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Mutual of Omaha Life Insurance Review 2016

Caryn Anderson

With its familiar logo and family-friendly motto, Mutual of Omaha is one of the most recognizable life insurance companies in the country. This Fortune 500 company based out of Omaha, Nebraska, began in 1909 and has since grown to more than 9 million members. In addition to life insurance, Mutual of Omaha provides other products, including Medicare supplement and long-term care insurance, investments and annuities. Read on to learn more about its life insurance offerings and how to figure out which one is right for you.

Types of Life Insurance

Mutual of Omaha carries three types of life insurance: term, whole and universal. Understand the key differences between each option to make the right choice for you.

  • Term life insurance offers low prices with fixed payment amounts for a determined period. Mutual of Omaha has policies with 10-, 15-, 20- and 30-year terms and a Term Life Direct policy that goes up to 80 years old. Once your term is up, the policy expires. This is a useful option if you’re on a budget and want to be able to provide money for your beneficiaries to pay off a mortgage, credit cards and other expenses, should you die prematurely.
  • Whole life insurance costs more than term life, but the premiums remain the same for as long as you’re alive, or as long as the policy is in effect. Rates don’t increase and the policy may build cash value that you can use while you’re living. It’s possible to take out a loan against the value of this type of life insurance.
  • Universal life insurance builds value, much like whole life, but it has added flexibility and lets you change your coverage as your needs change. This is an ideal option if you’re developing an estate or business plan, want to provide money for education or are trying to accumulate tax-deferred cash value for retirement.

The following chart provides a comparison of some of the main similarities and differences between Mutual of Omaha’s life insurance policies:

FeatureTerm LifeWhole LifeUniversal Life
Death benefitsYesYesYes
Low monthly/annual costYesNoNo
Access to money while you're aliveNoYesYes
Cash valueNoYesYes
Tax advantagesYesYesYes
Flexible paymentsNoNoYes

How to Choose a Coverage Amount

To figure out how much life insurance you need, consider all of your outstanding debts, household expenses, funeral expenses and taxes to figure out the amount of income your family needs to remain financially stable if you die. Mutual of Omaha has an online calculator to help you determine how much coverage you need based on the amount of income continuation, immediate cash needs and education funds you want to provide. With income continuation, you input your family’s monthly income and how many years that income should last. Immediate cash needs cover all final expenses, paying off your mortgage and providing money to pay off personal debts. You can also use your life insurance to help fund your children’s education if you die.

How to Save Money on a Mutual of Omaha Life Insurance Policy

Each life insurance company has a unique set of criteria that determines whether you’re approved or denied in addition to contributing to your rate. To get the right rates for your needs with Mutual of Omaha:

  • Have healthy blood pressure levels. Adults between the ages of 18 and 55 should have blood pressure that’s no higher than 135/85. Applicants who are at least 56 years old should have a maximum blood pressure of 140/85.
  • Have a good driving record. Drivers with no reckless driving or driving while intoxicated (DWI) convictions within five years of applying qualify for lower rates.
  • Quit smoking. Nonsmokers and applicants with no nicotine use in the past three years qualify for the lowest nonsmoking rates.
  • Have no history of drug or alcohol abuse within 15 years of applying.

In addition to developing healthy habits, another effective way to obtain ideal life insurance rates is to shop around. Get quotes from at least three to five companies to choose the most competitive premium rate and policy terms. Get the information directly from each company, most of which offer quick online quotes, or use a life insurance comparison tool to get an estimated rate.

Comparing Mutual of Omaha Rates

Although individual rates vary depending on a variety of factors, including your overall health and medical history, the following chart offers a reasonable idea of what you can expect to pay based on your age. We compared the prices of Mutual of Omaha along with four other life insurance carriers based on a 20-year term life insurance policy for $250,000 and found the monthly premiums to be:

Insurance CompanyMen, Age 25Women, Age 25Men, Age 45Women, Age 45
Mutual of Omaha13.7812.2531.2825.16
SBLI14.5713.0936.2527.83
Lincoln Financial19.0316.4146.5934.78
Principal14.6612.9932.6525.69
Prudential19.5816.8831.9529.63

Bottom Line

According to J.D. Power’s 2015 ratings, Mutual of Omaha ranks in the top five life insurance companies. J.D. Power rated it above average in overall satisfaction, billing and payment, price, policy offerings and interaction. Coupled with its A+ rating from A.M. Best for financial strength, Mutual of Omaha is a strong contender for life insurance. Check out what it has to offer and compare your rates today to get the coverage you need for protect your family, your business and your heirs.

You can trust that we maintain strict editorial integrity in our writing and assessments; however, we receive compensation when you click on links to products from our partners and get approved.
Published September 6, 2016
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