We continue in our series of company reviews by discussing one of our go-to insurance companies for final expense insurance. Although Mutual of Omaha provides a comprehensive selection of life insurance products, where they especially shine is in the insurance for seniors category.
Having been established in 1909, Mutual of Omaha is one of the most popular and recognized insurance company in the U.S. They have incredible name recognition because of exception advertising programs and the company focuses their marketing on middle-class America.
Since its founding, Mutual of Omaha has grown its footprint in the U.S. by offering competitively priced insurance products through four subsidiary companies:
- Mutual of Omaha Life Insurance Company
- United of Omaha Life Insurance Company
- United World Life Insurance Company
- Companion Life Insurance Company
Like many of the top-rated life insurers in the U.S., Mutual of Omaha uses an independent agent network to distribute their insurance and financial products which puts the consumer in a better position to shop for insurance and financial products.
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Mutual of Omaha Insurance Ratings
As one of the premier life insurers in the U.S., Mutual of Omaha continually earns very high ratings from the national rating services. We believe that financial stability should play a major part in the decision-making process when shopping for life insurance since the insurance companies must keep their promise to policyholders for a lifetime.
|Rating Service||Rating and Description|
|A.M. Best Rating Services||A+ (Superior) 2nd highest of 16|
|Standard & Poor’s||AA- 4th highest of 21|
|Moody’s||A1 5th highest of 21|
|Comdex Score||93 – a composite of all insurance ratings|
Life Insurance Products from Mutual of Omaha
Mutual of Omaha, like many top-rated insurance companies, offers a comprehensive selection of life insurance products for its customers. The company is established in such a way that they can offer financial products for every need and circumstance. They continue to offer competitively priced life insurance products that will meet the needs and fit the budget of their clients and prospective clients.
Term Life Insurance
Term life insurance, although temporary coverage, it one of the most popular life insurance products because the insurance company can typically offer a large amount of coverage at a very affordable price compared to permanent life insurance products which are more expensive. Here are the highlights for Mutual of Omaha’s Term Life Insurance:
- Available Terms – 10, 15, 20, and 30-year policy terms
- Eligible issue ages – 18 to 80-years-old
- Available face amounts – $100,000 plus
- The policy is convertible to permanent life insurance
- Multiple optional insurance riders available to broaden coverage and receive living benefits
Here is an example of 20-Year Term Life Insurance rates for a 30-year-old healthy male and female non-smoker:
As you can see rates for women non-smokers are less than men non-smokers. This is simply because women statistically outlive men which means the insurance carrier will have more opportunity to collect premium payments.
Mutual of Omaha does offer renewals for their term products but prices will go up based on the age of the policyholder at the time of renewal. The renewal policy will be an annually renewable policy and can be renewed up to age 94.
Universal Life Insurance
Universal Life Insurance is considered permanent life insurance that provides a guaranteed death benefit plus an investment (cash value) component. Unlike term and whole life insurance, universal life insurance provides the flexibility that policyholders need to accommodate life events that could change their coverage needs and premium payments. Mutual of Omaha currently offers four different universal life products that can provide the needed solutions based on the applicant’s needs and circumstances.
- Life Protection Advantage® Indexed Universal Life – Provides permanent life insurance to age 80 and longer if the insured pays the appropriate premium to keep the policy in force.
- Income Advantage® Indexed Universal Life – Offers permanent life insurance coverage and the ability to earn substantial cash accumulation based on the performance of selected index accounts.
- Guaranteed Universal Life – The Guaranteed Universal Life product puts the emphasis on the death benefit rather than accumulating cash value.
- AccumUL Universal Life – The AccumUL product was designed to emphasize cash accumulation while offering a guaranteed interest rate and provide life insurance protection.
Whole Life Insurance
Mutual of Omaha’s whole life products are designed to meet the needs of policyholders who prefer the guarantees and benefits that whole life insurance provides:
- Permanent Insurance Coverage for Life – With whole life insurance the insurer can never cancel a policy except for non-payment of premium.
- Level Premium Payments for Life – After a whole life policy is issued, the insurance company cannot increase the periodic premiums for any reason.
- Cash Value Account – Whole life insurance builds cash value over time which can be accessed by the policyholder via policy loans, withdrawals, or a policy surrender.
Living Promise Whole Life Insurance
Mutual of Omaha’s Living Promise Whole Life Insurance was developed to accommodate consumers needing insurance to cover final expenses and includes an Accelerated Death Benefit that will provide an advance on the death benefit to insureds who are diagnosed with a terminal illness or are confined to a nursing home.
Mutual of Omaha offers two plans to accommodate healthy applicants and applicants who are dealing with different illnesses that could prevent from getting first-day coverage life insurance.
- Level Benefit Plan – The level benefit plan provides first-day coverage at very competitive rates. The issue ages are 45 to 85-years-old with face amounts (death benefit) of $2,000 to $40,000. This plan is very effective for seniors who wish to purchase final expense and burial insurance.
- Graded Benefit Plan – The graded benefit plan was created for applicants who cannot qualify for the level benefit plan because of severe or multiple illnesses. Eligible ages are 45 to 80-years-old with available death benefits of $2,000 to $20,000 ($5,000 to $40,000 in the state of Washington). The graded death benefit means that if the insured dies from natural causes during the first two years, the beneficiary would receive 110% of all premiums paid. After the first two years, the beneficiary would receive the full death benefit.
Age of Applicant
|Male Non-Smoker||Female Non-smoker|
We used a $15,000 death benefit to accommodate the average cost of a funeral in the U.S. which is between $8,000 and $12,000.
Out independent agency represents many life insurance companies who offer final expense whole life and burial insurance. We consider Mutual of Omaha to be one of the premier companies we represent because of their competitive rates and outstanding customer service they provide for policyholders and their agents.
Doug Mitchell, President of Ogletree Financial, holds a BA degree in Finance from Auburn University as well as having obtained a Chartered Life Underwriter (CLU) designation from The American College in Bryn Mahr, PA. Doug has spent over 20 years in the life insurance industry and has also held licenses to sell securities, long-term care insurance, and home and auto insurance. For two years, Doug served as President of the Auburn Opelika Association of Financial Advisors and has been a member of the Million Dollar Round Table. He obtained Life Millionaire status at Horace Mann Insurance Company and was awarded the Life Agent of the Year Award. Later in his career with New York Life, he was an Executive Council Member. Doug currently serves as President of Ogletree Financial, a life insurance marketing organization with over 1000 life insurance agents. Today, Doug’s main focus is servicing 1000s of policyholders and growing his agency through the reach of several insurance-related websites.