2.9 / 5

Mutual of Omaha Life Insurance Review

A highly reputable life insurance carrier that could be a great option for people with complex health histories. Just expect to pay higher-than-average rates.

Tim Torres

By

Tim Torres

Tim Torres

Reviews Expert

Tim Torres is a Reviews Editor at Policygenius. His work has appeared in Computer Shopper, Tom's Guide, and numerous other outlets over the years.

Updated February 11, 2021|8 min read

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Mutual of Omaha

OVERALL

2.9

THE GOOD

    Competitive underwriting for a range of health conditions, like a history of cancer

    No-medical exam options for older applicants

    Strong financial and customer ratings

THE BAD

    Policies are more expensive than the average

    Slow turnaround time

THE BOTTOM LINE

Mutual of Omaha offers competitive pricing for applicants with common and some complex health conditions. There’s also a simplified-issue, no-medical exam term life insurance policy available for older shoppers — final expense policies, too. Just expect to pay a lot more for insurance than the competition.

Mutual of Omaha is on Policygenius' list of the best life insurance companies, based on financial confidence, third-party customer ratings, life insurance policy options, and ease of application.

This review is based on Mutual of Omaha’s main term life product, Term Life Answers.

Cost

Average monthly premium cost for a predetermined applicant profile and common health conditions.

1.7

Confidence

Consumer confidence based on scores from major financial rating institutions.

8.5

Third-Party Ratings

Satisfaction from consumer sentiment institutions and complaints to state insurance boards.

8.3

Policy Details

Availability of such options as term length and no-med-exam availability.

7.2

Ease of Application

Ease of use, convenience, online tools, and availability.

7.3

MUTUAL OF OMAHA COMPANY SPOTLIGHT

4 of 5

J.D. Power surveys rate based on product offerings, price, statements, interaction, communication, and application. An overall satisfaction score of 4 denotes a company “better than most".

J.D. Power Rating

A trusted customer satisfaction and product quality research agency

A+

An A+ denotes a score between 97 and 100 (out of 100) based on 13 criteria, including unanswered complaints, type of business, and government action.

BBB Rating

A nonprofit organization focusing on marketplace trust and product quality

A+

A.M. Best ratings range from A++ to D. An A+ rating denotes a "superior" company based on their ability to meet ongoing insurance obligations.

A.M. Best

100-year-old U.S. credit rating agency focused on the insurance industry

The Details

The Good

Competitive underwriting for a range of health conditions. Mutual of Omaha may offer more competitive rates for applicants with common or more complex health conditions such as anxiety, arthritis, chronic obstructive pulmonary disease, and others. Be sure to compare carriers to make sure you're going with the one that's best for your specific conditions.

No-medical exam options for older applicants. Depending on your age and health, you could qualify for Mutual of Omaha’s fast-track term life policy, Term Life Express, which doesn’t require a medical exam. However, you will still have to answer medical questions and coverage amounts are lower. 

Strong financial and customer ratings. Financial analysts and customers are both confident that Mutual of Omaha is a strong, reliable company. Besides strong reviews from consumer organizations and high marks from financial rating firms, Mutual of Omaha has had few complaints reported to state insurance boards.

The Bad

Policies are more expensive than the average. Applicants, old and younger, will likely find less expensive options with other carriers. Mutual of Omaha starts off cheaper for young applicants (but still more expensive than the competition), but shoppers in their 40s or 50s may end up paying more if they don't compare costs.

Slower turnaround time. Mutual of Omaha’s application process can be a little slower than average. Applying for life insurance can take as long as six to eight weeks depending on different factors, such as scheduling and undergoing medical examinations. However, application speed can vary from person to person.

The Breakdown

Cost

Average monthly premium cost for a predetermined applicant profile and common health conditions.

1.7

Across each age group, Mutual of Omaha has more expensive policies than the industry average. Younger and older applicants will be paying more per month for term life insurance with Mutual of Omaha. 

It’s also important to keep in mind that the cost of life insurance depends largely on the policy itself — how long it lasts and how much coverage it’s for — and the health and age of the applicant. Younger, healthier shoppers will pay less, while older and less healthy customers will end up paying more. 

