Mutual of Omaha Life Insurance Review

mutual of omaha life insurance logo review

There are scores of life insurance companies in America.

And while you may think they each offer basically the same products as the others, nothing can be farther from the truth.

Most insurance companies offer specific niche policies, designed to fit the needs of certain groups of individuals.

In this Mutual of Omaha review, we’ll show you how this company specializes in life insurance coverage for people who have terminal or chronic illnesses.

It’s an important market niche, especially since so many people are living longer, but often with chronic health conditions.

Table of Contents:

Mutual of Omaha Company Overview

Mutual of Omaha is a mutual life insurance company, which means it’s owned by its policyholders.

Established in 1909 in Nebraska’s most populous city as Mutual Benefit Health & Accident Association, Mutual of Omaha is a nationwide insurer that offers a range of coverage and wealth management plans.

These include health insurance, annuities, retirement supplement insurance, long-term care insurance, and dental insurance. In this Mutual of Omaha review, we’re going to focus solely on the company’s life insurance programs.

Mutual of Omaha is perhaps best known for the ease with which policyholders can apply for coverage. Whole life insurance applicants are guaranteed approval up to 85 years of age (75 in New York). Also, unlike many other insurers, Mutual of Omaha doesn’t require a medical exam for whole life insurance.

Mutual of Omaha Company Ratings

The company receives outstanding ratings from third-party rating services.

The Better Business Bureau (BBB) gives the company a rating of A+ (on a scale of A+ to F).

Mutual of Omaha has been accredited with BBB since 1940.

Financial Strength

Insurance industry rating service A.M. Best gives Mutual of Omaha a financial strength rating of A+ (Superior).

  • Standard & Poor’s Financial Rating: AA-
  • Moody’s Financial Rating: A1
  • AM Best Financial Rating: A+

Overall, Mutual of Omaha is rated strongly by all the main financial assessment agencies. They each have slightly different rating systems, though. A+ is second from the top score possible with AM Best (out of 16) and A1 is fifth from the best for Moody’s (out of 21).

Mutual of Omaha is considered to be in a strong budgetary position and not in imminent risk of insolvency.

  • Company Phone: (402)342-7600
  • Headquarters Address: Dodge @ 33rd Street Omaha, Nebraska 68175

Mutual of Omaha

Mutual of Omaha is a highly-rated life insurance provider.

  • Standard & Poor’s Financial Rating: AA-
  • Moody’s Financial Rating: A1
  • AM Best Financial Rating: A+

4.3 out of 5

Mutual of Omaha Life Insurance Policies

Mutual of Omaha offers several different life insurance plans, aimed mostly at consumers who might have difficulty getting coverage elsewhere due to health considerations.

And fortunately, the company provides life insurance policies in all 50 states.

Term Life Insurance

Term coverage is “pure” life insurance. That is, it’s life insurance without cash accumulation or an investment provision. It’s also limited to a specific term.

For these reasons, a term policy is the simplest and by far the least expensive type of life insurance coverage.

Here are a few highlights of the company’s term policies:

  • Mutual of Omaha offers term life insurance with terms of 10, 15, 20, and 30 years.
  • You’re eligible for a term policy between the ages of 18 and 80.
  • The minimum policy size is $100,000.

Mutual of Omaha’s term policies also come with an option to convert the plan to a permanent life insurance plan, such as whole life.

Whole Life Insurance

Whole life insurance is permanent coverage, which means the policy will remain in force as long as you continue making the premium payments. In addition to the death benefit, it also includes a cash value that grows on a tax-deferred basis.

Mutual of Omaha’s whole life policies are guaranteed coverage. 

Let’s take a look at the policy’s key features:

  • There is no medical examination, and you’re not required to answer any health questions, making it a perfect permanent life insurance plan for someone who has a serious or terminal illness.
  • You’re eligible to purchase this policy between the ages of 45 and 85, and with a death benefit of between $2,000 and $25,000.
  • Because it’s a guaranteed-issue policy, there’s a limitation on the payment of benefits. If death occurs within the first two years of the policy and is due to natural causes, the payout will be limited to premiums paid, plus 10%.
  • Your beneficiaries will be entitled to the full death benefit if your death is due to accidental causes within the first two years, or for any reason once the two-year period is over.
  • You can apply for this coverage online, and the average time frame is less than one week.

Children’s Whole Life

As the name implies, this is a policy designed specifically for children.

