Mutual of Omaha, based in Nebraska, was founded in 1909 to provide various coverage options for different policies to all the applicants around the country. It offers its services even to those with significant health concerns. Considering Mutual of Omaha is suitable for those ruled out from buying affordable coverage due to their age or personal factors.
Pros of Mutual of Omaha
The company provides several options through which one can buy life insurance coverage. You can either apply for the same online or over the phone or speak directly to any local agent. However, life insurance coverage rates can get affected if the applicants are habitual of smoking, vaping, chewing tobacco, etc. But, one of the benefits of Mutual of Omaha is that it doesn’t consider tobacco use. Moreover, they offer complete life coverage irrespective of its use.
Another advantage that comes with Mutual of Omaha is its long list of riders and plan benefits. The benefits vary according to the coverage you select. These benefits can be already included in the plan for which you won’t even have to pay any extra charges. Some also include riders such as accidental death and accelerated death benefit, Waiver of premium, return of premium, and other expected accident benefits. The company provides you with the benefit of buying a whole life coverage up to 85 years. It also gives the senior citizens an option to renew the term life coverage annually for up to 94 years.
Cons of Mutual of Omaha
Mutual of Omaha’s disadvantage is that it restricts your limitations when you don’t purchase coverage through an agent. For instance, coverage such as term life can be purchased only through an agent, not online or over the phone. Moreover, it doesn’t allow you to add new beneficiaries, customize coverage, or change the policy online. These account changes require you to speak to an agent. Unlike other insurance companies that offer immediate application and coverage, Mutual of Omaha takes around one month to complete the entire process. Also, it doesn’t offer dividends to its policyholders.
Plans offered by the Mutual of Omaha
Depending on your requirements, Mutual of Omaha offers you several life insurance plans and coverage options. However, the availability of policies can vary depending on the place where you live in. One can choose from several options present down below:
Term life policy of Mutual of Omaha provides you with level coverage for 10, 15, 20, or 30 years. These policies are available for applicants between the age of 18 to 80 years. The coverage offered is $100,000 or exceeding this amount. Once the insurance policy expires, you can enjoy the benefits of level premiums for the term you initially chose. Moreover, in many cases, term plans can also be converted into permanent coverage, giving you protection for a longer time.
Living Promise Policy
Mutual of Omaha provides three different whole life insurance options, among which two of them are Living Promise policies. Its first living promise policy is a Graded benefit plan offered for applicants between the ages of 45 and 80. This policy is preferable to those who want to buy a policy with the help of an agent. The benefits one can avail of under this policy range from $2,000 to $20,000. Since this is a graded plan, if you pass away within the first two years, your beneficiaries might receive only a part of the policy’s death benefit. However, the benefits received by the beneficiary might vary if you pass away due to an accident or a natural cause. The second living promise is a Level benefit plan. This policy is available to applicants between the age of 45 to 85. It offers permanent and lifelong coverage for upto $40,000.
Guaranteed Plus Whole Life
This whole life policy of Mutual of Omaha offers guaranteed coverage between $2,000 to $25,000. It doesn’t require you to have a medical exam or any health-related questionnaire. The applications for the same are available online or over the phone.
Life Protection Advantage
This universal life plan offers you permanent life coverage along with building investable cash value.
Another universal policy provides permanent coverage and a safe way to raise your cash value.
This universal life option from Mutual of Omaha provides permanent life insurance coverage and guaranteed 2% annual growth in your cash value. Along with the plans mentioned above, Mutual of Omaha also offers several riders like Chronic illness rider, Critical illness rider, terminal illness rider. Disability income rider, Dependent children’s coverage, Accidental death benefit, Disability waiver of premium rider, Common carrier death benefit provision, Waiver of premium for unemployment rider, and Residential damage rider.
Consumer complain and rating
According to the National Association of Insurance Commissioners (NAIC), Mutual of Omaha has a complaint index of 1.22. The insurer had received a large number of complaints than was expected from the company of its size. AM Best had awarded Mutual of Omaha a rating of A+, which is not the highest rating, but it’s pretty enough a decent one. The overall customer satisfaction is quite good. Moreover, it was ranked fifth among the other competitors. Mutual of Omaha is a smaller life insurance company, but it comes with a range of coverage options. However, Mutual of Omaha might not be an affordable option. Still, it can be a preferable option for buying coverage for applicants with health concerns or habitual tobacco habits.