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Mutual of Omaha Life Insurance Review

mutual of omaha life insurance review

Searching for life insurance isn’t fun. We understand that. There are thousands of companies and policies to consider before making a decision on which one is the best.

If you have heard about Mutual of Omaha and want to find out if they are the best life insurance company for you, we are here to help.

In this Mutual of Omaha life insurance review, we’ll tell you more about the company’s history, financial ratings, and policy options.

About Mutual of Omaha

As one of the over 30 providers we represent, Mutual of Omaha is one of the top life insurance companies in America.

Mutual of Omaha was founded in 1909, under the name Mutual Benefit Health & Accident Association. The company offered only health and accident insurance until the 1920s, when they started offering life insurance policies.

Today, Mutual of Omaha has developed and grown into a highly esteemed national insurance provider.

Rating Service Rating and Description
A.M. Best Rating Services A+ (Superior) 2nd highest of 16
Standard & Poor’s AA- 4th highest of 21
Moody’s A1 5th highest of 21
Comdex Score 93 – a composite of all insurance ratings

You shouldn’t have any worries about purchasing a policy from this financially sound company.

They are one of the most recognized and widely used insurance companies across the United States, but that doesn’t necessarily mean they are always the best option. Many consumers just pick an insurance company that they’ve seen a commercial for, but they could be paying too much for insurance coverage.

Mutual of Omaha Term Life Insurance

Mutual of Omaha offers two different term life insurance policies, which are the Term Life Express and the Term Life Answers.

Term Life Express

This life insurance policy is the general option that Mutual of Omaha offers. It’s quick and easy to sign up for because there is no medical exam required.

Term Life Express policies provide 15, 20, or 30-year terms that have the minimum death benefit of $50,000 up to the maximum of $400,000. This type of policy can be good for long-term financial requirements plus there is an assortment of features that are offered with it.

The Term Life Express is not for everyone, it is available for people between the ages of 18 and 65. Getting accepted will depend if you can qualify based on your health.

Because an exam isn’t mandatory with the Express product, you can expect to pay more for choosing this policy. The downside of the Express is that it is not available for conversion to permanent coverage and the maximum coverage is $400,000.

Term Life Answers

Similar to the Term Life Express, this type of policy offers more terms than its counterpart.

Term Life Answers is available in 10, 15, 20, or 30-year terms with death benefits ranging from $100,000 and up. Any of these terms are offered the option for converting the policy into permanent coverage (only available for people between the ages of 45 and 85).

The premium rates on this policy are assured to never increase during your preferred term.

Just as the Express, Answers also gets the feature of accelerated death benefit – allowing you access of 94% of the death benefit, but instead of the life expectancy being 24 months or less, it is 12 months or less.

Here is an example of 20-Year Term Life Insurance rates for a 30-year-old healthy male and female non-smoker:

Death Benefit Male Non-Smoker Female Non-Smoker
$100,000 $10.88 $10.45
$300,000 $15.18 $13.63
$500,000 $21.29 $18.28
$750,000 $29.24 $24.73
$1,000,000 $36.34 $30.32
$1,500,000 $51.82 $42.79
$2,000,000 $67.30 $55.26

As you can see rates for women non-smokers are less than men non-smokers. This is simply because women statistically outlive men which means the insurance carrier will have more opportunity to collect premium payments.

Universal Life Insurance

Universal Life Insurance is considered permanent life insurance that provides a guaranteed death benefit plus an investment (cash value) component. Unlike term and whole life insurance, universal life insurance provides the flexibility that policyholders need to accommodate life events that could change their coverage needs and premium payments. Mutual of Omaha currently offers four different universal life products that can provide the needed solutions based on the applicant’s needs and circumstances.

  1. Life Protection Advantage® Indexed Universal Life – Provides permanent life insurance to age 80 and longer if the insured pays the appropriate premium to keep the policy in force.
  2. Income Advantage® Indexed Universal Life – Offers permanent life insurance coverage and the ability to earn substantial cash accumulation based on the performance of selected index accounts.
  3. Guaranteed Universal Life – The Guaranteed Universal Life product puts the emphasis on the death benefit rather than accumulating cash value.
  4. AccumUL Universal Life – The AccumUL product was designed to emphasize cash accumulation while offering a guaranteed interest rate and provide life insurance protection.

