Mutual of Omaha Burial Insurance [7 Critical Things To Know]
Mutual of Omaha Pros
Mutual of Omaha Cons
Mutual of Omaha Burial Insurance Reviews (3rd-Party)
Full Review Below.
Who Is Mutual Of Omaha?
Founded in 1909, Mutual of Omaha Life Insurance Company is one of the largest burial insurance companies in the U.S.
|Type||Life Insurance Carrier|
|Address||3300 Mutual of Omaha Plaza |
Omaha, NE 68175
|A.M. Best Rating||A+|
The Company has two offerings that can help you pay for funeral expenses and other final expenses (or end-of-life expenses):
- Guaranteed Whole Life Insurance: up to $25,000 of guaranteed coverage, with no medical exam or health questions; can be purchased 100% online
- Living Promise Whole Life Insurance: a simplified issue product offering up to $40,000 of coverage, with no medical exam, and potentially, no waiting period
Why You Need Burial Insurance
People buy life insurance for one primary reason: to make sure their loved ones are not burdened by their passing.
The biggest burden that people want to avoid passing down is the cost of their funeral service and burial.
According to LIMRA, an insurance research organization, this is the top reason that Americans purchase life insurance.
Average Funeral Costs In 2021
And there’s a good reason for this. Funerals these days are unbelievably expensive.
According to the Bureau of Labor Statistics (BLS), funeral expenses have risen each year since 1986.
In the past 30 years, funeral costs have risen twice as fast as overall consumer product prices. The average U.S. funeral and burial now costs $10,000+.
According to the National Funeral Directors Association, average funeral costs in the U.S. are approximately $8,200. If the price of a burial plot is included, the total cost would be north of $10,000!
Note that funeral costs vary significantly by location. For example, funeral costs (excluding the burial plot cost) in states such as Hawaii, California, and New York are over $11,000. On the other hand, the same purchases in states like Oklahoma, Mississippi, and Arkansas would total less than $7,000.
How Much Burial Insurance Do You Need?
Of the many final expense insurance companies we have reviewed, Mutual of Omaha Life Insurance Company has one of the best website user experiences.
Mutual Of Omaha Final Expense Estimator
A unique and helpful feature of their site is their Final Expense Estimator, which can help you estimate your insurance needs.
The calculator gives you choices for the funeral service, casket, cemetery fees, headstone, and miscellaneous expenses.
Mutual Of Omaha Funeral Insurance Products
Mutual of Omaha sells two final expense insurance products.
1. Guaranteed Whole Life Insurance
Mutual of Omaha‘s first burial insurance product is its guaranteed issue version. You can apply online or by phone for this policy, and coverage is guaranteed.
Here are some highlights:
- Benefits are never reduced because of age or health
- Rates never increase
- 85% of claims paid within 24 hours
Two-Year Waiting Period
The Guaranteed Whole Life product has a two-year waiting period (also known as a “graded death benefit”).
If you die from natural causes during the policy’s first two years, your beneficiary gets a refund for all premiums you paid, plus 10% annual interest.
After this two-year period ends, your beneficiary receives the policy’s full death benefit for death of any cause (even suicide and drug overdose).
Here’s the “good” news.
If you die in any type of accidental death (a traffic accident or a fall, among many others), the waiting period does not apply.
Your beneficiary receives the full death benefit no matter when the death occurs (i.e., even if it occurs the day after you are issued the policy).
Mutual Of Omaha Burial Insurance Rates
The tables below show the monthly premium payments for:
- Men and women
- Ages 50-80
- Coverage between $2,000 and $25,000
Note that these policies provide you with lifetime coverage, and your premium will not increase after you purchase your policy.
If a 50-year-old man purchases a policy for $36 per month, his premiums will remain $36 / month for the rest of his life.
As with all life insurance policies, the later in life you purchase your policy, the higher your monthly premiums will be.
Burial Insurance Premiums For Males
Price quotes for males 50-80 years old are shown below, for coverage amounts between $2,000 and $25,000.
Burial Insurance Premium Payments For Females
Given that women have longer average life expectancies than men, women will be quoted a lower life insurance rate than men of the same age.
You can see this by comparing the premium rates in the table above (rates for men) with the table below (rates for women).
The difference ranges from just $1 per month for 50-year olds seeking $2,000 of coverage to almost $70 per month for 80-year-old men and women who want $25,000 of burial insurance coverage.
Mutual Of Omaha Guaranteed Issue: Pros & Cons
2. Living Promise Whole Life Insurance
The second Mutual of Omaha burial insurance product is their “Living Promise Whole Life Insurance” policy. See below for a summary of the policy terms.
While this policy is not “guaranteed issue”, it does employ simplified underwriting, which means they include only a limited number of health questions and no medical exam.
This policy has two different coverage options:
Level Benefit Plan
- Policy issue ages: 45 – 85
- Benefit amounts: $2,000 – $40,000
- Riders: Accelerated Death Benefit for Terminal Illness or Nursing Home Confinement
Graded Benefit Plan
- Policy issue ages: 45 – 80
- Benefit amounts: $2,000 – $20,000
Living Promise Whole Life Insurance: Pros & Cons
Third-Party Ratings For Mutual Of Omaha
A critical factor in choosing a life insurance policy is gauging the parent company’s financial strength, in this case, Mutual of Omaha Life Insurance Company.
Financial Strength Ratings
Mutual of Omaha holds an A+ financial strength rating from A.M. Best and an AA- credit rating from Standard & Poor’s.
Mutual of Omaha is a highly reputable Company, currently ranked No. 300 on Fortune 500’s top firms as of 2020. The firm and its affiliates employ more than 5,000 people in addition to a network of sales agents.
Mutual Of Omaha Burial Insurance FAQs
Mutual of Omaha has multiple policies that can help ensure your final expenses are covered and will not burden your family. The easiest and fastest way to get coverage is to apply for their Guaranteed Whole Life Insurance product, the only downside being the two-year waiting period before your beneficiary is eligible for full death benefits. If you want a no waiting period product, then Mutual of Omaha’s Living Promise product will better suit you, as it offers level benefits with minimal health questions (“simplified underwriting”).
Mutual of Omaha has two burial insurance offerings: a guaranteed issue offering that you can apply for 100% online as well as an underwritten product, which gives you the possibility of having no waiting period with your coverage.
Yes. Mutual of Omaha’s whole life insurance policies can be cashed out at any time. Any policy withdrawals, loans and loan interest, if not repaid at the time of death, will be deducted from the death benefit payout to your beneficiary.
We hope you found this Mutual of Omaha burial insurance review helpful. If you have any additional questions, don’t hesitate to leave a comment or send us an email.
The GetSure Team
National Funeral Directors Association.
(November 4, 2021).
2021 NFDA General Price List Study Shows Funeral Costs Not Rising as Fast as Rate of Inflation.