Mutual of Omaha Life Insurance Review
AM Best Rating
Term, Whole, Universal
Mutual of Omaha is one of the most well-known and highest rated insurance providers in the country today.
The company has been around for a long time and offers a wide range of insurance products to cater to the financial needs of people from all walks of life.
In this review, we take a detailed look at Mutual of Omaha, its background, financial strength, the policies offered, and the pros and cons of buying life insurance from the company.
Table of Contents
- Our Take
- Financial Ratings
- Products Offered
- Mutual of Omaha for Seniors
Our Take - Is Mutual of Omaha the Right Option for You?
If you are a high-risk applicant with preexisting health conditions or a family history of diseases, Mutual of Omaha's guaranteed issue policies are an option to consider. On the other hand, if you are in good health and do not have any major health problems, you have many great life insurance companies to choose from. It is just a matter of finding one that is financially stable, offers the type of life insurance you need, and has the best price.
About Mutual of Omaha
Mutual of Omaha is a Nebraska based financial services company which was established in 1909. It was initially called the Mutual Benefit Health & Accident Association, whose presence was limited to Nebraska.
It managed to rapidly expand its presence all over the country in the next couple of decades. By 1958, the company had paid over $1 billion in benefits to its policyholders.
Today, Mutual of Omaha is a Fortune 500 company and one of the top-rated insurers in the country. It offers a wide array of products and services – from life insurance to health insurance, disability insurance, annuities, banking, and investment services.
For a large number of Americans, particularly those who grew up in the 60’s and 70’s, the Mutual of Omaha is better known as the sponsor of Wild Kingdom, which was an extremely popular TV show which remained on the air for more than 20 years during its run.
The Mutual of Omaha has consistently received highly positive ratings from leading rating agencies over the years. Given below are its current ratings.
- A.M. Best: A+ (Superior)
- Moody’s: A1 (Good)
- Standard & Poor’s: AA– (Very Strong)
- Comdex: 93 out of 100
The life insurance policies offered by Mutual of Omaha are issued by its fully owned subsidiary United of Omaha, which was established in 1926. The company offers term life insurance as well as permanent life insurance.
Term Life Insurance
Mutual of Omaha’s term life policy offers you four different term lengths to choose from – 10, 15, 20, and 30 years. To apply for the policy, you need to be between the ages of 18 and 80. The death benefit starts from $100,000.
The premium and the death benefit remain unchanged during the level term period. Once the policy expires, you have two options.
- You can renew it annually until you reach the age of 95. The premium slightly increases every time you renew the policy, due to your age and health status.
- You can convert the term plan into a permanent plan and enjoy lifelong coverage. The premium, which is determined at the start of the coverage period, remains the same until your death.
Mutual of Omaha Term Life Express
Mutual of Omaha also offers a term life insurance product that allows some applicants to skip the exam and breeze through underwriting as fast as a few weeks. It is a great choice for those looking for quick term coverage. Coverage amounts range from $25,000 to $300,000 for ages 18-50, and $25,000 to $250,000 for ages 51-65.
Term life express policies include several riders at no additional cost. These riders are accelerated death benefit, living benefits rider, residential damage rider, waiver of premium for unemployment, and common carrier death benefit provision. For an additional cost the insured can add a disability income rider, disability waiver of premium rider, accidental death, or dependent children's coverage.
Learn more in the term life express brochure.
Permanent Life Insurance
Mutual of Omaha offers whole life as well as universal life insurance.
Whole Life Insurance
The company offers guaranteed whole life policies with a graded death benefit. There are no medical exams required and you do not have to answer any questions on your health condition either. If you apply for the policy, you will be accepted irrespective of your health condition.
The only eligibility criterion is that you need to be between the ages of 45 and 85 in order to be able to apply for the policy. The death benefit ranges from $2,000 to $25,000.
Being a whole life policy, it also has a cash value portion, which grows in value as long as the policy stays in effect.
The policy has a graded death benefit, which means your beneficiary is not eligible to receive the entire death benefit amount right at the start of the coverage period, which is usually the case with regular whole life policies.
If you die within the first two years of the coverage period, your beneficiary will receive the total amount of premiums you paid until your death, along with 10% interest.
From the third year of coverage, there are no such restrictions and your beneficiary will receive the full death benefit amount in the event of your death.
The important thing to be noted here is that the graded death benefit rule applies only for deaths due to natural causes. If you die in an accident, your beneficially will be paid the entire death benefit amount, even if it happens to be the very first day of the coverage period.
Children’s Whole Life Insurance
The company also offers a whole life policy specifically designed for children between the ages of 14 days and 17 years. The death benefit ranges from $5,000 to $50,000 and the policy includes a cash value account as well.
Universal Life Insurance
The Mutual of Omaha offers four different types of universal life policies.
Life Protection Advantage
It provides you with a guaranteed death benefit until the age of 85. The coverage can be extended even further if you keep making the no-lapse premiums (the minimum payable premium) on a regular basis.
