The mutual of Omaha burial insurance policy is very popular and has been used by thousands of families.
Are you looking for life insurance coverage either for you or your loved one? Mutual of Omaha has always been a trusted name in the life insurance game and is arguably the best and the oldest burial insurance company.
Essentially, Mutual of Omaha is a full-service, above-average life insurance provider that offers a wide variety of policies but is well known for its success in providing final expense insurance.
If you are a senior looking to get great coverage at a low rate, this comprehensive review will discuss everything you need to know about the Mutual of Omaha burial insurance policy to help you know if it is a suitable choice for you.
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About Mutual of Omaha
Established back on March 5, 1909, Mutual of Omaha is a full-service, privately owned Fortune 500 company based in Omaha, Nebraska.
Although the company is famous for its burial insurance policies, they offer a wide range of other financial service products and have a network of subsidiaries known for providing an assortment of banking, financial, and insurance products to individuals and businesses.
The subsidiaries include:
- United of Omaha life insurance company
- United World Life Insurance Company
- East Campus Realty, LLC
- Omaha Financial Holdings, Inc.
- Mutual of Omaha Investor Services, Inc.
- Omaha Insurance Company
As for insurance policies, Mutual of Omaha products offers many benefits and options for seniors looking for policies to cover final expenses.
They are A+ rated by the AM Best Rating, which essentially means they are very financially stable.
Considering that they have been in the business for over a century, you can be sure that the company offers customer-tailored services.
Mutual of Omaha Life final expense and Burial Insurance products.
Most people purchase burial insurance policies because they don’t want to die and have their beloved ones pay for their final expenses, whether funeral or cremation expenses.
For seniors looking for burial insurance, Mutual of Omaha promises the best solution with its whole life insurance products.
The company offers great rates on their final expense insurance products, making it easy for seniors to defray their funeral and other final expenses.
Essentially, the company offers three types of final expense insurance products, namely:
- Living promise level final expense
- Living promise graded benefit final expense
- Guaranteed whole life insurance
Among the three, Mutual of Omaha guaranteed whole life insurance products are arguably the most popular. Among other benefits, guaranteed issue life insurance by Mutual of Omaha accumulates cash value, which can be used to cover past due payments or emergencies.
Besides the three plans designed for seniors, Mutual of Omaha offers a feature known as reduced paid-up insurance, which is essentially a policy of less value paid up for life without paying any additional premiums.
Living Promise Level.
Mutual of Omaha has a burial insurance plan with first-day coverage called Living Promise Level, which is essentially a non-2-year waiting period option. As such, the policy offers immediate coverage but for low premiums.
If you are between 45 and 85 years, you may qualify for coverage amounts between $2,000 ($5,000 in WA) and $40,000 without having to take a medical exam.
However, because this plan is a strain of simplified issue whole life insurance, there are some, potentially, strict health and lifestyle questions that make it difficult to qualify for a policy, particularly if you have pre-existing chronic health conditions.
Like other plans, living promise level policies come with several benefits. The first and the most impressive perk of this plan is that you will receive a burial insurance policy with no waiting period.
If you are approved for the level plan, you are also sure to get some of the lowest premiums. This is not unusual considering the high qualifying standards.
With the level benefit plan, you can purchase some riders for additional coverage. The riders you can add to your ordinary policy are:
Accelerated death rider:
This is a rider that allows you to expedite the full death benefit if you are diagnosed with a terminal illness or confined to a nursing home for 90 days or more and are expected to remain there.
Thankfully, the rider is included with your living promise level policy at no additional charges. The rider is not available in New York.
Accident death rider:
With this rider, your beneficiaries will get two times your death benefit if the cause of your death is an accident.
Importantly, the cause of death should be accidental bodily injury and independently of illness or other causes. Whilst being very crucial, it costs a few dollars.
The underwriting process for Mutual of Omaha living promise level is rigorous and will ask a wide range of medical questions. You will not qualify for the plan if:
- You are bedridden or confined to any nursing home, hospital, skilled burning facility, or long-term care facility.
- You have been advised to receive home health care or hospice care in a nursing home.
