Physicians Mutual Insurance Review

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Premium Price
Claims Process
Consumer Feedback
Financial Strength
OVERALL
Products | Price | Claims | Complaints | Financials | Bottom Line

Physicians Mutual Summary

Founded in 1902 to provide health insurance to medical professionals, Physicians Mutual expanded in 1962 to offer health insurance products to the general public. In 1967, the company expanded its products to include life insurance through its Physicians Life Insurance Company subsidiary. Since then the company has also added dental insurance, Medicare supplement insurance, annuities, funeral planning, and other investments.

As a mutual insurance company, Physicians Mutual is privately owned by policyholders and not traded publicly. By 2013, the company employed more than 1,000 people and held more than $3 billion in assets.

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Insurance Products

Physicians Mutual’s primary products are now supplemental health insurance, including Medicare supplements; term, whole, and juvenile life insurance; dental insurance, and accident insurance. As part of its planning services, annuities and funeral pre-planning services have also become a substantial part of their offerings.

Hospital, medical, and surgical health insurance products are designed as additional coverage for the most likely services, and it can be tailored to work with current health coverage or by itself if major medical health insurance isn’t affordable. The company also offers cancer insurance and accident insurance.

Physicians Mutual Insurance Rates

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Physicians Mutual sells term policies with face values up to $20,000. These polices are offered to just about anyone without a medical exam. We tested the price out for a 30-year-old male living in California, and we were quoted over $36 a month for $10,000 worth of coverage. This is one of the highest rates for term insurance we have ever received. To put this into context, the average price for the same individual for a 20-year, $1,000,000 policy is $50 a month.

It is worth mentioning that this is not entirely and apples-to-apples comparison because Physicians Mutual does not require a medical exam. The majority of insurance companies that write policies for $1 million do require medical exams, and the price listed above is generally for people in excellent health.

Physicians Mutual maintains a career sales force, but also offers quotations online. Although the company is national, not all of the Physicians Mutual health or life products are offered in each state. The company has more than 850 agents nationwide and offers a convenient online search to find the customer’s closest agent.

Claims

Physicians Mutual allows claims to be filed online by logging into an individual account that is set up on their website.

Consumer Research and Complaints

Physicians Mutual Insurance Company has been accredited by the Better Business Bureau since 1940 and holds an A+ rating. It has received just 45 complaints in the last three years, 17 complaints were closed in the last 12 months. Two-thirds of the complaints concerned product/service issues; ten complaints involved billing/collection issues, four complaints addressed advertising/sales issues, and just one complaint detailed a guarantee/warranty issue.

Financial Strength

Rating CompanyGradeFinancial Outlook
AM BestAStable
FitchN/AN/A
S&PN/AN/A

Bottom Line

When founded in 1902 Physicians Mutual provided insurance solutions for medical professionals only. Since Physicians Mutual began offering insurance to the public some 50 years ago, not only has their overall asset pool grown and strengthened but their insurance offerings increased as well. Supplemental Health insurance is one product Physicians Mutual added to their line and since its addition supplemental health has become one of Physicians Mutual’s primary insurance offerings.

Physicians Mutual offers life insurance coverage to individuals without requiring a medical exam. This is very beneficial for people looking to get a small amount of coverage, but are having trouble with other companies due to health reasons. However, their term life insurance policies are extremely expensive.

Most individuals will find suitable coverage from other firms for a better price. Even those who need insurance without a medical exam may be able to find a better price with other companies.

For a list of companies that we recommend, visit our Best Insurance Companies page.

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Review Information

Summary
Reviewer
Eric Stauffer
Review Date
Reviewed
Physicians Mutual
Author Rating
2

Comments

  1. Linda Stepien says

    Today my phone rang and to answer it was difficult due to a recent injury. When I answered a lady identified herself as being from Physicians Mutual Insurance Company. I asked if it was a solicitation call and the caller said it was. I then told her I was on the DO NOT CALL LIST and her exact words were, “WELL…AREN’T YOU THE ILLUSTRIOUS ONE AND THE GRAND PUBA! WE’LL BE TICKLED PINK TO REMOVE YOU FROM OUR LIST!” This call came 3/30/15 in the early afternoon…around 1:30 p.m. or about. What kind of person acts that way?

    • Fred Crowder says

      Contact the complaint phone number which is listed on the DO NOT CALL LIST. The company can be fined and last I knew, thy have to pay you for violation of that do not call list.

