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Mutual of Omaha vs. Gerber Life Final Insurance- Which is Better to Buy in 2021?

Mutual of Omaha and Gerber Life: Pros & Cons

How do you make sure that your loved ones wouldn’t suffer or struggle financially for your funeral expenses?

Many people don’t have life insurance even though they understand the importance of purchasing it for themselves. For most people, not having life insurance is because they could be on a fixed income and without much cash going left lying around. Others find themselves without life insurance in their 50s and 60s, perhaps because they never saw sense in having one.

As life goes on and responsibilities increase, you cannot put off the idea of life insurance or just some form of life insurance to take care of things when you are gone. There’s one problem though: life insurance premiums at your age are quite high, and your health might not be the same as it used to be. Sometimes due to age, you might not be considered the perfect candidate for term insurance.

With these curveballs thrown your way, you’ll feel like you are out of your depth. But that doesn’t have to be the case, thanks to a product called final expense or burial insurance. Just because you are inching closer to your 50s doesn’t mean that you shouldn’t have some type of financial plan to reduce the burden on your loved ones should something unfortunate happens. The final expense insurance is exactly the kind of product you need.

Mutual of Omaha and Gerber Life Final Expense Insurance are two of the leading final expense insurance companies around. To choose which of the two companies you should settle on, we’ll take you through the products offered by these insurers, helping you determine the best coverage to suit your needs.

But first, let’s take a look at the basics of the final expense insurance.

What is the Final Expense Insurance?

The final expense insurance refers to an inexpensive seniors insurance coverage set up to cover medical, funeral, and all other final expenses. It’s also referred to as burial insurance, funeral insurance. These insurance plans have a minimum face value ranging from $2,000 – $100,000, but the value of the death benefits vary based on your age and the company selected.

Note that the final expense insurance isn’t a standalone type of insurance but a form of whole life insurance that covers you for life. This type of insurance also allows you to build some cash value from the policy. The other thing to note is that most of the final expenses insurance policies charge a fixed monthly premium.

Now that we have the basics out of the way let’s look at how the final expense insurance covers by Mutual of Omaha and Gerber Life compare.

Mutual of Omaha and Gerber Life Overview

Mutual of Omaha – Overview

Mutual of Omaha is a reputable, respected, and the most established names in the world of insurance. They offer a wide variety of insurance policies and riders, boast excellent customer satisfaction ratings, and a transparent online pricing module. As a result, Mutual of Omaha is the go-to insurance company for most people looking for basic and comprehensive coverage.

Mutual of Omaha is one of the top-rated life insurance providers that has been around for over a century. It was established in Nebraska in 1909, a time when the company’s primary offerings were accident and health insurance covers. In 1926, the company expanded its product offerings to include life insurance. Today, it is one of the leading life insurance providers, and their final expense insurance covers may be a good fit for you.

Gerber Life Insurance – Overview

Founded in 1967 and a subsidiary of the Southern & Western Financial Group, Gerber Life boasts 50+ years of experience providing life insurance and other insurance products for families. Gerber insurance prides itself in being the only insurance company that offers life insurance policies for children. But it also offers policies for persons looking for end-of-life insurance coverage.

Mutual of Omaha vs. Gerber Life – Final Expense Insurance Offerings

Mutual of Omaha: Final Expense Offering

Having been around for over 100 years, Mutual of Omaha offers some of the best insurance policies under their final expense offering. The company offers final expense insurance under their Living Promise policies with two options – the level benefit and the graded benefit plans.

Insurance Offerings

Insurance Offerings
Insurance Offerings
  • Mutual of Omaha – The Level Benefit Plan

The level benefit plan is a policy designed specifically for persons in the 45-85 age bracket. The policy offers a face value ranging from $2,000 – $40,000. However, the minimum in the state of WA starts from $5,000.

