Mutual of Omaha is an A+ rated insurance company offering Living Promise whole life insurance for final expenses and Term Life policies for income protection. Their Living Promise policy provides $2,000 to $50,000 in burial insurance coverage for ages 45-85, with options for first-day coverage or a graded benefit plan for those with health conditions.
If you’ve seen the Mutual of Omaha name on TV or heard about them from a friend, you’re probably wondering if they’re a good choice for your life insurance needs. The short answer is yes, especially if you’re shopping for final expense insurance.
We’ve worked with Mutual of Omaha for years as one of the 30+ carriers we represent. In this review, we’ll cover what makes their Living Promise final expense policy stand out, plus their term life options for those who need larger coverage amounts.
About Mutual of Omaha
Mutual of Omaha was founded in 1909 under the name Mutual Benefit Health & Accident Association. They started offering life insurance in the 1920s and have grown into one of the most recognized insurance companies in America.
What matters most is whether they’ll be around to pay your claim. Their financial ratings say yes.
| Rating Agency | Rating | What It Means |
|---|---|---|
| A.M. Best | A+ (Superior) | 2nd highest of 16 ratings |
| S&P Global | A+ (Strong) | 5th highest of 21 ratings |
| Moody’s | A1 (Good) | 5th highest of 21 ratings |
These ratings confirm Mutual of Omaha has the financial strength to pay claims. You can count on them to be there when your family needs them most.
Living Promise Whole Life Insurance
Living Promise is Mutual of Omaha’s final expense insurance product. It’s designed to cover funeral costs, medical bills, and other end-of-life expenses so your family isn’t left with a financial burden.
This is whole life insurance, which means your coverage never expires as long as you pay your premiums. Your rates are locked in and will never increase. The policy also builds cash value over time.
Two Plans to Fit Your Health Situation
Mutual of Omaha offers two versions of Living Promise based on your health:
| Feature | Level Benefit Plan | Graded Benefit Plan |
|---|---|---|
| Ages | 45-85 | 45-80 |
| Coverage Amounts | $2,000 – $50,000 | $2,000 – $20,000 |
| Waiting Period | None (first-day coverage) | 2 years for natural death |
| Health Questions | Yes (must qualify) | Fewer requirements |
| Best For | Healthier applicants | Those with serious health issues |
The Level Benefit Plan is the better option if you can qualify. You get full coverage from day one with lower premiums. The Graded Benefit Plan exists for people who can’t pass the health questions but still need coverage.
How the Graded Benefit Works
With the graded plan, if you die from natural causes during the first two years, your beneficiary receives 110% of all premiums paid rather than the full death benefit. After two years, the full death benefit applies. Accidental death is covered in full from day one on both plans.
Who Qualifies for the Level Benefit Plan?
To get first-day coverage with the Level Benefit Plan, you’ll need to answer health questions on the application. Mutual of Omaha looks at conditions like:
- Diabetes diagnosed before age 50 or with complications
- Chronic lung disease including COPD, emphysema, or chronic bronchitis
- Heart-related conditions
- Cancer, leukemia, or melanoma in the past 4 years
- Kidney disease requiring dialysis
- Alzheimer’s or dementia
If you can answer “no” to their health questions and meet their height/weight guidelines, you’ll likely qualify for the level benefit with no waiting period.
Accelerated Death Benefit Rider
One valuable feature included at no extra cost is the Accelerated Death Benefit rider. This lets you access your death benefit early if you’re diagnosed with a terminal illness (life expectancy of 12 months or less) or confined to a nursing home for 90 consecutive days.
This means you can use some of your policy’s value while you’re still alive to pay for care or other expenses. It’s a meaningful benefit that many final expense policies don’t include.
Optional Accidental Death Benefit Rider
For a small additional premium, you can add the Accidental Death Benefit rider to the Level Benefit Plan. If you die from a covered accident, your beneficiary receives double the death benefit.
Mutual of Omaha Term Life Insurance
While Living Promise is ideal for seniors covering final expenses, Mutual of Omaha also offers solid term life insurance for those who need larger coverage amounts at younger ages.
They have two term products: Term Life Express (no medical exam) and Term Life Answers (fully underwritten with an exam).
Term Life Express
Term Life Express is a simplified issue policy, meaning no medical exam is required. You answer health questions and can get approved quickly.
| Feature | Details |
|---|---|
| Coverage Amounts | $25,000 – $300,000 (varies by age) |
| Term Lengths | 10, 15, 20, or 30 years |
| Ages | 18-75 (varies by term length) |
| Medical Exam | None required |
| Underwriting | Simplified issue |
This policy includes several built-in benefits at no extra cost:
- Living Benefit Riders for terminal, chronic, and critical illness
- Waiver of Premium for Unemployment (one-time, 6-month benefit)
- Common Carrier Death Benefit pays an extra benefit if you die as a passenger on a plane, train, or bus
The tradeoff with no-exam policies is you’ll pay slightly higher premiums than a fully underwritten policy. The maximum coverage is also capped at $300,000 for ages 18-50, dropping to $150,000 for ages 61-75.
