Mutual of Omaha Life Insurance Review 2020

Fact-checked with HomeInsurance.com

1

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation for

Life insurance plays an important role in assuring your loved ones are financially taken care of if you pass away. Mutual of Omaha, one of the top life insurance providers, is based in Nebraska and has been around for over 100 years. The company started by offering health and accident insurance in 1909 and expanded into life insurance in 1926. Take a closer look at Mutual of Omaha life insurance to decide what product is best for you.

Mutual of Omaha life insurance

Mutual of Omaha is a full-service life insurance company selling your typical types of life insurance products. It’s a mutual company, meaning all policyholders own a small stake of the company. Buying a life insurance policy comes with benefits greater than the payout your beneficiaries will receive — you’ll be entitled to a portion of the company profits in the form of annual dividends.

Besides life insurance, Mutual of Omaha provides customers with banking and investment options such as mutual funds. The expanded financial services are convenient for policyholders who can manage their accounts, as well as plan for retirement (and beyond), all in one place.

You can get a quote online to get an idea of how much a life insurance policy will cost you, but you’ll need to meet with an advisor to actually purchase a policy.

Types of life insurance policies offered

Life insurance isn’t a one-size-fits-all product. There are a variety of ways to plan your legacy. Mutual of Omaha provides three main types of life insurance:

Term life insurance

Term life insurance is the simplest and most affordable type of life insurance policy to sign up for. Mutual of Omaha provides coverage for term lengths of 10, 15, 20 or 30 years. You’ll be able to buy a policy with a payout benefit of at least $100,000 or more. Term policies can be converted into permanent life insurance at any time before the policy expires.

Whole life insurance

Mutual of Omaha’s permanent life insurance products consist of whole life or universal life. The company’s whole life insurance is guaranteed use, meaning you won’t be asked to take a medical exam or have to answer a long list of health-related questions. Besides the death benefit payout, whole life insurance builds cash value for your use while you’re alive. If you’re between the ages of 45 and 85, you’ll be able to buy coverage of $2,000 to $40,000.

Some special features you’ll find in Mutual of Omaha’s whole life policies include set premiums that will not increase as long as you’re alive. The cash value portion of your life insurance policy is tax-deferred and earns a set amount of interest for risk-free gains. In addition, Mutual of Omaha claims that 85% of life insurance claims are paid within 24 hours.

Universal life insurance

The last type of life insurance available through Mutual of Omaha is universal life insurance. It provides you with a lifetime of coverage — as long as you continue to pay your premiums, you’ll be covered. The most popular of the company’s universal life product is Income Advantage, an indexed universal life policy tied to an index fund that tracks the S&P 500’s performance, for the chance to earn more on your cash value funds.

The most flexible of life insurance products, Mutual of Omaha’s universal life policies allow you to change your premium payment frequency and amount, as well as adjust the policy’s death benefit as needed. Your cash value has the opportunity to grow faster than a whole life insurance policy because you can grow your money through investments such as mutual funds. Mutual of Omaha provides three different products:

  • Life Protection Advantage — includes accelerated death benefit and guaranteed refund
  • Income Advantage — cash value account is tied to an index fund for growth and provides downside protection to protect your principal against market losses
  • AccumUL Answers — earn a declared interest rate of at least 2% per year

Mutual of Omaha ratings, reviews, customer satisfaction and complaints

When deciding whether Mutual of Omaha (or any other life insurance company) is right for you, it’s important to evaluate customer reviews and the insurer’s financial strength. After all, you’ll want to work with a life insurance company capable of paying your beneficiaries a death benefit decades down the road. Fortunately, Mutual of Omaha’s reviews are positive.

Mutual of Omaha life insurance reviews
AM Best financial rating A+ superior
Moody’s financial rating A1 good
S&P Global financial rating A+ strong
J.D. Power Customer Satisfaction score 795/1,000, #3 in the ranking
Better Business Bureau rating A+

Additional policies offered by Mutual of Omaha

In addition to life insurance, Mutual of Omaha also offers accidental death insurance. This policy will pay your loved ones up to $1,000,000 if you die in an accident. No medical exam is required and coverage is guaranteed until the age of 80. It’s ideal for individuals in higher-risk jobs or who travel regularly. Coverage kicks in for death from:

  • A workplace accident
  • Traveling as a fare-paying passenger on a boat, bus or airplane
  • Payout of up to $300,000 if the policy owner is killed in a car accident or struck by an automobile as a pedestrian

Frequently asked questions

What is the best life insurance company?

The best life insurance company depends on your personal needs. There are several quality life insurance companies to choose from — your best bet is to compare products and pricing from a few to choose the best life insurance company for you.

What are Mutual of Omaha reviews like?

Mutual of Omaha life insurance has a good reputation among customers. Mutual of Omaha life insurance comes in at #3 in the J.D. Power Customer Satisfaction survey of best life insurance companies, with a score of 795 out of 1,000.

What is the difference between term and permanent life insurance?

The main difference is the length of time you’ll be covered for. Term life insurance provides you with protection for a set period of time between 10 and 30 years. If you pass during the covered period, your beneficiaries will receive a payout. Permanent life insurance covers you without an expiration date. As long as you keep your policy current, your loved ones are eligible for a payout.