Horace Mann Life Insurance Review

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Updated: November 21, 2024

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MoneyGeek’s Take: Is Horace Mann Right for You?

Horace Mann is a good fit for younger educators looking for term or permanent life insurance policies. Its customizable universal life options also make it a great choice for those who want more control over their cash value investments.

Given this provider's lack of final expense policies, it may not be the best fit for seniors looking to cover end-of-life expenses. AARP or Mutual of Omaha may be better choices — neither requires a medical exam or health questions.

As you weigh your options, it will be helpful to read through our full review of Horace Mann so you can make the most educated decision regarding your life insurance policy.

At a Glance: Horace Mann Life Insurance

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HORACE MANN GRP

pros

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Several policy offerings

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Below average complaint index score

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Offers multiple policy discounts

cons

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Does not support online quoting or applications

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Limited details available on the website

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Not available in New Jersey and New York

COMPANY HIGHLIGHTS

Horace Mann was established in 1945 in Springfield, Illinois. It offers individual and group insurance and financial solutions to educators and their families in every U.S. state except New York and New Jersey. The National Association of Insurance Commissioners (NAIC) has determined that Horace Mann Life Insurance has a complaint index of 0.91, which is slightly lower than the national average. The company also provides other insurance products, such as auto, home, renters and supplemental insurance.

Horace Mann sells six different types of life insurance:

  • Term Life Insurance
  • Cash Value Term Life Insurance
  • Whole Life Insurance
  • Universal Life Insurance
  • Indexed Universal Life Insurance
  • Variable Universal Life Insurance

Horace Mann's life insurance policy options are appropriate for a wide range of consumers and needs. Its whole life and universal life insurance policies provide protection for a lifetime. In contrast, its term life options cover policyholders for a specific period of time. The cash value term insurance accumulates cash value that you are eligible to receive when the policy term expires.

The permanent policies offered by Horace Mann — Whole Life Insurance, Universal Life Insurance, Indexed Universal Life Insurance and Variable Universal Life Insurance — all offer cash value with varying terms. Universal life policies offer flexible premiums and death benefits, making them a good choice if you think your needs may change over time, while the whole life insurance offering is ideal for those who wish to lock in a premium.

TABLE OF CONTENTS

Key Takeaways

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Horace Mann offers various types of life insurance to educators and their families.

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Policyholders can convert from term insurance to one of the permanent insurance types, such as whole life insurance or universal life insurance.

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Its Variable Universal Life (VUL) Insurance policies let you invest in a variety of investment options of your choice at your own risk.

Horace Mann Policy Options Explained

Based on the Life Insurance Marketing and Research Association's (LIMRA) 2022 Insurance Barometer Study, there is an 18 percentage point gap between those who have life insurance and those who need it — a gap that has significantly increased since the pandemic. If you're an educator looking for a new life insurance policy to meet your needs, Horace Mann may be a great option. Find out more about the different available offerings to select the one that works best for your family.

Term Life Insurance Options From Horace Mann

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    Term Life Insurance

    Term life insurance covers you for a fixed amount of time and generally costs less than other types of life insurance policies. If the policyholder passes away during the policy term, the benefit amount will be paid out to the beneficiaries and can be used for immediate costs like mortgages, medical bills and education expenses. Term life insurance does not build cash value, and premiums typically increase as people age.

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    Cash Value Term Life Insurance

    If cash value is important to you, Horace Mann also offers a cash value term life insurance option. This policy type operates the same way as conventional term life insurance, except it also accumulates cash value. If you no longer need insurance, you can end the policy and receive the cash value to use for retirement or other purposes. You can also use your cash value to acquire a discounted paid-up term policy up to the age of 95, allowing you to keep a portion of the death benefit without paying any additional premiums.

Term life insurance generally offers the greatest benefits to younger people or those who have recently started a family or obtained a mortgage and need time-sensitive coverage in case they pass away. Term life insurance may be more manageable for people juggling several financial commitments because of its lower cost compared to other types of policies.

Whole Life Insurance Options From Horace Mann

Whole life insurance is not based on a fixed term and will continue for your lifetime, provided that you make regular payments. Your beneficiary is then guaranteed to receive a death benefit upon your passing.

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    Horace Mann offers cash value accumulation for its whole life policies, meaning you can benefit from the policy while still alive. You can also easily plan your budget thanks to the company's level premium policies. Whole life insurance differs from other forms of permanent insurance in that the terms are inflexible — you cannot make changes to your premium or death benefits for the duration of the policy.

Whole life insurance provides permanent coverage for you and your loved ones. As long as the premiums are paid up, the beneficiary will get the death benefit. Whole life insurance products have a cash value component that accumulates over time. Buyers with long-term dependents, high medical costs or other significant financial obligations may benefit from this type of policy.

