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7.0 / 10

Mutual of Omaha Life Insurance Review

A highly-rated company that's a great option for shoppers with complex health histories.

Colin Lalley 1600

Colin Lalley

Published November 11, 2019

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Methodology
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At Policygenius, we're committed to providing objective and transparent advice through strict editorial standards to help you get insurance right. Read more about our methodology.

Mutual of Omaha

OVERALL

7.0

THE GOOD

  • Competitive underwriting for a range of health conditions, like a history of cancer
  • Strong customer ratings and few complaints

THE BAD

  • As you get older, policies get more expensive than the average
  • Limited policy options
  • Slower-than-average turnaround time

THE BOTTOM LINE

Mutual of Omaha offers a wide range of policies and competitive pricing for applicants with health conditions. However, the application process and above-average cost for most healthy applicants keeps them from being a top-tier company.

Cost

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6.0

Confidence

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9.0

Customer Ratings

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8.0

Policy Options

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6.0

Customer Experience

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6.0

MUTUAL OF OMAHA COMPANY SPOTLIGHT

4 of 5

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J.D. Power Rating

A trusted customer satisfaction and product quality research agency

A+

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BBB Rating

A nonprofit organization focusing on marketplace trust and product quality

A+

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A.M. Best

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

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The Bottom Line

Mutual of Omaha is a strong company that’s best for younger applicants, when their rates are the most competitive, and for applicants with common health conditions. If you’re older or looking for a company that lets you do more online than on paper, you may want to compare companies before you commit to a policy that doesn’t fit your budget or lifestyle.

Dive into our full review below

The Details


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The Good

Competitive underwriting for a range of health conditions, like a history of cancer. Insurance companies don't all treat the same health conditions in the same way. Some may offer more competitive rates for applicants with diabetes, while others are cheaper for people who have a family history of cancer. One of the keys to getting an affordable life insurance policy is comparing companies and making sure you're going with the one that's best for your specific conditions.

Mutual of Omaha offers competitive pricing for many common health conditions, meaning they're a good first look for someone who might have a complex medical history that may price them out of other companies.

Strong customer ratings and few complaints. Customers who go with Mutual of Omaha can be confident that they're working with a strong, reliant 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.

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The Bad

As you get older, policies get more expensive than the average. Applicants are likely better off looking beyond Mutual of Omaha as they get older. Mutual of Omaha starts off cheaper than average for young applicants, but shoppers in their 40s or 50s may end up paying more if they don't compare costs.

Limited policy options. Shoppers who want robust customization options will likely have better luck with a different carrier. Death benefit ranges, term lengths, and key riders can be limited with Mutual of Omaha, so while they work in most cases, specialized cases may require a different company for the best results.

Slower-than-average turnaround time. The application process can be a little slower than average with Mutual of Omaha than with other carriers. Applying for life insurance can take as long as six to eight weeks depending on a number of factors, such as the carrier requesting medical records from your doctor(s) -- but it can also be quicker than that if everything goes smoothly. That means the application speed can vary from person to person.

The Breakdown

Cost

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6.0

Mutual of Omaha has affordable policies for younger applicants but is more expensive than the average for older applicants. However, the company offers competitive pricing for many common health conditions, making them a good choice under the right circumstances.

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.

For a healthy man applying for a $500,000, 20-year policy, Mutual of Omaha cost starts out competitively but gets more expensive than the average for older applicants.

AgeMutual of Omaha averageIndustry average
20s$27.63$28.02
30s$31.22$32.06
40s$63.60$60.97
50s$164.05$152.00
60s$507.23$504.29

However, of the eight most common health conditions cited on life insurance applications, Mutual of Omaha has average or above-average pricing for seven of them, making them an excellent option for people applying with health conditions.

Health conditionPricing
CancerExcellent
Recent Weight LossGood
Heart AttackGood
DiabetesGood
Sleep ApneaExcellent
Former Tobacco UseFair
High Blood PressureGood
High CholesterolGood

Confidence

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9.0

You should feel confident that your life insurance company will be around to pay out when your family needs it most. Mutual of Omaha has been in business for 110 years and provides coverage to over half a million customers. They’re financially sound, ranking in the top tier for three major credit rating firms.

  • Number of policyholders: 507,000
  • Year founded: 1909
  • Standard & Poor’s: AA- (Very strong)
  • Moody's: A1 (Good)
  • A.M. Best: A+ (Superior)

Standard & Poor’s, Moody’s, and A.M. Best are financial ratings companies. These firms look at the financial strength of companies as a measure of how well they can handle future financial strength and meet the obligations of policyholders.

Highest ratings from each firm are:

  • Standard & Poor’s: AAA
  • Moody’s: Aaa
  • A.M. Best: A++

These strong financial ratings are supported by Mutual of Omaha’s half a million customers and more than a century in business.

Customer Ratings

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8.0

What are people like you saying about Mutual of Omaha? Overall, Mutual of Omaha has higher-than-average ratings from consumer sentiment organizations like J.D. Power and the Better Business Bureau (BBB). There are also few complaints to state insurance agencies, as measured by the National Association of Insurance Commissioners.

  • J.D. Power: 4 / 5
  • BBB: A+
  • Consumer Affairs: 3.3 / 5
  • Consumers Advocate: 4.4 / 5
  • NAIC complaint index: 0

Mutual of Omaha has high marks in third-party ratings and reviews as determined by consumer-generated comments, complaints, and ratings.

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. Policygenius has used the overall satisfaction score as part of our rating method.

BBB ratings take into account a company’s complaint history, the type of business, how long the business has been operating, transparency of business practices, commitment to BBB mediation and arbitration practices, known licensing and government actions, and known advertising issues. Consumer ratings are not directly calculated in the BBB’s score.

