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: this policy guarantees you up to $25,000 of coverage with no medical exam or health questions; it can be purchased 100% online
- Living Promise Whole Life Insurance: the advantages of this policy are higher coverage limits and potentially no waiting period; simplified underwriting eliminates the need for a physical exam, but you will need to answer health questions
Why You Need Burial Insurance
Many people think of life insurance as an income replacement product. The breadwinner buys enough coverage so that if he or she were to die, their family would receive an amount equal to their future earnings for 10+ years.
But not many families have the disposable income needed to pay for the premiums on these $500,000+ life insurance policies. So that’s not why Americans typically buy life insurance.
Average Funeral Costs In 2021
And there’s good reason for this. Funerals these days are extraordinarily expensive.
According to the Bureau of Labor Statistics (BLS), funeral expenses have risen each year since 1986.
The Consumer Price Index for All Urban Consumers (CPI-U) began tracking funeral expenses in December 1986. In the 30 years since then, the price of funerals in the United States has risen almost twice as fast as consumer prices for all items. From December 1986 to September 2017, funeral expenses rose 227.1 percent, while prices for all items rose 123.4 percent.
According to PolicyGenius, average funeral costs in the U.S. are approximately $8,220. Including the price of a burial plot would put this figure north of $10,000.
Note that funeral costs vary significantly based on location. Funeral costs (excluding the cost of the burial plot) are over $11,000 in states such as Hawaii, California, and New York; on the other hand, those in states like Oklahoma, Mississippi, and Arkansas are under $7,000.
How Much Final Expense 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.
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, headstones, and miscellaneous expenses.
Mutual of Omaha Final Expense Estimator
Guaranteed Whole Life Insurance
Mutual of Omaha sells two final expense insurance products.
Guaranteed Whole Life Insurance
Guaranteed Issue Whole Life
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
Mutual of Omaha’s Guaranteed Whole Life policies do have a waiting period (also known as a “graded death benefit”).
If the insured dies from natural (not accidental) causes during the policy’s first two years, the beneficiary receives all premiums paid to that point, plus 10% annual interest.
After this two-year period ends, the beneficiary is eligible to receive the policy’s full death benefit for death of any cause (even suicide and drug overdose).
The only exception to the waiting period is if the insured dies in an accidental death. In this case, the beneficiary receives the full death benefit no matter when the death occurs (i.e., even if it occurs one day after policy issuance).
Mutual of Omaha Burial Insurance Rates
The tables below show the monthly premium payments required for men and women ages 50-80 for various coverage amounts, from $2,000 to $25,000.
As mentioned above, these policies provide you with lifetime coverage and your premium do not increase after you purchase your policy.
So if a 50 year old man purchases a $10,000 policy for $36 per month, he will continue to pay $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, a woman will be quoted a lower life insurance rate than a man 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
Living Promise Whole Life Insurance
The second Mutual of Omaha burial insurance product is their “Living Promise Whole Life Insurance” policy. See below a summary of the policy terms.
Whole Life Insurance
While this policy is not guaranteed issue, they do use 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 key factor in choosing a life insurance policy is gauging the financial strength of the parent company, 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 FAQs
Before we wrap up, let’s cover some commonly-asked questions about Mutual of Omaha’s life insurance offerings.
Does Mutual Of Omaha Have Final Expense?
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").
Does Mutual Of Omaha Have Burial Insurance?
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.
Does Mutual Of Omaha Own Gerber Life?
No, Mutual of Omaha and Gerber Life are entirely separate life insurance companies. Mutual of Omaha was founded in 1909 and is an independent company. On the other hand, Gerber Life was founded in 1967 and is a subsidiary of Western & Southern Financial Group.
Does Mutual of Omaha Have Living Benefits?
Yes, Mutual of Omaha provides accelerated death benefits (also known as living benefits) for those who are diagnosed with a terminal illness or who become confined to a nursing home. This insurance rider allows you to access a portion of your policy's death benefit before you die.
Does Mutual of Omaha Require Medical Exam?
Both of Mutual of Omaha's permanent life insurance plans do NOT require a medical check. One of these policies is a guaranteed acceptance policy, which never requires a physical industry-wide, and the other uses simplified underwriting, which eliminates the need for a health check (and instead, uses detailed health questions to inform underwriting).
Can I cash out mutual of omaha life insurance?
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.
Is Mutual of Omaha burial insurance worth it for you?
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