- You require assistance with daily living activities, including getting in and out of a chair or bed, eating, dressing, bathing, and toileting.
- You need an electric scooter or oxygen equipment to assist breathing (except use for sleep apnea)
- You have a disability, except for fractures and bone or joint surgery, that requires you to use a wheelchair.
- You have been diagnosed as having or have been treated for HIV, AIDS, and ARC.
- You have been diagnosed with, treated for, or advised by a health practitioner to receive treatment for Sickle Cell Anaemia, Alzheimer’s Disease, Dementia, congestive heart failure, Myelodysplastic Syndrome (MDS), Cirrhosis, Huntington’s Disease, mental incapacity, Paraplegia, Quadriplegia, Lou Gehrig’s Disease (ALS), Down’s Syndrome, Metastatic cancer or recurrent cancer of the same type.
- You have received or advised to receive an organ or bone marrow transplant
- You have been diagnosed with insulin shock, diabetic coma, or had an amputation due to diabetic complications.
- You require dialysis or have been diagnosed with end-stage renal disease.
- You have been diagnosed with a terminal medical condition that is expected to result in death within the next twelve months.
- You have been advised to have a surgical operation or diagnostic testing other than for routine screening purposes.
- You have heart disease or heart surgery of any kind
- You have been diagnosed with, treated for, or advised to receive treatment for any form of cancer (except basal or squamous cell skin cancer).
- You have received care of treatment for chronic lung disease.
- You have received care or treatment or advised to seek treatment for hepatitis C
Qualifying for Mutual of Omaha living promise level policies is not easy. Although among the medical questions you will be asked to answer, unexplained weight loss and a felony conviction can lead to disqualification.
All in all, the living promise level plan continues to be one of the best-priced burial insurance plans in the industry. They tend to be lower than almost any other carrier. For instance, a non-smoking female aged 80 years will pay $194 for a $20,000 coverage, whereas a non-smoking male of 80 years will pay $276 for a $20,000 plan.
In a nutshell, the Mutual of Omaha living promise level plan is an incredibly competitive option. It is very affordable, allowing seniors of all financial abilities to obtain reasonable coverage.
Living promise graded plan.
The Mutual of Omaha living promise graded plan is more or less a living promise plan with a graded death benefit. With this plan, there is a two-year waiting period, meaning you are not actually covered until the end of the waiting period.
If you purchase a Mutual of Omaha graded benefit policy and die during the first two years, Mutual of Omaha will only repay 110% of your premiums, i.e., your total premiums plus 10% annual interest.
After the waiting period, your beneficiaries will be eligible to receive the full death benefit immediately after you pass away. Of significance, the beneficiary will be eligible for the full death benefit if you die from an accident, even during the waiting period.
Unlike the Mutual of Omaha living promise level plan, graded benefit policies are available for ages 45 to 80. If approved, you can obtain coverage amounts ranging from $2,000 to $20,000 (WA $5,000 – $20,000).
The policy is not available in Arkansas, Montana, New Carolina, and New York.
Regarding application and approval, to qualify for Mutual of Omaha graded benefit policies, you answer more lenient medical questions, meaning you are more likely to get approval even when you have some medical conditions.
While the fewer medical questions make it easy to qualify for a policy, the downside is that you will be required to pay more monthly premiums to cover the unknown risks. I
Although many pre-existing medical conditions limit you from qualifying, you will still be able to purchase a graded benefit policy if:
- You have been diagnosed with or treated for diabetes before age 50 or at any age with complications of Nephropathy, Peripheral vascular disease (PVD or PAD), Neuropathy, or Retinopathy.
- You have received treatment for Hepatitis C.
- You have received care or treatment for chronic lung disease
- In the past four years, you have received care of treatment for Leukemia, Cancer, Melanoma, or any other internal cancer except basal and squamous cell skin cancer
- In the past four years, you have been treated for multiple sclerosis, Parkinson’s disease, Schizophrenia, bipolar depression, chronic kidney disease, scleroderma, or systemic lupus.
- In the past two years, you have received care or treatment for stroke or transient ischemic attack (TIA).
