MassMutual Term Reprice Coming in June

New rates make products more competitive in key areas

MassMutual will reprice its term life insurance portfolio in June to improve competitiveness where possible and reflect updated pricing assumptions. In some cases, premiums will go down, some will remain unchanged, and some will increase. Producers can begin illustrating the new rates June 1; the first day to submit applications is June 25.

The update allows us to improve our competitive position in key areas, while adjusting some products (Annually Renewable Term and Extended Conversion Period) to improve profitability. Note that only premiums are being adjusted. There will be no changes to the compensation schedules and all term product specifications and features are unchanged.

Note: If you are working with an advisor who is placing business through a bank, wirehouse or independent broker dealer, please confirm that the product has been approved for sale in that institution.

Reprice overview
Here is an overview of the reprice when comparing the same face amounts:

For base-level MassMutual Term products, premiums are decreasing 2-3% on average:

  • There are no premium increases for Term 10, Term 20, or Term 30.
  • Term 15 and Term 25 have some premium increases for tobacco classes, but they are capped at 5%.

Extended Conversion Period (ECP) products have a mixture of premium increases and decreases:

  • On average, Term 15 ECP and Term 20 ECP premiums are increasing 2%.
  • On average, Term 25 ECP and Term 30 ECP premiums are decreasing 1-2%.
  • Overall, increases are smaller at the higher face amount bands.

Annually Renewable Term (ART) premiums are increasing about 4% on average:

  • Changes are much smaller at younger ages.
  • Increases are more significant at issue ages of 55 and older.

Key dates and transition information

Here are key dates and application submission deadlines to be locked into the old rate series in the rollout of the reprice:

  • June 1, 2022: Term quotes/presentations will become available.
  • June 22, 2022: For paper/emailed submissions, applications received by 3:00pm ET on June 22, 2022 will be issued under the old rate series. Any applications received between 3:00pm ET on June 22, 2022 and 8:00pm ET on June 24, 2022 will be considered on an exception basis.
  • June 24, 2022: For iGo submissions, applications submitted through iGo and received at MassMutual by 11:59pm ET on June 24, 2022 will be issued under the old rate series. Cases locked and out for signature in iGO at that time which are completed/submitted after this deadline will be received and issued under the new series rates.
  • June 25, 2022: The first day applications for the new rate series can be submitted.

Note: Any applications submitted by the deadlines described above that are pending issue on June 25, 2022 will be automatically changed to the new rate series (at the same face amount) if that would result in a lower premium.

Refer to the complete transition rules.

Benefits of MassMutual term coverage
MassMutual term products continue to offer affordable and flexible life insurance. The new rates make them more competitive in key areas. For many people, a combination of term and permanent life insurance is the best way to meet their long-term protection needs and accumulation goals. Our competitively priced term products feature liberal conversion privileges backed by a financially strong company. This combination enables policyowners to lock in their insurability with a quality insurance carrier while they’re young and healthy.

Later, they can convert all or part of their term insurance to permanent coverage with the equivalent risk classification as their original term coverage, regardless of their current health (unless additional coverage or a better risk classification is requested). Review our MMSD Guide to Term Conversions (SDP7025) for details.