Mutual of Omaha offers whole, term, and other permanent life insurance plans. Life insurance can be used for retirement, end-of-life planning, and building generational wealth.
Business Insider compared Mutual of Omaha Life Insurance against the best life insurance companies and found it to be a standout company with a wide variety of term and universal life insurance, though its whole life insurance policies fall behind.
Mutual of Omaha Life Insurance Overview
Since its founding in 1909 (by a medical student at Nebraska's Creighton University and his wife), Mutual of Omaha has evolved into a Fortune 500 company offering financial solutions and insurance coverage to over 5 million people across the country. It remains a big player in life insurance for good reason. A policy from MOH empowers individuals to leave loved ones with choices for navigating long-term financial futures, not expenses.
Mutual of Omaha offers one of the widest array of policy options, with various term, whole, universal, and indexed universal life insurance options. Individuals looking for extra layers of protection will find Mutual of Omaha's robust array of additional options a relief.
Mutual of Omaha's diverse offerings go beyond traditional life insurance. For example, those who don't qualify for its more popular life insurance policies might be eligible for Mutual of Omaha Accidental Death Insurance. It offers up to $1,000,000 in available benefits and provides a low-cost alternative.
While Mutual of Omaha has robust options, its whole life insurance doesn't quite keep up. It only offers guaranteed whole life insurance, which tops out at $25,000. While it's one of the best whole life insurance plans for burial insurance, it falls short if you're looking for traditional whole life insurance with dividend payouts and cash value.
Mutual of Omaha Life Insurance Pros and Cons
Mutual of Omaha Life Insurance Pros
- Wide selection of insurance options
- 14 rider options for customizable coverage
- Convertible term life insurance
- Options for no medical exam life insurance
- Lapse protection included in most policies
Mutual of Omaha Life Insurance Cons
- Only available in 35 states
- Waiting periods for some policies
- Whole life insurance maxes out at $25,000
Mutual of Omaha Life Insurance Plans Available
When steered by the right company, a life insurance policy becomes an investment vehicle for death and retirement. Mutual of Omaha boasts a wide range of life insurance products. Here's the rundown:
Mutual of Omaha Term Life Insurance
This affordable choice offers coverage for a specific period (say, an individual's critical income-earning years) or purpose, like a home mortgage. Term life insurance is simple. It comes with a death benefit for a specific "term," carries no cash value, and remains the most affordable option. If the policy is not converted to a whole life insurance policy within the guidelines in your policy documents, it will expire, and no death benefit will apply.
Mutual of Omaha Term Life Express: This is available for individuals ages 18-80 (with maximum age varying by state and risk class) in standard terms of 10, 15, 20, and 30 years. Death benefits begin at $25,000 and top out at $300,000. This option, available without a medical exam, comes with lower maximum coverage to offset the company's risk. In addition, Term Life Express offers an accelerated death benefit rider, unlike standard term life insurance policies. If the buyer can prove they will die within 24 months, buyers can withdraw up to 92% of the value in a lump-sum payment.
Mutual of Omaha Term Life Answers: This policy is available for individuals ages 18-70, depending upon the term. Choose from 10, 15, 20, and 30 years, with coverage beginning at $100,000. A medical exam is required for qualified life insurance applicants.
Mutual of Omaha Whole Life Insurance
This option offers stability via a handful of guarantees, including a minimum rate of return on cash value, plus premium rates that won't increase and death benefits that won't decrease, no matter how long you live (so long as premiums are paid). Interested buyers can add riders to protect their death benefit if they miss payments. Some buyers can convert term policies to whole life insurance with Mutual of Omaha.
Mutual of Omaha Guaranteed Whole Life Insurance: This policy is available for individuals ages 45-85, and benefits range from $2,000-$25,000. Premiums are also fixed for the life of your policy. This option allows the insured to access cash value and comes with a graded death benefit. If the insured suffers a non-accidental death within the initial two years, the beneficiary only receives premiums paid plus 10%. After the initial two years, the full death benefit becomes available in most states.
