Life insurance is one of the most overlooked aspects of financial planning, yet it can be crucial to ensuring you provide for your loved ones after you pass away. Finding the right provider of life insurance can be overwhelming, so it’s important to know your options.
Mutual of Omaha, a Nebraska-based insurance provider that was founded in 1909, is a Fortune 500 company that offers a variety of financial products and services to consumers throughout the U.S. With more than 4.6 million individual customers nationwide, Mutual of Omaha is a large, well-known insurance company with strong ratings from several leading agencies. It primarily offers life insurance, including term, whole life, and universal life policies, through a network of more than 5,200 employees spanning 42 states.
The company also offers long-term care, disability, critical illness, and dental insurance to both individuals and employer groups, along with annuities, investment products, banking, and mortgage services to individual consumers. Many of its employees are also financial planners that offer advice and guidance for common financial goals, such as retirement planning, college savings, and estate planning.
The Cost of a Mutual of Omaha Life Insurance Policy
Mutual of Omaha offers three broad types of life insurance to individuals, including term, universal life, and whole life. The cost for each policy is dependent on several factors, including the age of the applicant, smoker or non-smoker status, the state in which the applicant lives, and the medical history, height, and weight of the individual. Gender also plays a role in premium costs, as women typically present a lower risk to insurance companies than men of the same age. Those with healthier lifestyles, non-smokers, and those under 30 receive the lowest cost of life insurance through Mutual of Omaha.
For term insurance coverage, a 10-year level term policy for $100,000 costs $8.88 per month for a 30-year-old female, and $9.32 per month for a male of the same age. The same policy coverage for a 50-year-old is $16.41 for a woman and $18.68 for a man. The price increases with age, for selecting a longer policy term, and for applicants who smoke.
For permanent coverage, a guaranteed whole life policy of $25,000 for a woman age 50 costs $73.50 per month. The same coverage for a man costs $88.50 per month. The price for permanent coverage is not dependent on health as it is for term insurance, but instead is based on age and gender alone. However, coverage is only available to men and women between the ages of 45 and 85. There are no health questions to answer or exam to complete with Mutual of Omaha’s guaranteed whole life insurance.
Coverage / Most Popular Policy
Mutual of Omaha is perhaps best known for its guaranteed whole life insurance coverage, offered as a final expense policy with limited policy amounts. Individuals can get guaranteed whole life coverage without medical underwriting or a health exam. This coverage is a permanent policy, meaning it does not expire after a specific term, and it cannot be canceled so long as premiums are paid. Individuals may apply for this coverage if they are between the ages of 45 and 85, or between 50 and 75 if residing in New York, with a simplified process online or over the phone.
In addition to guaranteed whole life coverage, Mutual of Omaha also offers term insurance policies. Term insurance, unlike guaranteed whole life, is meant to act as temporary insurance. This means that after the term of the policy ends, the insurance expires and coverage is no longer in place.
Mutual of Omaha offers term insurance policies for any adult between the ages of 18 and 80, with a term of 10, 15, 20, or 30 years. The minimum policy amount is $100,000, and medical underwriting and a physical exam may be required. Policyholders with a Mutual of Omaha term insurance policy have the option to convert coverage to a permanent policy before the term expires.
Requirements to Get Insured
For individuals getting a guaranteed whole life insurance policy, Mutual of Omaha only requires that they meet the age requirements. There are no health questionnaires to complete, medical exams to undergo, or financial information to provide. Applications for this type of insurance may be submitted online or over the phone.
Individuals who want to pursue a term policy with Mutual of Omaha or a larger permanent policy must meet certain underwriting requirements. The process involves submitting an application that asks questions about age, gender, physical activity, employment, and income through a Mutual of Omaha insurance agent. Additionally, the company reviews a pharmaceutical report, a motor vehicle report, and doctor records when needed.
The applicant must also complete a paramedical exam that includes an evaluation of height, weight, blood, and urine samples to determine your health status. Once these requirements are met, Mutual of Omaha then makes an offer to the applicant based on health history and status.
Mutual of Omaha life insurance coverage is offered for both term and permanent options throughout the entire United States. There are no restrictions as to who may apply for coverage. However, there may be different rates for term and permanent coverage depending on the state in which the applicant resides. Additionally, individuals must meet the age requirements for permanent life insurance solutions, and health requirements for term insurance solutions to have access to coverage through Mutual of Omaha.
The Better Business Bureau ranks Mutual of Omaha with an A+ rating, and the company is accredited with the organization. Additionally, the insurance provider has good to superior ratings with the top three rating agencies: A.M. Best Company, Moody’s Investors Service, and Standard & Poor’s. While the financial rating of the company is solid, there are several customer complaints against the insurer via the Better Business Bureau. Many of the issues have been resolved by the company, and most are related to specific insurance agent interactions.
Mutual of Omaha has more restrictive phone support for policyholders than other large insurance providers, with access to customer service representatives limited from 7 a.m. to 5 p.m. Central, Monday through Friday. Policyholders who purchased an insurance product directly from an agent may have more access to their contact person or agency, however. Unlike other insurance providers, Mutual of Omaha does not have a mobile app for policyholders, but it does allow for online access to view policy information and download common forms.
Mutual of Omaha is a well-known insurance company offering both term and permanent solutions to individuals throughout the United States. The company has strong financial ratings and competitive pricing on its term and guaranteed whole life policies, but it may have fewer customer service resources than other insurers.
Mutual of Omaha makes it easy to secure guaranteed whole life through its online platform or over the phone. Individuals interested in term life insurance must work through an agent to submit an application and go through the underwriting process before getting a policy.