Mutual of Omaha Life Insurance Company Review

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  • Mutual of Omaha Life Insurance Company Review

The Mutual of Omaha Life insurance company is also known as United of Omaha. In this review, I will look at the company’s life insurance products and underwriting criteria and compare it against other insurers.

We proudly represent Mutual of Omaha Life and over 50 different carriers. Let’s find out if Mutual of Omaha is a good choice for you.

Mutual of Omaha History

Founded in 1909 in Omaha Nebraska, the company was then known as Mutual Benefit Health & Accident Association. In 1910, they were authorized to sell health and accident insurance in Nebraska. By 1920, they were selling over a million dollars a year in premiums and were licensed to sell in 15 states. In 1939, the company was licensed to sell in all 48 states.

Today, Mutual of Omaha is a privately held Fortune 500 company with its hand in banking, mortgage, insurance and many financial products for individuals and business.

Mutual of Omaha Financial Ratings

  • A+ (Superior) from A.M. Best
  • A1 (Good) from Moody’s
  • AA− (Strong) from Standard & Poor’s

Life Insurance Products Offered by Mutual of Omaha

United of Omaha offers fully underwritten plans as well as simplified issue life insurance products—guaranteed universal life (GUL), term, whole life and children’s whole life policies, to name a few.

I’ll go ahead and review each plan in great detail.

Mutual of Omaha Fully Underwritten Plans Review

For starters, a fully underwritten plan involves a full exam, which includes blood tests and a physical exam conducted by a third-party health professional. You can read more about what test are performed here. United of Omaha offers GUL, UL and term policies.

GUL Highlights

  • Face amount $50,000+
  • Issue age 18–85
  • Risk classes 1–16
  • Guaranteed interest rate 2%
  • Guaranteed coverage to age 120 or a min of age 80
  • Included accelerated death benefit for terminal and chronic illness

GUL Plus Highlights

Same benefits as the GUL with a few differences:

  • Guaranteed coverage to age 120 or a min of age 90
  • Better for short pays &1035s
  • 50% interest rate bonus beginning 10th policy year

GUL Survivor Highlights

  • Face amount $250,000+
  • Issue age 18–85
  • Risk classes 1–16
  • Guaranteed interest rate 3%

AccumUL Plus Highlights

  • Face amount $25,000+
  • Issue age 0–85
  • Risk classes 1–16
  • Guaranteed interest rate 3%

AccumUL Answers Highlights

  • Same as AccumUL Plus but with a guaranteed interest rate of 2% instead of 3%

Term Life Answers 10, 15, 20, 30 Highlights

  • Face amount $100,000+
  • Issue age 18–80
  • Risk classes 1–16
  • Available terms 10, 15, 20, 30 (not available for all ages)
  • Conversion before age 75
  • Renewal to age 95
  • Included accelerated death benefit for terminal and chronic illness

Mutual of Omaha Simplified Issue Plans Review

Simplified issue plans do not require you to undergo a medical exam as part of the underwriting process. The underwriting process is relatively quick and may include a phone interview and a few other processes such as Medical Information Bureau, Motor Vehicle Record and Pharmaceutical database reviews.

Remember, the face amount will be much lower, and you will pay more for the convenience of not having an exam. This is how the insurance company hedges their odds against losing since they don’t get the full underwritten exam, which would reveal a lot more.

GUL Express Highlights

  • Face amount $50,000–$250,000
  • Issue age 18–85
  • Risk classes standard tobacco and standard non-tobacco
  • Guaranteed interest rate 3%
  • Guaranteed coverage 20-year min to age 120
  • Included accelerated death benefit for terminal and chronic illness
  • 50% interest rate bonus beginning 10th policy year

Living Promise Whole Life Highlights

  • Face amount $2,000–$40,000
  • Issue age 45–85
  • Risk classes standard tobacco and standard non-tobacco
  • Included nursing home confinement rider

Term Life Express 10, 15, 20, 30 Highlights

  • Face amount $25,000–$300,000 (not available for all ages)
  • Issue age 18–65
  • Available terms 10, 15, 20, 30
  • Risk classes standard tobacco and standard non-tobacco
  • Available return of premium rider
  • Conversion before age 70
  • Renewal to age 100

Term Life Express Included Riders

  • Accelerated death benefit
  • Living benefit
  • Residential damage
  • Waiver of premium for unemployment
  • Common carrier death benefit

Here is a great post if you’d like to read more about life insurance riders.

