If you have people you love and care about, then it is highly likely that you may need to have life insurance. This is because the death of any individual – young or old – can end up leaving some significant financial hardships for those who are left behind. The proceeds from a life insurance policy can help to compensate for this.
But, before you purchase a life insurance plan, there are several key criteria that are important to keep in mind. For example, you will want to make sure that you obtain the right type of coverage, as well as the right amount of death benefit coverage for your anticipated needs.
In addition, reviewing the insurance company itself can be essential, as you will want to ensure that it is strong and stable financially and that it has a good reputation for paying out its policyholders’ claims. One company that meets these factors is Mutual of Omaha.
The History of Mutual of Omaha Company
Mutual of Omaha is a privately held mutual insurance and financial services company that is listed in the Fortune 500. This company, which as initially established back in 1090 as the Mutual Benefit Health and Accident Association, has grown exponentially throughout the past 108 years.
The company first focused on offering health and accident insurance coverage in the state of Nebraska, but it quickly expanded. One way it did so was by offering insurance coverage to working women as they entered the workplace due to the vacancies left behind by the men who were fighting in World War l.
In 1918, less than a decade after its founding, Mutual Benefit consolidated with Omaha Health and Accident Association, and in doing so, the company assumed more than 3,000 additional policyholders. By 1920, the annual premiums generated were nearly $1.3 million.
During the Great Recession in the United States, the company started to offer its first hospital insurance coverage to protect families. This coverage offered payments for daily hospitalization, as well as for operating room, anesthesia, X-ray, lab, and physician fees.
By 1939, coverage was available in all the U.S. states (at that time, there were 48), plus the two territories. It was during this same year that the company began construction on the building that still serves as its headquarters today in Omaha, Nebraska.
Mutual of Omaha Company Review
Today, Mutual of Omaha Insurance Company offers a well-diversified line of both group and individual insurance coverage, primarily in the areas of life and health. A mutual insurance company – meaning that the policyholders are essentially the company owners – Mutual of Omaha consists of several subsidiaries, including:
- United of Omaha Life Insurance Company
- Companion Life Insurance Company
- United World Life Insurance Company
- Omaha Insurance Company
- Mutual of Omaha Investor Services, Inc.
- Omaha Financial Holdings, Inc.
- East Campus Realty, LLC.
Mutual of Omaha has a solid financial standing in the insurance and financial services industry. As of year-end 2016, Mutual of Omaha held nearly $38.5 billion in total assets, and had total revenues for that year of roughly $7.8 billion. Throughout the year 2016, Mutual of Omaha paid out nearly $7.4 billion in total benefits and expenses. And, the company ended the year with a net income of $356.5 million.
Insurer Ratings and Better Business Bureau Grade
Due in large part to the company’s strong financials, Mutual of Omaha has received high ratings from the insurer ratings agencies. These include a(n):
- A+ (Superior) from A.M. Best Company – which is the second highest rating out of a possible 16
- A1 (Good) from Moody’s Investor Services – which is the fifth highest rating out of a possible 21
- AA- (Very Strong) from Standard & Poor’s – which is the fourth highest out of a possible 21 total ratings
In addition, Mutual of Omaha has been an accredited company of the Better Business Bureau (BBB) ever since February 1, 1940, and it has been given a grade of A+ from the BBB, on an overall grade scale of A+ to F.
Over the past three years, Mutual of Omaha has closed out a total of 111 customer complaints – of which 31 were closed within the past 12 months. Of these 111 total customer complaints, 62 of them had to do with problems with the company’s product and/or service, while another 27 complaints were related to advertising and/or sales issues, 16 had to do with billing and/or collection issues, 3 were related to delivery issues, and other 3 were related to guarantee and/or warranty issues.
Life Insurance Products Offered By Mutual of Omaha Company
There are many different options for life insurance coverage that are available through Mutual of Omaha. These include both term and permanent coverage alternative. Due to its range of options, customers can choose the plan that works best for them, and their particular needs.
Term Insurance Available Through Mutual of Omaha
Term life insurance can provide an affordable manner of protection for a set period, or “term.” While the term is frequently referred to as “temporary” life insurance, it can be a good alternative for those who have certain requirements, such as the payoff of a mortgage balance or an emergency fund for a young and growing family.
In addition, because a term life insurance policy only offers death benefit protection – without any type of cash value or investment build up – the premiums that are charged can be very affordable.
The term life insurance policies through Mutual of Omaha can be purchased either online or with the help of a personal agent. If you opt to obtain your coverage online, you are eligible to apply if you are between the ages of 30 and 74, and can choose a benefit amount of between $25,000 and $100,000.
