Mutual of Omaha Life Insurance Review 2021
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Our take on Mutual of Omaha
Mutual of Omaha is a company with a strong financial background. Their experience dates back to 1909, which has translated itself to superior customer service.
But, Mutual of Omaha isn’t the cheapest option for life insurance. Are they worth the cost? We believe so, at least for their term life insurance with an exam, and final expense insurance. We feel their term life insurance without a medical exam is overpriced.
Their products often include riders for free. Other insurance companies can be more affordable but charge you an additional fee for these riders.
We like Mutual of Omaha’s product called Living Promise. It’s a whole life insurance policy, which is a popular choice for seniors. If you are between ages 45 and 85, you’ll be able to get $2,000 – $40,000 in coverage. Since this is a whole life policy, you don’t have to worry about renewing terms or policy end dates.
What we like
The company has over a century of experience
Mutual of Omaha was founded in 1903. During this time, Mutual of Omaha has always focussed on offering exceptional service. And that has translated itself into a high customer rating.
Exceptional financial history
Financial stability in a life insurance company is important. If the company has financial issues that may endanger your life insurance claim. Mutual of Omaha has held an excellent financial rating with A.M. Best and S&P.
What we don’t like
Their pricing isn’t competitive
While you can argue that Mutual of Omaha’s pricing is justified, there is no denying that they are more expensive than others. For many individuals shopping for life insurance, pricing comes first. If that’s the case for you, chances are likely Mutual of Omaha isn’t the best choice.
Mutual of Omaha’s Life Insurance Products
The cost difference has become less of a gap in recent years. If you are in good health and seek under $350,000 in coverage, you could qualify to skip the medical exam.
Additionally, Mutual of Omaha’s term life insurance can be converted to a permanent policy. This conversion option is something most term life insurance policies lack.
Qualifying applicants can skip the exam
If you are healthy and apply for $350,000 or less in life insurance coverage, Mutual of Omaha could waive the medical exam.
You can convert the term life insurance policy into a permanent policy.
More expensive than others
Term life insurance itself is a very straightforward policy. The cost increase for Mutual of Omaha’s term life insurance causes many individuals to look elsewhere.
When it comes to final expense insurance, we recommend Mutual of Omaha. For this type of insurance, their cost is competitive. Additionally, the product “Living Promise” features various benefits, justifying the small potential cost difference.
If you are between ages 45 and 85, you’ll be able to get $2,000 – $40,000 in coverage. Since this is a whole life policy, you don’t have to worry about renewing terms or policy end dates. Additionally, there is no medical exam to worry about. Instead, you’ll answer a few simple health questions.
A medical exam is not required
The Living Promise product does not require a medical exam. Instead, you’re qualified by answering some health questions.
Level benefit for healthy applicants
If you are in average or better health, you’ll enjoy full benefits from day one.
Healthy individuals can qualify for Mutual of Omaha’s level benefit. Those in less than average health are likely to qualify for a graded benefit policy.
Level benefit specifications:
- For ages 45-85
- Face amounts from $2,000 to $40,000
- The death benefit will pay in full from day 1
- Accelerated Death Benefit for Terminal Illness or Nursing Home Confinement
- Optional: Accidental Death Benefit Rider
Graded benefit specifications:
- For ages 45-80
- Face amounts from $2,000 to $20,000
- The death benefit will pay in full 2 years after the policy goes into effect. If you pass away in the first 2 years, your beneficiaries will receive any paid premiums plus 10% interest.
Cancer, heart attack and stroke insurance
Mutual of Omaha offers a unique type of insurance for cancer, heart attack, and stroke. Unlike life insurance, these critical illness plans pay while you are alive.
Cancer insurance is their most popular critical illness plan. You can get between $10,000 and $100,000 in coverage. If you are diagnosed with cancer, Mutual of Omaha will pay this in a lump-sum payment.
Additionally, Mutual of Omaha will pay for various health-related treatment costs. This includes medication, surgery, and more.
Learn more about Mutual of Omaha’s cancer insurance.
Pays while you are living
You will receive a lump-sum payment as soon as you are diagnosed. Additionally, most health-related expenses are covered.
