Pan American Life Insurance Review

Name: Pan American Life Insurance Review
Item: Pan American Life Insurance Review
Author: Staff Writers

Life insurance serves as a financial safeguard for your loved ones in the event of your passing. Featuring different policy types and various riders, Pan American Life Insurance could be a solid option for your needs.

Updated: May 22, 2024

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MoneyGeek’s Take: Is Pan American Right for You?

Given that Pan American Life Insurance mostly offers dividend-eligible whole life policies, this company may be a good fit for adults who want cash value savings along with fixed premiums and death benefits. It also may be a solid option for insurance buyers who want customizable policies since Pan American offers a variety of riders.

On the other hand, Pan American’s lack of senior-specific and final expense policy options make it a mediocre choice for seniors. State Farm may be preferable, as it’s MoneyGeek’s pick for the best overall provider for this age group.

Browse through our Pan American Life Insurance review to find out if this company is suitable for your specific needs and situation.

At a Glance: Pan American Life Insurance

pros

A (Excellent) rating from AM Best

Receives fewer complaints than the average life insurer

Variety of riders to choose from

cons

Limited information on its website

No final expense life insurance

No online quotes

COMPANY HIGHLIGHTS

Started in 1911, Pan American Life Insurance offers life insurance solutions in 49 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands and throughout Latin America and the Caribbean. According to the National Association of Insurance Commissioners (NAIC), Pan American receives fewer complaints than average by a significant margin, with a complaint index of just 0.27 (1.0 is the industry average).

This company offers five life insurance products through Mutual Trust Life Solutions:

Horizon Value™
Horizon Guarantee™
Horizon Legacy™
SelecTerm
Universal life insurance

Most of Pan American’s life policies are whole life, meaning they have level premiums, fixed death benefits and cash value savings that you may borrow against. It’s worth noting, however, that this insurer provides little information on its website, making it difficult to learn more about its life insurance offerings.

TABLE OF CONTENTS

Is Pan American Right for You?
At a Glance: Pan American Life Insurance
Pan American Life Insurance Policy Options Explained
Term Life Insurance Options From Pan American
Whole Life Insurance Options From Pan American
Universal Life Insurance Options From Pan American
Pan American Life Insurance Riders
How to Buy Life Insurance From Pan American
What to Do if Pan American Denies You Coverage

Key Takeaways

Pan American offers life insurance policies through Mutual Trust Life Solutions, which has consistently paid dividends to policyholders for over 100 years.

If you value the growth of your cash value, you may benefit most from Pan American’s Horizon Value whole life product.

Pan American’s term life policies are renewable up to age 98, with premiums increasing every year.

Pan American Policy Options Explained

A 2022 Insurance Barometer Study from the Life Insurance Marketing and Research Association (LIMRA) discovered that 44% of American adults would experience financial hardship within six months if their home’s primary wage earner died without life insurance. Pan American can help prevent this with its life insurance products. Explore each option to determine the best fit for you and your family’s needs.

Term Life Insurance Options From Pan American

Term life insurance provides coverage for a specified number of years. Although the policy can be renewed after it expires, the premiums may increase as the policyholder ages.

SelecTerm

Pan American's SelecTerm offers guaranteed level premiums for 10, 15, 20 or 30 years. You can renew your term coverage after the level premium period until age 98, but you should expect regular premium increases. Additionally, you can convert your policy to whole life during the level premium period or until age 70, whichever is earlier.

Overall, term life insurance offers a cost-effective solution to financial hardships that your family may experience in case of your unexpected death. This policy type can be a great fit for buyers with short-term needs, such as paying off outstanding debts.

Whole Life Insurance Options From Pan American

For permanent coverage, consider getting whole life insurance. This type of policy comes with level premiums and death benefits, as well as a cash value savings account that accumulates on a tax-deferred basis.

Horizon Value™

Horizon Value includes guaranteed cash value and nonguaranteed dividends that grow early and rapidly, which you can access for various purposes like funding your child’s education or supplementing your income. This policy also provides nonforfeiture benefits along with fixed premiums and death benefits.

Horizon Guarantee™

With Horizon Guarantee, you can get a level premium that’s often cheaper than other whole life premiums. Unlike Horizon Value, Horizon Guarantee’s cash value and dividends grow in later years. Thus, this policy may be a better fit for those who value the death benefit more than the cash value.

Horizon Legacy™

Horizon Legacy is Pan American’s single premium whole life policy. You only have to pay one premium at the time of policy inception to get a guaranteed tax-free death benefit and tax-deferred cash value.

Purchasing whole life insurance is a smart way to get lifetime coverage. This policy type may be the best option for you if you are doing estate planning or supporting a lifelong dependent.

Universal Life Insurance Options From Pan American

Whole life and universal life insurance have a lot in common, but when it comes to flexibility, the latter is specifically designed to adapt to any changes in a policyholder’s situation.

Pan American offers universal life insurance with a savings component that accumulates and preserves wealth. However, it doesn’t provide any policy details on its website. You will have to contact an insurance agent to learn more about this specific product.