As you might expect, the Guaranteed Whole Life Insurance product from Mutual of Omaha comes with guaranteed coverage with no medical exams or health-related questions. Like other no medical exam life insurance policies, not all interested buyers are qualified. Additionally, the payouts are limited, so this policy is best used as burial insurance.
Mutual of Omaha Universal Life Insurance
This type of permanent life insurance comes with a lifetime death benefit plus cash value along with the flexibility (and inherent risk) of fluctuating premiums and death benefits within certain limits. In other words, your monthly premium could increase or decrease based on market rates. Universal life insurance provides options for buyers who want a more significant death benefit if they live longer (and make more premium payments).
Mutual of Omaha AccumUL Answers: AccumUL boasts a lifetime death benefit with payouts between $25,000 and over $1 million. Individuals ages 18-85 may qualify. With growing (tax-deferred) cash value over the life of your policy, the premium you choose determines how fast your death benefit grows, but it's not based on one limited death benefit. While this option is guaranteed to earn 2% annually, canceling or surrendering this policy within the first nine years may result in a surcharge.
Mutual of Omaha Indexed Universal Life Insurance: Another type of permanent life insurance, indexed universal life insurance policies carry flexible, lifelong coverage. Enjoy the option of adjustable premiums and death benefits if your life situation changes.
That said, IUL policies come with extra risk, as your policy's cash value is tied to a specific index, which means it will rise and fall with said index. Mutual of Omaha comes with a 0% floor, so your policy will never lose value. While floors and caps ultimately limit gains and losses, an IUL requires aggressive account management. So it's coupled with high account management fees.
Mutual of Omaha Life Protection Advantage Life Insurance: This plan offers a fixed-interest cash value with no less than 0% downside protection. In the worst-case scenario, you can lose interest gains but not the premiums you paid). So you'd leave with exactly what you contributed. This option has a guaranteed minimum death benefit of $100,000 through age 90. Canceling a policy within 14 years may lead to surrender charges. Discussing these with your life insurance agent at the time of purchase is best.
Mutual of Omaha Income Advantage Indexed Universal Life Insurance: This plan is available to individuals ages 18-85 and has zero limits on coverage. It has more significant growth potential for cash value than Life Protection Advantage as it is tied to the S&P 500 and offers no less than 0% downside protection and a guaranteed rate of 2% interest on fixed premiums. Canceling a policy within 14 years may involve surrender charges.
Additional Coverage Options
When shopping for life insurance, add-ons and extras typically take shape as a rider. A rider is optional coverage, at additional cost, for circumstances not included in your standard policy. At Mutual of Omaha, a whopping 14 riders allow for customizable coverage. Rider availability is dependent upon policy type.
Accidental death benefit rider: This rider provides additional benefits for accident deaths as opposed to illness or old age. It offers a minimum benefit of $10,000 with a maximum benefit based on the insured's age at the time of policy issuance.
Additional insured term rider: This rider offers an additional death benefit to the insured or up to four other individuals named on the policy, assuming they meet all requirements. It provides a minimum death benefit of $25,000 and a maximum benefit of two times the base value.
Child life insurance rider: The child coverage rider offers coverage for dependent children ages 15 days to 20 years (to be paid up until their 23rd birthday or until the insured turns 65. This is a term rider, meaning the covered children should buy permanent life insurance policies as adults. It comes with $1,000 minimum coverage and a $10,000 maximum, dependent upon the base life insurance plan.
Chronic illness rider: Chronic illness protection offers early access to death benefits to help pay for the costs associated with chronic illness. The insured must meet specific qualifications. The use of this rider is based on their ability to perform routine daily activities for 90 days. Physician certification is also required.
Critical illness rider: The critical illness rider provides early access to death benefits upon diagnosis of a physician-confirmed condition, including major organ failure, terminal cancer, or ALS (among others). Your life insurance agent can review the exact distribution of payments at the time of purchase or when used.
