- Some policies include three no-cost living benefit riders: Mutual of Omaha’s Term Life Express and IUL Express policies include chronic, critical, and terminal illness accelerated death benefit riders at no extra cost.
- Wide range of riders: The company has various riders available for purchase, including a disability income rider on its Term Life Express policy that pays a monthly income if you become disabled and can’t work.
- Live chat feature on the website: The Mutual of Omaha virtual assistant is available and will connect you with a live agent if needed.
- Offers return-of-premium (ROP) term: ROP term insurance refunds some or all of your premiums if you outlive the policy. These policies are more expensive than regular-term coverage.
- No-exam policies available: Mutual of Omaha uses a simplified underwriting process on its “Express” policies, where applicants can skip the exam when applying for coverage.
- Online applications unavailable for term policies: If you want a term policy from Mutual of Omaha, you’ll need an agent to help you apply.
- No variable universal (VUL) or traditional whole-life insurance: Mutual of Omaha doesn’t offer VUL insurance or a whole-life policy coverage over $25,000.
The National Association of Insurance Commissioners (NAIC) collects data on complaints against insurance companies and creates a “complaint index” so consumers can see how many complaints the company receives. An index of 1.0 indicates the company received the number of complaints expected for a company its size. A complaint index lower than 1.0 means the company received fewer complaints than expected, while an index greater than 1.0 means it received more than expected. The lower the complaint index, the better.
We researched Mutual of Omaha’s NAIC complaint index over three years, from 2020 to 2022, and found an average complaint index of .76. Mutual of Omaha received the number of complaints that would be expected based on its market share, according to the NAIC.
The rating agency AM Best gives Mutual of Omaha an A+ for financial stability, which means the company has a “superior” ability to take care of its contractual insurance obligations, like paying claims. AM Best has been rating the financial strength of life insurance companies since 1899 and uses letter grades that range from A++ to D.
Mutual of Omaha ranked third out of 21 major life insurance companies in the 2022 J.D. Power Individual Life Insurance Study. Mutual of Omaha scored 801 out of 1,000 points, while the No. 1 company, State Farm, scored 839.
AM Best assesses a company’s ability to pay its claims on a graded scale, with A++ being the highest. All our best life insurance companies have at least an A rating.
|Mutual of Omaha||Nationwide||MassMutual|
|Types of Coverage||Term, universal, indexed universal, final expense||Term, whole life, universal, indexed universal, variable universal, final expense||Term, whole life, universal, variable universal|
|Online Application||Available (for guaranteed issue whole life)||Available (for term)||Available (for term)|
|AM Best Rating||A+||A+||A++|
|Price for Term Policies||Average||Average||Better than average|
|NAIC Complaint Index (3-year average)||.76||1.13||NA|
Chronic, critical, and terminal illness riders are included free of charge on Mutual of Omaha’s Term Life Express and IUL Express policies. Most other policies include chronic and terminal illness riders at no additional cost.
Term Life Insurance
If you need affordable and temporary life insurance coverage, term life insurance may be a good fit. Term insurance guarantees that your beneficiaries will receive a death benefit if you die during the policy term, such as 30 years. Mutual of Omaha term products offer 10-, 15-, 20-, and 30-year policies. Both are convertible term policies where you can convert your term coverage to a permanent life insurance policy without the application process.
- Term Life Answers: This is Mutual of Omaha’s fully underwritten term life insurance product offered to those 18-70 years of age and requires a health history and medical exam. Coverage starts at $100,000. Chronic and terminal illness riders are included at no cost.
- Term Life Express: You can skip the medical exam with this policy, and critical, chronic, and terminal illness riders are included at no additional cost. Benefits range from $25,000 to $300,000. You can purchase a Return of Premium (ROP) version and receive up to 100% of premiums paid into the policy if you surrender it.
Universal Life Insurance
Universal life (UL) insurance is designed to last your entire life and builds a tax-advantaged cash value within the policy over time. Permanent policies are more expensive than term, but you may be able to borrow or withdraw from the cash value.
- AccumUL Answers: This product requires a medical exam and includes permanent life insurance coverage. The policy accumulates cash value using a declared interest rate, with a guaranteed 2% annually.
