Mutual of Omaha Life Insurance Review for 2019

mutual of omaha life insurance logoFounded in 1909, Mutual of Omaha offers affordable rates not only to healthy customers but also to those with a range of health conditions, including sleep apnea, high cholesterol, and diabetes.

Moreover, as a customer of Mutual of Omaha, you have access to the accelerated death benefits, allowing you to withdraw a portion of your policy’s death benefit if you have been diagnosed with a terminal illness.

So, what other unique features does Mutual of Omaha offer, and could it be the right insurer to go with? Let’s dig in and find out!

Mutual of Omaha Life Insurance Overview

mutual of omaha reviewMutual of Omaha is a company providing insurance, finance, and banking products to customers throughout the U.S. As the company name suggests, it is a mutual company, meaning that each policymaker owns a small portion of it.

Founded in 1909, Mutual of Omaha has always been considered one of the top insurers in the U.S. and is known for excellent financial health and stability.

Mutual of Omaha is also a great place to work, according to Forbes magazine! It was named one of “America’s Best Employers” in 2019 based on a poll where employees were asked how likely they were to recommend their employers to others.

However, what makes Mutual of Omaha the most attractive as an insurer to me is the competitive life insurance rates the company is able to offer, as well as the variety of term and permanent life insurance policies available.

What Life Insurance Options Does Mutual of Omaha Offer?

Mutual of Omaha offers term life insurance, as well as permanent (universal and whole life insurance) policies.

You can also purchase accidental death insurance from Mutual of Omaha, which pays a death benefit if you die in a covered accident – as well as children’s whole life insurance.

Let’s look at each of these in more detail.

Mutual of Omaha Term Life Insurance

Mutual of Omaha’s term life insurance offers flexible coverage for a set period and is the most affordable of their policies.

Customized terms include 10, 15, 20 and 30 years, and policies are issued to anyone between 18 to 80 years old.

There are coverage options of $100,000 or more, and, conveniently, you can get a quote estimate online. That said, you will have to speak to an agent to purchase the policy.

Quick Summary of Mutual of Omaha’s Term Life Policy:

  • Affordable coverage for a set period of time
  • Customized terms: 10, 15, 20 or 30 years
  • Benefit amount of $100,000 or more
  • Available to customers aged 18 to 80

Excellent option if you need cover for a specific period of time, for example during child-raising years or until you pay back your car loan or credit card debt.

Compare Rates with Mutual of Omaha

Mutual of Omaha Accidental Death Insurance

Mutual of Omaha also offers accidental death insurance which is designed to provide financial help for your family if you die in a covered accident (for example, riding a bus, boat, or airplane as a fare-paying passenger).

It’s probably one of the most affordable life insurance options on the market, and there’s no medical exam. Coverage is guaranteed – as long as you’re within the qualifying age group.

Quick summary of Mutual of Omaha’s Accidental Death Insurance:

  • Guaranteed coverage – no medical exam
  • Could supplement existing life insurance
  • Available to customers aged 18 to 70
  • Death benefit amounts up to $1,000,000
  • Auto-Pedestrian benefit available (pays a death benefit of up to $300,000 if the insured is killed while riding in a private car, driving, or is struck by a car on a public street or highway)

Mutual of Omaha Universal Life Insurance

Universal life insurance is a flexible permanent life coverage option. You can adjust the premium payment amount, as well as the death benefit amount further down the line, which is excellent if your circumstances change and you need more (or less) coverage. It means you stay in control – and this flexibility can make your life easier.

Additionally, with Mutual of Omaha’s universal life insurance, your policy has a cash value which has the potential to build-up on a tax-deferred basis. The accumulated cash could help with your future needs because you can access it through loans or withdrawals.

Bear in mind that doing so would reduce your cash value and death benefit – so it should be a well-thought-through decision.

All Mutual of Omaha’s universal life insurance products come with an accelerated death benefit, too – meaning that you can get early access to a portion of your death benefit if you become terminally or chronically ill.

