Mutual of Omaha Life Insurance Review
Not just for seniors, great for young families too!
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Mutual of Omaha is known for guaranteed issue permanent life and term life policy options and gives consumers confidence with the fact that they have been doing it for over 100 years. We researched Mutual of Omaha’s financial strength rankings, customer satisfaction ratings, policy options, pricing and compared their life insurance policy options to the competition to give you the facts you need to decide if this is the right insurance choice for you.
What We Like
“Mutual Perks” Program
Guaranteed issue policy for seniors
Simplified (no medical exam) option, ages 45 to 85
Children’s life insurance
Great reputation with strong customer service rankings
A rider that pays your premium temporarily if unemployed
Great pricing for under 45-years-old
What We Don't Like
Limited whole life policy options
Limited information available online
Graded death benefit (two-year waiting period) on some plans
Must speak to an agent to get quotes or detailed information
Mutual of Omaha is a mutual insurance company founded in 1909. Headquartered in Omaha, Nebraska, they sell insurance in all states. Mutual of Omaha has a Better Business Bureau Rating of A+. They offer life insurance as well as other insurance products such as long-term-care, critical illness coverage, medicare plans, and some investment options. Mutual of Omaha is a highly ranked insurance company, with excellent customer satisfaction ratings and low complaint history.
Available Plans: Good Selection With Interesting Riders
Mutual of Omaha offers several life insurance plans in the following five categories: term life, whole life, universal life, indexed universal life, and children’s whole life. Here is an overview of Mutual of Omaha’s life insurance options.
Term Life Answers
Mutual of Omaha’s Term Life Answers policy offers 10-, 15-, 20- and 30-year terms with issue ages are from 18 through 80 years old. The age limits may vary depending on the product term chosen, risk class and state. There is no upper-end limit cited for their available death benefit but coverage starts at $100,000, and we were able to get quotes online up to $999,999. Policies can be renewed on one year periods after the term expires up until age 95. The maximum coverage on a term life plan is 95 years old.
Term Life Express 10, 15, 20, 30
Term Life Express is a simplified issue policy. Simplified issue means you may qualify for a policy without a medical exam, but you will have to complete a medical questionnaire that will be reviewed and then based on this information and a review by underwriters, you may be approved or not.
The Term Life Express offers lower policy limits than the Term Life Answers plan. Coverage range is $25,000 to $300,000. We found the following policy options for the Term Life Express plan which may be available with either: full guaranteed level premiums for the term of the plan.
- 10-year level term: This policy lasts for 10 years, the price remains the same throughout the term.
- 15-year level term: This policy lasts 15 years and maintains the same premium throughout the entire term.
- 20-year level term: This is a 20-year term policy that maintains the same premium throughout the term.
- 20-year level term with return of premium (ROP): This policy has the same length as the 20-year term and the same level premium throughout the policy contract. The ROP option in this policy provides the added advantage that if you outlive the 20-year term of insurance you will get back premiums at the end of the term.
- 30-year level term: This policy lasts 30 years, the premium remains the same throughout the life of the policy.
- 30-year level term with return of premium (ROP): This policy is also a 30-year length contract, with prices that remain the same throughout the term of the policy, but it gives the added advantage of a return of premiums paid if you survive the term.
You may also select the same terms outlined above with a limited five-year guaranteed premium, which means that the premiums can increase after the five year period if you select that option.
The Term Life Express policy comes with the added advantage of some really interesting riders included in the policy for free, some of which we didn’t see among any of the other life insurers we reviewed, such as the Residential Damage Rider.
Term Life Complete 15, 20, 30
Term Life complete offers terms of 15, 20 and 30 years for values of $100,000 and more for non-return of premium products or $250,000 or more for the ROP option. The term life complete policy has regular underwriting, so policy issuance and application approval will take longer than Express policies.
For both plans, you can decide which premium option you would like: a level death benefit option with the same premium for the specified term, or a limited level premium (guaranteed five years but then it will go up).
Whole Life Insurance
Whole life insurance is a permanent insurance policy where coverage remains in force for your lifetime as long as you pay premiums. Mutual of Omaha offers a few options for whole life, permanent insurance plans. The advantages of their whole life plans are:
- Death benefit
- Potential tax-deferred cash value growth
- Policy loans
Whole Life Plus Guaranteed
The Whole Life Guaranteed Plus policy offers coverage amounts from $2,000 to $25,000 with guaranteed acceptance for ages 45 to 85 (50 to 75 in New York). These are designed as final expense policies. You can get a quote online for this coverage, and you also have the option to add a person to your policy.
Premiums are level and they will also include access to funeral planning concierge services as part of the plan. This policy has a graded death benefit in the first two years. The graded death benefit means that benefits in the first two years, (if death is due to anything other than an accidental death) will be limited to the premiums paid plus 10%. Full death benefit only applies after the second year of coverage.
Living Promise Whole Life
The Living Promise whole life insurance policy is only available through an agent. The policy uses simplified underwriting and offers two different options: a level benefit plan or a graded benefit plan.
