Mutual of Omaha is a financially stable, family-oriented company based in the heart of America. It offers a variety of permanent insurance policies at competitive prices.
Mutual of Omaha offers permanent life insurance that might be right for you if you have long-term insurance needs, need to cover final expenses, want to leave a legacy to someone or would like to supplement your existing life insurance coverage. (Permanent life insurance policies typically accrue cash value.) Its whole life policies are mostly marketed to cover one’s final expenses, with coverage as high as $50,000. Its universal life insurance policies are available in greater amounts. As a mutual company owned by its policyholders, it has been able to listen to customers instead of Wall Street. It can help its customers “protect what they care about and achieve their financial goals.” It is, for example, one of the rare insurance companies that post a PDF of its Code of Ethics on its website.
|Varies based on age and other factors|
Ease of enrollment
Ways you can enroll
|Online, phone or through a Mutual of Omaha agent|
What types of insurance?
|Whole, universal, guaranteed acceptance and guaranteed universal life (GUL) policies|
How soon is the policy in effect?
|Many take one week; full underwriting can take a month|
Ease of access
|Agents are available Mon-Fri, 7:00 AM-5:00 PM CST|
What is the maximum coverage available?
|Varies with policies|
What isn’t covered?
|Suicide exclusion not specified|
A.M. Best’s Financial Strength Rate (FSR)
Medical exam required
Is a medical exam required?
|Yes, for several policies|
On some policies, a paramedical exam may be required depending on the face amount you are requesting and on your age at the time of application. If you are approaching an age cut-off, Mutual of Omaha uses ‘Age Last Birthday’ which could prove valuable. The younger – and healthier – you are when you purchase a life insurance policy, the better the rate class you will receive and the lower your premiums will be. One age-friendly detail: the death of a parent under age 60 from cancer or heart disease usually is considered detrimental to your rating, but Mutual of Omaha does not consider that if you are applying at age 60+. Life insurance is one financial purchase that will (hopefully) remain active for the rest of your days, so excellent customer service is critical as we age, and Mutual of Omaha’s is considered excellent.
Mutual of Omaha does not appear to be particularly restrictive in its underwriting guidelines. This is positive if you have left your buying until when you have some pre-existing conditions. For example, underwriting does not seem to preclude granting a Preferred rating for applicants with mild asthma, mild sleep apnea and treatment for cholesterol or hypertension. Of course, if you have a permanent policy, it will not be affected by an advancing health condition, which is one of the primary reasons for buying one in the first place. If you need to access some of the funds in your whole life insurance policy as your health declines, you can withdraw or borrow against the cash value in your policy. It will, however, be deducted from the amount eventually paid to your beneficiaries. There are also some riders that facilitate access to funds in case of disability or critical illness.
Mutual of Omaha’s origins as a ‘good guy’ insurance company that is concerned about its customers continue to this day, partly facilitated by being a mutual company that does not have to kowtow to Wall Street. It offers several permanent life insurance options, including its first indexed universal life insurance produce which was introduced in 2016. Its cash value accumulation is tied to the performance of the Standard & Poor’s 500 index.
Financial strength is crucial because it indicates how well an insurer can pay claims. It’s especially important when choosing a life insurance company because claims might not be made until many decades after you purchase a policy. Mutual of Omaha holds an A.M. Best rating of A+ (Superior). The company is also perceived positively in terms of customer satisfaction, scoring high for service and low for complaints. If it offers a policy that meets your needs for price and benefit, this could be a good company to have behind your policy.
Frequently Asked Questions:
Does your whole life coverage include some kind of ‘accelerated death benefit?’ Yes, it does. In addition, you have access to any accumulated cash value in the policy if needed for medical or other expenses, either taken as a withdrawal or a policy loan. This will be deducted from the death benefits paid to your beneficiaries.
When does my coverage begin? Coverage begins only when the company approves your application for insurance, and the premium is paid. Simplified applications take about a week, whereas fully underwritten ones could take under a month.
What one thing sets this insurer apart from others? Mutual has earned ‘best life insurance company’ reputation from the rating agencies due to its financial strength and claims-paying history. With its Midwest values, it is one of the most respected insurance companies in the industry today.
Overview: Two types of policy are available: Whole life and universal life. Both can accrue cash value, which can be used as a withdrawal or policy loan. Any tax implications of withdrawals should be reviewed carefully. Final death benefits will be reduced by the value of total withdrawals or unpaid loans and interest. Factors that can affect the rating you receive for pricing calculations can include your age, gender, health status, nicotine use, alcohol and drug use, driving record, vocation, hobbies and criminal record.
Whole life: Whole life insurance policies offer premiums that will remain the same over the duration of your policy. They guarantee a death benefit to your designated beneficiaries upon your death. They also allow for the potential of tax-deferred growth of cash value which you can access during life to meet financial needs you encounter. Mutual of Omaha offers two kinds of traditional whole life Insurance: one is available online and one through an agent.
Universal Life: Mutual of Omaha’s universal life policies are another form of permanent life insurance coverage. However, the premiums and benefit amounts are both flexible. If circumstances change later in life, you can increase or decrease coverage amounts. Accelerated death benefits offer early access to a portion of your death benefit in the event of a terminal or chronic illness.
Mutual of Omaha has four types of universal life products, available through agents:
Optional Accessories or Add-on Services: Riders identified for different Mutual of Omaha permanent insurance policies include Accelerated Death Benefit, Chronic Illness, Terminal Illness and Disability Waiver of Policy Charges riders.
Contract Details: View individual policies for details.
Accreditations: Mutual of Omaha has been accredited with the Better Business Bureau since 1940 and has an A+ rating with the BBB website. With its ‘sister company’ United of Omaha Life, it has a below average volume of customer complaints according to the NAICS Association. It carries A.M. Best’s highest rating of A+ (Superior) for financial strength and has a Comdex ranking of 93 out of 100 (average rating from the four major rating agencies).
Company Details: Mutual of Omaha is a privately held mutual insurance and financial services company based in Omaha, NE. It was founded in 1909 as Mutual Benefit Health & Accident Association and by 1920 was licensed to offer insurance in 15 states. By 1958, it had surpassed $1 billion in benefits paid out to its policyholders.
Today it is #342 on the Fortune 500 list of companies. United of Omaha Life Insurance Company, an affiliate of Mutual of Omaha Insurance Company, underwrites the life insurance. The company has 3.5 million customers and total assets of $42.4 billion. Yet it still functions on the founding principle: help people in their time of need, including through charitable giving and involvement in the community.
Mutual of Omaha Insurance Company
(Mutual of Omaha)
3300 Mutual of Omaha Plaza
Omaha, NE 68175
Phone: 800-377-9000, sales 800-205-8193