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Mutual of Omaha: Whole Life Insurance Review 2021

Mutual of Omaha Review

Quick Summary: Mutual of Omaha Life Insurance for seniors is in high demand across the USA for its excellent features and benefits. Guaranteed lifetime coverage to the insured at a low price has made this insurance policy widespread. However, there are plenty of unsolved questions that customers want independent answers for when shopping for coverage. So, this article helps you understand every nitty-gritty of the Funeral or Final Expense Insurance policy provided by Mutual of Omaha. 

When it comes to a long-term or permanent type of coverage, whole life insurance, aka Final Expense Policy, is the choice of Gen Xers (people above 45+). However, when shopping for their policies, they often find themselves stuck among many insurance providers. Or, they have a couple of essential questions running in their mind. Such as;

  • “Which is a reliable insurance company?” 
  • “Which insurance company offers the best rates for Whole Life Insurance?” 

So, keeping these two concerns in mind, we have decided to bring you an incisive analytical review of one of the top insurance providers in the United States. And, we selected to review the Mutual of Omaha’s Life Insurance for seniors

So, let’s start from the basics;

What is Final Expense Insurance or Whole Life Insurance?

What is Final Expense Insurance

According to a report published on Forbes, 84% of policyholders cite funeral expense or final expense as the main reason for buying policies. 

Final Expense Life  Insurance or Whole Life Insurance is specially designed coverage that provides permanent death benefits to the policyholders and their families. The policy focuses on protecting your loved ones by locking in benefits. They get tax-free checks for the amount of coverage that insureds have purchased so that their families would pay for end-of-life expenses, including pay for burial and other funeral expenses, even the debt. 

In case your family does not require money for the insured’s end-of-life expenses, they are free to use the money for anything they want. 

How Much Will You Get?

If you qualify, the policy amount will range from;

  • $2,000 up to $25,000 —when you buy online
  • $2,000 up to $40,000 —when you apply with the help of an agent

There is some other relevant information about it that we will discuss later in this article.  

Who is This Coverage Suitable For?

You might be wondering if you are eligible for the Mutual of Omaha’s Final Expense Coverage. Then, yes, the policy is available for people ages 45 to 85, and if you are from New York (NY), the age gap changes from “45-85 to 50-75. In a nutshell, the coverage is suitable if you qualify these age criteria and you have health issues. 

Did you know the national median cost for a funeral in 2014 was $8,508, increasing to $9,135 in 2019? 

Mutual of Omaha Burial Insurance covers lifetime death benefits to people as it is a non-cancelable policy. The only thing you need to ensure is that premiums are paid regularly.  

What Comes Included in Final Expense Life Insurance?

The Whole Life Insurance provided by the United of Omaha comes with many things included. Some of the benefits it has are;

You get coverage that guarantees your lifetime protection as it lasts the rest of your life.

It requires no medical exam to qualify for coverage —your age proof can be enough.

You get a stable premium; Mutual of Omaha guarantees that the premiums will never increase. 

You get potential tax reductions on a tax-deferred basis. 

Your family or the designated beneficiaries will receive all or the set benefits within 24 hours (in some exceptional cases, it gets delayed, though Mutual of Omaha says it delivers 80% of coverages within 24 hours). 

Key Takeaways;

  • Whole Life Insurance or Burial Insurance is not for a particular period; it lasts for the policyholder’s lifetime.
  • The Burial Insurance is payable to the policyholder’s blood relatives or the named beneficiaries after the insured’s death. 
  • If premiums are paid on time and well-maintained, the benefits will be transferred or given a tax-free check by the insurer.
  • It’s mainly meant for death benefits, though you can utilize the policy for cash build-up as well —it contains saving components.  
  • The saving component is accessible by the policyholder while alive. 

Is Whole Life Insurance and Final Expense Insurance or Burial Insurance Same?

The short answer is “yes.” All these three Whole Life Insurance and Final Expense Insurance or Burial Insurance refer to the same. It’s also called funeral insurance which you can buy paying a small amount, ranging from $2,000 to $25,000. This insurance policy is different from others. If you have a family to raise or have other financial obligations, such as a mortgage, kids’ college tuition and income replacement, or others to fulfill, then this policy is not for you. 

So, we have understood the basics of Final Expense Insurance, now let’s know the Mutual of Omaha in detail. I have tried to provide all your unsolved questions regarding the insurance company. I hope you find them helpful. 

What is Mutual of Omaha?

What is Mutual of Omaha?

Mutual of Omaha is one of the most reputed and oldest insurance companies in the United States. Started as filing articles of incorporation with the Nebraska Insurance Department in 1909, Mutual of Omaha, then known as Mutual Benefit Health & Accident Association, is the big name in the insurance sector now. It offers a range of insurance products that include;

  • Medicare
  • Life Insurance
  • Additional Insurance
  • Financial Services

There are plenty of sub-products under these main products to choose from. In short, it’s a one-stop-shop for all insurance needs. 

Why Shop Whole Life Insurance from Mutual of Omaha?