Term Life Answers
Term Life Answers is Mutual of Omaha’s fully underwritten term product. It requires a medical exam but offers more coverage options and potentially lower rates for healthy applicants.
| Feature | Details |
|---|---|
| Coverage Amounts | $100,000 – $1,000,000+ |
| Term Lengths | 10, 15, 20, or 30 years |
| Ages | 18-80 (varies by term length) |
| Medical Exam | Required |
| Underwriting | Full underwriting with multiple rate classes |
With full underwriting, you can qualify for preferred rates if you’re in excellent health. The policy includes an Accelerated Death Benefit for terminal illness and can be converted to permanent coverage before age 75.
Is Mutual of Omaha Right for You?
Mutual of Omaha is a strong choice in two situations:
Choose Living Promise if:
- You’re between 45-85 years old
- You need $2,000-$50,000 in final expense coverage
- You want whole life insurance with locked-in rates
- You value the accelerated death benefit for terminal illness or nursing home confinement
Choose their term products if:
- You need coverage over $100,000
- You’re under 65 and in good health
- You want the option to convert to permanent coverage later
Mutual of Omaha isn’t always the cheapest option for term life insurance. In our experience, they’re typically not in the top 5 for term rates compared to other carriers. Their strength is in final expense coverage, where Living Promise consistently offers competitive rates with strong benefits.
The best approach is to compare quotes from multiple carriers. That’s where we can help.
Frequently Asked Questions
Does Mutual of Omaha require a medical exam for final expense insurance?
No. Living Promise whole life insurance doesn’t require a medical exam. You’ll answer health questions on the application, and Mutual of Omaha will review your prescription history and MIB records. Based on your answers, you’ll qualify for either the Level Benefit Plan (first-day coverage) or the Graded Benefit Plan (2-year waiting period).
What’s the difference between Level Benefit and Graded Benefit?
The Level Benefit Plan provides full coverage from day one with no waiting period. The Graded Benefit Plan has a 2-year waiting period for natural death. If you pass away in the first two years from natural causes on the graded plan, your beneficiary receives 110% of premiums paid instead of the full death benefit. After two years, the full benefit applies. The level plan has lower premiums and higher maximum coverage ($50,000 vs $20,000).
Can I get Living Promise coverage if I have health problems?
Yes. If you don’t qualify for the Level Benefit Plan due to health conditions, you may still qualify for the Graded Benefit Plan. This option has less strict health requirements but comes with a 2-year waiting period and lower maximum coverage. Mutual of Omaha also offers a separate Guaranteed Acceptance policy with no health questions, though premiums are higher.
What is the accelerated death benefit on Living Promise?
The accelerated death benefit lets you access your policy’s death benefit while you’re still alive under two circumstances: if you’re diagnosed with a terminal illness expected to result in death within 12 months, or if you’re confined to a nursing home for 90 consecutive days and expected to remain there. This rider is included at no extra cost with the Level Benefit Plan.
How much does Mutual of Omaha final expense insurance cost?
Living Promise premiums depend on your age, gender, tobacco use, coverage amount, and which plan you qualify for. Rates are generally competitive with other final expense carriers. A healthy 65-year-old can typically get $10,000-$15,000 in coverage for a reasonable monthly premium. The best way to get an accurate quote is to speak with a licensed agent who can review your specific situation.
Is Mutual of Omaha financially stable?
Yes. Mutual of Omaha has been in business since 1909 and holds an A+ (Superior) rating from A.M. Best, an A+ (Strong) rating from S&P Global, and an A1 (Good) rating from Moody’s. These ratings indicate strong financial health and the ability to pay claims. You can feel confident they’ll be around when your family needs them.
Key Takeaways
- Mutual of Omaha’s Living Promise is one of the best final expense insurance options for seniors ages 45-85, with coverage from $2,000 to $50,000.
- The Level Benefit Plan offers first-day coverage with no waiting period if you qualify based on health questions.
- The Graded Benefit Plan provides an option for those with serious health conditions, though it has a 2-year waiting period.
- Living Promise includes an accelerated death benefit rider at no cost, allowing access to funds for terminal illness or nursing home confinement.
- Mutual of Omaha holds A+ ratings from both A.M. Best and S&P Global, confirming strong financial stability.
- Their term life products (Term Life Express and Term Life Answers) are solid options but may not offer the lowest rates compared to other carriers.
Get Your Free Quote
Ready to see if Mutual of Omaha’s Living Promise is right for you? Use the quote tool on this page to compare rates from Mutual of Omaha and other top-rated carriers. We’ll help you find the best coverage at the best price for your situation.
