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.
Before you purchase a life insurance plan, there are several key criteria that are important to keep in mind. For example, making certain to obtain the right type of policy and amount of death benefit coverage for your anticipated needs is key.
In addition, reviewing the insurance company itself can be essential, as you want to ensure that it is financially stable and that they have a good history of paying out claims to its policyholders’. Mutual of Omaha is a company that does just that.
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.
Mutual 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 since vacancies were 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, with 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 U.S., 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 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 benefits and expenses. And, the company ended the year with a net income of $356.5 million.
Mutual of Omaha’s ratings are as follows:
- A.M. Best Company: A+ (Superior) – which is the second highest rating out of a possible 16
- Moody’s Investor Services: A1 (Good) – which is the fifth highest rating out of a possible 21
- Standard & Poor’s: AA- (Very Strong) – which is the fourth highest out of a possible 21 total ratings
Mutual of Omaha has also been known as an accredited company by the Better Business Bureau (BBB) since February 1, 1940, and it has a grade of A+ from the BBB, on a scale of A+ to F.
Life Insurance Products Offered By Mutual of Omaha Company
There are multiple options for life insurance coverage that are available through Mutual of Omaha. These include 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 option for anyone who has 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 – with no cash value 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 policies, no medical examination will be 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 policy, there is death benefit protection and cash value build up. The cash in the cash value aspect of the policy grows on a tax-deferred basis.
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 premium amount that is due is locked in and cannot be increased – regardless of the insured’s increasing age, or current 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 for 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 often noted 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, cash value return 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 proof 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 Offered
Along with offering life insurance coverage, Mutual of Omaha offers a vast range of other products to its customers:
- 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
Getting the Best Life Insurance Rates on Coverage from Mutual of Omaha Company
Everyone is looking to find the best deal on life insurance premium rates, so we recommend you begin by finding an independent agenct to work with. This way, you will be able to compare more options of policies, companies, and quotes.
If you have any additional questions regarding life insurance coverage, we can walk you through them. Our experts can be reached directly by dialing 334-380-4188.