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Best life insurance company for living benefits
By
Updated August 02, 2023
Reviewed byEric Estevez
Our Take Mutual of Omaha is a financially solid company with a few uncommon offerings that make it stand out, such as return of premium (ROP) term insurance and a disability income rider. The company also includes at least two accelerated death benefit riders on most policies, and it ranked third for customer satisfaction in J.D. Power’s 2022 U.S. Individual Life Insurance Study. However, you’ll need to look elsewhere for variable universal or traditional whole life insurance. Pros & Cons Pros Policies include at least two no-cost living benefit riders Wide range of riders available Live chat feature on the website Offers return-of-premium (ROP) term No-exam policies available Cons No variable universal or traditional whole life insurance Company Overview Mutual of Omaha was founded in 1909 and provides a wide range of insurance products, including life, disability, dental, and long-term care coverages. specifications AM Best Rating A+ NAIC Score (avg.) N/A Years In Business 113 Years Policy Types Final Expense, Indexed Universal (IUL), Term, Universal (UL) Accepts Credit Cards Yes Why Trust Us 91 Companies reviewed 55 Features considered 5,005 Data points analyzed We collected over 5,000 data points from 91 life insurance companies to measure financial stability, customer satisfaction, product and feature variety, and the overall buying experience. We then evaluated each company based on 55 metrics to develop unbiased, comprehensive reviews. Read our Full Methodology Table of Contents Mutual of Omaha Life Insurance Review Pros Explained Cons Explained Complaint Index Third-Party Ratings Competition Policies Available Available Riders Customer Service Price Final Verdict FAQs Methodology TheNational Association of Insurance Commissioners(NAIC) collects data on complaints against insurance companies and creates a “complaint index” so consumers can see how many complaints the company receives. An index of 1.0 indicates the company received the number of complaints expected for a company its size. A complaint index lower than 1.0 means the company received fewer complaints than expected, while an index greater than 1.0 means it received more than expected. The lower the complaint index, the better. We researched Mutual of Omaha’s NAIC complaint index over three years, from 2020 to 2022, and found an average complaint index of 0.76. Mutual of Omaha received fewer complaints than would be expected based on its market share. The rating agency AM Best gives Mutual of Omaha an A+ score for financial stability, which means the company has a “superior” ability to take care of its contractual insurance obligations, like paying claims. AM Best has been rating the financial strength of insurance companies since 1899 and uses letter grades that range from A++ to D. Mutual of Omaha ranked third out of 21 major life insurance companies in the 2022 J.D. Power U.S. Individual Life Insurance Study. Mutual of Omaha scored 801 out of 1,000 points, while the average was 774, and the number one company, State Farm, scored 839. AM Best assesses a company's ability to pay its claims on a graded scale, with A++ being the highest. All ourbest life insurance companieshave at least an A rating. Chronic, critical, and terminal illness riders are included free of charge on Mutual of Omaha’s Term Life Express and IUL Express policies. Most other policies include chronic and terminal illness riders at no additional cost. If you need affordable and temporary life insurance coverage, term life insurance may be a good fit. Term insurance guarantees that your beneficiaries will receive a death benefit if you die during the policy term, such as 30 years. Mutual of Omaha term products offer 10-, 15-, 20-, and 30-year policies. Both are convertible term policies where you can convert your term coverage to a permanent life insurance policy without the application process. Universal life (UL) insurance is designed to last your entire life and builds a tax-advantaged cash value within the policy over time. Permanent policies are more expensive than term, but you may be able to borrow or withdraw from the cash value. Indexed universal life (IUL) policies tie their cash value to a stock market index, such as the S&P 500. Gains credited to the account are based on the performance of the index it is tied to, subject to caps and floors. IUL policies are considered riskier than UL policies because cash value returns may not offset policy expenses. However, they’re less risky than variable universal life (VUL) policies, which are invested in the market and can have returns below 0%. Mutual of Omaha has two indexed universal life insurance policies: Some people use permanent insurance policies to build a tax-advantaged cash value in order to supplement their retirement income. But withdrawing or borrowing too much can potentially cause the policy to lapse. Whole life insurance is permanent life insurance coverage that protects your family by securing benefits that help pay for end-of-life expenses and a cash value that can be used in an emergency. Mutual of Omaha offers a