Mutual of Omaha

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.

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9
Grand Score
8
User Score
9
Grand Score
8
User Score
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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. 

Grandfolk Scoring
Cost 10/10
Ease of enrollment 9/10
Coverage 10/10
Waiting period 8/10
Customer support 7/10
Maximum coverage 10/10
Exclusions 10/10
Financial strength 9/10
Medical exam required 9/10
Cost
Monthly premium
Varies based on age and other factors
Ease of enrollment
Ways you can enroll
Online, phone or through a Mutual of Omaha agent
Coverage
What types of insurance?
Whole, universal, guaranteed acceptance and guaranteed universal life (GUL) policies
Waiting period
How soon is the policy in effect?
Many take one week; full underwriting can take a month
Customer support
Ease of access
Agents are available Mon-Fri, 7:00 AM-5:00 PM CST
Maximum coverage
What is the maximum coverage available?
Varies with policies
Exclusions
What isn’t covered?
Suicide exclusion not specified
Financial strength
A.M. Best’s Financial Strength Rate (FSR)
A+ (Superior)
Medical exam required
Is a medical exam required?
Yes, for several policies
Age Score:
10
50-64 Years
9
65-74 Years
9
75-84 Years
9
85-Above

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. 

Health Score:
9
Great Health
9
Good Health
8
Fair Health
8
Poor Health

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.

Pros:

  • Underwriting uses ‘Age Last Birthday,’ which is an advantage if you are close to an age cut-off.
  • The website has a handy “Determine Your Life Insurance Need” calculation tool.
  • The prices for all lines of the company's life insurance are quite competitive.
  • Mutual of Omaha has held accreditation with the Better Business Bureau since 1940, and the BBB website also gives it an A+ rating for handling any issues quickly and thoroughly. 
  • The company drew fewer than the median number of complaints for a company its size, per the National Association of Insurance Commissioners.
  • It ranks 8th out of 24 major insurance companies per J.D. Power survey for customer satisfaction, which covers overall satisfaction; billing and payment; price; policy offerings; and interaction.

Cons:

  • A few policies can be purchased online, but the majority needs to be bought through one of its agents.
  • Its website is well-designed and easy to understand; however, it lacks decision-level detail and forces you to call one of its agents.
  • Like other insurers, in addition to health status, underwriting can include your nicotine use, alcohol and drug use, driving record, vocation, hobbies and criminal record.

Bottom Line:

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.

More Information:

Product Details 

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.

Package Details: 

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. 

  • Whole Life Guaranteed Insurance (available online or by phone, with a simplified application): This is a policy with guaranteed coverage, issued to people age 45-85 (50-75 in NY), with benefit amounts in the range of $2,000 to $25,000. No medical exams or health questions to answer.  The policy also includes a graded death benefit: if death occurs from natural causes (not accidental) during the policy's first two years, the beneficiary will receive all premiums you paid plus 10 percent. Once the 2-year period ends, the beneficiary will have access to the policy's full benefit. Should death result from an accidental injury, full death benefits will be paid starting from the first day the policy is in effect.
  • Whole Life Living Promise Insurance (available through an agent): This policy has simplified underwriting. Acceptance depends significantly on answers to health questions, particularly for the Level Benefit Plan. It offers two coverage choices:         
  1. A Level Benefit Plan, issued to people age 45-85, with benefit amounts in the range of $2,000 to $40,000 ($5,000 to $40,000 in WA). It offers coverage starting on Day One, as well as an Accelerated Death Benefit for Terminal Illness or Nursing Home Confinement.
  2. A Graded Benefit Plan, issued to people age 45-84, with benefit amounts in the range of $2,000 to $20,000 ($5,000 to $40,000 in WA), and face amounts can vary with issue age. This policy’s graded benefit means that for death occurring during the first two years due to natural causes (anything but accidental causes), the beneficiary will receive all premiums paid, plus 10 percent. Following the 2-year period, the full benefit is paid for death due to all causes. Full death benefits will be paid from Day One if death results from an accidental bodily injury. (Not available in AR, MT or NC.)

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:

  • Life Protection Advantage Indexed Universal Life: the death benefit can be guaranteed through age 85, or older, provided you are paying the ‘no-lapse’ premium or greater. (Coverage is limited to a 10-year guarantee if purchased after age 75.) Cash value can accumulate faster than traditional fixed-interest universal life insurance, as it ties the cash value accumulation of the policy to the performance of the Standard & Poor’s 500 index. Cash value is accessible during you lifetime. Accelerated death benefit and guaranteed refund option riders available.
  • Income Advantage Indexes Universal Life: places more emphasis on cash growth potential than other Mutual of Omaha universal life offerings. Cash value can build on selected interest-crediting options tied to the performance of a market index, although your money is never invested in the market. Protects against significant drops in the market by paying a minimum of 0 percent for that period.
  • Guaranteed Universal Life (GUL): guarantees a death benefit for a period you choose, up to your lifetime, provided scheduled premiums are paid. This option focuses more on guaranteeing the death benefit than it does on accumulating cash value, almost as a hybrid of permanent life and term life. Accelerated death benefit and guaranteed refund option riders are available. 
  • AccumUL Universal Life: uses a declared interest rate to accumulate cash value, guaranteed to earn at least 2 percent per year. It emphasizes cash value growth potential somewhat more than Guaranteed Universal Life, hence offers more future income potential. 

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.  

Additional Company Details

Contract Details: View individual policies for details. 

Warranty: N/A 

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.

Contact: 

Mutual of Omaha Insurance Company
(Mutual of Omaha)

3300 Mutual of Omaha Plaza
Omaha, NE 68175

Phone: 800-377-9000, sales 800-205-8193 

Website: https://www.mutualofomaha.com/life-insurance

Sharon O'Day - Senior Advisor

Sharon O’Day fixes financial lives. She is a tell-it-like-it-is money expert with a successful career in global finance, plus an MBA from the Wharton School. Today she specializes in getting entrepreneurial women over 50 back on their game so they can have more money, less stress and more joy. With her “Over Fifty and Financially Free” strategies, they take actions that lead to their ultimate goal: financial peace of mind.