Mutual of Omaha Underwriting Strength

This section will help you decide if Mutual of Omaha is a good choice for your health. An experienced life insurance broker will use these factors to decide if Mutual of Omaha is a good choice for a potential client based on his/her health condition.

One of the most important underwriting benefits of Mutual of Omaha is that the issue age is the customer’s last birthday. With most carriers, if you are 4 months away from your 56th birthday, your rates will be calculated as a 56-year-old, but with Mutual of Omaha, you will be calculated as a 55-year-old. This benefit alone could save you thousands over the term of the policy.

Let’s find out where Mutual of Omaha stands out with regard to the rest of the insurance carriers out there.

(Here’s another post to help you understand more about the life insurance underwriting process.)

Tobacco Use

  • Infrequent cigar users (two per month or less) can qualify for preferred non-tobacco rates if there is a negative urinalysis test.
  • Occasional marijuana users can get standard nonsmoker rates.
  • Preferred tobacco class is available.

Family History

  • Family history criteria do not apply if the insured is 60 or older for Preferred Plus, Preferred and Standard Plus classes.
  • Family history criteria do not apply to gender-specific cancers for opposite-sex persons.
  • Family history criteria apply to deaths, not disease.
  • Family history of deaths due to diabetes can qualify for Preferred Plus, Preferred and Standard Plus.

Health Conditions

  • Mild asthma applicants may be eligible for preferred table.
  • Mild sleep apnea may be eligible for preferred with verified c-PAP usage.
  • Pre-existing conditions for cholesterol or high blood pressure do not exclude an applicant from Preferred Plus, Preferred or Standard Plus classes.
  • Unisex build charts are available.
  • Max cholesterol level for Preferred classes is 300 with the following ratios: Preferred Plus < 5 .0; Preferred non-tobacco < 6 .0; Standard Plus < 7 .5

High-Risk

  • Commercial pilots can qualify for all Preferred classes, and private pilots can qualify for Preferred Plus, Preferred or Standard Plus classes with the Aviation Exclusion Rider.
  • All Preferred classes may be available for occasional scuba diving if an applicant is certified and dives less than 100 feet.

Mutual of Omaha Fit Test

Most life insurance companies offer a way for the underwriter to “be nice” to the client if they meet a certain requirement. Playing nice might mean that, if a client has a table 4 rating but they meet certain criteria, the underwriter is allowed to knock off a few rate classes. Some carriers call this “table shaving” or underwriting credit opportunities.

These are all pretty much the same, although each carrier has a different idea on which lifestyle or medical characteristics they are willing to go with. For instance, let’s say a client is in good health and receives a standard table, and the yearly policy premium is $2,000 per year. If the same client is issued at table 4, the policy would cost $4,000 per year, and the insured would pay 100% more. The fit program can save this client 2 table rating, and the client could pay $3,000 per year. This is very good news for most of us.

See below an image of the Mutual of Omaha Fit Test questionnaire.

mutual of omaha fit test

Mutual of Omaha vs Other Carriers Sample Rates

Male 20-year Term $250,000

CompanyAge 30Age 40Age 50Age 60
 Lincoln $12.69 $17.50 $41.78 $190.53
 Protective $13.22 $17.91 $41.96 $112.86
 AIG $13.54 $19.38 $42.73 $114.74
 Banner $13.78 $18.87 $42.66 $114.16
 Mutual of Omaha $14.18 $20.08 $46.55 $134.05
 North American $14.30 $20.02 $43.56 $115.06
 Principle $14.66 $19.25 $43.09 $111.56
 Transamerica $14.41 $22.79 $51.17 $114.17
 Assurity $15.88 $28.93 $68.51 $176.61
 Prudential $20.93 $25.65 $48.15 $135