If you choose this policy, you will also enjoy the accelerated death benefit that covers terminal illnesses and/or hospice or nursing facility care. To be eligible for these benefits, you must have a terminal illness diagnosis signed off by a medical practitioner. This is a diagnosis that would lead to death within a maximum period of 12 months.

This has to be signed off in a statement by a physician affirming that you meet the standards. The second requirement is that you have to be confined to the nursing home for at least 90 days consecutively, with the expectation that you’d be in the hospice for the remainder of your days/life.

So, if you need an insurance policy that would help you pay for your treatment or the costs accrued in the nursing home, along with final/funeral expenses, the level benefit plan could be the best option for you.

Additionally, you could opt for the rider’s accidental death benefits offer, which would double the death benefits if you died from an accident. The only catch is that you’d have to pay extra for this rider.

Level Benefit Plan Riders

Terminal Illness Rider – This rider is set up such that if you receive a diagnosis for a terminal illness or if your medical doctor informs you that you have less than 12 months to live, you could accelerate your death benefits up to 50% while living. The accelerated amount will, however, reduce the total death benefits that will be paid to your beneficiaries upon your death.

Nursing Home Confinement Rider – This is the rider that’s offered if you’re confined in a nursing home for 90 days or more. This rider allows you to accelerate the death benefits by up to 50%.

  • Mutual of Omaha – Graded Benefit Plan

If you are between 45 -80 years or between 50 – 75 years for New Yorkers; and are looking for a final expense insurance policy, the graded benefit insurance plan might be the best option for you. This insurance plan comes with death benefits valued at between $2,000 and $20,000. But like the level benefit plan, the minimum death benefit offered in Washington State is $5,000.

However, unlike the level benefit plan, the graded benefit plan comes with a small caveat – that if you die a natural death and not an accident within the graded two-year period after you buy the policy, your beneficiaries get the full value of your premiums paid and an additional 10%. If you pass on only two years after buying the plan, your beneficiaries receive all the death benefits signed up for, the manner of your dying notwithstanding.

Before you sign on to any of the policies offered by Mutual of Omaha, you should know that you cannot get the quotes or policies online, and you have to contact an agent for a quote.

The graded benefit plan is not accessible throughout the country, and if you live in the states of Montana, Arkansas, North Carolina, or Washington State, you won’t enjoy its benefits.

  • Guaranteed Acceptance Life Insurance Policy

Note that while the Living Promise Whole Life Insurance plan comes with the level and graded benefit plans, the company also offers a guaranteed life insurance policy. This policy comes with no riders, but it has a 24-month graded period, it’s available in all states, and the face value of the policies range from $2,000 to $25,000. In case of death before the lapse of the 24-month graded period, only 20% of the premiums will be returned. Persons eligible for this plan fall in the 45 – 85 age group.

This guaranteed policy is whole life and a guaranteed acceptance policy, which means that it is the kind of insurance policy you opt for if your applications for all other types of insurance coverage have been denied. The guaranteed coverage means that you qualify for the coverage regardless of your age or health status.

Note that Mutual of Omaha’s guaranteed acceptance life policy allows you to enjoy a non-reducing value of death benefits regardless of your age, and also, the premiums will never increase even as you age or are befell by new health problems/ complications.

Now, while the company offers significantly lower insurance coverage amounts ranging from $2,000, you shouldn’t settle for this low amount because the average costs associated with burials, funerals, and general final expenses are often above $7,000. Therefore, it would be wise to buy a larger insurance policy for more benefits and a reduced burden on your loved ones.

Gerber Life: Final Expense Offering

Gerber Life only offers one final policy under the final expense insurance category. This policy is called Gerber’s Guaranteed Life Policy. It is suitable for individuals aged 50-80 years, and the value of the death benefits range from $5,000 – $25,000.

Some of the things that stand out from this policy include the fact that this policy is a guaranteed acceptance policy, meaning that you will get the policy with no health questions asked. So, even with a terminal illness, you will qualify for the policy.