The plan is for children or grandchildren between the ages of 14 days and 17 years. As a whole life policy, it not only provides the death benefit, but it also builds cash value.

Premiums are guaranteed to never increase, and policy amounts are available between $5,000 and $50,000. No medical exam is required, and you only need to answer a short list of health questions.

Universal Life Insurance

Universal life comes with flexible premiums and benefit amounts. It gives you the ability to increase or decrease the death benefit, while also building cash value on a tax-deferred basis. You can access the cash through either loans or withdrawals.

Mutual of Omaha offers four different types of universal life insurance:

Indexed Universal Life (“Life Protection Advantage”): Provides a guaranteed death benefit to age 85. It also has the potential for greater cash value than traditional fixed-interest universal life insurance policies. You can access the cash value, and options such as accelerated death benefit and guaranteed refund options are available. (Accelerated death benefit provides early access to part of your death benefits if it’s used to pay costs related to a terminal or chronic illness.)

Indexed Universal Life (“Income Advantage”): This is permanent insurance coverage with an investment provision. You can earn returns based on the performance of selected market indices, without actually being invested in the market. It also provides downside protection, by protecting you against market losses.

Guaranteed Universal Life (“Guaranteed Universal Life”): Guarantees a death benefit for a specific term of your choice, including your entire lifetime. This policy is more about guaranteeing a specific death benefit, and less on accumulating cash value. It also offers accelerated death benefit and guaranteed refund options.

Universal Life (“AccumUL”): The cash accumulation provision is based on a declared interest rate, which is guaranteed to be a minimum of 2% per year. The emphasis on greater cash accumulation creates the potential for greater future income.

Final Expense

Final expense policies are designed for people who might not otherwise qualify for life insurance coverage.

For example, if you have certain serious health conditions or terminal illness, a final expense policy will offer coverage without regard to that condition.

They are referred to as final expense policies because they are relatively small and designed mostly to pay for funeral costs and any remaining medical expenses.

Mutual of Omaha’s final expense policies are among the best available in the industry. They are available for those between the ages of 45 and 85 and provide death benefits of between $2,000 and $40,000.

You can also add an accelerated death benefit to the policy.

This benefit provides an advance of some of the death benefit to pay expenses related to terminal illness or nursing home confinement.

Though it reduces the death benefit to your beneficiaries, it can provide you with valuable funds to help pay for living expenses and medical treatments before you die.

Accidental Death Insurance

This is a life insurance policy that provides a death benefit for your beneficiaries if you die in an accident.

It includes an easy application process with affordable coverage. Further, coverage is guaranteed so you cannot be turned down.

Accidental death insurance is an excellent supplement to your regular life insurance coverage.

The policy is available between the ages of 18 and 70 but is guaranteed renewable up to age 80. Coverage is available up to $1 million and can also be extended to your family members.

Mutual of Omaha

Mutual of Omaha offers several different life insurance policy options for people who might have difficulty getting coverage due to health considerations.

Mutual of Omaha No Exam Life Insurance

Mutual of Omaha’s strength is providing life insurance for people who are not eligible for traditional life insurance.

Health conditions are a major factor determining both the approval and the premium rate on most life insurance policies.

But most Mutual of Omaha policies don’t require medical exams, and some don’t even ask health-related questions.

No exam policies are perfect for someone who has a terminal illness and is unable to get insurance elsewhere.

They also work well for anyone who has one or more chronic health conditions which are generally deemed to result in a shorter lifespan.

How To Apply With Mutual of Omaha

You can always apply for coverage directly through the company website. However, we can assist you with that process by handling all the application details, and at no extra cost to you. As an insurance broker, we work with many different life insurance companies.

Mutual of Omaha is an excellent company, particularly for those with terminal or chronic illnesses. But it may not necessarily be the best company for your particular needs.

Read here to see how Mutual of Omaha compares to Gerber Life Insurance.

As life insurance brokers, we’re skilled in matching consumers with the best insurance company for their particular needs. Each company is a little bit different, both in the types of policies they issue and the premiums they charge.

We can help get the right policy for you at the lowest possible premium cost.

Just give us a call at 888-603-2876, and we’ll handle all the details for you.

Mutual of Omaha

Mutual of Omaha offers favorable underwriting for people with terminal or chronic illnesses.

*While we make every effort to keep our site updated, please be aware that “timely” information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.