To get a sense of how much Mutual of Omaha may cost, below you’ll find a sample quote of a $500,000, 20-year Term Life Answers policy for a healthy, non-smoking male, in California.

AgeMutual of Omaha averageIndustry average
20s$30.32$28.02
30s$33.80$32.06
40s$69.45$60.97
50s$179.96$152.00
60s$556.92$504.29

Sample rates are for a healthy, non-smoking male in California applying for $500,000 in Preferred-rate class coverage. Rates current as of February 2021, according to Policygenius data.

However, Mutual of Omaha offers competitive pricing for many common health conditions, making them an excellent choice under the right circumstances.

Mutual of Omaha term life insurance is best for people with the following conditions: 

  • Anxiety 

  • Mild arthritis and Rheumatoid arthritis 

  • People with blindness

  • Chronic obstructive pulmonary disease 

  • Degenerative disc disease

  • Gout

  • Hepatitis B

  • Herpes

  • Polycystic ovary syndrome

  • Scoliosis

  • Ulcerative colitis

Want more information about life insurance and chronic health conditions?

Confidence

Consumer confidence based on scores from major financial rating institutions.

8.5

Mutual of Omaha has been in business for 112 years and provides coverage to over half a million customers. With top ratings from the three major credit rating agencies, you should feel confident that they'll be around to pay out when your family needs help most. 

  • A.M. Best: A+ 

  • Moody's: A1 

  • Standard & Poor’s: A+

A.M. Best is a credit rating firm that focuses especially on the insurance industry. The A+ rating, one of the best grades possible, means Mutual of Omaha is “superior” to most other carriers. Companies with a B grade or lower are more vulnerable to risk.

Moody’s is a bond credit rating agency that analyzes a company’s risk. They give Mutual of Omaha a score of A1, meaning they’re a low credit risk and a great investment. Companies with an A rating and above are low credit risks.

Standard & Poor’s is a credit analysis firm that publishes research on stocks, bonds, and commodities. Their A+ rating of Mutual of Omaha means they have a very strong ability to meet the financial obligations of customers. Companies are rated on a scale from AAA to D. The higher the rating, the more likely a company pays its debts.

Third-Party Ratings

Satisfaction from consumer sentiment institutions and complaints to state insurance boards.

8.3

Overall, Mutual of Omaha has higher-than-average ratings from consumer sentiment groups like Better Business Bureau and customer review portals like Consumer Affairs. There are also little to no complaints to state insurance agencies, as measured by the National Association of Insurance Commissioners (NAIC). 

Here’s what regular customers think of Mutual of Omaha:

  • BBB: A+

  • Consumer Affairs: 4 / 5

  • Consumers Advocate: N/A

  • NAIC complaint index: 0

The Better Business Bureau takes into account a company’s complaint history, how long the business has been operating, transparency of business practices, advertising issues, and other criteria. They give Mutual of Omaha an A+ rating.

Consumers Advocate is a third-party review site. There is no Mutual of Omaha life insurance review from them. 

Consumer Affairs lets customers directly rate and write reviews on their site. Mutual of Omaha has a rating of 4 out of 5. Most complaints revolve around confusing whole life policies, but the company is responsive to all complaints on the platform.

Mutual of Omaha has a whopping zero on the National Association of Insurance Commissioner’s (NAIC) National Complaint Index. This means the number of confirmed complaints submitted to state insurance departments were not enough to register on the index.

Lastly, J.D. Power scores are based on customer ratings for overall satisfaction, clarity, and usefulness of annual statements and billing, price, policy offerings, and interaction experience. In their latest life insurance survey, they give Mutual of Omaha 789 out of 1000 points, which roughly translates to a 4 out of 5. Policygenius doesn’t include this score as part of our rating method, but it is worth pointing out that most customers are satisfied with Mutual Of Omaha.

Policy Details

Availability of such options as term length and no-med-exam availability.

7.2

Mutual of Omaha offers term life insurance, whole life insurance, and universal life insurance. Policygenius recommends term life insurance for most people. In the case of Mutual of Omaha, that would be their Term Life Answers policy. All scores in this review reflect that particular product from Mutual of Omaha. 

Term life insurance

Mutual of Omaha offers two term life insurance policies, Term Life Answers and Term Life Express. 