Disability rider: This rider provides a monthly benefit: the lesser of 1.5% of the issued face amount, $3,000 per month, or 60% of one's gross monthly income. It activates should the insured become disabled.
Guaranteed insurability rider: This insurability rider provides the option to increase coverage upon each eligible life event. Eligible life events include marriage, the birth/adoption of a child, or the third anniversary of a policy and every three years after). Increases of $10,00-$50,000 are available with this rider.
Lapse protection rider: This rider protects against policy lapses and the taxes incurred upon borrowing or withdrawing too aggressively against the policy. It is included in all policies for individuals aged 76 and younger.
Long-term care rider: The long-term care rider offers early access to the insured's death benefits to cover in-home or nursing home care costs. The insured must be aged 30-79 when the policy is issued.
How Much Does Mutual of Omaha Cost?
Since life insurance costs are calculated based on an individual's age, health, and chosen coverage, prices run the gamut. While Mutual of Omaha's term life insurance rates are average, its Guaranteed Whole Life Insurance (the company's only whole-life option) is one of the industry's cheapest insurance plans.
While Mutual of Omaha doesn't offer its own online quoting service, Policygenius offers quotes for Mutual of Omaha's term life insurance. We used the third-party aggregator to obtain the following quotes for a 20-year policy with a $500,000 benefit:
| Age | Sex | Mutual of Omaha Quotes | Average Cost |
| 20 | Female | $20.42 | $23 |
| 20 | Male | $23.87 | $30 |
| 30 | Female | $20.42 | $23 |
| 30 | Male | $23.87 | $29 |
| 40 | Female | $31.60 | $35 |
| 40 | Male | $37.20 | $43 |
| 50 | Female | $69.02 | $78 |
| 50 | Male | $92.67 | $102 |
| 60 | Female | $189.42 | $194 |
| 60 | Male | $273.70 | $269 |
Based on the acquired quotes, Mutual of Omaha's term life policies generally fall below average costs for the same policies.
How to File a Claim with Mutual of Omaha Life Insurance
Following the death of a loved one, contact Mutual of Omaha to begin the claims process. For individual coverage, call 888-493-6902. For employer-based coverage, call 800.775.8805 or use Mutual of Omaha's online form as a first step.
Before beginning, be sure you have the following details:
- Policyholder's information (including dates of birth and death)
- Insurance policy number
- Beneficiary's information
Mutual of Omaha Life Insurance Customer Reviews and Ratings
Mutual of Omaha has overwhelmingly negative reviews online, receiving an average of 1.5 stars on Trustpilot and 1.05 on its Better Business Bureau page. Customers reported unresponsive representatives, issues filing claims, and issues receiving payouts.
The National Association of Insurance Commissioners' complaint index rates a company based on how many complaints it receives against its share of the market. The average NAIC complaint index score is 1.00, meaning if a company scores below 1.00, it has fewer complaints than expected for a company of its size. If the company scores above 1.00, it has more complaints than the industry average. Mutual of Omaha scored 1.27, indicating that it has more complaints than expected, though certainly not the worst rating compared to some of its competitors.
That said, Mutual of Omaha was ranked third in overall customer satisfaction according to the JD Power 2023 U.S. Individual Life Insurance Study, which surveyed 22 leading insurance companies. Rated on a scale of 1,000, Mutual of Omaha received an 809, where the average score was 790. It scored worse than State Farm (843) and Nationwide (840).
Mutual of Omaha Life Insurance Alternatives
Mutual of Omaha Life Insurance vs. New York Life
Qualifying New York Life Insurance customers can convert its policies to permanent life insurance. Remember, any conversion is processed as a new application. In other words, you still have to go through the underwriting process accounting for your age and health at the time of application.
A whole life insurance policy from New York Life builds cash value early on, which leaves the insured options to bolster retirement income or borrow against the policy when needed, up to age 90. Unlike term policies, there's no expiration date. So, no conversion is necessary. We recommend talking to your New York Life agent about riders to protect you should you miss a payment.
