Mutual of Omaha Life Insurance Review

By | August 31, 2021
Mutual of Omaha Life Insurance

Mutual of Omaha offers an array of products including life insurance policies, general insurance policies, Medicare solutions, and more. The company offers solutions for individuals as well as businesses. This Mutual of Omaha life insurance review will discuss the life insurance policies available from Mutual of Omaha and give insight into common questions about life insurance as a topic. 

What Is Mutual of Omaha?

Many people may have first heard of Mutual of Omaha through its television program “Mutual of Omaha’s Wild Kingdom.” Founded in 1909, Mutual of Omaha is a mutual company headquartered in Omaha, Nebraska. Its insurance offerings include policies for long-term care, disability income, critical illness, dental, Medicare supplemental coverage, cancer, strokes, and heart attacks, in addition to life insurance. Mutual of Omaha also offers banking, financial planning services, mortgages, and investment products for businesses and other groups. The company also has a philanthropic organization, the Mutual of Omaha Foundation, which gave out more than $4.8 million dollars in grants in 2020.

Mutual of Omaha Review

Mutual of Omaha is a life insurance company with multiple plans available. It earned the 15th spot in our Best Life Insurance ratings alongside Prudential, and the company received a score of 3.6 out of 5. Because Mutual of Omaha offers term, whole, and universal life insurance policies, it caters to a variety of potential customers. If you live in a state other than New York, you’ll have access to most, if not all, of the company’s offerings. Mutual of Omaha also offers helpful online resources including FAQ pages, blog posts, and news so you can stay up to date on the company. Some helpful pages include information on how to use retirement funds to travel, an online calculator to estimate your savings, and a Medicare Advice Center.

Is Mutual of Omaha Right for Me?

Pros

  • Mutual of Omaha has a very high cap on the face value of its life insurance policies.
  • Mutual of Omaha offers a wide variety of life insurance products.
  • Life insurance policies with Mutual of Omaha are highly customizable.

Cons

  • Mutual of Omaha does not offer as many online resources as many competitors.
  • The variety of complex life insurance policies may be overwhelming to some potential customers.

Mutual of Omaha’s unique features include a long list of available riders, such as a rider that protects against a policy lapsing, a children’s rider, and a waiver-of-premium rider for unemployment. Some policies are available without a health questionnaire or a medical exam. Certain policies will refund all premiums plus an additional 10% if the policyholder dies from natural causes within two years of the policy’s effective date (otherwise known as the contestability period). Some Mutual of Omaha policies cover the insured up to 120 years of age, which is longer than many competitors’ policies cover. 

There aren’t many online tools available from Mutual of Omaha. Only a few of the company’s life insurance products offer online estimates. However, there is a life insurance questionnaire to help determine coverage needs, and policyholders have access to online bill payments.

What Kinds of Life Insurance Policies Are Available From Mutual of Omaha?

Mutual of Omaha has eight main life insurance products across three types: term, whole life, and universal life.

Available Policy Types

COMPANYTERM LIFEWHOLE LIFEUNIVERSAL LIFESURVIVORSHIP
Mutual of Omaha » YESYESYESNO
Northwestern Mutual»YESYESYESNo
Haven Life »YESNoNONO
State Farm »YESYESYESYES
Banner Life »YESNOYESNO

Term Life Insurance Options From Mutual of Omaha

For term life insurance policies, Mutual of Omaha offers Term Life Answers and a simplified-issue version called Term Life Express. These policies have the following features and characteristics:

  • Available term periods are 10, 15, 20, and 30 years.
  • Level-type premiums are guaranteed.
  • Coverage amounts start at $100,000.
  • Applicants must be 18 to 80 years old.
  • Online estimates are available, but a policy must be purchased through an agent.
  • Mutual of Omaha’s fully underwritten term policies may convert to any permanent policy currently offered at the requested face amount and issue age. Term Life Express may convert to a simplified-issue permanent policy currently offered at the requested face amount and issue age.
  • Death benefits are generally paid in a lump sum by default, although beneficiaries may use the proceeds to purchase a single-premium immediate annuity that would provide installment payments with a variety of payout periods.
  • Only guaranteed term policies are available.
  • Online estimates are available.
  • Riders are available, including waiver of premium, waiver of premium for unemployment, accidental death benefit, children’s rider, and other insured riders.
  • Mutual of Omaha’s term life policies provide tax-free death benefits.
  • Conversion to a permanent policy requires no fee or medical exam.

