and Cons with Physicians Mutual Life Insurance

There are a few good and limiting features about Physicians Mutual Life Insurance. Consider the following.


  • Physicians Mutual Life Insurance is available to all individuals, not just to medical workers.
  • The whole life insurance policies do not require any medical questions to be answered, nor does it require a medical exam. For those who may have a few health concerns, you cannot be turned down for care if you are between 45 and 85 years of age.
  • The term life insurance policies will convert to whole life policies for those who wish to use them as such.
  • Rates remain locked in for the life of the insurance policy. That means that once you purchase a whole life policy, you will pay the same rate throughout the lifetime of that policy.
  • Coverage does not drop over time. You maintain the same coverage throughout the life of the policy.


  • Whole life insurance does not offer any wealth-building tools. Policyholders do not have the ability to earn dividends from the policy like with variable and universal life insurance.
  • Coverage amounts for whole life insurance are capped at $15,000. While higher than some other providers, this may not be enough for individuals who wish to leave behind money for their loved ones.
  • Rates are not available without a formal quote. That makes it harder for consumers to compare their options.

Is Physicians Mutual Life Insurance a Good Option for Physicians?

This type of insurance can be a good option for physicians primarily for final expense purposes because the amount of coverage is so limited. However, unlike other insurance companies, it does not offer specific policies designed for doctors or other healthcare providers. Physicians receive the same offers and rates as anyone else. Most of our clients are looking for the ability to replace multiple years of income should they pass away before expected. For this reason, this company’s offerings fall well short of what our clients usually need. Their policies can serve a specific purpose but it is recommended that you speak with an advisor about your comprehensive needs before pursuing this as a standalone option.

Does Physicians Mutual Life Insurance Offer Group Policies for Business Owners to Offer to Their Employees?

The company does work with business owners who wish to provide life insurance policies to employees. These are strictly term life insurance policies that remain in place while the individual is employed there.

Can Policyholders Build Wealth with a Policy from Physicians Mutual Life Insurance?

No, it is not possible to build wealth during your lifetime with the Physicians Mutual Life Insurance whole or term life policies. These policies do gain cash value throughout a person’s lifetime. This only allows for the policyholder to borrow from the policy in the case of an emergency.

Unlike other insurance policies such as variable and universal life, the policies do not build wealth. They do not pay dividends to the policyholder. They do not grow in value beyond the stated coverage.

Other Life Insurance Providers:
Allianz  |  AMA Life Insurance  |  Banner Life  |  Genworth  |   John HancockKansas City Life  |   Mutual Life  |  Nationwide  |  Pacific Life  |  Principal Life

Protect Your Income Now

With all this talk about protection after you’re gone, don’t forget your needs during your lifetime. It’s critical to work to protect your salary with disability insurance. According to the Council for Disability Awareness, one in four of today’s 20-year-olds will experience a disabling condition before retirement that keeps them out of work for least a year.

Without the protection that disability insurance provides, you could find yourself in a position where you’re earning zero income or working in a role that pays far less than a job as a physician would.

For more information on contract review, financial planning, disability or life insurance, contact Physicians Thrive now.

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