If you’re interested in investments, a universal life insurance policy may be a good option for you. This policy type often provides options for investing your cash value savings, including an equity index strategy or a general interest account.

Pan American Life Insurance Riders

Riders can help you customize your life insurance and add value to your base policy. Pan American offers a variety of life insurance riders, including the following.

Rider	Description
Accidental Death Benefit	This offers additional benefits if the policyholder dies within one year of an accident and before the age of 70.
Children Insurance Rider	This provides coverage for children under the age of 20 and those who are born or adopted after the rider is in effect.
Guaranteed Purchase Option Rider	With this rider, you can buy additional permanent policies without proof of insurability before each policy anniversary nearest the ages of 22, 25, 28, 31, 34, 37 and 40.
Flex Pay Paid-Up Additional (PUA) Rider	This allows you to increase your whole life policy’s guaranteed death benefit and cash value up to age 90.
Single Premium PUA Rider	With this rider, you only need to pay one lump-sum premium into your base policy at the time of issuance to increase your death benefit and cash value.
10- and 20-Year Term Riders	Available for certain whole life products, these riders provide a fixed amount of term insurance for the primary insured and others to increase the policy’s death benefit.
Chronic Illness Provision	You may accelerate up to 24% of your policy’s death benefit yearly if you are certified by a physician to have a chronic illness.
Terminal Illness Provision	Policyholders may receive up to half of the death benefit (up to $250,000) prior to their death if they are diagnosed with a terminal illness that shortens their life expectancy to 12 months or less.
Applicant Waiver of Premium Benefit	If the policyholder dies before the insured reaches age 25, this rider will waive premium payments until the policy anniversary nearest the insured’s 25th birthday.
Two-Year Waiver of Premium Benefit	This waives premium payments in the event of total disability for the first two years.
Five-Year Waiver of Premium Benefit	This waives premium payments in the event of total disability for the first five years.
Disability Benefit Rider (DBR) for Flex Pay PUA Rider	This rider allows you to select a benefit amount and use it to fund premium payments for the Flex Pay PUA Rider should you become disabled.

How to Get Pan American Life Insurance

Buying life insurance coverage can be challenging, and there are some instances where you may be denied coverage. Let’s go into detail and break down how to purchase a policy and what to do if your application is denied.

How to Buy Life Insurance From Pan American

Getting life insurance can help your family avoid financial hardship in the event of your death. We simplified the entire buying process into these four important steps:

Do Your Research

Before purchasing a life insurance policy, make sure to do your research. Look into each provider’s policy offerings and find out their terms, coverage amounts and requirements. Because Pan American has limited information on its website, it’s best to call an insurance agent to learn more details.

Compare Quotes

Insurers will offer you varying rates depending on your individual characteristics. These include your age, gender, height and weight, medical history and lifestyle. For this reason, you must always compare quotes from multiple providers to ensure you’re getting coverage you can afford.

Health Check

When you apply for life insurance coverage, you may be required to undergo a health check. This often involves a phone interview and an in-person medical exam. With Pan American, you will have to consult with your agent to find out if you need to take a medical exam for a specific policy.

Approval

After your application for coverage gets approved, you will be issued your policy. You may get in touch with your agent or broker to review the details of your policy.

What to Do if Pan American Denies You Coverage

If you get denied life insurance, it’s critical to explore other options to obtain coverage. We outlined some steps you can take in this situation.

Contact Your Broker

If you are denied coverage, reach out to your agent or broker and find out the reason. Some insurers may refuse to insure applicants due to a chronic illness or dangerous lifestyle.

Lifestyle Changes

Consider making some changes to your lifestyle to improve your health. Doing so can increase your chances of getting approved with favorable rates.

Explore Other Options

Make sure to research other types of life insurance and find out the best alternative for your needs. A final expense policy may be ideal if you want lower rates without having to undergo a medical exam, although Pan American does not offer this type of life insurance.

Frequently Asked Questions About Pan American Life Insurance

Find out if Pan American is the best insurer for your life insurance needs by reading our answers to some frequently asked questions.

Can you borrow from your Pan American life insurance policy?

Yes, Pan American offers whole life policies with cash value that you can borrow against. However, failure to pay the loan back can result in reduced death benefits.

What’s the maximum amount of life insurance coverage available from Pan American?

Pan American doesn’t specify the maximum coverage amounts available for its policies.

Do life insurance policies from Pan American pay dividends?

Yes, Pan American’s whole life policies pay dividends to policyholders.

Can you get life insurance from Pan American if you have cancer?

Pan American doesn’t specify if cancer patients qualify for its life insurance products.

Do life insurance policies from Pan American cover death by drug overdose?

Pan American doesn’t provide any information on whether it covers death by drug overdose. Contact your insurance agent to confirm.

Do life insurance policies from Pan American cover death by suicide?

Similarly, Pan American doesn’t specify whether it covers death by suicide. Reach out to an agent to be sure.

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