Universal Life Insurance Options From Horace Mann

Horace Mann's Universal Life Insurance is a permanent, flexible life insurance policy that builds cash value. The policy's cash value is subject to interest rates, so its growth depends on the overall economic climate.

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    Universal life insurance policies from Horace Mann allow more flexibility than traditional whole life policies. For example, after the initial payment, premiums can be paid at any time and in almost any amount (subject to minimum and maximum limits). You can also change the death benefit more easily if you decide that your original benefit no longer works for you. The drawback is that these policies must also be more closely monitored as the available death benefit and required premiums can fluctuate along with the policy's cash value.

In addition to a basic universal life insurance option, Horace Mann offers two other variations:

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    Indexed Universal Life (IUL)

    Horace Mann's Indexed Universal Life (IUL) insurance is a more customizable version of its universal life plan. In addition to the features included with traditional universal life, including flexible payments and death benefits, IUL insurance allows policyholders to allocate premiums to indexed accounts whose interest rates are tied to the value of market indexes. The policy does not guarantee a minimum return on indexed accounts, but it does set an interest rate floor at 0.00%. If the value of the index associated with an indexed account decreases, the account will be credited an interest rate of 0.00%, but your death benefit and the contract value will not be affected. With an IUL policy, premiums and contract values are not guaranteed, unlike some other permanent life insurance plans.

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    Variable Universal Life (VUL)

    For those looking to customize their cash value investments even further, Horace Mann offers Variable Universal Life (VUL) insurance. Like other types of universal life insurance, this policy type offers flexible premiums and death benefits, and it also offers policyholders full control over how to manage their cash value investments. The cash value and death benefit of the policy, as well as the premiums required to keep it from lapsing, will depend on the performance of the investments. VUL policies offer the potential for more growth if the cash value is invested wisely, but policyholders assume the investment risk and could potentially lose money.

If you're looking for permanent protection but expect your insurance needs to change over time, universal life insurance may be the best option for you. Investors who value policy flexibility and substantial cash value growth may also find these products appealing.

Horace Mann’s Life Insurance Riders

A life insurance rider is an add-on feature to your policy that can be purchased for an additional fee. Riders allow you to tailor your insurance coverage to your specific needs. Horace Mann does not disclose its full list of available riders but offers at least the following:

Rider
Description

Charitable Giving Benefit Rider

Offered as an option for the Pathfinder Indexed Universal Life (IUL) policy. With this
rider, Horace Mann will pay 1% of the insurance amount, up to $10,000, to one or
two nonprofit organizations of your choice when you die. It will not increase your
premium or reduce your policy’s cash value or death benefit.

How to Get Horace Mann Life Insurance

Once you're familiar with Horace Mann's policy offerings, you need to know how to apply for and purchase coverage. It's also a good idea to prepare for the potential rejection of your application.

How to Buy Life Insurance From Horace Mann

  1. 1

    Do Your Research

    The best place to start is to do some research on the various kinds of life insurance. You can explore your options using Horace Mann Life Insurance's online tools, like its Life Insurance Calculator, or by speaking to one of its agents.

  2. 2

    Compare Quotes

    Although you may have found a policy that meets your insurance requirements, it is still a good idea to shop around and see what else is out there. Your premiums may be impacted by variables like your age, gender, lifestyle, smoking habits, medical history and overall health. If the plan is too expensive for your budget, looking into other possibilities may be the best solution.

  3. 3

    Health Check

    Finally, you must submit an application. Horace Mann does not support online applications, so you'll need to do this over the phone. As part of the process, you may need to have a medical exam. An underwriter may request more information from you in order to perform a risk assessment on your profile.

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    Approval

    If your application is approved by Horace Mann, you will receive your coverage. Don't hesitate to get in touch with your agent to go through your insurance policy terms and ask any questions.

What to Do if Horace Mann Insurance Denies You Coverage

  1. 1

    Contact Your Broker

    An easy way to learn more about why this may have happened is to contact your agent and request more details about your denial.

  2. 2

    Lifestyle Changes

    If a lifestyle habit, such as smoking, or an unsatisfactory medical examination led to your rejection, consider changing your lifestyle accordingly. Your application might be accepted, and you might even get a more attractive rate if you're able to prove that your health has improved.

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    Explore Other Options

    Finally, consider looking into other insurance types, especially those that don't require a physical examination. Keep in mind that these policies may cost more and offer lower coverage amounts.

Frequently Asked Questions About Horace Mann Life Insurance

We've compiled answers to the most frequently asked questions about Horace Mann's life insurance offerings.

Can you borrow from your Horace Mann life insurance policy?

What’s the maximum amount of life insurance coverage available from Horace Mann?

Do life insurance policies from Horace Mann pay dividends?

Can you get life insurance from Horace Mann if you have cancer?

Do life insurance policies from Horace Mann cover death by drug overdose?

Do life insurance policies from Horace Mann cover death by suicide?

About Mark Fitzpatrick

Mark Fitzpatrick headshot

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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