When looking for life insurance, it pays to shop around. One well-known company that offers life insurance is Mutual of Omaha. In business since 1909, Mutual of Omaha offers several types of life insurance. Below in our Mutual of Omaha life insurance review, we’ll look at those products in more detail and the reputation of the company.
- Pros and Cons
- Life Insurance Products Offered by Mutual of Omaha: 95/100
- Financial Strength Rating of Mutual of Omaha Life Insurance: 95/100
- Customer Satisfaction Rating of Mutual of Omaha Life Insurance: 85/100
- Consumer Complaints Rating of Mutual of Omaha Life Insurance: 80/100
- Digital Experience Rating of Mutual of Omaha Life Insurance: 90/100
Pros of Mutual of Omaha Life Insurance
- A seamless online quote process for term and whole life plans
- Company offers the main types of life insurance in the industry, with added customizations like two different types of index plans
- The company is well-rated through AM Best and performed well in the J.D. Power 2019 Life Insurance Study
Cons of Mutual of Omaha Life Insurance
- You still have to contact an agent if you want a universal life insurance quote
- The company had a dozen complaints in 2019 through the National Association of Insurance Commissioners (NAIC) for individual life
Life Insurance Products Offered by Mutual of Omaha
To start off our Mutual of Omaha life insurance review, we looked at the products it offers. The company lists its life insurance products by two main types: term life insurance and permanent life insurance. This is common for the industry and life insurance products as a whole.
The website states that term life goes for a specific period of time and the company’s term life products are often used to:
- Pay off the mortgage of a home
- Provide an emergency fund
- Help build a child’s education fund
- Pay off personal debts
The term life plans run in 10, 15, 20 and 30-year terms. You can get it if you are between the ages of 18 and 80. Benefit amounts run from $100,000 and over. You can also convert your coverage into a permanent plan.
Mutual of Omaha states that their permanent life insurance products last a lifetime and build cash value that you can access while you are living. People often use the permanent products for:
- Paying final expenses. Learn more about final expense life insurance policy
- Providing ongoing income for family
- Supplementing retirement income. Learn more how to use life insurance in retirement planning through a case study
- Funding an estate or business continuation plan
The company further designates its plans between whole life and universal plans.
Mutual of Omaha Whole Life Insurance
The whole life plan is a typical guaranteed issue whole life insurance which is mostly for final expense. Under this policy, if the insured passes away in the first two years of the policy due to natural cause, death benefits to beneficiaries is not the face value of the policy. Instead, beneficiaries will get paid an amount equal to all premiums plus 10 percent. After the two years, the full death benefit goes into effect for natural cause deaths. This policy is available for anyone ages 45 to 85, and coverage runs from $2,000 to $25,000 in most states. The plan also includes funeral planning at no extra cost. This whole life insurance policy doesn’t require medical exam.
Mutual of Omaha doesn’t seem to offer traditional whole life policy. If you look for the traditional policy, you can reference our guide to the best whole life insurance companies.
Mutual of Omaha Universal Life Insurance
Under the universal life header, the company has two separate indexed plans, Life Protection Advantage and Income Advantage. Income Advantage is an indexed universal life insurance policy. It provides a 0 percent floor on cash growth and is focused more on cash growth.
>>MORE: Compare Whole Life Insurance with Indexed Universal Life Insurance
Life Protection Advantage is, on the other hand, focused on guaranteed death benefit, which is very similar to guaranteed universal life insurance product.
The other universal life plan, AccumUL Answers, increases cash value at a declared interest rate and guarantees at least 2 percent earnings annually.
Financial Strength Rating of Mutual of Omaha Life Insurance
Next for our Mutual of Omaha life insurance review, we looked at the company’s ratings through AM Best. Mutual of Omaha Insurance Company has an A+ (Superior) rating through AM Best and the company outlook is listed as stable.
For the long-term issuer credit rating, the company as aa- (Superior) rating and the outlook is also listed as stable.
Customer Satisfaction Rating of Mutual of Omaha Life Insurance
Mutual of Omaha performed well in the J.D. Power 2019 Life Insurance Study. It came in third, with a rating of 795 out of a possible 1,000 points. It has a four-circle rating, which is labeled as “better than most.”
The study also rates Mutual of Omaha solidly on different categories:
- Product Offerings: 4/5
- Price: 5/5
- Statements: 5/5
- Interaction: 4/5
- Communication: 5/5
- Application and Orientation: 5/5
Consumer Complaints Rating of Mutual of Omaha Life Insurance
Through the NAIC, Mutual of Omaha (company code 71412), had a 0.65 total complaint index in 2019. That’s below average for the expected complaints in the industry, with 1.00 being the expected amount of complaints.
The company did have 12 total complaints for individual life insurance in 2019.
Digital Experience Rating of Mutual of Omaha Life Insurance
We also got some quotes for our Mutual of Omaha life insurance review. The term life page does give you the option to get a quote or contact an agent. We selected the “get a quote” button. A short questionnaire pops up. We entered a 45-year-old male who does not use tobacco. For $100,000 and a 10-year term, we got the following quote page:
The dropdown menu allows you to change your term. When we changed it to 20 years, the price updated in real-time:
The website even let us get a basic quote for a whole life plan:
Universal life plans require you to contact an agent, however.
Considering most life insurance companies just end up routing you to an agent through their website, it’s nice to find a company that gives you an online quote option. The process was also seamless and simple.
Final Thoughts in Our Mutual of Omaha Life Insurance Review
Mutual of Omaha is a solid company with a long operating history and a good reputation. It also has a comprehensive amount of life insurance policy types to choose from. Certain products are geared towards customization, like a couple of different types of index plans and a whole life plan with added funeral planning assistance, to help you meet your financial goals.