Mutual of Omaha was established in 1909 and offers a variety of insurance policies, such as those for life, disability, dental, and long-term care.
Reasons Why
There are typically two no-cost riders included in most policies: The expedited death benefit riders for chronic conditions, severe illnesses, and terminal illnesses are standard on all of Mutual of Omaha’s Term Life Express and IUL Express policies. The only riders offered by other types of universal life insurance are those for chronic and terminal sickness.
Extensive selection of riders: If you become disabled and unable to work, you can acquire the disability income rider that comes standard on the company’s Term Life Express policy and ensures a steady monthly income.
Online communication in real time: The virtual assistant at Mutual of Omaha can forward your call to a real person if you need further assistance.
Offers return of premium (ROP) term: Provides a word known as “return of premium” (ROP) If you outlast your ROP term insurance coverage, you will receive a return of your premium payments. These plans cost more than standard term insurance.
Optional no-test policies: With Mutual of Omaha’s “Express” policies, applicants can avoid a medical exam and go straight to the shortened underwriting procedure. Another type of life insurance that doesn’t require a medical exam is guaranteed issue whole life.
Cons
Online applications unavailable for term policies: If you want a term policy from Mutual of Omaha, you’ll need an agent to help you apply.
No variable universal or traditional whole-life insurance: Mutual of Omaha doesn’t offer VUL insurance or a whole-life policy coverage over $25,000.
Complaint Index
The number of customer complaints received by an insurance provider is reflected in the “complaint index” maintained by the National Association of Insurance Commissioners (NAIC). When the index value is 1.0, the number of complaints received by the company is equivalent to what would be expected of a business of its size. If the complaint index is less than 1, fewer complaints were received by the company than expected, and if it is larger than 1, more complaints were received than anticipated. If the complaint index is low, that’s a good sign.
From 2020 to 2022, we looked at the NAIC complaint index for Mutual of Omaha and found an average of 0.76. The number of complaints received by Mutual of Omaha was lower than expected, given the company’s market dominance.4
Third-Party Ratings
According to AM Best, Mutual of Omaha has a “superior” ability to fulfill its contractual insurance commitments, including the payment of claims, earning it an A+ rating for financial stability.5 AM Since 1899, A.M. Best has been providing ratings of insurance businesses’ financial stability using a scale from A++ to D+
According to the 2022 J.D. Power U.S. Individual Life Insurance Study, Mutual of Omaha is the third best life insurance provider among 21 large providers. State Farm scored 839 out of 1,000, with the average being 774 and Mutual of Omaha scoring 801.
Competition
| Items | Mutual of Omaha | Nationwide | MassMutual |
|---|---|---|---|
| Types of Coverage | Term, universal, indexed universal, guaranteed issue whole | Term, whole life, universal, indexed universal, variable universal | Term, whole life, universal, variable universal |
| Online Application | Available (for guaranteed issue whole life) | Available (for term) | Available (for term) |
| AM Best Rating | A+ | A+ | A++ |
| Price for Term Policies | Average | Average | Better than average |
| NAIC Complaint Index (3-year average) | 0.76 | 0.08 | 0.05 |
Policies Available
Mutual of Omaha’s Term Life Express and IUL Express plans automatically include chronic, critical, and terminal illness riders at no additional cost to policyholders. The chronic sickness rider and the terminal illness rider are included in most other policies at no extra cost.
Term Life Insurance
Term life insurance could be a wonderful option if you’re looking for brief life insurance at an inexpensive price. If you pass away during the policy term, say 30 years, your beneficiaries are guaranteed to receive a death benefit from your term insurance policy. Term insurance from Mutual of Omaha is available for 10, 15, 20, and 30 years. Both allow you to switch from term to permanent life insurance without having to fill out a new application.
- Term Life Answers: For consumers between the ages of 18 and 80, Mutual of Omaha offers a fully underwritten term life insurance product called Term Life Answers. Maximum coverage is $100,000. There is no additional charge for the terminal illness rider or the premium waiver rider.
- Term Life Express: This policy does not require a medical exam, and it comes with critical, chronic, and terminal illness riders at no extra cost. The benefit amount varies between $25,000 and $300,000. If you buy the Return of Premium (ROP) version, you can get back all of the money you put into the insurance if you decide to relinquish it.
Universal Life Insurance
The cash value in a universal life (UL) insurance policy grows tax-deferred and lasts for the policyholder’s entire life. The premium for a permanent policy is more than that for a term policy, but the cash value can be borrowed against or used for other purposes.
