In today's world, securing your loved ones' financial future is a top priority. This is where life insurance comes in, offering peace of mind by providing a payout upon your passing. When searching for a reliable life insurance provider, Mutual of Omaha emerges as a strong contender with a long history and a variety of coverage options. But with so many insurers on the market, how does Mutual of Omaha stack up? This comprehensive review will delve into the details of Mutual of Omaha's life insurance offerings, exploring their policy types, financial strength, customer service, and more. We'll equip you with the knowledge you need to decide if Mutual of Omaha is the right life insurance provider for you.
Intorduction Mutual of Omaha Life Insurance
Mutual of Omaha is a financially stable corporation with unique services, including return of premium (ROP) term insurance and a disability income rider. In addition, most plans have at least two accelerated death benefit riders, and the company placed third in customer satisfaction in J.D. Power's 2022 U.S. Individual Life Insurance Survey.
However, you must go elsewhere for variable universal or traditional whole life insurance.
Pros:
- Policies include at least two no-cost living benefit riders.
- A wide choice of riders are available.
- Live chat option on the website.
- Provides a return-of-premium (ROP) policy and does not require an exam.
Cons
- There is no variable universal or classic whole life insurance.
AM Best Rating: A+.
NAIC Score (average)
N/A Years in business: 113 Policy types
Final Expense, Indexed Universal (IUL); Term, Universal (UL)
Accepts credit cards.
Yes
Pros Explained
Most insurance have at least two no-cost living benefit riders: Mutual of Omaha's Term Life Express and IUL Express policies come with free expedited death benefit riders for chronic, critical, and terminal illnesses. Other universal life insurance policies only contain riders for chronic and terminal illnesses.
There is a wide range of riders available: The company offers a variety of riders for purchase, including a disability income rider on its Term Life Express policy, which pays a monthly income if you become disabled and are unable to work.
The website includes a live chat option. The Mutual of Omaha virtual assistant is accessible and can link you to a live person if necessary.
Offers a return-of-premium (ROP) term. If you outlast your ROP term insurance coverage, you will be refunded some or all of the premiums. These insurance are more expensive than standard term coverage.
There are no exam policies available. Mutual of Omaha has a streamlined underwriting process on its "Express" policies, allowing applicants to avoid the medical test when applying for coverage. Guaranteed issue whole life policies are another alternative that do not require an exam.
Cons Explained
There is no variable universal or classic whole life insurance. Mutual of Omaha does not provide VUL insurance or whole-life policy coverage exceeding $25,000.
Complaint Index.
The National Association of Insurance Commissioners (NAIC) gathers data on complaints against insurance firms and compiles a "complaint index" that allows consumers to see how many complaints the company receives. A 1.0 index indicates that the company received the average amount of complaints for its size. A complaint index less than 1.0 indicates that the company received fewer complaints than expected, whereas an index greater than 1.0 indicates that it received more complaints than anticipated. The smaller the number of complaints, the better.
We examined Mutual of Omaha's NAIC complaint index for three years, from 2020 to 2022, and discovered an average complaint index of 0.76. Mutual of Omaha had fewer complaints than would be expected given its market size.
Third-Party Ratings
AM Best gives Mutual of Omaha an A+ grade for financial stability, indicating that the company has a "superior" ability to meet its contractual insurance responsibilities, such as paying claims. AM Best has been grading insurance businesses' financial strength since 1899, and its letter grades range from A++ to D.
Mutual of Omaha finished third out of 21 major life insurance firms in the 2022 J.D. Power U.S. Individual Life Insurance Study. Mutual of Omaha received 801 out of 1,000 points, while the average was 774 and the top business, State Farm, received 839.
Importance! AM Best grades a company's capacity to pay claims on a scale, with A++ being the highest. All of our top life insurance companies have at least an A rating.
Tabel
| Insurance Company | Coverage Options | Online Application | AM Best Rating | Term Policy Pricing | Complaint Index |
|---|---|---|---|---|---|
| Mutual of Omaha | Term, universal, indexed universal, guaranteed issue whole | Available (specific to guaranteed issue whole life) | A+ | Average | 0.76 |
| Nationwide | Term, whole life, universal, indexed universal, variable universal | Available (specific to term) | A+ | Average | 0.08 |
| MassMutual | Term, whole life, universal, variable universal | Available (specific to term) | A++ | Better than average | 0.05 |
Policies Available
Chronic, critical, and terminal illness riders are free of charge with Mutual of Omaha's Term Life Express and IUL Express plans. Most other policies cover chronic and terminal illnesses at no additional expense.
Term Life Insurance
Term life insurance may be an excellent choice if you require low-cost, short-term coverage. Term insurance assures that your beneficiaries will get a death benefit if you die during the policy's term, which is typically 30 years. Mutual of Omaha term policies are available for 10-, 15-, 20-, and 30-year periods. Both are convertible term policies, which allow you to convert your term coverage to a permanent life insurance policy without having to submit an application.
Term Life Answers: This is Mutual of Omaha's fully underwritten term life insurance policy for people aged 18 to 80, which needs a health history and a medical exam. Coverage begins at $100,000. There is no expense for a terminal illness rider or a premium waiver rider.
Term Life Express: This policy allows you to avoid the medical exam and includes critical, chronic, and terminal illness riders at no additional expense. Benefits range between $25,000 and $300,000. You can buy a Return of Premium (ROP) version and get up to 100% of the premiums put into the policy if you relinquish it.