Term Life Answers is a basic term life policy with set coverage amounts, term lengths, and customizable riders. 

Term Life Express is a fast-track no-medical exam option for certain applicants who apply for policies up to $300,000 in coverage. Eligibility depends on the health and age of the applicant.

Term Life Answers

This is a straightforward term life policy that provides coverage for a specific period of time. After that term is up, the coverage expires. Some applicants may not require a medical exam during underwriting, in which case they can apply for Term Life Express. Otherwise, they will have to undergo full underwriting, which includes a medical exam. 

KEY DETAILS

  • Eligible ages: 18 to 80

  • Term lengths: 10-, 15-, 20-, or 30-year terms

  • Minimum benefit: $100,000

  • Maximum benefit: Variable

Premiums and death benefits are fixed for the initial level term. After the end of the level premium period, this policy is renewable on an annual basis, but premiums will increase. Policies expire at age 95.

Available riders

You can customize your policy by adding optional riders that provide more coverage. Some riders may not be available in all states.

  • Accelerated death benefit rider. If you are diagnosed with a terminal illness with less than 12 months to live, you can access up to 80 percent or $1 million of the policy’s death benefit (whichever is less).

  • Accidental death benefit rider. This rider pays an additional death benefit on top of the base policy’s death benefit if the death was caused by accidental injuries.

  • Child protection rider. This provides life insurance coverage for all eligible children. It covers all current and future dependent children, aged 15 days to 20 years old. Available coverage ranges from $1,000 to $10,000.

  • Disability waiver of premium rider. If you become totally disabled all premiums are waived after a six-month waiting period.

  • Other insured rider. This rider covers a second person with the same terms of the base policy. The premium is based on the age and coverage amount of the other insured person.

  • Unemployment waiver of premium rider. If you become unemployed, you will not have to pay premiums for up to six months (after a waiting period of four weeks). Your policy must already have been active for two years at the time of unemployment. 

Temporary coverage

Fully underwritten applicants up to age 70 can receive temporary coverage up to $1 million. 

Policy conversion 

The 10-year policy may be converted any time up to age 75. Ten-year-term policies issued at age 74 or 75 have a two-year conversion window. 

The 15- and 20-year term policies can be converted before age 75. 

Thirty-year term policies may be converted in the first 20 policy years.

Rate reconsideration

If you become healthier while you hold a policy with Mutual of Omaha, you could get the chance to apply for lower monthly premiums. To qualify for a rate reconsideration, most people, including smokers, will have to wait one year.

Term Life Express

Term Life Express is a simplified issue policy, which means qualifying applicants will not have to undergo a medical exam. But they will have to answer questions based on their medical and prescription histories. Coverage amounts depend on the health and age of the applicant, but are typically between $25,000 and $300,000. 

Policy conversion rules are the same as those for Term Life Answers, while qualifying applicants can receive temporary coverage up to $100,000 — less than the $1 million you’d get with Term Life Answers.

Accelerated death benefit and unemployment waiver of premium riders are included free of charge.

This policy is not available in New York.

Permanent life insurance

Mutual of Omaha offers several permanent life insurance policies, including whole life and universal life insurance. 

The whole life insurance policies are guaranteed-issue final expense policies, so you won’t need to undergo a medical exam or answer health-related questions. These policies are typically for covering funeral expenses, medical costs, and other kinds of debt.

Unless you have very specific needs, we recommend most shoppers choose a term life policy over a permanent plan.

Whole Life Insurance Details

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Guaranteed Plus Whole Life Insurance Details This is a final expense policy for shoppers aged 45 to 85 (in New York, ages 50 to 75). Coverage amounts range from $2,000 to $25,000 with guaranteed acceptance, meaning no medical exam or health questionnaires.

Premiums are level. This policy also includes a funeral planning concierge service.

This policy comes with a graded death benefit. That means if the insured dies of natural causes within the first two years, the beneficiary will receive all paid premiums plus 10 percent. After the two-year period, the beneficiary will receive the full death benefit. Full benefits will be paid if the policyholder dies from an accidental injury.

Living Promise Whole Life Insurance Details This is another final expense policy that may not require a medical exam. It provides higher coverage amounts than the Guaranteed Plus Whole Life policy. It comes in two options, graded benefit or level benefit.