Female 20-year Term $250,000

CompanyAge 30Age 40Age 50Age 60
 Lincoln $11.16 $14.87 $31.72 $160.13
 Protective $11.95 $15.44 $31.67 $78.54
 AIG $12.02 $18.51 $35.59 $89.66
 Banner $12.03 $15.75 $32.21 $81.16
 Mutual of Omaha $12.64 $17.46 $36.05 $94.02
 North American $12.76 $16.94 $34.10 $81.84
 Principle $13.30 $17.06 $32.90 $77.92
 Transamerica $12.90 $18.92 $35.69 $92.45
 Assurity $13.05 $23.71 $53.51 $137.68
 Prudential $17.77 $23.18 $42.30 $94.73

Male 20-year Term $500,000

CompanyAge 30Age 40Age 50Age 60
 Lincoln $20.13 $28.87 $77.83 $214.33
 Protective $20.38 $28.92 $76.86 $207.96
 AIG $21.11 $31.05 $78.20 $213.57
 Banner $20.96 $32.37 $78.18 $213.27
 Mutual of Omaha $21.61 $33.42 $85.49 $249.55
 North American $22.44 $33.44 $79.20 $218.68
 Principle $22.75 $31.94 $79.63 $216.56
 Transamerica $22.36 $38.27 $92.45 $212.42
 Assurity $25.67 $51.76 $130.94 $347.13
 Prudential $34.20 $43.65 $88.65 $262.35

Female 20-year Term $500,000

CompanyAge 30Age 40Age 50Age 60
 Lincoln $17.06 $24.94 $56.39 $148.05
 Protective $17.93 $25.26 $55.78 $140.83
 AIG $18.08 $29.32 $63.06 $163.40
 Banner $17.94 $26.25 $56.87 $153.12
 Mutual of Omaha $18.99 $28.61 $64.05 $169.93
 North American $19.36 $28.16 $61.60 $154.88
 Principle $20.04 $27.56 $59.24 $149.27
 Transamerica $19.78 $30.96 $62.78 $170.71
 Assurity $20.01 $41.33 $100.92 $269.27
 Prudential $27.90 $38.70 $76.95 $181.80

Male 20-year Term $1,0000,000

CompanyAge 30Age 40Age 50Age 60
 Lincoln $49.00 $70.00 $147.70 $418.78
 Protective $34.99 $51.99 $143.84 $400.83
 AIG $36.68 $54.84 $146.53 $418.14
 Banner $36.67 $59.50 $146.30 $418.13
 Mutual of Omaha $37.80 $59.68 $163.80 $481.42
 North American $39.16 $60.28 $150.92 $427.24
 Principle $38.94 $56.00 $149.63 $422.63
 Transamerica $39.56 $69.66 $147.92 $415.38
 Assurity $45.24 $97.44 $255.78 $688.17
 Prudential $52.65 $77.85 $166.05 $485.55

Female 20-year Term $1,000,000

CompanyAge 30Age 40Age 50Age 60
 Lincoln $38.50 $53.38 $108.50 $283.80
 Protective $29.43 $43.94 $103.55 $269.92
 AIG $30.62 $52.25 $117.12 $309.15
 Banner $29.75 $47.25 $108.50 $286.12
 Mutual of Omaha $31.67 $51.80 $119.18 $324.80
 North American $32.12 $48.84 $113.08 $283.80
 Principle $32.16 $47.25 $108.94 $286.13
 Transamerica $30.96 $55.90 $116.10 $323.36
 Assurity $33.93 $76.56 $195.75 $532.44
 Prudential $38.25 $64.12 $139.05 $349.65

*All rates quoted on this page are for a super-preferred healthy individual who does not use tobacco. Monthly rates are updated as of Feb 2017 and are subject to underwriting approval.*

Last Word

Mutual of Omaha is one of the best insurance companies, but the main question remains: Is it good for you?

As a life insurance consumer, you can’t rely on a company brand alone, and the reason is very simple: Every individual has a different health history, age, financial requirements, etc., so what fits one will not fit another.

Your job as a consumer is to make sure you get the best rate for your specific health situation, and this is why you want to compare all companies before jumping into one just because your neighbor or uncle uses them.

You can go ahead and run quotes from the top 50 carries on this page, or give us a call at 866-326-3053 so you can get a personalized quote.

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2017-06-22T19:45:13+00:00 June 15th, 2017|Company Reviews|0 Comments

About the Author:

Ron is a licensed life & health insurance broker. He has 2 amazing rescue pit bull puppies and enjoys real food, heavy squats, critical thinking, and reading.

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