The level benefit option has issue ages 45 to 85 years with coverage limits from $2,000 to $40,000 and access to an Accelerated Death Benefit for Terminal Illness or Nursing Home Confinement Rider.
The graded benefit has issue ages 45 to 80 years, with lower coverage limits than the level benefit plan: $2,000 to $20,000 maximum.
Children’s Whole Life
Mutual of Omaha offers a whole life insurance plan at affordable rates for children between the ages of 14 days and 17 years old for death-benefit coverage amounts between $5,000 and $50,000. They offer online quotes and simplified applications. A simplified application means that you complete a medical questionnaire in order to apply.
Universal Life Insurance
Mutual of Omaha offers universal life insurance which is a permanent type of life insurance plan offering cash values and flexible premium amounts. One nice feature of the Mutual of Omaha universal life policy is the ability to increase coverage amounts, although the option does require proof of good health.
Mutual of Omaha offers three different universal life insurance plans, two of which are indexed universal life, and all of which provide:
- Death benefit: The death benefit is the amount of money you will be paid in the event of death. You may have the option to increase or decrease the death benefit in certain circumstances.
- Cash value accumulation: The cash value accumulation allows for the opportunity to access the money once values have built up to help you in the future if you even need to borrow money from your life insurance policy to fund education, retirement or other life needs.
- Flexibility in premiums: You can use this feature to increase or decrease your payments or change the frequency of your payments.
- Accelerated death benefits: This feature offers early access to a portion of the death benefit should you get a terminal or chronic illness.
Indexed universal life is a plan where the investment portion follows the stock market index it is tied to. It protects the cash value against down markets while allowing growth when the indexes are up.
AccumUL Answers Universal Life Plan
The AccumUL Answers plan from Omaha Mutual Life Insurance is a universal life plan that guarantees you will earn at least 2% interest annually. This option is safer than some of their other universal plans. For example, the Income Advantage plan only guarantees you will not lose money when the market drops (0% interest guarantee), with this plan you have a guaranteed interest rate of 2%.
Life Protection Advantage Universal Life Plan
The Life Protection Advantage plan is an indexed universal life policy which means that you have an increased potential to build cash value depending on investment strategies of the plan, through the potential to gain higher interest on the cash values. The permanent life insurance portion of this policy can be guaranteed through age 85 as long as you continue to pay the no-lapse premiums (or longer).
Income Advantage Universal Life
The Income Advantage Universal Life plan also offers permanent life insurance coverage with cash values that may accumulate interest. Interest options will depend on the performance of a market index but are not directly invested in the market. This plan comes with a guarantee that the interest will be no less than 0% even when the market index drops below zero. This feature is known as downside protection.
Mutual of Omaha goes the extra mile in delivering added value perks to policyholders through their Mutual Perks program which offers potential cost savings for home mortgages, wellness services including massage, and acupuncture and a low-cost gym membership.
Mutual of Omaha Policy Riders
Riders are contract additions to insurance policies that help you customize your coverage. Mutual of Omaha offers riders for some of their policies that can give you advantages or protection you would not otherwise have. Here is a list of policy riders to inquire about when purchasing life insurance with Mutual of Omaha; these riders may only be available for certain policy forms, or availability may vary by state. There may also be other riders available to choose from that your agent can tell you about.
- Accidental death benefit rider: Increases the amount of death benefit payable when death is due to an accident.
- Dependent children’s coverage rider: Add coverage to your policy for children with this rider.
- Partial return of premium rider: Provides the benefit of returning premiums to you if you survive the term period selected.
- Level death benefit option: Available for 15, 20 and 30-year terms.
- Residential damage rider: If your primary residence has $25,000 or more of damage, the premium of your base policy and riders will be waived for 6 months.
- Waiver of premium for unemployment provision: If you have a qualifying unemployment event, they will waive the premium for the base plan and riders for 6 months.
- Common carrier death benefit provision: If you die in an accident as a fare-paying customer on an airplane, train or bus, a higher death benefit will be paid (the lesser of up to $250,000 maximum or 100% of the value of the original policy face amount).
- Disability income rider and disability waiver of premium riders: The terms of these riders may vary, inquire with your agent for details.
Mutual of Omaha goes the extra mile to look out for you with thoughtful riders to protect your family, such as the return of premium if you survive your term, or a six-month break in premium payments if you’re suddenly unemployed or have damage to your home over $25,000.
Customer Service: Great Ratings and Value Added Perks
Mutual of Omaha’s website offers a number of interactive tools to help you figure out how much life insurance you might need and then get online quotes for some products. Compared to other life insurance companies, their website didn’t have as much information about their products. They offer service through agents and a call center.
You can do an online search for a local agent and see a list of representatives in your area to choose from, which is nice. If you fill in their online form asking for additional information they will connect you with an agent to make an appointment, but you have to provide your full information and agree to text messages, emails (optional) and automated phone calls.