  2. Norma Smith says

    My 89 year old Mother has a 5000 dollar policy that she has been paying on since 2002. She approximately, at this time has put 10.000 into this policy.
    The problem i have with this is,she has paid for this policy almost twice.
    I tried twice to cash in this policy back in 2011 and they told me that they would only give her 3000 of the 7000 at that time, that she had already put into the policy.. I was so upset that i just didn’t do anything because i want to figure out what other options we had.
    Now once again i called them to cash in the policy, and now they tell me that she would only get 2000 of the almost 10.000 they’ve collected. THIS IS SO WRONG! When the Lord calls my mother home, we will not have enough money to honor her wishes. She lives in Dallas Texas but she want to go back home to New Orleans to be laid to rest where the family plot is. MY MOTHER IS ON A FIXED INCOME. THERE SHOULD A LAW TO BAND THIS TYPE OF POLICY.

    • Marina Jimenez says

      I symphatize a lot with your personal story Ms. Smith. I too had been paying monthly insurance premiums on “Physicians Mutual” dental coverage. My problem with this type of insurance was basically the same>due to a very chronic disability, I have to live on a FIXED income that almost never increases nor rises dramatically higher. I really honestly thought that this dental insurance was going to help me out with paying for my badly needed dental issues/problems. Well, I was so wrong about that! :-(( The dentists that I had spoken to wanted me to first pay myself for all dental services out of my own pocket first & then I would have to file an insurance claim myself with Physicians Mutual. Well, the big problem is that if you are living on a FIXED INCOME like me, you may not have very much cash available after paying for all of your monthly living expenses, such as housing, electric, groceries, etc, etc,. Physicians Mutual, unfortunely, does not disclose this important fact to you PRIOR to you signing up for their dental insurance>>that it’s possible that this type of dental insurance may not work out for you if you are living on a FIXED INCOME :-( It’s very hard to afford medical & dental prices on a fixed income. I did call Physicians Mutual, but they totally refused to refund me even a partial portion of the money that I had already pay into this dental insurance with them. I told them over the phone, this is something that you should disclose prior to signing people up>>fixed incomes cannot easily accomadate expensive dental fees for dental services, especially if the dentist wants you to pay everything upfront FIRST
      :-(

      • Marina Jimenez says

        After paying into this Physicians Mutual dental plan, & paying insurance premiums for 11 months, plus, two very expensive bank fees,>>as I have said, it’s living on a FIXED income, and not being able to use it at all, not even just once to fix one bad dental cavity,>I have estimated & concluded that what I actually did was pay for someone else’s dental cavities :-( >>instead of being able to pay for my own :-(

    • Rick says

      All contracts disclose what you are signing up for and I would suggest that you DO read the fine print, the devil is in the details. You have some options, first you could look into a reduced paid up instead of cashing it out to see what the value might be.
      You should contact a funeral home in Texas as well as one in New Orleans. See if they have an affordable pre-arranged funeral plan, It will be more expensive to buy, but you can pay a single payment, or over 3-5-7 or 10 years with most of these. The savings come because it is paid off in a stated amount of years and not your whole life. You have the advantage of shopping two funeral homes and see whom has the best deal for your mom. You can still use your existing policy to off set some cost (transferring your mom from Texas etc,) or fund it all and use proceeds from current policy for other expenses that may present themselves such as medical, nursing home and other related type of end of life expense. Hope this helps, everyone should have a plan for when they die and your mom thought she was doing the right thing, but insurance is higher in cost the older you get because risk is much higher for the companies. Always shop, the rates vary by company and state.

    • Debra says

      Ms. Smith I’m sorry about the issues you were/are having regarding your Mothers policy. My Mother recently passed away 6 weeks ago and she had a 5000.00 life insurance policy from Physicians Life, and then Physicians Mutual has been doing an ach debit from her checking account for $38.25 monthly. I inquired needing to know the policy number for Physicians Mutual and they will not give me any information. I have my Mothers policy for Physicians Life , but nothing for Physicians Mutual. I cannot get anywhere with these people and one of the reps told me I may need to contact the Estates attorney and let him handle all of it. And that’s exactly what I am doing. Its now in my attorneys hands. Its horrible how they take premiums in good faith and then not honor the claims…just horrible.

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