Mutual of Omaha Review

Best Senior Life Insurance Overall

For top-of-the-line life insurance options available to seniors of virtually all ages, Mutual of Omaha is the clear industry leader. When buying a policy from this company, seniors can be up to age 85 when first starting the policy, which is well outside the normal range when shopping for life insurance. Many companies only offer policies for seniors up to age 75. Add in some of the most comprehensive customization options and the ability to select from a variety of riders, and you have life insurance to fit nearly any senior lifestyle. Accidental death benefits are available, making Mutual of Omaha one of the few options for active seniors who enjoy an adrenaline-charged retirement. 

Pros and Cons of Mutual of Omaha’s Life Insurance

Mutual of Omaha tops the list for best senior life insurance policies due to its extensive range of senior-friendly products and customization options. However, it doesn’t top the list in every individual category. Some of the pros and cons of selecting Mutual of Omaha insurance include:

Pros:

• As many as eight policy options are available to seniors ages 80 to 85
• Guaranteed whole life policy available with easy enrollment
• Accelerated death benefit and long-term care riders available

Cons:

• Maximum death benefit available is $1M 
• Isn’t the highest-rated company for financial strength

Overview of Mutual of Omaha’s Life Insurance

Mutual of Omaha has a long-standing reputation for excellence in the insurance industry. The company has been in continuous operation since 1909. When shopping for life insurance, Mutual of Omaha works through third-party brokers, giving seniors the option to price several providers before deciding. 

How Much Does Mutual of Omaha’s Life Insurance Cost?

Many factors can affect the cost of obtaining life insurance coverage through Mutual of Omaha. Two of the biggest factors include the age of the person covered by the policy and the amount of coverage offered. For example, a woman turning 65 in 2022 could expect to pay around $45 per month for $9,000 in coverage. Typical funeral expenses can cost up to $15,000 or more. Seniors who have specific plans for their funeral may want to obtain enough coverage to pay for those expenses. 

The pricing provided is also for a guaranteed acceptance whole life insurance policy. The type of the policy and the addition of any riders may add to the cost per month. Some seniors may be eligible for discounts on coverage if they meet certain health requirements.  

Eligibility, Plan Details & Other Information

Mutual of Omaha offers several types of life insurance policies, each with tailored benefits to meet its customers’ needs. Not all benefits apply to all types of insurance, and eligibility may vary. 

Eligibility Requirements

Guaranteed Acceptance

Mutual of Omaha offers guaranteed acceptance to seniors for a whole life insurance plan. These types of policies help with funeral costs and may cost more than term life insurance plans with similar coverage limits. With the guaranteed acceptance plan, there are no medical exams and there are no health questions to answer since the company expects this plan to be in place until the policyholder’s death. 

Eligibility Factors for Plans Without Guaranteed Acceptance

Many plans available through Mutual of Omaha have eligibility restrictions and pricing levels based on individual health and behavior. For example, some policies may be unavailable to tobacco users, particularly those toward the higher end of the age range. A term or universal life insurance plan may require a medical exam, along with information gathered in a health questionnaire. While seniors who use tobacco or have chronic health conditions may qualify for these policies, the premiums may be higher to reflect the increased risk. 

Plan Details

Whole Life Insurance

Mutual of Omaha’s whole life insurance policies are available with guaranteed acceptance and up to $25,000 in benefits. For seniors with more elaborate funeral requirements, having extra coverage in a whole life policy can help minimize their loved ones’ out-of-pocket costs. In addition to the total benefit available at the end of the policy, seniors can also access the plan’s cash value in an emergency. This allows for greater financial flexibility. Premiums through these types of policies are fixed at the time of purchase and never increase. 

Term Life Insurance

Term life insurance is often the most attractive to those in their prime earning years. These policies last for a set number of years and offer the highest possible coverage amount. A term life insurance plan helps replace wages for loved ones who might depend on your income. Premiums never increase, and the benefit amount never changes. Mutual of Omaha offers term life insurance with the option to change it to a permanent plan. While term life insurance has no cash value, a permanent plan does. 