- In the past two years, you have been treated or advised to seek treatment for cardiomyopathy, irregular heart rhythm, heart attack, coronary artery bypass surgery, coronary artery disease, or valvular heart disease with surgical repair or replacement.
- In the past two years, you have been convicted or are awaiting trial for a felony.
- You have received treatment for alcohol or substance use or convicted more than once of reckless driving or driving under the influence of drugs within the past two years.
- You have used unlawful drugs or abused or misused prescription drugs in the past two years.
- In the past two years, you have been hospitalized for a mental or nervous disorder.
- You have had a chronic cough, unexplained weight loss greater than 10 pounds, fatigue, or unexplained gastrointestinal bleeding.
Having any other serious medical condition not listed above could result in denial of your application.
While it is a good plan from a highly rated company, premiums are relatively high compared to some other carriers.
For instance, a non-smoking female of age 80 purchasing coverage of $20,000 will have to pay monthly premiums of $236, while a non-smoking male of age 80 will pay $285 for a $20,000 coverage. If you are a smoker, your premiums will be higher by a few dollars.
Guaranteed whole life insurance.
If your health condition does not allow you to qualify for regular final expense insurance policies, guaranteed whole life insurance might be the right plan for you.
The plan is primarily designed for individuals looking to defray their final expenses, but they have a chronic or terminal illness.
In other words, the Mutual of Omaha guaranteed acceptance plan, also called guaranteed issue life insurance, is a policy for which you can be approved with taking any medical exam or answering medical questions.
With a guaranteed issue life insurance policy, you can obtain coverage amount of up to $25,000, with minimum coverage being $2,000 for all other states except Washington, where minimum coverage is $5,000.
If you are aged between 45 and 85 (50-75 for New York), this might be your best plan if you have the following medical conditions:
- Alzheimer’s or Dementia
- HIV, AIDS, or ARC
- Recent organ transplant
- Recent defibrillator implant
- 24-hour oxygen use
- Hospice or Terminal illness
- Current invasive cancer
- Bedridden or confined in a nursing home.
Guaranteed issue life insurance policies promise coverage to everyone no matter their health levels. However, there is one thing to note: guaranteed issue life insurance policies have a waiting period, typically two years.
Although the premiums for guaranteed whole life insurance are usually higher due to the higher risk, Mutual of Omaha offers extremely competitive monthly premiums relative to other plans of this type.
As such, their guaranteed issue life insurance policy is an excellent option for any senior looking for a no medical question policy.
A guaranteed issue life insurance can provide great support for your family when they need funds to cover your final expenses. Even though it is an expensive option, the convenience outweighs the costs, mainly if you cannot qualify for other options.
How does Mutual of Omaha burial insurance work?
Mutual of Omaha burial insurance plans are whole life insurance policies, making them super easy to understand.
The coverage amounts are primarily intended to pay for burial and other funeral expenses, but they come with no strings attached. This means the death benefits can be used for anything.
Here are the key details you need to know:
Coverage is permanent:
When you purchase a policy, the coverage will never expire or fluctuate. As long as you pay the monthly premiums, you and your loved one will have peace of mind knowing that the exact payout amount will be available when you pass.
Price never increases:
Mutual of Omaha guaranteed that your premiums will remain unchanged throughout. This is a very important feature for seniors on a fixed income.
Apart from being sure that you will never be surprised by a rate increase, a price lock makes it easy for you to budget because you already know the exact figure you need to pay.
Builds cash value:
This is one of the most exciting things with all Mutual of Omaha plans – every final expense insurance policy you buy will accumulate cash value.
For every premium you pay, Mutual of Omaha allocations some amount to your cash-value account. Over time, this account will grow, and you can borrow from it before you pass. You can borrow up to 100% of your cash value.
Since Mutual of Omaha’s final expense policies are all strains of life insurance, your beneficiaries will get a tax-free payout when you pass. The payout gives your loved ones the funds to pay your end-of-life expenses, but they can still use the death benefits for other purposes.
If you are confused between options, a burial insurance specialist, preferably an independent agent licensed by Mutual of Omaha, can help in choosing the Mutual of Omaha burial insurance policy that works bests for your and your loved ones.
Licensed agents are knowledgeable enough to help you understand the costs and the available plans, ultimately helping you obtain the most suitable policy.