Mutual of Omaha has four different universal life insurance products:

#1 Life Protection Advantage SM:

  • Permanent life insurance
  • Indexed universal life insurance
  • Death benefit guaranteed through age 85 (perhaps longer) – as long as you’re paying a no-lapse premium
  • Potential for greater cash accumulation (because it is indexed)
  • Accessible cash value
  • Additional riders available – accelerated death benefit and guaranteed refund

#2 Income Advantage SM:

  • Permanent life insurance
  • Indexed universal life insurance
  • Accumulate cash value based on your chosen interest-crediting options (linked to the performance of a market index)
  • Downside protection – you are guaranteed to receive no less than 0 percent, protecting you from market-related losses (which may happen if the index perform poorly)
  • Offers bigger cash growth potential than the other Mutual of Omaha universal plans

#3 Guaranteed Universal Life:

  • Permanent universal life insurance
  • Guaranteed death benefit for a period of your choice (up to your lifetime)
  • Main focus on guaranteeing a death benefit
  • Offers flexibility through riders (e.g., accelerated death benefit and guaranteed refund)

#4 AccumUL:

  • Permanent universal life insurance
  • Emphasis is on accumulating cash value
  • Build cash value using a declared interest rate (guaranteed to earn at least 2% per year)
  • More future income potential

Mutual of Omaha Whole Life Insurance

Mutual of Omaha also offers whole life insurance, which provides life coverage as well as builds cash value. If you’re looking for fixed premiums and a policy that promises no surprises – Mutual of Omaha’s whole life insurance may just be the right thing for you.

What’s quite cool is that applicants aged 45 to 85 can purchase whole life insurance online, without having to answer any health questions or complete medical exams. Those policies are only for $2,000 to $25,000, so they won’t cover large outstanding debts like a mortgage or student loans.

But the death benefit can be used to pay off smaller debts and final expenses (like funeral costs or medical bills).

Quick summary of Mutual of Omaha’s Whole Life Insurance:

  • Permanent life coverage
  • No-exam whole life policies available
  • Fixed premiums – guaranteed to stay the same
  • Offers cash value (tax-deferred)
  • Cash value can be used for loans (but that may reduce your policy value and benefit)

Whole Life Insurance for Children

Mutual of Omaha also offers permanent life insurance for children aged 14 days to 17 years old. The insurance builds cash value and could be used as a savings option for your child.

Another benefit of purchasing life insurance for children is that you can lock in low insurance rates that will remain fixed throughout their lives.

Quick summary of Mutual of Omaha’s whole life insurance for children:

  • Only a few health questions asked
  • Available for children aged 14 days to 17 years old
  • Lock-in low rate for your child that will remain the same for their lifetime
  • Available benefit amounts: $5,000 to $50,000

Mutual of Omaha Financial Strength

If you’re considering Mutual of Omaha as an insurer, you’ll be pleased to know that their financial strength is good as ever. The company has been given an A+ rating from the reputable ranking companies such as A.M. Best and Better Business Bureau.

This means that you have nothing to worry about when it comes to Mutual of Omaha’s financial strength.

Pros and Cons of Mutual of Omaha Life Insurance

Here’s a list of pros of Mutual of Omaha – as well as the things it could improve on.

Pros of Mutual of Omaha

  • Accelerated death benefit available
  • Competitive rates for a range of health conditions
  • Electronic application
  • Fast-track application available
  • You can skip the medical exam if your answers to health questions are satisfactory

Cons of Mutual of Omaha

  • Slower application turnaround time compared to other providers
  • Policy delivered by mail (which is a little inconvenient)
  • You can’t do much online – you’ll have to call or fill in paper forms to change address or payment info, or update beneficiaries

Is Mutual of Omaha Life Insurance For You?

Should you consider Mutual of Omaha as a life insurer? Yes, absolutely. As a long-time financially secure company, Mutual of Omaha is a reliable choice. Add low rates, variety of insurance products, and competitive underwriting for various health problems to the mix – and you have a very solid option.

That said, if you want easy access to your policy details and the ability to change your details online, Mutual of Omaha doesn’t offer that. You can’t change any of your details like your address or payment info online – you’ll have to ring up. And if you want to add beneficiaries, you may even need to fill in paper forms.

But if that isn’t a make-or-break feature, then Mutual of Omaha is an excellent choice. With long-time financial stability, competitive rates and underwriting options for substandard health profiles, Mutual of Omaha has all bases covered.

Grant Sabatier

Creator of Millennial Money and Author of Financial Freedom (Penguin Random House). Dubbed "The Millennial Millionaire" by CNBC, Grant went from $2.26 to over $1 million in 5 years, reaching financial independence at age 30. Grant has been featured in The New York Times, Wall Street Journal, BBC, NPR, Money Magazine and many others. He uses Personal Capital to manage his money in 10 minutes a month.

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