Mutual Trust Life Insurance Company Review

April 18, 2018
Written by: Steven Gibbs | Last Updated on: July 5, 2024
Fact Checked by Jason Herring and Barry Brooksby (licensed insurance experts)

Insurance and Estates, a strategic life insurance provider composed of life insurance professionals, is committed to integrity in our editorial standards and transparency in how we receive compensation from our insurance partners.

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Mutual Trust, AKA MTL Insurance Company, is one of the top whole life insurance companies in the U.S. and the subject of this review article.

In the following Mutual Trust Life Insurance Company review we will cover the history of the company, its financial ratings, the products offered by the company, as well as the specific policy benefits, in an effort to help you determine if it is the right company for you.

Review of Mutual Trust Life Insurance Company

If you are searching for the best cash value life insurance companies it pays to know who the various players are.

At I&E, we create various life insurance reviews that highlight the best whole life insurance and indexed universal life insurance in the industry.

We do this to equip our readers and clients with the insight and knowledge needed to help you make the right decision on the company that fits your specific needs, goals and objectives.

About Mutual Trust

Mutual Trust Life Insurance, aka MTL Insurance Company, aka Mutual Trust Financial Group, aka “The Whole Life Company”®, was founded in 1904 as a mutual insurance company. In 2015, Mutual Trust became part of Pan American Life Insurance Group, which deals in insurance and financial services. Although Pan American Life Insurance Group is a stock company, Mutual Trust has maintained a mutual holding company status.

What is a mutual holding company?

A mutual holding company is somewhere between a pure mutual insurance company and a stock insurance company. Mutual Trust still operates like a mutual insurer, even though its parent company is a stock insurance company.

So that means, as a policyholder of a participating product with Mutual Trust, you may receive dividends. However, the company is not required to offer you dividends, nor are the dividends guaranteed. Mutual Trust has paid dividends

Infinite Banking

Mutual Trust is a popular company for those who understand the pros and cons of infinite banking.

Mutual Trust Financial Ratings

Mutual Trust is a top rated life insurance company. Its current financial ratings include:

  • A.M. Best rating: A (as of 2017)
  • Fitch rating: A (as of 2017)
  • Comdex Ranking: 78

Products Offered by Mutual Trust

Mutual Trust Life Insurance Company’s products and services feature:

Life Insurance including
  • Term life insurance
  • Whole life insurance

Annuities including

  • Single Premium Annuities
  • Flexible Annuities

Life Insurance Policies offered by Mutual Trust

Mutual Trust provides both term life and whole life insurance. Often, financial pundits will pit term life vs whole life insurance. However, a benefit of Mutual Trust is that you can get a policy that blends both term and whole life insurance.

Benefits of Term Life Insurance
  • Lower Initial Cost
  • Income Protection
  • Mortgage Protection
  • Conversion Option
Benefits of Permanent Life Insurance
  • Buy Sell Agreements
  • Key Man Insurance
  • Estate Planning
  • Infinite Banking
  • Executive Bonus (Section 162) Plans
  • Non-Qualified Deferred Compensation Plans
  • Split Dollar Life Insurance
  • Life insurance for children

Mutual Trust Life Insurance Policies [Products and Features]

There are two primary types of life insurance: term and permanent. MTL offers both term life and whole life insurance.

SelectTerm – Term Life Insurance

Mutual Trust offers term life policies. The term insurance coverage is available for 10, 15, 20 and 30 years. Once the initial term coverage expires, the policy is guaranteed renewable to age 98.

A guaranteed renewable term policy’s premium rate increases annually. The policy is convertible term life insurance, which allows the owner of the policy to convert all or a portion of the coverage to whole life insurance coverage before the term policy expires or age 65.

A waiver of premium rider is available. In the event of a total disability, the rider will allow all premiums due to be waived. In addition, the rider allows the policy to be converted to whole life, with the whole life insurance rates continued to be waived.

Whole Life Insurance

MTL Insurance Company offers different whole life policies, each designed to fill a specific niche in the permanent insurance marketplace.

Covenant II

Covenant II is MTL’s premier participating whole life insurance policy, designed for permanent coverage with maximum cash value accumulation and growth.

The policy provides guaranteed level premiums until age 90, when the policy is fully paid-up.

A non-forfeiture benefit option is provided, allowing you to continue your life insurance plan as either extended term insurance or reduced paid-up life insurance if you choose to no longer make premium payments.

The policy also includes a Maximum Accumulation Dividend® option. The Maximum Accumulation Dividend option works in tandem with the Flex Pay Paid-Up Additions Rider or Annual Premium Paid-Up Additional Insurance Rider, providing maximum cash value accumulation on a continual basis, while avoiding a modified endowment contract.

Horizon Value

Horizon Value is participating whole life insurance. You can customize your policy to provide high early cash value growth. The policy is available for ages 0-75. The policy is paid-up at age 90, with endowment at age 121.