The cost of Mutual of Omaha burial insurance policies
With a lot of variables that come into play when determining the cost of burial insurance, it is safe to say that Mutual of Omaha burial insurance rates can vary wildly from one person to another.
The exact price depends on your age, health, gender, personal priorities, and how much coverage you buy. Tobacco usage also heavily influences the quote you get. In most cases, smokers pay an average of about 40% more than non-smokers.
Generally, if you buy an average policy (up to $20,000), you will pay anywhere between $20 to $200. For Mutual of Omaha living promise level plans, the monthly premiums can be upwards of $500, depending on age and tobacco usage.
The highest possible rates are for seniors at 85 years who apply for coverage of $40,000. The rates are $534 for a female non-smoker, $723 for a male non-smoker, $749 for a female smoker, and $1,108.73 for a male smoker.
Considering that, on average, a burial insurance policy of $10,000 works for most people, it is almost certain that you will qualify for coverage with rates anywhere between $20 and $200.
If you are purchasing $10,000 coverage, the burial insurance rates ranges are:
- Living promise level: $23 to $136 for a non-smoker and $29 to $190 for smokers
- Living promise graded benefit: $26 to $119 (available for ages 45 – 80)
- Guaranteed whole life insurance: $27 to $140
- Living promise level: $26 to $184 for a non-smoker and $32 to $279 for a smoker
- Living promise graded benefit: $35 to $143 ( only available for ages 45 to 80)
- Guaranteed issue life insurance: $33 to $166
Dealing with Mutual of Omaha directly or licensed agent
Applying for burial insurance with Mutual of Omaha is straightforward.
While you can complete the application through the phone or via a computer, there is a vast difference between dealing with Mutual of Omaha direct and talking with one of their licensed agents.
In most cases, purchasing a policy through a reputable independent agency will land you on better offers.
Comparatively, Mutual of Omaha allows applicants to obtain coverage amounts ranging from $2,000 to $25,000, whereas reputable licensed Mutual of Omaha agencies allow applicants to obtain face amounts between $2,000 and $40,000.
Even better, independent agencies tend to offer considerably cheaper rates compared to the company itself.
With licensed agencies, your beneficiaries could get double death benefit if the cause of your death is an accident, independent of sickness or other causes. This option is not available if you are dealing with Mutual of Omaha directly.
In a nutshell, there are zero reasons to buy the direct-to-customer final expense products if you can qualify for a more affordable policy through a broker.
Getting an affordable burial or final expense policy doesn’t have to cost an arm and leg. A local knowledgeable and experienced life insurance agent can help you choose the policy that suits you best.
Importantly, any offer or advert you see from Mutual of Omaha through the mail, TV, a complete online application is them selling you their guaranteed issue life insurance.
Pros and cons of Mutual of Omaha burial insurance
Like any other company that offers final expense insurance policies, Mutual of Omaha has its specific pros and cons. This makes it not to be an automatic choice for anyone who is seeking burial insurance cover.
Here are some pros that make Mutual of Omaha Insurance the best to some people and cons that send most customers away.
Mutuals of Omaha offer some of the best rates in the industry. Typically, the premiums offered by this carrier range from $20- $200 per month. The exact price depends on individual health, gender, age, and the type of coverage you buy.
If you are a smoker, you may pay 40% more. All in all, the rates of Mutual of Omaha burial insurance are lower compared to other companies that give the same insurance cover.
High coverage amounts:
With Mutual of Omaha burial insurance policies, you can obtain face amounts ranging from $2,000 up to $40,000, especially if you purchase your policy through a licensed agency.
If you are buying from the company, you can only get a coverage amount of up to $25,000. Of significance, Mutual of Omaha burial insurance benefits can be used for any purpose.
Quotes are available online:
You can easily find quotes online and purchase coverage online using your phone or computer. You have a range of options to choose from when buying a whole life insurance policy from Mutual Of Omaha.
Even better, their website is easy to negate, making it access available options.
Accidental death rider option:
Other than life insurance, Mutual of Omaha offers accidental death insurance whereby your loved ones will be paid twice the face amount of your policy if you get involved in an accident that will cause your death.