Indexed Universal Life Insurance
Indexed universal life (IUL) policies tie their cash value to a stock market index, such as the S&P 500. Gains credited to the account are based on the performance of the index is tied to, subject to caps and floors. IUL policies are considered riskier than UL policies because cash value returns may not offset policy expenses. However, they’re less risky than variable universal life (VUL) policies, which are invested in the market and can have returns below 0%. Mutual of Omaha has two Indexed universal life insurance policies:
- Life Protection Advantage IUL: This IUL policy offers permanent life insurance coverage with a death benefit that can be guaranteed through age 90. It provides the potential for more value accumulation than traditional fixed-interest universal life insurance policies.
- Income Advantage IUL: This IUL option offers permanent life insurance coverage that builds value based on selected interest-crediting options tied to the performance of a market index. This policy provides more growth potential than Life Protection Advantage.
Some people use permanent insurance policies to build a tax-advantaged cash value in order to supplement their retirement income. But withdrawing or borrowing too much can potentially cause the policy to lapse.
Whole Life Insurance
Whole life insurance is permanent life insurance coverage that protects your family by securing benefits that help pay for end-of-life expenses and a cash value that can be used in an emergency. Mutual of Omaha offers a guaranteed issue whole-life policy, which means you won’t be denied coverage based on your health.
- Guaranteed Whole Life Insurance: Available to applicants between 45 and 85 years old for coverage between $2,000 and $25,000. Your beneficiaries will get the full death benefit at any time for accidental death or if you die from natural causes after the first two years.
- Critical illness benefit: You can request up to 80% of the death benefit early if you experience a critical illness, such as kidney failure or a heart attack.
- Terminal illness benefit: If your life expectancy is less than 12 months, you can request up to 80% of the death benefit.
- Chronic illness benefit: If you lose the ability to perform at least two activities of daily living, such as bathing and feeding yourself, for 90 consecutive days, you can request up to 80% of the death benefit.
- Accidental death benefit rider: Benefits are based on the age of the insured and range from $10,000 to $250,000.
- Dependent children’s rider: This rider is added at issue and available for the insured only. Face amounts are $5,000 and $10,000 and terminate when the youngest child attains age 23 or when the base policy ends.
- Waiver of premium rider: If the insured becomes disabled and unable to work, the premium for the base policy and all riders are waived for a period.
- Disability income: The insured can apply for a maximum monthly disability income benefit equal to the lesser of 1.5% of the face amount, $3,000 per month, or 60% of your monthly gross income.
Customer service is available by phone at 877-202-2676 from 8:30 a.m. to 4:30 p.m. Central time. You can also fill out a form to receive a response by phone or email or utilize a virtual assistant to connect you with an agent for live chat. If you’d prefer to speak with a local agent, you can find one by entering your ZIP code into the agent-finder tool.
Mutual of Omaha provides quote estimate calculators on its website. We pulled quotes for applicants in excellent health at different ages and found that pricing for term coverage is average with other providers. Below are 30-year term monthly quotes with a $250,000 death benefit.
Whether Mutual of Omaha is the best choice depends on what you need. If you’re in the market for a disability income rider or ROP term policy, Mutual of Omaha is one of only a few options available and likely an excellent choice since it ranks highly for financial stability and customer satisfaction. Mutual of Omaha offers IUL, UL, or a guaranteed issue whole-life policy. For a VUL policy or a traditional whole life policy, you’ll need to look elsewhere. Also, if you prefer no-exam options, you might consider another carrier that offers an “accelerated” underwriting process.
Frequently Asked Questions
What Is Children’s Whole Life Insurance?
Mutual of Omaha offers children’s whole life coverage available for children as young as 14 days old up to 17 years old for between $5,000 and $50,000. You can get a quote and apply for coverage online. No exam is required and only three health questions are asked.
How Long Does It Take Mutual of Omaha To Pay Life Insurance?
Some insurance companies like Mutual of Omaha can pay out life insurance death benefits in as little as 24 hours for whole life insurance and 30 to 60 days for a term life insurance policy.
How Much Life Insurance Do I Need?
If you have a family or dependents since your financial obligations might outlive you. Calculated your annual expenses, and future expenses such as a child’s college costs, and burial costs, to help determine your need. Insurance helps to provide you with financial assistance should you die or become unable to work.
We designed a comprehensive rating methodology based on consumer priorities and life insurance company fundamentals to rank over 90 insurers across five general categories: financial stability, customer satisfaction, product, and feature variety, the overall buying experience, and cost.
To do this, we collected over 5,000 data points and scored each company based on 55 metrics. We grouped metrics by category to see how insurers performed in each; we then weighted category scores to determine how companies performed overall.
To learn more, read our full Life Insurance Methodology.