Minimum face amounts vary by age. Ages 0-39 can get a minimum of $25,000 participating whole life insurance. And $10,000 participating whole life is available for ages 40-75.

Horizon Guarantee

Horizon Guarantee focuses more on permanent death benefit protection, rather than early cash value growth.


EconoMax is a blended policy, providing both participating whole life and term life. The amount of term life you initially choose can provide a lot of cost savings but the whole life will provide permanent coverage, so that you get the best of both worlds.

Legacy One

Legacy One is a single premium whole life insurance policy that is eligible for dividends.

Whole Life Insurance Dividends

There are many option you can choose when it comes to whole life insurance dividends. For example, you can:

  • Take the cash for whatever you want;
  • Purchase one year term insurance;
  • Leave with the insurance company to earn interest;
  • Pay back a policy loan;
  • Use for premium offsets, i.e. to pay your premium completely or for a period of time; or
  • Purchase additional paid-up insurance, which increases your cash value and death benefit.

Additional Benefits of Whole Life Insurance

Tax free life insurance policy loans

Tax free life insurance loans* are available from the carrier by using your cash value as collateral. You loan will be charged either a fixed or variable interest rate. Any unpaid interest due will be applied to your principle.

*(In the event of policy lapse, any outstanding life insurance loan may be considered income and subject to taxation).

Tax deferred cash value growth

Whole life insurance cash value grows tax deferred. You can withdraw your cash value up to your basis without being taxed. In addition, borrowing against your cash value is a tax free benefit that allows you access up to 90% of your cash value.

Tax free death benefit

Your life insurance is not taxed as income to your beneficiary.  Instead, your policy’s death benefit payout is distributed to your beneficiary tax free.

However, one way a death benefit may be taxed is if you name your estate as the beneficiary or the total value of your estate is above the the federal estate tax exemption limit of $11,200,000 for an individual and $22,400,000 for couples.

That is why for large estates, having a plan in place to protect your assets, such as utilizing an irrevocable life insurance trust, is a great way to protect your wealth transfer from Uncle Sam.

Mutual Trust Life Insurance Riders

The following life insurance riders are available on select life insurance products available from Mutual Trust.

Accelerated Death Benefit Riders – allows access to a percentage of your death benefit or  if you have an eligible terminal illness or chronic illness.

Flex Pay PUA RiderPaid-up additions riders allow you to pay additional premium into your policy to purchase additional participating whole life insurance, which increases your death benefit and cash value.

Term Riders – a 7 and 15 year term insurance rider can be added to a whole life policy to increase the initial death benefit coverage.

Disability Waiver of Premium Rider – A waiver of premium rider allows all premiums to be waived if you become totally disabled. An option for 2-year or 5-year own occupation definition of total disability is available. It can also be applied to the Flex Pay PUA rider.

Guaranteed Purchase Option Rider – This is a great option for parents or grandparents considering whole life insurance for children because it guarantees the addition of more coverage at certain ages and life events with no evidence of insurability. You can choose to add more coverage on your 22nd, 25th, 28th, 31st, 34th, 37th, and 40th birthdays. Alternatively, you can add additional coverage for marriage, birth or adoption of a child, or college graduation.

Children Insurance Rider – you can add term life insurance for your kids under age 20 to your insurance coverage at one set price no matter how many eligible children you have.

Mutual Trust Review Conclusion

Mutual Trust is a superb company, offering great whole life policies and unique riders. In many instances Mutual Trust will be a great fit. But the question remains…

Is Mutual Trust the right company for you?

It may be. But without speaking to you and discovering your goals, needs and objectives we really have no idea what company is best suited to your unique circumstances.

If you have questions or would you like to see an illustration of Mutual Trust or any of the other top cash value life insurance companies we represent, please give us a call today for a complimentary life insurance consultation with an advanced markets professional.

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  • bob vi

    what is the dividend history of the company. It is not mentioned anywhere ?

    • Insurance&Estates

      Hello, I recommend you go straight to the company for this information. If we post dividend history, it is typically on a targeted basis due to the exceptional performance of a specific company.

      Best, Steve Gibbs for I&E


    I am quoting a buy sell agreement and a key person. Based on one company member, the company can be dissolved in 10 years

    what would be pro and cons of using a whole life vs a universal index life insurance?

    • Insurance&Estates

      Hello Arturo, thanks for offering your great comment. A quick answer is that with either permanent policy type mentioned, a ready reserve of liquid cash value will accrue that may be used during business operations and thereafter. Also, locking in permanent insurance when you’re younger can be advantageous. That said, I think a more in depth discussion would be beneficial. I’ll have our National Sales Director, Jason Herring, reach out to you or feel free to contact him as well at

      Best, Steve Gibbs for I&E.

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