No waiting period coverage is available:
Mutual of Omaha’s final expense policy for the seniors has a coverage named; Living Promise’, subdivided into level death and graded death benefit.
The Living Promise Level death benefit does not have any waiting period; therefore, once you are approved, you are insured from the very first approval day.
Diabetic-friendly, including insulin:
Mutual of Omaha offers the best price for people with diabetes type1 compared to other companies that provide the same coverage.
It has arguably the best offer for guaranteed issue life insurance, a type of whole life insurance for people with chronic health conditions.
Lenient underwriting accepts many health issues:
It offers the most competitive rates for people with both standard and complex health conditions. This makes it a go-to insurer for people with chronic medical conditions, including arthritis, anxiety, and chronic obstructive pulmonary disease.
New applicants as old as 85 can apply:
More senior people can benefit quickly from the Mutual of Omaha fast track term policy which can be filled and submitted quickly.
Applying for Mutual of Omaha is simple as you can complete virtually everything online. The process becomes easier if you are assisted by one of their agents.
The elimination of medical exams makes the process quite faster.
Best in class financial strength:
Mutual of Omaha has been in the market for a century and has built itself financially. This first-class financial capability guarantees its customers that it won’t get bankrupt soon and lose clients’ coverage.
Online access to view and manage your policy:
The online access through their website helps the insured manage their policy at individual comfort.
Both physical and digital PDF copies of the policy are mailed out:
This reminds the insured of their policy and its progress.
Can have unlimited primary and contingent (backup) beneficiaries:
The number of beneficiaries is not limited to a certain number.
- Not available in New York:
Mutual of Omaha does not offer its services in New York City, thus disadvantageous to the citizens of New York.
One has to qualify:
Although Mutual of Omaha offers guaranteed issue life insurance policies, you have to answer specific health questions before being approved and insured for other Living Promise policies.
Random phone calls during working out:
Mutual of Omaha agents may frequently make calls to their customers to clarify if they gave the correct information. This may cause the insured to feel insecure with the insurance company.
The two-year waiting period may seem too long:
The two-year waiting period is too long for those who cannot qualify for the level death benefits.
No dividends offered:
The insurance is whole life, and the coverage is only given to the beneficiaries after the insured dies. The insured cannot benefit from it.
- Direct express cards not accepted:
Payment must be made through their Specified payment methods, and these cards are not part of the methods.
Slow buying process:
Mutual of Omaha takes at least one week to complete the buying process of final expenses insurance cover. On the contrary, other companies can finish the process in just a single day.
Tips for finding the best burial policy
Getting to the market for an insurance plan may seem a simple task, but the truth is, it is not as easy as you may think.
That’s why it is advisable you consider seeking a reputable independent agent that represents several companies and allows them to direct you.
Avoiding agents will cost you a lot of money and assure you of a long waiting time. Keep the attitude that independent agents are meant to help you in your application and not to sell you to specific companies.
For instance, if you visit or call an agent, they will explain all you need to know. They will then recommend different companies to select.
If you are ready, the agent will lead you through the application process. Otherwise, if you still need time, they will let you go and prepare. Some of the other reasons why you may opt to seek an agent includes
- Independent agencies can reach and offer cheap plans without a waiting period.
- An agent will carry out a comparison between different carriers and advise you on which one to choose, the one that fulfills most of your needs and expectations.
- You are not in a position to determine which company will approve you fast, but the agent may be knowing.
- Most insurance companies that offer final expenses coverage do not advertise their services on television. A large number of companies that do not publicize their name on social media can only sell their products via licensed agents.
Independent Insurance agencies will help you understand different aspects of company policies, their reputation, the services they offer, their quotes, and the extent of coverage.
You will then compare different companies on your own and choose which company suits you best.
How to apply for Mutual of Omaha Burial Insurance coverage.
Before applying for coverage, you need to determine which plan fits you.
This can only be done by requesting a quote. To get a quote, you will be expected to give accurate information because you are presumed to be the only primary source of relevant information.
The answers you give form the most critical part of the information needed to qualify you for coverage.