Mutual of Omaha has a Consumer Affairs rating of 3.3 of 5. Most complaints revolve around confusing whole life policies, but the company is responsive to all complaints on the platform.

Finally, Mutual of Omaha has a 0 on the National Association of Insurance Commissioner’s National Complaint Index for 2018. This means the number of confirmed complaints submitted to state insurance departments were not enough to register on the index. Only 10 complaints were submitted in 2018.

Policy Options

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6.0

Policygenius recommends term life insurance for most people, and Mutual of Omaha offers term life insurance with several options for term lengths, coverage amount, and available riders, including a policy that foregoes the medical exam for eligible customers. They also offer whole life insurance.

However, there are fewer options for customization at Mutual of Omaha than you might find with other carriers, so you may not get the exact term or death benefit you're looking for.

Term life insurance

Term life policies provide life coverage for a specific period of time (the term). Some may not require a medical exam during underwriting.

Term Life Answers

Term Life Answers is a straightforward term life policy.

Key details
Annual payment discount5%
Available payment methodsCheck, bank draft
Temporary coverageUp to $1,000,000

Policy conversion The 10-year policy may be converted any time up to age 75. Policies issued at age 74 or 75 have a 2-year conversion window. The 15 and 20-year term policies can be converted before age 75. 30-year term policies may be converted in the first 20 policy years.

Available riders

  • Child Protection Rider - Provides life insurance coverage for all eligible children. Covers all current & future dependent children (ages 15 days - 20 years old) in one rider. Available coverage of $1,000 - $10,000.
  • Other Insured Rider- Covers one other person with the same terms of the base policy. Premium is based on the age and face amount of the other insured person.
  • Disability Waiver of Premium Rider - If you become totally disabled as a result of a qualifying event, premiums are waived (after a 6 month waiting period).
  • Unemployment Waiver of Premium Rider - If you become unemployed, you will not have to pay premiums for up to 6 months (after a waiting period of 4 weeks).
  • 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% or $1 million of the policy’s death benefit (whichever is less).
  • Accidental Death Benefit Rider - Pays an additional death benefit on top of the base policy’s death benefit if the death resulted from qualifying accidental injuries.

Term Life Express

Term Life Express offers a no-exam option for qualifying customers applying for policies up to $300,000 in coverage. Fast-track eligibility depends on the health and age of the applicant.

Key details
Annual payment discount5%
Available payment methodsCheck, bank draft (only monthly payments)
Temporary coverageUp to $100,000

Policy conversion
The 10-year policy may be converted any time up to age 75. Policies issued at age 74 or 75 have a 2-year conversion window. The 15 and 20-year term policies can be converted before age 75. Term Life Answers 30 may be converted in the first 20 policy years.

Available riders

  • Child Protection Rider - Provides life insurance coverage for all eligible children. Covers all current & future dependent children (ages 15 days - 20 years old) in one rider. Available coverage of $1,000 - $10,000.
  • Other Insured Rider - Covers one other person with the same terms of the base policy. Premium is based on the age and face amount of the other insured person.
  • Disability Waiver of Premium Rider - If you become totally disabled as a result of a qualifying event, premiums are waived (after a 6-month waiting period).
  • Unemployment Waiver of Premium Rider - If you become unemployed, you will not have to pay premiums for up to 6 months (after a waiting period of 4 weeks).
  • 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% or $1 million of the policy’s death benefit (whichever is less).
  • Accidental Death Benefit Rider - Pays an additional death benefit on top of the base policy’s death benefit if the death resulted from qualifying accidental injuries.

Whole life insurance

Whole life policies provide coverage for the duration of your life.

Living Promise

Mutual of Omaha’s Living Promise policy is a final expense policy that may not require a medical exam.

Key details
Annual payment discount6%
Available payment methodsCheck, bank draft, credit card (for initial payment)
Temporary coverageNo

Available riders

  • Accelerated Death Benefit Rider - Allows the owner a one-time election to receive the accelerated benefit if the insured meets specific health conditions.
  • Accidental Death Benefit Rider - This rider provides an additional death benefit equal to the policy’s face amount if the death of the insured results from accidental bodily injury and independently of sickness and all other causes.

Note: The information above represents potential policy options and may not be available for every applicant. Speak to a licensed expert for a personalized look at your coverage options.

Customer Experience

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6.0

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

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.

Number of forms

Policies from Mutual of Omaha have an average number of application forms.

* Based on standard application. Additional forms may be required.

Turnaround time

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

Change method

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

  • Online: Changing address, changing payment information, canceling policies (Living Promise plan only)
  • Phone: Changing address, changing payment information, canceling policies, updating beneficiaries
  • Mail: Updating beneficiaries

Payment methods

Mutual of Omaha accepts premium payments by check. For monthly payments, bank account auto-draft is accepted. Paying with credit card is not available.

Policy delivery

Once finalized, Mutual of Omaha policies are delivered by physical mail. Electronic delivery is not available.

Claims documentation

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

Required

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

Possible

  • For accidental death benefits
    • Official investigative report
    • Proof of seatbelt/airbag use
    • Coroner’s or medical examiner’s report
  • Letters of Testamentary or Letters of Administration (if beneficiary is an estate), Face page of Trust, Trustee or Successor Trustee designation and Signature page of Trust (if beneficiary is a trust), or UTMA or guardianship papers (if beneficiary is a minor)
  • Affidavit of Preferential Beneficiary Designation Form if no beneficiary named or beneficiary has predeceased the insured

Policygenius offers insurance policies from many of the nation's top insurers, who pay us a commission for our services. However, all editorial choices are made independently.

Policygenius’ editorial content is not written by an insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for you.