With these online term life insurance plans, there is no medical examination required for approval, and there are only a few health-related questions to answer on the policy’s application for coverage. In most cases, the time frame from application to notification of policy approval is just one week.
Permanent Insurance Available Through Mutual of Omaha
With a permanent life insurance policy, there is both death benefit protection, and cash value builds up. The cash in the cash value component of the policy is allowed to grow on a tax-deferred basis. This means that there is no tax due on the gain, unless or until the money is withdrawn.
Permanent life insurance coverage will usually remain in force for the remainder of an insured’s lifetime – provided that the premium is paid. And in many cases, the amount of the premium that is due is locked in and cannot be increased – regardless of the insured’s increasing age, and even if he or she contracts an adverse health condition.
There are several different types of permanent life insurance plans that are offered through Mutual of Omaha. These include:
- Whole Life
- Universal Life
- Children’s Whole Life
Whole Life Insurance
Whole life insurance provides long-term death benefit protection and premiums that are guaranteed never to increase. This type of life insurance also includes a cash value component, where the return is set by the insurance company. Cash can be either borrowed or withdrawn from the policy to help with financial needs, such as the payoff of debt or the supplementing of retirement income.
As with the term life insurance that is offered by Mutual of Omaha, whole life insurance coverage can be purchased online. In this case, an applicant must be between the ages of 45 and 85 (in most states), and a benefit amount of between $2,000 and $25,000 can be chosen. There are no medical exams required for approval, nor any health questions to answer.
Universal Life Insurance
Universal life insurance is structured similarly as whole life, although universal life is considered to be more flexible. Here, both the benefit amount and the premium may be changed by the policyholder (within certain guidelines), and the policyholder can also have access to the cash value.
Mutual of Omaha offers a regular universal life insurance option, as well as indexed universal life. With indexed universal life insurance, the return on the cash value is determined, based upon an underlying market index, such as the S&P 500. Because of this, the return can be greater than that of a comparable whole life insurance policy. (If, however, the return on the underlying index is negative, there is no risk of market-related loss).
Children’s Whole Life Insurance
Children’s whole life insurance can be issued on the life of a child – and because the insured is typically very young, this allows for the locking in of low premium payments that will never increase. It can also help to guarantee life insurance protection for the child in later years – regardless of his or her future health condition. With this plan, the child is allowed to purchase additional future coverage, without the need to provide evidence of insurability.
This policy is open to children / applicants who are between the ages of 14 days and 17 years old. Coverage amount can range between $5,000 up to $50,000. In order to qualify for this policy, there are only a few health questions asked.
Accidental Death Insurance
Mutual of Omaha also offers an accidental death insurance policy. This can help with providing financial support for loved ones if the insured dies as the result of a covered accident. With this policy, the coverage is guaranteed, so an applicant cannot be turned down. This means that there is no medical exam required in order to be approved for this plan.
Accidental death insurance can be a good way to help with supplementing other life insurance coverage that is in force. Coverage on this particular plan can be purchased for up to $1 million. Family coverage is also available.
Other Products and Services Offered
In addition to life insurance coverage, Mutual of Omaha offers a wide range of other products and services to its customers. These include the following:
- Long-Term Care Insurance
- Medicare Supplement Insurance
- Disability Insurance
- Critical Illness Insurance
- Cancer Insurance
- Heart Attack Insurance
- Stroke Insurance
- Dental Insurance
- Retirement Annuities
- Banking Services
How to Get the Best Life Insurance Premium Rates on Coverage from Mutual of Omaha Company
If you are seeking the best life insurance premium rates on coverage from Mutual of Omaha – or from any life insurance carrier – it is typically recommended that you work with an independent life insurance agency or brokerage. That way, you will be able to compare, in an unbiased way, many different policies, companies, and premium quotes – and from there you can determine which one is the best for you.
When you are ready to see which life insurance plans and prices you are eligible for, we can help. We are an independent life insurance broker, and we work with many of the top life insurance companies in the marketplace today. We can assist you with obtaining all of the key details that you need – and we can do so for you very quickly, easily, and conveniently, all from your computer. If you are ready to begin this process, then just simply fill in the needed information on the quote form on this page.
Should you find that you still have any additional questions regarding life insurance coverage, we can walk you through them. Our experts can be reached directly via phone, toll-free, by dialing 334-380-4188.
We understand that the purchase of life insurance coverage may initially seem difficult. There are many factors to consider. However, when you are working with an ally on your side, this process can be so much easier. So, contact us today – we’re here to help.