New York Life's Variable Universal Life Accumulator II comes with guaranteed death benefits and cash value that grows based on the investments you choose. Market Wealth Plus offers buyers open to more risk the option of enhanced cash value accumulation.
Quotes are unavailable online, and policy prices reflect life insurance agent commissions. One of the best things about New York Life is its knowledgeable agents trained to answer any questions you might have about its policies. The most significant difference is Mutual of Omaha focuses on term policies, no medical exam life insurance, and other death benefit policies. New York Life's life insurance plans are built for investment and long-term retirement planning.
Read our New York Life insurance review.
Mutual of Omaha vs. Northwestern Mutual
Northwestern Mutual Life Insurance is known for competitive pricing on whole life insurance for individuals of all ages and health risks. Its financial strength means policies build cash value early on (which equals quick access to more money). Variable universal insurance allows buyers to borrow tax-free or withdraw from the cash value, but at a cost: significant fees and considerable risk. Minimum death benefits range from $50,000 to $500,000.
Both Mutual of Omaha and Northwestern Mutual offer trusted life insurance plans and services with high financial strength ratings from sites like AM Best and S&P. Mutual of Omaha provides better options for buyers looking for easier application processes and lower death benefits. However, both companies offer accelerated death benefits, more comprehensive life insurance policies, etc.
Read our Northwestern Mutual life insurance review.
Mutual of Omaha vs. Globe Life
Globe Life Insurance offers both term and whole life insurance with no medical exam. As you might expect, these policies come with significantly lower coverage limits (read $100,000 and $50,000 for term and whole life insurance, respectively) across the board. Term life insurance rates also increase with age, to the tune of once every five years when buying from Globe Life. Mutual of Omaha offers plans with set premiums to protect your budget and payout.
Those on limited incomes will appreciate low-cost options like burial insurance. Death benefits range from $5,000-$25,000, and these are solely used to cover funeral expenses or residual debts of the deceased. Overall, Mutual of Omaha caters to a diverse range of life insurance customers.
Read our Globe Life insurance review.
Mutual of Omaha Life Insurance FAQ
Yes, Mutual of Omaha offers guaranteed whole life insurance, which is available for applicants between 45 and 85 years old.
Mutual of Omaha insurance is available in all states except AL, CA, CO, ID, IL, LA, NV, NH, NY, NC, PR, RI, VT, VI, and WI.
You can use the cash value of your Mutual of Omaha life insurance policy if you have an eligible whole life insurance policy. There may be a withdrawal fee, so check with the company before doing so.
Mutual of Omaha says it pays out the life insurance death benefit in as few as 24 hours for whole life insurance policies and within 30 to 60 days for term life insurance policies.
Why You Should Trust Us: How We Reviewed Mutual of Omaha Life Insurance
The four primary criteria we use to review life insurance providers are affordability, customer service, reliability, and company offerings.
Companies receive five stars for cost when premiums are close to the industry average cost of life insurance. According to our article on the average cost of life insurance, a life insurance policy may run you about $40 to $55 a month. However, cheap life insurance doesn't mean you're getting quality coverage. So, we weigh affordability against the company's offerings, customer service, and other factors.
We used the latest JD Power life insurance study to determine which company offers quality customer service. Approximately 3,000 life insurance customers score insurance companies yearly based on communication, interaction, price, product offerings, and statement satisfaction. Companies ranking above the industry average of 774 points have strong customer service.
We also used AM Best, a renowned credit rating agency, and the NAIC's complaint index to evaluate a company's financial stability and trustworthiness. AM Best tells us a company's financial health, and the NAIC's complaint index scores a company based on the aggregate total of complaints it receives.
Finally, we looked at what each company has to offer, including policy options, riders, and features like medical exam waivers. We also determined which demographic would most benefit from the company based on its products and prices.
Read more about how Business Insider rates life insurance.