Whole Life Insurance Options From Mutual of Omaha

Mutual of Omaha offers whole life insurance policies called Guaranteed Issue and Living Promise. These whole life insurance policies have the following features and characteristics:

  • Coverage is available from $2,000 ($5,000 in Washington state) to $25,000 for the Guaranteed Issue policy; the Living Promise policy starts at $2,000 ($5,000 in Washington state) and maxes out at $40,000.
  • These policies are fixed and have guaranteed-level premiums.
  • These policies feature tax-deferred cash value that can be accessed during the policyholder’s lifetime.
  • The amount and frequency of premium payments are fixed.
  • Loans are available based on the policy’s cash value.
  • Some policies may be surrendered for a percentage of the cash value.
  • Premiums are due until age 100 (120 in the state of Florida).
  • Issue-age restrictions for the Guaranteed Issue policy are ages 45 to 85 (50 to 75 in the state of New York); for the Living Promise policy are ages 45 to 85 for the level-benefit plan and 45 to 80 for the graded-benefit plan.
  • Death benefits are generally paid in a lump sum by default, although beneficiaries may use the proceeds to purchase a single-premium immediate annuity that would provide installment payments with a variety of payout periods.
  • The following riders are available: accelerated death benefit for terminal illness or nursing home confinement (available for the level-benefit plan) and accidental death benefit. There are no riders available for the Guaranteed Issue policy.
  • Financial benefits are available, including tax-free death benefits and tax-deferred cash value that can be accessed during the insured’s lifetime.
  • These policies are guaranteed, although the Living Promise policy features simplified underwriting.
  • The Guaranteed Issue policy offers online estimates, but the Living Promise policy does not offer any online tools.
  • Other features include a graded death benefit, no medical exams, and no health questionnaire for the Guaranteed Issue policy, and simplified underwriting for the Living Promise policy.

Universal Life Insurance Options From Mutual of Omaha

For Universal Life policies, Mutual of Omaha offers Life Protection Advantage SM, Income Advantage SM, Guaranteed Universal Life, and AccumUL Answers. These policies have the following features and characteristics:

  • All four of Mutual of Omaha’s universal life insurance policies feature lifetime terms and coverage ranging from $100,000 to more than $1 million.
  • Premiums are flexible.
  • These policies are variable and not guaranteed.
  • All four policies offer flexibility in coverage, premium frequency, and premium amounts. 
  • Cash value is available for loans and through riders for specific needs.
  • Some policies may be surrendered for a percentage of the cash value.
  • Premiums are due until age 120, or age 100 for the AccumUL Answers policy.
  • There is no standard monthly base price, as premiums are customizable.
  • These policies have no issue-age restrictions.
  • Death benefits are generally paid in a lump sum by default, although beneficiaries may use the proceeds to purchase a single-premium immediate annuity that would provide installment payments with a variety of payout periods.
  • Riders are available, depending on the policy, including accelerated death benefit (terminal illness), accelerated death benefit (chronic illness), accidental death benefit, additional insured (self), additional insured (other), children’s rider, disability continuation of planned premium, disability waiver of policy charges, guaranteed insurability, guaranteed refund option, LapseGuard, long-term care, and waiver of surrender charges for partial withdrawals.
  • Financial benefits include a tax-free death benefit and tax-deferred cash value that can be accessed during the insured’s lifetime. Furthermore, the Income Advantage SM policy provides downside protection by guaranteeing that policyholders will receive no less than 0% even if the percentage change in the market index is negative, and the AccumUL Answers policy accumulates cash value using a declared interest rate that is guaranteed to earn at least 2% annually.
  • All four of these policies are available only through agents.
  • Mutual of Omaha offers an online life insurance calculator, online estimates, and online bill payments.

How Much Does Mutual of Omaha Life Insurance Cost?

For more information on term policy costs, you can visit Life Insurance Quotes. Here is an example of Mutual of Omaha’s term life insurance monthly base costs for a policyholder in excellent health, residing in Virginia, for a policy with $250,000 in coverage and a 10-year term.