When it comes to shopping for insurance policies, the one thing that everyone wants to confirm is that if the insurance company is authentic and can be trusted. Mutual of Omaha is one of the top reputed insurance companies with dynamic name recognition. Let’s explore some of the top reasons why you shop for Final Expense Life Insurance from Mutual of Omaha. 

Status and Strength of Mutual of Omaha

  • A.M. Best: The insurance company has been rewarded with an A+ rating by AM Best Rating agency. It’s the 2nd highest rating among the top 16 insurance companies in the USA. 

Besides the A+ rating by the rating agency, Mutual of Omaha has plenty of other recognitions awarded to different companies. They include;

  • Moody: Moody has placed Mutual of Omaha at 5th position out of 21 insurance companies across the USA. The rating agency has awarded this insurance company an “A1” rating. 
  • Standard & Poor’s: This credit rating agency has awarded an “AA-” rating to Mutual of Omaha, which places the insurance company at 4th highest position out of 21. 
  • Apart from all these, Mutual of Omaha has a 90 Comdex score. This makes the company one of the top insurance providers in the USA with that high scores. 

The more of the entire story is that you can trust the company. Let me give another reason why you should shop policy, Burial Insurance from United of Omaha: it has been in the insurance sector for over a century. It meets customers’ expectations in terms of outstanding services, rates, and a variety of products. Mutual of Omaha guarantees Whole Life Insurance with smooth transitions and quick claim settlement. The company claims to have settled 85% of claims within 24 hours. 

Aren’t these reasons enough to choose your policy from Mutual of Omaha?

Wait, don’t conclude; you have something more to explore…

How does the Whole Life Policy Provided by Mutual of Omaha Work?

You might have this question in your mind or may not, but as an independent agent, I have received this question from many of my clients in the past, and I believe you would also be wondering “how the Mutual of Omaha’s Final Expense Life Insurance works.”

Let me resolve this question. 

In simple lines;

  • Buy Whole Life Insurance from Mutual of Omaha
  • Pay premiums on time
  • The beneficiaries will receive the claim upon your death

However, among these three complete steps, there are plenty of things that need to understand. So, let’s explore them in detail;

Burial or Funeral Expense Policies can be shopped anytime 45-85 (in NY, ages 50-75) without any medical exam. 

Based on your health ratings, they will offer you Living Promise or Graded Plan. To get the Living promise plan, you must tick “no” to health-related questions asked by the insurer. A single “yes” answer may disqualify or prevent you from getting all the benefits provided by the insurer. 

Types of Whole Life Insurance

Typically, there are two varieties of Whole Life Insurance;

  1. Simplified Issue Life Insurance 
  2. Guaranteed Issue Life Insurance 

Simplified Issue Life Insurance: In this policy, This policy comes with no exam, only a few questions related to your health. For example, the application may ask;

  • If you require nursing or living in a nursing home
  • If you have HIV or other chronic diseases

Answering any of these questions is “yes” may disqualify you from availing of total benefits. You will receive graded death benefits. That means the plan will come with 2 years waiting period, and if you die during the first two years, the insurer will refund only the premiums you have paid plus 10% of the total premium. Saying ‘no” to each health question will get Mutual of Omaha’s Living Promise plan. 

Guaranteed Issue Life Insurance: No health question, no medical example, and you get Living Promise benefits. That means you will be given ‘Living Promise’ coverage that comes with a non-2-year waiting period option. That means your policy will be liable to receive full day-one coverage. 

What Makes Mutual of Omaha’s Policy a Better Choice Compared to Others?

Mutual of Omaha's Policy

How is Mutual of Omaha a better choice as compared to others? Let’s take a look at how Mutual of Omaha scores over its competitors. The below points are a condensed version of the various benefits offered by the insurer’s many plans.

  1. Comprehensive list of insurance products
  2. Insurance solutions for any financial scenario
  3. Budget-friendly insurance solutions
  4. Varying time periods (depending on your requirements)
  5. Fills the void of a sole breadwinner’s income
  6. Covers monthly expenses for some years
  7. Covers post-death expenses
  8. Robust financial plan for the surviving spouse
  9. Accelerated death benefits
  10. Covers accidental death
  11. Offers child protection
  12. Unemployment premium waiver
  13. Proven track record

You can connect with me for an even better understanding, and I will help you understand this policy better. Or, you can visit the Mutual of Omaha site and clear your doubts. Going through reviews is yet another way to clear things out. 

Mutual of Omaha has a Solution, Regardless of Your Issue

Mutual of Omaha understands that each individual has different needs, and there is no cookie-cutter approach to insurance. To meet everyone’s requirements, they have a dedicated team of agents who specialize in answering client queries. What makes Mutual of Omaha Life insurance special is the fact that the ownership lies with the policyholders. So, if there are any reductions in insurance premiums, policyholders may receive benefits by way of dividends.

Every Plan is Focused on Customers and Their Varied Needs

You would be amazed to hear that we offer over $1 million in insurance coverage, final expense options, and multiple insurance options. Compared to insurance plans from other companies, Mutual of Omaha provides higher death limits for accelerated death benefit riders. This feature comes in handy when you are diagnosed with a terminal illness. It allows you to claim a portion of your benefits while you are still alive.