Complaints Trend: Very Low Complaints History
We researched Mutual of Omaha’s complaint history with the National Association of Insurance Commissioners’ (NAIC) National Complaint Index report and their results are good, they have very few complaints, below the expected norm for an insurance company of their size. Their complaint trend for 2019 was 0.58 across all their product lines, they average about 50 complaints a year with state regulators, which is very low considering that they have a premium volume of over $2.6 billion. This rating has been consistently good for the past 3 years.
Mutual Perks Value Added Program
Mutual of Omaha offers a value-added perks program, known as “Mutual Perks” to offer their clients value-added benefits. The Mutual Perks program offers potential cost savings for home mortgages, wellness services including massage, and acupuncture and a low-cost gym membership. They also offer discounts on eyeglasses and hearing aids. This program is one of the ways Mutual of Omaha goes the extra mile in delivering value.
Customer Satisfaction: Highly Rated In the Top Three
There is no doubt that customers overall are happy with the products, product delivery, and service that Mutual of Omaha offers. Mutual of Omaha ranks third for customer satisfaction overall in the 2019 J.D. Power Life Insurance Study. The study ranks life insurance companies based on customer experiences and overall satisfaction across several categories. Here are Mutual of Omaha’s ratings by category:
Financial Strength: A+ (Superior)
In business over a century, Mutual of Omaha is a well-established name in insurance. They are not in the top 10 life insurance writers in the U.S. for premiums, but Mutual of Omaha does have a top-ranked financial strength rating of A+ (Superior) as of January 2020, and has held this ranking consistently over the years.
Mutual of Omaha Cancellation Policy
With the partial return of premium rider (available on some plans), you may be eligible for partial money back if you cancel your policy before the end of the term. If you are thinking about surrendering your life insurance policy, or canceling your policy you will need to speak with an agent or customer service representative to find out Mutual of Omaha’s cancelation terms and conditions and how to cancel your life insurance.
Price of Mutual of Omaha Life Insurance
We ran pricing samples for Mutual of Omaha compared to other life insurers offering online quotes. Mutual of Omaha has a customer satisfaction rating of “Among the Best” which is the highest possible ranking with J.D. Power.
In our research, we found they offered definite advantages for certain profiles, like mid-life aged smokers, compared to some of the other top-ranked insurance companies. Their term life pricing for healthy younger people was also very good.
How Mutual of Omaha Compares to the Competition
Mutual of Omaha maintains a great reputation as a giant in the life insurance industry. However, when you look closely, some companies seem to do a better job with product lines and rates.
Mutual of Omaha vs. Transamerica
Both Mutual of Omaha and Transamerica offer no medical exam simplified underwriting policy options. We compared features of the Mutual of Omaha plan to the Transamerica plans as well as sample pricing. Although pricing was similar and provided advantages for different age groups in each case, the policy options were stronger with Transamerica because they offer more riders for some policies with better information online to help guide choices and understand products.
We also compared the features of Mutual of Omaha’s Whole Life Plus Guaranteed Life plan, and Living Promise Whole Life plans to Transamerica’s Final Expense plan. Mutual of Omaha’s plans provided lower policy limits than Transamerica’s. Transamerica offers immediate coverage with no medical exam in all states for their Immediate Solution and 10-Pay Solution Plans; these plans are available for ages 0 to 85.
Coverage for ages 0 to 55 can go up to $50,000 with Transamerica. Mutual of Omaha, has similar plan offerings, age limits are 45 to 85, but with maximum coverage of $25,000 or $40,000 on the Whole Life Plus. Mutual of Omaha may only offer you a graded death benefit option if you are not approved for their level plan. Transamerica also offers a graded death benefit, but only on their “Easy Solution” plan.
Overall, we liked the limited pay options offered by Transamerica and the range of final expense products available. If choosing a final expense life policy, Transamerica is the better option.
Mutual of Omaha vs. Globe Life Insurance
We researched the Children’s Life Insurance policy options between Mutual of Omaha and Globe Life. Mutual of Omaha offers higher values of life insurance (up to $50,000) for the Children’s Whole Life plans, compared to Globe Life which offers up to $30,000. Mutual of Omaha issue ages for children’s life policies are up to 17 years old, compared to Globe Life Insurance which offers coverage pricing by age bands (example, age 0 to 4, age 5 to 9, etc.) up to age 25.
Premiums are comparable, but the complaint rating differs greatly between the two companies. Mutual of Omaha has a very low complaint rating, whereas Globe Life has a very high complaint trend with a complaint incidence close to three to four times the expected norm for a company of their size.
Final Verdict: Good Choice for All Ages
Mutual of Omaha offers strong policy options for term, and universal life products. If you are shopping around for life insurance options and guaranteed issue policies, Mutual of Omaha is also a good choice for seniors, if you have health concerns, are a smoker or are looking for Children’s Whole Life plans. Despite the fact that they are well known for the senior guaranteed issue policies, many of their term life policy features are geared toward younger adults and families and make Mutual of Omaha a good choice for both young and senior policyholders.
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