In this article, we will discuss the Mutual of Omaha Final Expense Insurance Policy. (This is sold under the United of Omaha title).
We are not intentionally negative about life insurance companies. Most of them have very high standards along the financial reserves necessary to pay out claims. State insurance commissioners keep a sharp eye out for any evidence of fraud or financial misconduct. Our concern is the marketing of the final expense insurance products.
There are companies that concentrate on a glitzy advertising campaign. What appear to be special deals aren’t necessarily cost savings, but it is hard to ignore the pitch of a celebrity spokesman. We are advocates of looking at what is in the pages of an insurance policy and finding out what the prices and the coverages are. We believe that consumers, particularly those who are in their golden years, should buy policies they can afford and give the coverage they need.
Insurance companies rely on underwriting guidelines in selling their products. The underwriters can be the bane of an insurance salesperson, because they set the restrictions on coverage and will approve or deny coverage. Underwriting is the department that determines what medical conditions are acceptable and how much an insured pays at a given age for insurance coverage. It is no secret that some companies have very strict underwriting procedures, and others are a little bit more consumer friendly without sacrificing quality. Mutual of Omaha is a major company that sells final expense insurance.
Mutual of Omaha: The Finance Ratings
A.M. Best is the primary rating bureau for all insurance companies. Mutual of Omaha has an A+ rating with Best, and that is superior in the insurance industry. Mutual of Omaha has a straight-A report card with all the major financial ratings organizations including Moody’s, Standard & Poor’s, and BBB.
Those ratings are important for any consumer to know. A.M. Best gives out lower ratings and companies with a B or lower rating will charge lower premiums. However attractive that may be, this is the buyer beware warning. Companies with lower ratings do not have the financial stability that an A+ designates. A consumer, especially someone who is a senior citizen, needs to look carefully at the financial stability. It can determine if a claim is paid in full and on time. Mutual of Omaha, in the opinion of the ratings professionals, has a sound financials.
The company in existence for more than 100 years and there’s no indication of problems. The company offers final expense insurance policy coverage as low as $2000 and as much as $40,000. It’s fair to say that all the final expenses involving around the burial can be adequately met.
Attractive Features of a Mutual of Omaha Final Expense Insurance
The final expense insurance policy provided by Mutual of Omaha is a whole life policy. That is worth the attention of any smart shopper.
A whole life policy has features that a senior citizen should not ignore.
- The coverage will not go down in value. If you buy a policy of $10,000, the benefit stays at $10,000 and will not go down.
- There is a fixed premium. Term insurance offers lower premium rates in the beginning. However, companies selling term insurance might increase the cost over time (e.g. one large insurance company increases its rate for a policy every five years. It means you will be paying increasingly more for the same coverage).
- A whole life policy does not expire. If you are paying the premiums charged, the policy does not lapse. That is true with term insurance. There is a set age where the policy expires. Most companies will and the term insurance policy when the insured reaches 90 but there are companies where the expiration age is 80 years old.
- Please keep the above in mind as you look at any final expense insurance policy. A term policy might not be in your best interests.
The Living Promise
United of Omaha gives the title Living Promise to its final expense policy. There are two types of plans under the Living Promise umbrella:
- Level Death Benefit
- The Graded Death Benefit
The primary difference between the two is that there is no waiting period for the Level Benefit. A person is fully insured from the first day. The Graded Death Benefit plan has a waiting period of two years. If the covered person dies in the two years, the policy pays 110% of all premiums if the death is not accidental. However, an accidental death will merit 100% of the benefit regardless of the waiting period.
Fundamentals of Living Promise
These are the fundamentals of the Level Death Benefit.
- It is available to individuals who are between the ages of 45 and 85 years.
- It is sold through licensed brokers cannot be purchased directly from United of Omaha.
- The coverage can be anywhere from $2000-$40,000 but there’s a $5000 minimum state of Washington.
- There is no waiting period. Coverage is immediate.
The policy is not available in the state of New York. It is not uncommon for various products of insurance companies to not be sold in each state. The reasons may be statutory or just the company’s decision not to offer the product. The Level Death Benefit is available in all other states.
The Graded Death Benefit Plan is a bit different than the Level Death.
- The coverage is limited to a range of $2,000- $20,000, although the state of Washington minimum $5000 is still in force.
- It is not available in Arkansas, Montana, North Carolina, and New York.
- There is a two-year waiting period for non-accidental death.
- You can purchase the policy if you are between 45 and 85 years old.
The Graded Death Benefit is the same as the Level Death Benefit in that you can only purchase it through licensed broker and it is a whole life insurance policy.
The Medical Questions with a Mutual of Omaha Final Expense Insurance Policy
You can’t entirely escape having to share information about your health. Insurance companies use information to assess the risk determine the rates and insured is going to pay. United of Omaha has three areas where questions about insurance are asked.
The health questionnaire is the most important. Answered in the affirmative any of the questions in part one will disqualify you for the Living Promise Product answered yes to a question important to might allow you to be eligible for the Living Promise Graded plan but you have a two year waiting period to consider.
