You may have heard of Mutual of Omaha, as it is one of today’s leading insurance providers. Nevertheless, a good reputation doesn’t always mean that a certain insurance company is the right one for you, especially when it comes to something as decisive as term life insurance. To help you make the right decision for you and your loved ones, let’s take a look at the facts. We also offer reviews on many other companies for your benefit, such as AICPA Life Insurance Plan to name one.
Launched in 1909, Mutual of Omaha began as a health and accident insurance company under the name “Mutual Benefit Health & Accident Association”. It started offering life insurance policies in the 1920s, and since then it has grown into highly respected national insurance provider with A+ (Superior) ratings from insurance ratings services Moody’s, Standard & Poor’s and A.M. Best.
So, what exactly is term life insurance? This is the best option for many people because it is generally the least expensive and still offers the beneficiaries a death benefit should you pass away while insured. The “term” in its name comes from the fact that it last for a certain period of time. That said, many term life insurance policies with Mutual of Omaha can be converted into permanent life insurance, should your needs change.
Mutual of Omaha offers two different term life insurance policies, which we’ll go over now:
Term Life Express
This is considered the “quick and easy” option for getting life insurance with this company. Like many insurance policies from other companies, Mutual of Omaha’s term life express insurance option comes in 15, 20 and 30-year terms. The minimum death benefit for the express option is $50,000, while the maximum is $400,000. This type of coverage is good for long-term financial obligations and offers a variety of bonus features like accelerated death benefit (you can get 92 percent of your payout in a lump-sum if your life expectancy is 24 months or less) and residential damage rider, which means your monthly premiums are waived for six months should your primary residence sustain at least $25,000 worth of damage.
But of course, the express option isn’t for everyone. The issue age is between 18 and 65, though the exact acceptance age will vary depending on the term chosen and the risk class. You should also know that you are not able to convert the term life express policy into permanent coverage.
Term Life Answers
Unlike its counterpart, term life answers offers a 10-year term in addition to the 15, 20 and 30-year terms already available. Also unlike the express option, with Answers you are able to convert your policy into permanent coverage (eligible for people between 45 and 85 years of age), and your premium rates are guaranteed to never increase during your term.
Death benefits for term life answers are set at $100,000 and up. You can also get bonus features like accelerated death benefit (pays 92 percent if your life expectancy is 12 months or less) and a disability waiver, which means you will not have to pay your coverage premiums for the duration of your disability. With the answers option, smaller amounts of term life insurance can be purchased for dependent children, 20 years or younger.
How Does It Compare to Other Companies?
The best way to compare insurance companies is to look at example quotes based on real life scenarios.
Let’s say Jim is a 41-year-old nonsmoker from New Jersey in decent health. Jim is 5’10 and 225 pounds. (let’s use a Standard Plus non tobacco rate). He is seeking an insurance death benefit of $100,000 for a 15-year term, so he asks for quotes from several top-ranked insurance providers. These are the rates he is likely to be offered:
SBLI $14.36 per month
ING: $17.24 per month
Transamerica: $16.19 per month
Banner Life: $16.54 per month
American General: $19.53 per month
Mutual of Omaha: $19.98 per month
Prudential: $23.67 per month
Keep in mind that these are only general rates, as they will vary depending on factors like your age, health history, and exact plan you choose, among other things.
Is Mutual of Omaha For Me?
Life insurance policies are generally tailored to suit the individual, so with so many options out there it is difficult to state whether or not Mutual of Omaha is the best one for you. It is an excellent provider, with good reviews and high ratings, but be sure to compare quotes across multiple insurance companies to get the best pricing, as well as find out which coverage options are best for you.