Mutual of Omaha – Term Life Insurance

For a 25/35/45-Year-Old Healthy Virginia Female/Male

COMPANYAGE 25 FEMALEAGE 25 MALEAGE 35 FEMALEAGE 35 MALEAGE 45 FEMALEAGE 45 MALE
Mutual of Omaha »$11.83$12.04$13.12$13.12$17.63$19.78

* Any rates listed are for illustrative purposes only. You should contact the insurance company or insurance agent directly for applicable quotes. 

Any rates listed are for illustrative purposes only. You should contact the insurance company or insurance agent directly for applicable quotes.

Bundling or multipolicy discounts aren’t available from Mutual of Omaha for life insurance policies. Visit our Cheapest Life Insurance Companies of 2021 for more information on inexpensive life insurance policies. 

How to Buy Mutual of Omaha Life Insurance

You can use the company’s online information and quotes to help narrow down the type of life insurance that works best for you. The next step is to find or be matched with an agent to help you complete the process. You can search for agents in your zip code, or if you know the name of an agent you’d like to work with, you can find him or her in the directory. If you do not have an agent in mind, you can call or use an online form to be matched with one.

To help you determine if you need a term, whole life, or universal life policy, Mutual of Omaha asks you to consider:

  • Why you need or want life insurance
  • Your current and future anticipated financial obligations
  • How long you want coverage 

To determine the details of your actual policy, the company considers:

  • Age
  • Gender
  • Desired death benefit amount 

Depending on the type of policy, Mutual of Omaha may also consider: 

  • Term duration
  • Health 
  • Tobacco use

Frequently Asked Questions About Mutual of Omaha

What Mutual of Omaha life insurance product types and riders are available in my state?

With the exception of New York, most of the life insurance products offered by Mutual of Omaha are available in every state. 

What does Mutual of Omaha’s life insurance cover?

A life insurance policy from Mutual of Omaha covers whatever the designated beneficiaries need after the policyholder’s death, including end-of-life expenses, daily expenses, debt payoffs, and college education for dependents. Mutual of Omaha also offers riders on some life insurance policies that let the policyholder tap into benefits during their lifetime to cover a variety of financial needs, such as healthcare for terminal illness. 

What benefits do Mutual of Omaha life insurance policies include?

Mutual of Omaha life insurance policies feature tax-free death benefits. Several types of policies also feature tax-deferred cash value growth, and one policy includes a guaranteed interest rate.

How long do you have to claim Mutual of Omaha life insurance?

Generally, life insurance companies are bound by adherence to state laws regarding how long you have to claim insurance benefits. Contact Mutual of Omaha or an insurance agent directly for more information. 

How much can you borrow from your Mutual of Omaha life insurance policy?

In general, most of the company’s universal life products allow 90% of the cash-surrender value to be borrowed during the surrender charge period and 100% of the cash-surrender value to be borrowed after the surrender charge period, subject to leaving enough cash-surrender value to cover two months’ worth of monthly deductions.

Do all Mutual of Omaha life insurance policies pay dividends?

Mutual of Omaha does not offer life insurance policies that pay dividends.

What is the maximum amount of life insurance coverage I can currently apply for with Mutual of Omaha?

The maximum face amount available for a Mutual of Omaha life insurance policy is $65,000,000.

Does Mutual of Omaha’s life insurance pay for death by suicide?

In general, life insurance companies are bound by state laws regarding payment for death by suicide. Policyholders who have held policies for more than two years are generally eligible for a claim. However, Mutual of Omaha’s policy may vary by policy type and state, so you should contact the company or an insurance agent directly for more information.

If you are contemplating suicide, help is available. Call any time of day for free, confidential support from the National Suicide Prevention Line at 800-273-8255. The organization also operates more than 150 crisis centers that offer encouragement and local resources. Please reach out to them if you are in crisis.

Can you get Mutual of Omaha life insurance if you have cancer?

In general, Mutual of Omaha will not issue an underwritten life insurance policy to an applicant who has cancer. However, the Guaranteed Issue Whole Life policy is available regardless of health status, so it would be available to a customer with cancer.

Does Mutual of Omaha life insurance cover cover death by drug overdose?

In general, life insurance companies are bound by state laws regarding payment for a drug overdose. Policyholders who have held policies for more than two years are generally eligible for a claim. However, Mutual of Omaha’s policy may vary by policy type and state, so you should contact the company or an insurance agent directly for more information.

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