Whole Life Insurance

Mutual of Omaha’s whole life products are designed to meet the needs of policyholders who prefer the guarantees and benefits that whole life insurance provides:

  • Permanent Insurance Coverage for Life – With whole life insurance the insurer can never cancel a policy except for non-payment of premium.
  • Level Premium Payments for Life – After a whole life policy is issued, the insurance company cannot increase the periodic premiums for any reason.
  • Cash Value Account – Whole life insurance builds cash value over time which can be accessed by the policyholder via policy loans, withdrawals, or a policy surrender.

Living Promise Whole Life Insurance

Mutual of Omaha’s Living Promise Whole Life Insurance was developed to accommodate consumers needing insurance to cover final expenses and includes an Accelerated Death Benefit that will provide an advance on the death benefit to insureds who are diagnosed with a terminal illness or are confined to a nursing home.

Mutual of Omaha offers two plans to accommodate healthy applicants and applicants who are dealing with different illnesses that could prevent from getting first-day coverage life insurance.

  • Level Benefit Plan – The level benefit plan provides first-day coverage at very competitive rates. The issue ages are 45 to 85-years-old with face amounts (death benefit) of $2,000 to $40,000. This plan is very effective for seniors who wish to purchase final expense and burial insurance.
  • Graded Benefit Plan – The graded benefit plan was created for applicants who cannot qualify for the level benefit plan because of severe or multiple illnesses. Eligible ages are 45 to 80-years-old with available death benefits of $2,000 to $20,000 ($5,000 to $40,000 in the state of Washington). The graded death benefit means that if the insured dies from natural causes during the first two years, the beneficiary would receive 110% of all premiums paid. After the first two years, the beneficiary would receive the full death benefit.

Here are rate examples for a $15,000 final expense policy for a male or female non-smoker in average health:

Age of Applicant Male Non-Smoker Female Non-smoker
45 $36.57 $32.31
50 $42.13 $35.40
55 $51.04 $41.00
60 $62.53 $47.70
65 $82.04 $59.91
70 $108.95 $78.26
75 $147.69 $107.71
80 $197.38 $146.05
85 $273.13 $202.25

We used a $15,000 death benefit to accommodate the average cost of a funeral in the U.S. which is between $8,000 and $12,000.

Is Mutual of Omaha Life Insurance Worth It?

Mutual of Omaha is a financially strong company, but it has been our experience that they are not usually in the top 5 as far as their term life insurance rates go compared with other providers.

Their final expense product, Living Promise, is one of the best on the market.

As for Mutual of Omaha’s whole life offerings, we point to the companies extremely high ratings from all of the independent review sources listed at the top of this article. You can count on them to make good on their commitment when you purchase whole life from them.

How Much Insurance Coverage Do You Need?

Calculating your insurance needs is going to help you choose the best policy.

There are several different factors that you need to consider to determine your life insurance needs for your family. The main goal of any life insurance policy is to pay off any final expenses or debt your family would be left with if you passed away.

The other big aspect of financial planning for which life insurance works is replacing your annual income. We would suggest that the more people you have relying on your income, the more life insurance that you get. Typically, around seven to ten times your annual salary is a safe bet.

How Does Mutual of Omaha Compare to Other Providers?

One of the best ways to get the lowest premiums is by comparing quotes from several different insurance companies. You compare prices on TVs and cars, why not life insurance?

We suggest that you compare quotes using the quote form on this page and we can help you shop for term life insurance.

Doug Mitchell

Doug Mitchell

Doug Mitchell, CLU holds a BA degree in Finance from Auburn University as well as having obtained a Chartered Life Underwriter (CLU) designation from The American College in Bryn Mahr, PA. Doug has spent close to 30 years in the life insurance and financial planning industry and has held licenses to sell securities, long-term care insurance, health. Some other notable items about Doug: Top of the Table Million Dollar Round Table member (MDRT). (MDRT is a global, independent association of the world’s leading life insurance advisors) | Premier Partner with Lincoln Financial and Cabinet Member | Served two years as President of the Auburn/Opelika Association of Financial Advisors | Life Millionaire status at Horace Mann Insurance Company and was awarded the Life Agent of the Year Award | New York Life, Executive Council Member | Currently serves as President of Ogletree Financial, a life insurance General Agency. | Doug is also a financial blogger addressing the topics of life insurance, annuities and retirement income planning.

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