- AccumUL Answers: Permanent life insurance is included in this policy, however a medical checkup is required. The cash value of the policy grows at a declared interest rate, which is at least 2% each year.
Indexed Universal Life Insurance
The cash value of an IUL policy tracks a stock market index like the S&P 500. Credited gains are proportional to the rise or fall of the index to which the account is pegged, subject to predetermined ceilings and floors. The cash value returns from IUL insurance may not be enough to cover the policy’s costs, making them riskier than UL plans. Variable universal life (VUL) insurance are invested in the market and can have returns below 0%; nevertheless, whole life policies have a lower risk profile. There are two indexed universal life insurance plans offered by Mutual of Omaha:
Life Protection Advantage IUL: The death benefit of this IUL policy, called Life Protection Advantage IUL, is guaranteed until the policyholder reaches the age of 90. It has the ability to build equity faster than conventional universal life insurance policies with a set interest rate.
Income Advantage IUL: With Income Advantage IUL, you can get permanent life insurance with a cash value that grows based on your choice of interest crediting options that are indexed to the market. When compared to Life Protection Advantage, this policy offers greater potential for growth.
Whole Life Insurance
In the event of your untimely demise, your loved ones will be protected financially by the death benefit and the cash value of your whole life insurance policy. If you apply for a whole-life policy from Mutual of Omaha, you will not be turned down for coverage on the basis of your health.
- Guaranteed Whole Life Insurance: Coverage amounts from $2,000 to $25,000 are available under the Guaranteed Whole Life Insurance program for those between the ages of 45 and 85.
Available Riders
- Critical illness benefit: In the case of a critical illness, such as kidney failure or a heart attack, the policyholder is entitled to a lump sum payment of up to 80% of the death benefit.
- Terminal illness benefit: If your life expectancy is fewer than 12 months due to a terminal illness, you are eligible to receive up to 80% of the death benefit.
- Chronic illness benefit: You are eligible for up to 80% of the death benefit if your chronic illness prevents you from doing at least two ADLs (such as showering and feeding oneself) for 90 consecutive days.
- Accidental death benefit rider: In the event of an accidental death, the rider’s death benefit will be paid out in addition to the policy’s standard death benefit. The insured’s age determines the amount of additional benefits, which can be anywhere from $10,000 to $250,000.
- Dependent children’s rider: Insurance for the insured’s dependent children is an issue-optional rider. Notes of $5,000 and $10,000 are in circulation. When the youngest kid reaches age 23, on the first anniversary after the insured becomes 65, or when the primary insurance expires, the rider coverage will cease.
- Waiver of premium rider: The premium for the primary policy and any riders is suspended for a certain time if the insured becomes disabled and unable to work, thanks to the premium suspension rider.
- Disability income: When applying for disability income benefits, the insured can receive up to 60% of their monthly gross income, or the lesser of $3,000 per month and 1.5% of the face amount.
Customer Service
On weekdays, you can reach customer care by dialing 800-775-6000. Contact Sales at 877-202-2676 if you are a potential customer. You can use a virtual assistant to get in touch with an agent for live chat, or submit a form and wait to be contacted via phone or email. Enter your ZIP code into the agent locator tool to locate a representative in your area if you’d prefer a personal conversation.
Price
On its website, Price Mutual of Omaha offers quote estimate calculators. We evaluated bids for healthy applicants of varying ages and concluded that the pricing for term coverage is around typical. The following table shows the monthly cost of a $250,000 term policy.
| Age | Male | Female |
| 25 | $21.29 | $18.06 |
| 40 | $34.40 | $28.38 |
Judgment Reached
Whether or not Mutual of Omaha is the best option depends on the specifics of your situation. Mutual of Omaha is one of the few companies offering disability income riders and ROP term policies, and it is a good bet that you will be satisfied with your purchase. IULs, ULs, and a whole-life policy with guaranteed issue are all available from Mutual of Omaha. We do not offer variable universal life policies or standard whole life insurance. You may want to look for an alternate provider with a “accelerated” underwriting procedure if you’d rather avoid medical exams.
FAQs
Methodology
We created a detailed grading process to assess over 90 insurance providers across five broad categories: financial soundness, customer satisfaction, product and feature variety, the overall buying experience, and cost.
We used 55 different indicators and collected over 5,000 data points to do this. We examined insurers’ results across a variety of measures by classifying them into categories and scoring them accordingly.