Once you find a suitable quote, you can complete the application online. However, you may be required to speak to an agent to help you go over the health history questions because Mutual of Omaha expects agents to ask you the health questions verbally.
The funeral insurance policy offered by Mutual of Omaha has two sets of questions on the application. The first part has several questions that should be answered yes or no.
They are usually referred to as knockout questions because any question answered “yes” automatically disqualifies you from the coverage. Mutual of Omaha does not consider anyone with a knockout health condition eligible for their whole life insurance policy.
At some point, you might realize that the wording on the application is confusing. You, therefore, need to speak with a burial insurance specialist to help you answer the complicated questions and verify your eligibility.
Generally, applicants find the wording of the application confusing. Be sure to take your time and speak with a Burial Insurance specialist to verify your eligibility.
The second set of questions is majorly for the graded plan. Any of these questions answered yes will qualify you for the graded benefit burial insurance plan.
Does Mutual of Omaha consider your MIB records before giving you final expense insurance?
Of course, yes! Mutual of Omaha will check your MIB files to help in determining your eligibility for the living promise level benefit plan. Mutual of Omaha will follow these steps:
- Ask the health questions
- Check your entire prescription history
- Assess your MIB file
If you realize that your MIB file has wrong information, you can get it corrected. First, order your report and identify the errors. You can then contact MIB to begin the rectification process.
Additionally, if your MIB report has continuously hindered your ability to qualify for final expense insurance, you can contact Mutual of Omaha for assistance. They may be in a position to determine a policy that suits you despite your file status.
Which whole life insurance policies does Mutual of Omaha offers?
Mutual of Omaha offers whole life insurance policies that are believed to be the best and cover a person’s entire life.
These policies include living promise level, living promise graded, and guaranteed life insurance. These policies are to cater to burial and funeral expenses.
Do you require a medical exam to qualify for mutual of Omaha whole life insurance?
You don’t need to take a medical exam to qualify for Mutual of Omaha’s living promise type of whole life insurance. In addition, most of the applications are approved within a few days.
- Is United of Omaha Life the same as Mutual of Omaha?
United of Omaha Life has been using the name Mutual of Omaha for years now. Mutual of Omaha acquired all the shares that United of Omaha Life initially owned.
What does the Mutual of Omaha insurance policy cover?
The coverage is ordinarily whole life with few underwriting. Your successor will be paid a lump sum tax-free amount of the specific coverage you bought to carter for all end life costs that may come up.
The costs include all funeral and burial expenses and your other financial obligations.
Can you buy Mutual of Omaha Burial Insurance coverage online?
No! You can not perform the whole buying process online. Even though you can ask for quotes online, Mutual of Omaha requires you to meet with an agent to ask you some verbal questions. The answers to these questions will determine whether or not you qualify for any coverage.
Must you go through an agent to access coverage?
Mutual of Omaha only sells the guaranteed policy directly to its customers; however, it has a two-year waiting period and is relatively more expensive.
The other policies, living promise level and living promise graded, are sold through agents and are cheaper with no waiting period. It is, therefore, wise to use an agent to get the best policy.
How do you know if you are eligible for the Mutual of Omaha Final for expense insurance?
You are supposed to allow an agent to diagnose whether you will qualify or not.
All underwriting may sound familiar and simple, but be sure, for some questions, only an agent can understand and help you answer them appropriately.
Similarly, you can look at the conditions that hinder one from qualifying for a specific cover, and if you have any, you will know that you are not eligible.
Does Mutual Of Omaha possess a good reputation?
Mutual of Omaha has positioned itself as a super integrity organization rated A+ by AM best. Its products are also highly rated, and it has great customer service. Its financial capabilities are trusted; thus, you won’t doubt buying a policy from them.
Is Mutual of Omaha a good company for life insurance?
This company has been in the market for many decades and has built itself a good reputation.
The living promise life insurance plan is a good option for older people who need small, permanent, and affordable insurance plans.
Mutual of Omaha is one of the most reputable providers of burial insurance policies.
If you are a senior looking to buy a burial insurance policy but have less than perfect health condition, hopefully, this post help you weigh the services, pros, and cons of Mutual of Omaha to know if it right insurance company for your needs.