It is an indexed whole life policy, which means the cash value’s growth depends on the performance of an equity index. As a result, the cash value account has the potential to grow at a much faster rate compared to a fixed-interest account.
It comes with an accelerated death benefit rider (you will be paid a portion of the death benefit if you become chronically or terminally ill) and a guaranteed refund option rider (you can receive the total amount of premiums you paid if you no longer need coverage after a certain period of time).
It provides you with lifelong coverage – you are protected as long as you keep making the premiums. The most important feature of the policy is that it offers downside protection for the cash value account.
The cash value account is linked to the performance of an equity index, much like the Life Protection Advantage policy discussed above. The difference, however, is that the account is protected against the volatile nature of the market.
What this means is that your cash value account rapidly grows in value when the market performs well and remains steady and unaffected when it performs poorly. True to its name, it offers tremendous income potential in the long run.
Guaranteed Universal Life
It is an affordably priced policy which provides you with a guaranteed death benefit. You can choose the coverage period – it can be either for a particular period of time or for an entire lifetime.
There is a cash value account, but the policy is structured in such a way that the emphasis is more on the death benefit than the living benefit.
It offers an accelerated death benefit rider as well as a guaranteed refund option rider.
It is similar to the Guaranteed Universal Life policy discussed above, but the cash value account is set to receive at least 2% interest on a yearly basis. As a result, it has the potential to grow at a faster rate than the Guaranteed Universal Policy.
Accidental Death Insurance
Mutual of Omaha also offers an accidental death insurance policy which pays your beneficiary in case you die in an accident. You need to be between the ages of 18 and 70 in order to qualify for the policy. Once the term is over with, you can renew the policy until the age of 80.
The death benefit can be as high as $1 million. There is a list of injuries (work related as well as non work related) which are covered under the policy. If you die as a result of an injury covered in the list, your beneficiary will be paid the entire death benefit amount.
The policy offers guaranteed coverage, which means you will not be rejected due to your health condition or any other reason.
Mutual of Omaha – Advantages and Disadvantages
The Mutual of Omaha offers guaranteed acceptance permanent life policies, which you can qualify for irrespective of your health status. This can be incredibly beneficial for people with preexisting conditions or a family history of hereditary diseases.
There is no need for you to undergo any medical exam and some policies do not even require you to answer any health-related questions. Basically, you can get accepted even if you have been rejected by other companies with much stricter underwriting guidelines.
The Mutual of Omaha gives you the option of converting its term life plan into a permanent life plan, if you wish to do so.
The benefit of having such an option is that you do not have to apply and qualify for a new policy once the term policy expires. You can simply convert it into a permanent life policy and enjoy lifelong coverage, irrespective of your insurability at the stage.
Lenient Underwriting for High-Risk Individuals
This stellar insurance company has lenient underwriting guidelines for pilots, scuba divers, and other such people with certain other high-risk hobbies and occupations. With most other companies, such people are usually classified as high risk consumers and relegated from preferred category to standard category.
Similarly, the company also has lenient underwriting guidelines for people suffering from sleep apnea, asthma, high blood pressure, and high cholesterol levels.
People suffering from these types of conditions are generally charged a higher rate by most insurance companies. However, the Mutual of Omaha offers competitively priced policies even if you have any of the aforementioned conditions, as long as you are getting treated regularly.
The Mutual of Omaha has been in the industry for more than a century and is known for its financial stability. The company has nearly $40 billion in assets and has a very good track record of settling claims without any unnecessary delays or hassles.
So, in terms of financial strength and the ability to meet long-term commitments, the Mutual of Omaha is as good as any other company in the industry today.
Limited Whole Life Death Benefit
This salient insurance company’s whole life policy has a death benefit of $25,000, which is ideal for those who are looking for a policy to cover their final expenses. It is not sufficient to cover any major financial commitments that you might have.
Limited Online Options
To find out the best options available for you, you have to talk to an agent. Also, the online account you create can only be used to monitor your policy.
If you want to cancel your policy, change your payment schedule, or update your personal information, you have to talk to an agent. If you are used to the convenience of getting things done online, you might find it inconvenient because of having to call someone up to get these things done.
Lack of Variable Universal Life Insurance
This effective insurance brand does not offer a variable universal life insurance policy. Notwithstanding the fact that variable life policies are inherently risky due to their performance being linked to the stock market, many people prefer to have the option to invest their premium in one or more sub-accounts of their choice.
Mutual of Omaha Life Insurance for Seniors
Mutual of Omaha is a common life insurance choice for seniors. For term life insurance, Mutual of Omaha allows applicants up to the age of 80 years old. For permanent life insurance, Mutual of Omaha allows applicants up to the age of 85. With their strong financial rating and competitive pricing, they are a great choice for seniors. The biggest hurdle for seniors when buying life insurance is the premium amount. Due to their older age and higher likelihood of health problems, the rates tend to be much higher. However, seniors generally have smaller requirements for life insurance and can purchase a policy for a lower coverage amount that still meets their needs. Learn more about life insurance for seniors.