We Want to Remind People that Honesty Matters.
Anyone who tries to qualify by line on the questionnaire needs to know there are ways to find out truth. The MIB file needs information the perspective insured submitted to other health insurance companies. The comparison of answers from earlier questionnaires and the Living Promise document will set up a warning flag if there is a discrepancy. The prescription history analysis investigates your medication. United of Omaha can determine if you are taking medicine for a prohibited health condition.
It is always better to answer questions truthfully on the health questionnaires.
Riders, Riders, Riders
The Living Promise product has some insurance riders that make it even more attractive.
- The Nursing Home Confinement Rider. If insured is confined to a nursing home for 90 consecutive days or is expected to be in a nursing home facility indefinitely, it is possible to accelerate up to 50% of the death benefit.
- Terminal Illness Rider. If insured is diagnosed with the terminal illness and has 12 months or less of life left, up to 50% of the death benefit can be accelerated while the insured is still alive. It is understood that whatever amount is accelerated reduces the death benefit by the same amount.
These riders are automatic parts of the final expense insurance policy. There is no extra cost.
- Accidental Death Rider. If the insured dies due to an accident, the rider doubles the policy payout. It is optional and can only be added to the Final Expense Level Benefit.
The Guaranteed Issue Policy
You might not be able to qualify for the Final Promise product because of health issues. This sounds bad, but that is not a reason to turn away from the United of Omaha products. There is one that you should consider and it is the Guaranteed Issue policy.
It’s a whole life insurance policy that does not ask health questions or seek any health information. Here are some of the basics of this product.
- You can buy a policy if you are between 45-85 years of age. The upper limit is 75 years state of New York.
- The coverage amount is $2000-$25,000 and the minimum the state of Washington is $5000.
- It is available everywhere except Connecticut and Montana.
- Unlike other United of Omaha products, the guaranteed issue policies sold directly from the company and not through brokers.
- There is a waiting period of two years.
If an insured should die during the waiting period beneficiaries will receive all the premiums paid back with 10% interest included. The full death benefit paid if the death occurs from an accident.
The premium rates for the guaranteed issue policy are highly competitive. There aren’t many companies offering guaranteed acceptance plan at a rate lower than what is offered by United of Omaha Final Expense Insurance.
Our Opinion at Insurance for Final Expense
Honestly, Mutual of Omaha’s final expense insurance products, except for the Living Promise Graded Benefit policy, are among the best on the market. We say this because of the following reasons:
- you can purchase up to $40,000 of coverage with the Living Promise Level Benefit. Most final expense insurance policies will offer death benefit of little more than $20,000.
- There are health conditions that United of Omaha Guaranteed Issue policy will allow that other final expense insurance companies will not. These include:
Mutual of Omaha sells the Living Promise product line through brokers. That reflects the confidence the company has with the quality of the insurance. Brokers will offer a comparison of policies for a prospective buyer to view. Mutual of Omaha believes that it’s Living Promise final expense insurance can stand up to comparison with anyone in the industry.
We Agree with Mutual of Omaha’s Use of Brokers
Brokers can get the best insurance deals for people. Buying directly from a company or through its captive insurance agents are only advantages for the seller. Comparisons are not available and only positive information about the products are provided; negative features will not be volunteered. Mutual of Omaha offers competitive rates but that isn’t true for other insurance companies. Comparison-shopping is the best way to find a good deal.
A healthy senior citizen might be at a disadvantage without comparison-shopping. This buyer should expect lower premiums because he or she poses a lower risk. Finding insurance company that offers lower rates isn’t always easy and might take a lot of time.
Brokers and independent agents will represent several insurance companies. These professionals can set up comparisons based on a buyer’s stated needs. There able to answer any questions and will make recommendations if asked. Brokers and independent agents work for the buyer. We are part of that buyer friendly group.
Securing the Best Deal: Choose John Hancock Final Expense or Choose Mutual of Omaha?
Hands down in our opinion, it’s Mutual of Omaha. The clear and absolute winner in virtually every category.
We want to help a person get a policy that is suited to the individual’s needs and desires. We will base our comparison selection on what the buyer tells us is important; we don’t push one idea or another.
We represent several insurance companies that have final expense insurance products. At Insurance for Final Expense, we are able to offer selection that takes into consideration the person’s health and ability to pay premiums. We then explain the policies, answer any questions, and ask if there’s any more a person needs to know.
We cannot stress enough that whole life insurance policies are better purchase than term insurance, and a healthy person should take advantage of their good physical condition to get better premiums. We are willing to take a very close look at various insurance products for the sake of the buyer. Those sections of a policy that are ordinarily disguised by fine print are exposed. People commented favorably on our ability to discover flaws in an insurance product, and to steer a person in the direction of a better insurance bargain.
We do not think any question is stupid. We will answer any inquiry and research topics. We have the software and expertise necessary to get the facts as quickly as possible. If you have any questions about our services, please feel free to contact us at your needs. We look forward to hearing from you.
Gary P. Cubeta
(Serving Americans In All 50 States)