Only covers specific health conditions
For most people, this isn’t a great alternative to life insurance. Instead, it’s an additional policy to provide added peace of mind.
Mutual of Omaha’s term life insurance policies include a conversion option. This allows you to convert the term policy into a permanent life insurance policy. This is something many life insurance policies lack. Even if you feel you won’t ever need permanent life insurance at this point, things could change.
Say you got a 20-year term policy at age 40. Once you’re age 60, your life is likely to be a lot different than it is now. You may not need as much coverage as you initially got with your term policy. But having a permanent policy at this stage in life can make sense.
It could provide enough coverage for funeral expenses and other debt. And since you have the option to convert your existing policy, you won’t have to undergo a new application.
Mutual of Omaha provides various benefits and riders. These are already included in your policy, or you can add them at an extra fee. If you want to know the ins and outs, you can always speak to a True Blue agent. They will tell you what riders you can expect for free, and which are worth paying for. Additionally, some riders are excluded in certain states.
Common Mutual of Omaha riders:
- Accidental Death Rider – This rider pays additional benefits if the cause of death is due to an accident. Many individuals buy an Accidental Death policy separately since it’s so affordable. But with a Mutual of Omaha policy, you’ll enjoy it built-in to your policy.
- Accelerated Death Benefit Rider – This rider goes in effect if you are diagnosed with a condition resulting in a life expectancy of 24 months or less. In that case, Mutual of Omaha will pay you up to 92% of your death benefit. This payment comes in a lump-sum payment. After this payment, your policy will be terminated.
- Disability Waiver of Premium Rider – This rider goes into effect if you become disabled due to a qualifying event. The life insurance premiums will be waived, after a 6 month waiting period.
- Chronic Illness Rider – If you cannot perform 2 or more of 6 daily activities for 90 consecutive days, Mutual of Omaha will pay up to 80% of your death benefit.
Is Mutual of Omaha the cheapest life insurance provider? No. But the cost difference between their policies, and cheapest competitors, is usually justifiable. Take the conversion option for their term life insurance products, for example. Many low-cost policies do not include this.
This goes for additional riders as well. If you were to die due to an accident, your policy would pay extra benefits. If you become unable to work, unable to perform daily activities, Mutual of Omaha has you covered.
While these riders and features aren’t necessarily unique to Mutual of Omaha, they are hard to find in cheaper policies.
Lastly, Mutual of Omaha has a strong financial and customer rating. This allows you to have added peace of mind, knowing your policy is in good hands.
Competitive pricing for term life insurance with an exam
Mutual of Omaha isn’t the cheapest when it comes to term, but it remains competitively priced. Additionally, it includes many benefits and riders that relative policies don’t have. We feel that this justifies the slight price difference.
Excellent pricing for final expense
Mutual of Omaha offers great pricing on their final expense product. Additionally, the age at which it is available is lower than usual. And, if you are healthy, it’s likely the policy will offer a level-benefit from day one.
Expensive term life insurance without an exam
There are many more affordable alternatives if you are shopping for term life insurance without a medical exam. When we compared rates, the cost for term policies without an exam was more than double of competitors.
Mutual of Omaha’s term life insurance cost
We find that Mutual of Omaha’s term life insurance with a medical exam is relatively competitive. A healthy 30-year old male living in California could get $100,000 in term life insurance for $9 to $15/month. Mutual of Omaha charges $11/month.
But their rates without a medical exam are 50% to 100% more expensive than others. That same 30-year old individual could pay $10-$20 for a term policy without a medical exam. Mutual of Omaha would charge around $22/month.
Mutual of Omaha’s final expense cost
Their cost for final expense life insurance is competitive.
An individual age 65 could get $10,000 in level benefit life insurance for $56/month. Competitors charge around $50 to $70 for the same policy.
Overall, Mutual of Omaha has an excellent financial rating. This means that they are extremely likely to meet their financial obligations, like paying out death benefits.
- S&P Rating: A+ – Excellent
- A.M. Best Rating: A+ – Excellent
See what you qualify for by answering some health questions.