guaranteed issue whole-life policy, which means you won’t be denied coverage based on your health. Customer service is available by phone at 800-775-6000 on weekdays during the day. For prospective customers you can call sales at 877-202-2676. You can also fill out a form to receive a response by phone or email or utilize a virtual assistant to connect you with an agent for live chat. If you’d prefer to speak with a local agent, you can find one by entering your ZIP code into the agent-finder tool. Mutual of Omaha provides quote estimate calculators on its website. We pulled quotes for applicants in excellent health at different ages and found that pricing for term coverage is average when compared with other providers. Below are 30-year term monthly quotes with a $250,000 death benefit. Whether Mutual of Omaha is the best choice depends on what you need. If you’re in the market for a disability income rider or ROP term policy, Mutual of Omaha is one of only a few options available and likely an excellent choice since it ranks highly for financial stability and customer satisfaction.Mutual of Omaha offers IUL, UL, or a guaranteed issue whole-life policy. For a VUL policy or a traditional whole life policy, you’ll need to look elsewhere. Also, if you prefer no-exam options, you might consider another carrier that offers an “accelerated” underwriting process. Mutual of Omaha offers children’s whole life coverage available for children as young as 14 days old up to 17 years old with death benefits between $5,000 and $50,000. You can get a quote and apply for coverage online. No exam is required and only three health questions are asked. Some insurance companies like Mutual of Omaha can pay out life insurance death benefits in as little as 24 hours for whole life insurance and 30 to 60 days for a term life insurance policy. Life insurance helps to provide you with financial assistance should you become unable to work. And if you have a family or dependents, you may need life insurance since your financial obligations might outlive you. Most insurance companies say a reasonable amount for life insurance is at least 10 times the amount of your annual salary. However, each situation is different so you'll want to calculate your current annual expenses and future expenses, such as a child's college costs and burial costs, to help determine your specific need. Yes, Mutual of Omaha is trustworthy. AM Best rated Mutual of Omaha's financial stability as A+, which means the company has a “superior” ability to take care of its contractual insurance obligations, like paying claims. In addition, Mutual of Omaha has high customer satisfaction ratings. We designed a comprehensive rating methodology based on consumer priorities and life insurance company fundamentals to rank over 90 insurers across five general categories: financial stability, customer satisfaction, product, and feature variety, the overall buying experience, and cost. To do this, we collected over 5,000 data points and scored each company based on 55 metrics. We grouped metrics by category to see how insurers performed in each; we then weighted category scores to determine how companies performed overall. To learn more, read our full Life Insurance Methodology. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. J.D. Power. "Both Life Insurance and Annuity Customer Satisfaction Decline As Pandemic Fears Wane, J.D. Power Finds." Mutual of Omaha. "Timeline." Mutual of Omaha. "Whole Life Insurance." NAIC. "Mutual of Omaha Ins Co National Complaint Index Report." AM Best. "AM Best Affirms Credit Ratings of Mutual of Omaha Insurance Company and Its Subsidiaries." AM Best. "About Us." AM Best. "Guide to Best's Financial Strength Ratings - (FSR)." Mutual of Omaha. "Term Life Insurance." Mutual of Omaha. "Term Life Answers." Mutual of Omaha. "Term Life Express." Mutual of Omaha. "Universal Life Insurance." Mutual of Omaha. "TLE Living Benefit Riders Product Guide." Mutual of Omaha. "Term Life Insurance Quotes." Mutual of Omaha. "Children's Whole Life Insurance." Mutual of Omaha. "What Is a Life Insurance Death Benefit?" AM Best. "AM Best Affirms Credit Ratings of Mutual of Omaha Insurance Company and Its Subsidiaries."Top Rated For
Pros Explained
Cons Explained
Complaint Index
Third-Party Ratings
Competition
Mutual of Omaha Nationwide MassMutual Types of Coverage Term, universal, indexed universal, guaranteed issue whole Term, whole life, universal, indexed universal, variable universal Term, whole life, universal, variable universal Online Application Available (for guaranteed issue whole life) Available (for term) Available (for term) AM Best Rating A+ A+ A++ Price for Term Policies Average Average Better than average NAIC Complaint Index (3-year average) 0.76 0.08 0.05 Policies Available
Term Life Insurance
Universal Life Insurance
Indexed Universal Life Insurance
Whole Life Insurance
Available Riders
Customer Service
Price
Age Male Female 25 $21.29 $18.06 40 $34.40 $28.38 Final Verdict
Frequently Asked Questions
What Is Children's Whole Life Insurance?
How Long Does It Take Mutual of Omaha to Pay Life Insurance?
How Much Life Insurance Do I Need?
Is Mutual of Omaha Trustworthy?
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