Most importantly, Mutual of Omaha has a proven track record that dates back to 1909. Being in this business for so long, they understand the challenges that people face, and it has helped them design customized insurance plans for everyone.

How Much Does It Cost to Buy Whole Life Coverage from Mutual of Omaha?

Mutual of Omaha’s life insurance rates remain optimal as the policy is designed for seniors, keeping their varied financial conditions in mind. 

Whole life coverage from Mutual of Omaha is very affordable and straightforward. You don’t have to worry about the premiums rising over time because they stay constant. The average cost of a final expense life insurance policy from Mutual of Omaha ranges between $40 to $100. Furthermore, the monthly rates for Whole Life Insurance is approximately $3.49 for adults and $2.17 for children or grandchildren.

The exact premium amount payable depends on several factors like current age at the time of policy issuance, your gender, and also the death benefit amount. The living promise plan considers the person’s tobacco usage, but the guaranteed plan does not require any such details.

You can apply for Mutual of Omaha’s whole life coverage online or through us. It is available for individuals between the ages of 45-85. (except for NY, where the age bracket is between 50-75). Do you know what the best part is? You get guaranteed coverage without any medical exam or health questions whatsoever.

As far as the benefit is concerned, you get anywhere between $2,000 – $25,000, and the amount will remain the same, regardless of your age. 

Should You Buy Coverage Online or With the Help of an Agent?

Both buying coverage online or with an agent are good options. All it depends on is what satisfies you the most. 

Buying Burial Insurance with an Agent 

Buying insurance online and through an agent, both have their pros and cons. We live in a digital age where it is relatively easy to get information. When buying insurance online, make it a point to consider factors like the company’s reputation, quality of customer service, claim settlement ratio, etc. With the help of online Mutual of Omaha life insurance reviews, through forums and testimonials, you can make an informed decision. If you choose to opt for the conventional route, i.e., consulting an insurance agent, you need to double-check the information that they provide so that you can get the best deal. 

Another important aspect of buying insurance online is the way in which you complete a transaction. All you need to do is pay the premiums online, plus you can even add or remove additional riders. Remember that insurance companies have strong tie-ups with banks, digital wallets, and financial institutions that can help you avail valuable discounts on card payments and also earn cashback. Also, many insurance companies provide great deals on early renewals. When you go through an agent, check if he can give you the same benefits.

Buying Final Expense Life Insurance Online

While buying insurance online is beneficial, it can be a little confusing for the commoner. An insurance agent has plenty of experience and industry knowledge to guide you through the entire process, plus you won’t have to get into the hassle of paperwork and documentation. An insurance agent will fill out the forms, submit the documents and do everything necessary on your behalf.

In case of an emergency, if you are unable to reach the insurance company, the insurance agent will complete the necessary formalities and ease your life. Often, insurance company websites use technical jargon that may be hard to understand for many people. The insurance agent will explain the minute details in plain language for you to understand. When you are fully convinced about the pros and cons of each plan, you can make a decision accordingly. Don’t forget to check the insurance agent’s license, credentials, and track record.

Is Term Life Insurance and Whole Life Insurance Same?

Difference between Term Life Insurance and Whole Life Insurance

Choosing a life insurance plan is not easy by any means. Term life insurance and whole life insurance are two of the most popular insurance plans. What are the critical differences between Term Life Insurance and Whole Life Insurance?

The Basic Difference between the Two

Term insurance is just plain insurance, nothing more and nothing less. On the other hand, Mutual of Omaha’s guaranteed whole life insurance has a cash value component that you can avail of during your lifetime.

While term life insurance only protects you for a limited number of years, whole life insurance covers the rest of your life, provided you make the premium payments regularly.

Term Life Policy Comes Certain Dnowside, Whole Life Insurance Doesn’t

The Term Life Insurance costs lesser than Final Expense Policies or other kinds of insurance and is even simpler to understand. But, it comes certain downsides.  The downsides are limited-time protection (until the policy term) and can’t be used as a tax-saving or wealth-building strategy.

Whole life insurance allows you to borrow money against the policy to meet future financial needs. Loans like death benefits are generally free, and you also have the option to lock your premiums for life. On the downside, insurance is way more expensive as compared to term life insurance. Additionally, if you let your policy lapse during the initial years, you could face serious surrender charges. Any outstanding loan will reduce your death benefit.

The verdict: Both term insurance and burial insurance have their advantages and disadvantages. Understand both of them, consider the pros and cons, and decide accordingly. United of Omaha’s whole life insurance rates are optimal; as we have discussed earlier in this article, you can take this as an opportunity. Besides, it comes with saving features for a little extra expense.

Final Thoughts

Finally, if you ask me if you should buy this Mutual of Omaha’s life insurance for seniors at your home or yourself (if you are 45+), then I would say you should. Doubts are limitless, but I have tried my best to solve all known doubts. And, I believe you must have got answers to your queries and unsolved questions. Still, if you find anything missing, you can let us know. I can help you understand every single detail of the Final Expense. Connect with and for the best Mutual of Omaha’s life insurance quote now.