But there’s one catch; this guaranteed acceptance life policy comes with a restriction oj on the graded period death benefits, meaning that death occurring within those 2 years after buying the policy, results in your beneficiaries receiving the value of the premiums paid, plus 10% of total paid premiums. Your beneficiaries only get the full benefits from the policy if your death comes after the 2-year graded insurance period.

Mutual of Omaha and Gerber Life: Is there a Damage?

Unfortunately, Mutual of Omaha doesn’t show their rates on their website, which means that you will only access the plans after talking to one of their agents/ representatives. But for an idea of what the rates are, you’d want to look up the company’s whole life insurance coverage/ plans. The $10,000 whole life plan for non-tobacco users, for example, is $29.16 for 50year-old males and $24.67 for females. Of course, the rates go up with age, and you will pay $132.65 and $98.43 in monthly premiums, if you are male and female, respectively, and if you buy the policy at 80 years.

But even without the specific numbers, the rates offered by Mutual of Omaha are lower than the rates charged by Gerber Life, and if you are relatively healthy and above 45 years, your monthly premiums will be significantly higher if you choose Gerber Life over Mutual of Omaha.

The price differences and the conditions for eligibility (your health) mean that if your primary concern is the cost of insurance, Mutual of Omaha may be a more suitable option for you. But if you are concerned about your poor health, Gerber Life might be an ideal option for you.

Mutual of Omaha and Gerber Life: Rates Comparison

Generally, the insurance premium rates for Mutual of Omaha are lower than the rates changed by Gerber Life.

Mutual of Omaha and Gerber Life: Pros & Cons

Mutual of Omaha and Gerber Life: Pros & Cons

Mutual of Omaha – Pros and Cons

Pros

  • The final expense insurance coverage is guaranteed acceptance and whole life policy meaning you cannot be denied coverage.
  • No increase in premiums rates because of age or health issues
  • No decrease in death benefits because of age or health matters
  • 20% of premiums returned if the policyholder dies within two years of applying to the policy; if death is from natural causes, but not from suicide.
  • Full death benefits offered in cased of death by accident, no matter when it happens after the policy is purchased
  • Coverage is offered to persons between 45 and 85 years.
  • You have options
  • Lower rates for individuals without serious medical conditions

Cons

  • Strict payment methods – bank draft only.
  • No rider option for the guaranteed acceptance life policy

Gerber Life: Pros & Cons

Pros

  • Suitable for persons with serious medical conditions as it allows them to skip risks
  • No health or medical questions asked.

Cons

  • No rider option
  • Only guaranteed insurance plan available
  • Expensive premiums plans
  • Maximum coverage in South Dakota is $15,000, not $25,000.

Mutual of Omaha and Gerber Life: Which Should I Choose?

Mutual of Omaha and Gerber Life: Which Should I Choose?
Mutual of Omaha and Gerber Life: Which Should I Choose?

There are many other insurers around for you to try, but if you are to choose between Mutual of Omaha, consider your age, health, and preferred needs first.

For example, Gerber Life’s guaranteed insurance may be a good option for you if you have been diagnosed a serious or terminal medical condition, but if you don’t have any serious medical issues and won’t mind the graded benefits option, then Mutual of Omaha may be a preferred option for you. On the other hand, Mutual of Omaha’s level benefit plan may be a good option for you if you feel that you could die within the graded 2-year period from natural causes.

If you are worried that you won’t find insurance because of age or health matters, having had other applications denied in the past, Mutual of Omaha offers Guaranteed Life Insurance for you.

Conclusion

Burial insurance or final expense insurance eases the cost burdens of funerals and burials and even hospice care from your loved ones after your passing. Mutual of Omaha and Gerber Life are two of the best insurers offering the best plans for final expense insurance.

However, choosing one over the other is entirely dependent on your needs, what you can afford, and your health/age. Between the two companies, we’d recommend Mutual of Omaha, first because they have affordable plans, and also because the company gives you 3 options to choose from, all at affordable rates and with great benefits.