Like the Guaranteed Plus Whole Life policy, the graded benefit option means beneficiaries will receive a portion of the death benefit if death occurs within the first two years. Eligible ages are 45 to 80 years, with coverage amounts of $2,000 to $20,000.

The level benefit option is more straightforward in that the beneficiary receives a fixed benefit after the insured dies. Eligible ages are 45 to 85 years, with coverage amounts from $2,000 to $40,000.

Universal Life Insurance Details

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The AccumUL Answers universal life plan is a type of universal life insurance policy that provides a flexible cash benefit and flexible premium depending on your financial situation. It comes with a cash value using a fixed interest rate, guaranteed to earn at least two percent annually.

Indexed Universal Life Insurance Details

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Mutual of Omaha offers a couple of indexed universal life insurance policies. These provide a flexible premium and death benefit, as well as a cash building component tied to a market index, like the S&P 500. Your premiums and death benefit are based on the movements of the stock, and your earnings are protected from risk due to a rate cap.

The Life Protection Advantage policy builds cash value through the market index and provides permanent life insurance through age 85 so long as you pay the premiums.

The Income Advantage policy also provides permanent life insurance coverage with cash value connected to market index performance. This plan guarantees that interest will be no less than zero percent even when the market index falls below zero.

We don’t recommend universal life insurance, or any type of permanent life insurance, due to the complexities and high costs involved. If you want life insurance and are looking for a way to invest, we recommend you go with an easier-to-understand term life policy and a more traditional cash-building option like a savings account.

Ease of Application

Ease of use, convenience, online tools, and availability.

7.3

What’s it like to apply for life insurance through Mutual of Omaha, and for your beneficiaries to file claims? Although the company provides an electronic application, the policy itself is delivered by mail, you can’t update policy information online, and there’s a slower turnaround time for activating your policy. Term life policies are not available in New York state.

Application Process

The application process with Mutual of Omaha varies depending on the policy you apply for.

Application process

Applying for the Term Life Answers policy is fairly straightforward. You can apply online, then answer questions over the phone with an agent. You will then have to schedule an appointment with a physician unless you qualify for the accelerated underwriting policy, Term Life Express. 

Turnaround time

The average time to apply for life insurance from Mutual of Omaha is slightly longer than the average.

Policy delivery

Once finalized, Mutual of Omaha policies are delivered electronically.

More Info

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State availability

Mutual of Omaha’s permanent life insurance policies are available in all 50 states, plus Washington, D.C.

Their term life policies are not available in New York State.

Change method

Changes to a policy can be made online, over the phone, or via mail.

  • Online: Change name, address, phone number, email address, and payment information, and obtain change forms
  • Phone: Change address and payment information, cancel policies, update beneficiaries
  • Mail: Update beneficiaries

Payment methods

Mutual of Omaha accepts premium payments by check. For monthly payments, bank account auto-draft is accepted. Paying with a credit card is also available.

Digital tools

Mutual of Omaha’s website has a coverage calculator and quote tools for both term life and whole life insurance. Of course, you can also use the online quote tool on the Policygenius site.

Claims documentation

Mutual of Omaha requires the following forms to be submitted to claim a death benefit:

  • Proof of death claim form
  • Copies of enrollment form
  • Death certificate

Frequently Asked Questions

Does Mutual of Omaha offer online quotes?

Yes, for term life and whole life policies. It’s easy and quick. Enter your birthdate, desired coverage amount, and whether or not you smoke. You can also use the Policygenius online quote tool for a fast and individualized quote.

Do I need to take a medical exam?

Most likely, yes. Term Life Answers is a fully underwritten policy, so you will need to schedule and undergo a medical exam with your doctor. If you meet certain criteria you could qualify for Term Life Express and skip the medical exam. If you apply for the guaranteed issue whole life policy, you can also bypass the exam.

What are the main health conditions that Mutual of Omaha covers?

Mutual of Omaha covers a variety of common and complex health conditions, including anxiety, mild arthritis and Rheumatoid arthritis, blindness, chronic obstructive pulmonary disease, degenerative disc disease, gout, Hepatitis B, herpes, polycystic ovary syndrome, scoliosis, and ulcerative colitis.

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