Universal Life Insurance
Universal life (UL) insurance is intended to last your entire life and accumulate tax-advantaged cash value over time. Permanent insurance are more expensive than term policies, but you may be able to borrow or withdraw the cash value.
AccumUL Answers: This product involves a medical examination and contains permanent life insurance coverage. The policy builds cash value at a reported interest rate that is guaranteed to be at least 2% each year.
Indexed Universal Life Insurance
Indexed universal life (IUL) insurance base their cash value on a stock market index, such as the S&P 500. Gains credited to the account are determined by the performance of the underlying index, subject to caps and floors. IUL policies are deemed riskier than UL plans because cash value returns may not cover insurance costs. They are, nevertheless, less dangerous than variable universal life (VUL) policies, which are market-based and can yield returns of less than 0%. Mutual of Omaha offers two indexed universal life insurance products.
Life Protection Advantage IUL: This IUL policy provides perpetual life insurance coverage with a death payout that is guaranteed until age 90. It has the potential to generate greater value than standard fixed-interest universal life insurance contracts.
Income Advantage IUL: This IUL option provides permanent life insurance coverage that increases in value based on specified interest-crediting options linked to the performance of a market index. This policy offers greater development potential than Life Protection Advantage.
Warning! Some people utilize permanent insurance plans to accumulate tax-deferred cash value to complement their retirement income. However, withdrawing or borrowing too much may cause the policy to lapse.
Whole Life Insurance
Whole life insurance is a type of permanent life insurance that protects your family by providing benefits to cover end-of-life expenditures as well as a cash value that can be used in an emergency. Mutual of Omaha provides a guaranteed issue whole-life insurance, which guarantees that you will not be denied coverage due to your health.
Guaranteed Whole-Life Insurance: Available to applicants aged 45 to 85, with coverage ranging from $2,000 to $25,000.
Available Riders
Critical illness benefit: If you have a critical illness, such as kidney failure or a heart attack, you can obtain up to 80% of the death benefit right away.
Terminal sickness benefit: If your life expectancy is fewer than 12 months, you may obtain up to 80% of the death benefit.
Chronic sickness benefit: If you are unable to execute at least two daily chores, such as bathing and feeding yourself, for 90 days, you may receive up to 80% of the death benefit.
Accidental death benefit rider: Adds an additional death benefit to the policy's usual death benefit in the case of an accidental death. Additional benefits are based on the insured's age and range from $10,000 and $250,000.
Dependent Children's Rider: This rider is added at issue and is only available to the insured. The face amounts are $5,000 and $10,000. The rider coverage expires when the youngest kid reaches the age of 23, on the first anniversary of the insured turning 65, or when the basic policy expires.
Premium rider waiver: If the insured becomes disabled and unable to work, the base policy and all riders' premiums are waived for a period of time.
Disability income: The insured may request a maximum monthly disability income payment equal to the lesser of 1.5% of the face value, $3,000 per month, or 60% of their monthly gross income.
Customer Service
On weekdays during the day, customers can reach customer care by calling 800-775-6000. Prospective buyers can contact sales at 877-202-2676. You can also fill out a form and receive a phone or email response, or use a virtual assistant to connect with a live chat agent. If you want to speak with a local agent, put your ZIP code into the agent-finder tool.
Price
Mutual of Omaha offers quote estimate calculators on their website. We obtained quotations for candidates in excellent health of various ages and discovered that term coverage cost is average when compared to other providers. The following are 30-year term monthly quotes with a $250,000 death benefit.
Tabel
| Age | Female | Male |
|---|---|---|
| 25 | $18.06 | $21.29 |
| 40 | $34.40 | $28.38 |
Final Verdict
Whether Mutual of Omaha is the best option depends on your requirements. If you're looking for a disability income rider or ROP term policy, Mutual of Omaha is one among the few options accessible and is likely a solid pick due to its high financial stability and customer satisfaction ratings. Mutual of Omaha offers IUL, UL, and guaranteed issue whole-life policies. Look elsewhere for a VUL or standard whole life coverage. If you prefer no-exam options, you might look into another carrier that offers a "accelerated" underwriting procedure.
Frequently Asked Questions
What Is Children's Whole Life Insurance?
Mutual of Omaha provides whole life coverage for children as young as 14 days old and up to 17 years old, with death payments ranging from $5,000 to $50,000. You can request a quote and apply for coverage online. There is no exam necessary, and only three health-related questions are requested.
How Long Does It Take Mutual of Omaha to Pay Life Insurance?
Some insurance firms, such as Mutual of Omaha, can pay life insurance death benefits in as little as 24 hours for whole life insurance and 30 to 60 days for term life insurance policies.
How Much Life Insurance Do I Need?
Life insurance might offer you with financial aid if you become unable to work. And if you have a family or dependents, you may want life insurance because your financial commitments may survive you. Most insurance firms advise a decent amount for life insurance is at least ten times your annual pay. However, because each circumstance is unique, you should evaluate your present annual spending as well as future obligations, such as a child's college or burial costs, to estimate your individual requirement.
Is Mutual of Omaha Trustworthy?
Yes, Mutual of Omaha is trustworthy. AM Best rated Mutual of Omaha's financial stability as A+, indicating that the company has a "superior" ability to meet its contractual insurance responsibilities, such as paying claims. Furthermore, Mutual of Omaha consistently receives outstanding customer satisfaction scores.