Universal Life Insurance

Universal life insurance policies are the most flexible coverage option Mutual of Omaha offers. While seniors don’t get guaranteed acceptance with these plans, policyholders do enjoy accelerated death benefits, flexible premium amounts and the ability to save for retirement on a tax-deferred basis. 

Shopping Experience

Shopping for life insurance through Mutual of Omaha is fairly straightforward. The company’s website has quote tools that allow seniors to shop based on the type of policy that best fits their needs. When making a purchase, the company provides local agents and contact information so seniors can talk through the potential policy with an experienced person. Insurance agents can help find and add needed riders and make recommendations based on a senior’s stated financial goals. In general, shopping for life insurance from Mutual of Omaha is streamlined and user-friendly. 

Who Should Consider Mutual of Omaha’s Life Insurance?

Older Seniors With Active Lifestyles

Since Mutual of Omaha is one of the few life insurance companies that offer an accidental death rider, it is a great choice for seniors who enjoy travel and adventure. With policies that pay death benefits of up to $1M, seniors have a wide range of coverage options and customization that allows them to continue to enjoy their favorite hobbies well into retirement. 

Working Seniors With Surviving Dependents

Seniors who continue to work may benefit from one of the many term life insurance plans available through Mutual of Omaha. With terms of up to 30 years, seniors can have peace of mind about the financial well-being of any child in their care. The ability to transfer term life policies into permanent policies with cash value also means seniors may be able to leverage their life insurance plan to help pay for a college education or erase debts. 

What Are People Saying About Mutual of Omaha’s Life Insurance?

Seniors who invest in permanent life insurance policies through Mutual of Omaha generally have nothing but positive things to say. One policyholder noted that they receive a guaranteed 4% interest on their policy’s cash value each year. Another satisfied customer mentioned the convenience of automatic payments that ensure his policy is never canceled. The easy-to-use website gets plenty of thumbs up, along with straightforward policy information and affordable pricing. One customer was pleasantly surprised by the ease of signing up for a guaranteed whole life policy, noting that it only took two phone calls and an email before he received his policy documents and approval notice in the mail. 

It’s important to note that some negative reviews about Mutual of Omaha’s life insurance may reflect the third-party broker selling the policy. Find a local broker with high reviews before buying. 

Frequently Asked Questions

How Much Life Insurance Should You Have?

Seniors may not need as much life insurance as a current income earner, but the general rule of thumb is to buy about 10x your annual income in life insurance. If you don’t have any dependents and your spouse has guaranteed income to last until their death, you may reduce the amount of life insurance you need. 

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Can You Have Multiple Life Insurance Policies?

Yes. Many seniors have a whole life policy to cover funeral expenses and a universal policy if they have already maxed out their IRA contributions. There are often tax benefits to buying a life insurance policy when you’re a high-income earner. 

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How Long Does It Take for Life Insurance Companies to Pay Out?

In most cases, beneficiaries receive life insurance payments within 30 days of their request after you provide a copy of the death certificate. However, some policies may pay in as little as two weeks, while others may take 60 days or longer. If the insurance company has questions about the cause of death or requires additional documentation, it can delay death benefits.

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What Is Term Life Insurance?

Term life insurance is the most affordable option for the highest coverage amount. These policies are typically designed as income replacements for those who have dependents. A spouse might buy term life insurance to ensure their loved ones continue to have financial security in the event of their death. These policies have no cash value and expire at the end of the term if the policyholder is alive. 

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What Are Life Insurance Living Benefits?

The accelerated death benefit offered by Mutual of Omaha is an example of a living benefit. Seniors who need assistance with daily living or nursing care may be eligible to receive some of their death benefits toward the cost of their care during the remaining years of their life. 

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