Paul Sanchez
Mutual of Omaha offers a range of life insurance products, including term, whole, and universal life insurance plans. While term life insurance provides coverage for a specific period, whole life insurance offers permanent coverage. Universal life insurance, a type of permanent policy, allows policyholders to build tax-advantaged cash value within the policy. In general, policies that build cash value, such as whole and universal policies, allow the policyholder to borrow from the policy within certain limits.
| Characteristics | Values |
|---|---|
| Borrowing from policy | Possible with whole and universal policies |
| Maximum amount for borrowing | Depends on the type of policy and underwriting |
What You'll Learn
Mutual of Omaha's Term Life Express
Term Life Express offers four standard term lengths: 10, 15, 20, and 30-year terms. The policies start at $25,000 and cap at $300,000. This product is available for applicants between the ages of 18 and 65. After two years, the Term Life Express policy can be converted into a permanent policy up to the insured's 70th birthday.
While I cannot comment on whether you can borrow from Mutual of Omaha's Term Life Express, I can tell you that, in general, policies that build cash value, such as whole and universal policies, allow the policyholder to borrow from the policy within certain limits.
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Mutual of Omaha's Term Life Answers
Term life insurance is a type of policy that provides coverage for a specific period, typically ranging from 5 to 30 years. Mutual of Omaha offers two types of term life insurance policies: Term Life Answers and Term Life Express. Here's what you need to know about Mutual of Omaha's Term Life Answers policy:
Eligibility and Coverage
Conversion to Permanent Plan
Like other term life insurance policies offered by Mutual of Omaha, Term Life Answers can be converted to a permanent plan later on. This means you can switch to a permanent life insurance policy without going through the application process again.
Comparison with Term Life Express
Term Life Answers differs from Term Life Express in a few key ways. Firstly, Term Life Answers requires a medical exam, while Term Life Express allows you to skip it. Secondly, the coverage amounts for Term Life Answers start at $100,000, whereas Term Life Express offers benefits ranging from $25,000 to $300,000. Additionally, Term Life Express includes critical, chronic, and terminal illness riders at no extra cost.
Term Life Insurance vs. Whole Life Insurance
It's important to understand the difference between term life insurance and whole life insurance. Whole life insurance provides coverage for the entire life of the insured person, whereas term life insurance only covers a fixed period. Whole life insurance policies often include a cash value component that accumulates over time, which is not typically included in term life insurance. Term life insurance generally has lower premiums per dollar of coverage and offers more coverage.
Riders and Customization
Mutual of Omaha offers a wide range of riders that can be added to their term life insurance policies, allowing for customization to meet specific needs. These riders include accelerated death benefit for terminal illness, residential damage waiver of premium, waiver of premium for unemployment, accidental death, dependent children, and disability waiver of premium, among others.
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Mutual of Omaha's Whole Life Insurance
Mutual of Omaha offers a range of life insurance products, including term, whole, and universal life insurance plans. Whole life insurance is a type of permanent life insurance coverage designed to provide financial protection for your family by locking in benefits that can help pay for end-of-life expenses. It also includes cash value that can be accessed in an emergency. Whole life insurance is a good option if you:
- Need coverage that doesn't require a medical exam or answering health questions
- Are on a tight budget or have a fixed income and need a premium that won't increase
- Need coverage for burial, funeral, or other final expenses, or to pay off debts
- Want to supplement existing insurance coverage
- Want to build cash value and have access to funds in an emergency
Mutual of Omaha also offers a Children's Whole Life policy, which is designed for children between 14 days and 17 years old. This policy includes locked-in premium rates for the child's entire life and benefit amounts ranging from $5,000 to $50,000.
In addition to whole life insurance, Mutual of Omaha also offers term life and universal life insurance options. Term life insurance is more affordable and provides coverage for a specific period, usually up to 30 years. Universal life insurance is a type of permanent policy that accrues tax-deferred cash value and offers more flexibility than whole life insurance.
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Mutual of Omaha's Universal Life Insurance
Universal life insurance is a type of permanent insurance coverage that offers flexibility and the opportunity to adjust the premium and death benefit. Mutual of Omaha's Universal Life Insurance offers four types of universal life insurance plans with different features and benefits. Here is a detailed overview of Mutual of Omaha's Universal Life Insurance:
Life Protection Advantage (Indexed Universal Life)
This plan guarantees a death benefit through age 90 and offers the potential for greater cash value accumulation compared to traditional fixed-interest universal life insurance. It provides downside protection, ensuring that policyholders receive no less than 0% even if the market index percentage changes negatively. This plan includes flexible access to cash value and accelerated death benefit and guaranteed refund options.
Income Advantage (Indexed Universal Life)
The Income Advantage plan has no age limit on permanent coverage. The cash value of this plan is based on interest-crediting options tied to an index, without direct investment in the market. It offers downside protection and focuses on cash growth potential, leading to higher future income potential.
AccumUL Answers (Universal Life)
The AccumUL Answers plan has no age limit on permanent coverage and offers the opportunity for cash value accumulation based on a declared interest rate of at least 2% annually. This plan provides flexible premium payment amounts, tax-free policy loans, and withdrawals. It also includes accelerated death benefits for chronic or terminal illnesses.
Children's Whole Life Policy
This plan is designed for children between 14 days and 17 years old and offers locked-in premium rates for the child's entire life. The benefit amounts range from $5,000 to $50,000.
Universal life insurance is a long-term financial protection option that allows policyholders to adjust their coverage as their needs change. It is essential to carefully review the plans and choose the one that best fits your specific needs and circumstances.
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Mutual of Omaha's Indexed Universal Life Insurance
One of the key advantages of IUL is its ability to provide guarantees and beneficial tax advantages that are not typically found in the stock market. The cash value of an IUL policy is tied to the performance of a market index, such as the S&P 500, without the money being directly invested in the market. This means that the policyholder can benefit from market gains while being protected from losses, as the interest credited will never be less than a guaranteed minimum rate, often 0%. This feature provides downside protection and the potential for greater cash value accumulation compared to traditional fixed-interest universal life insurance.
The IUL policy also offers tax advantages. The cash value accumulates on a tax-deferred basis, and policy loans and withdrawals may be tax-free. Additionally, the life insurance benefits are typically income-tax-free. These features make IUL an attractive option for those looking to supplement their retirement income and achieve their financial goals while also protecting their loved ones.
When considering Mutual of Omaha's IUL, it's important to consult with a professional agent who can help structure the policy to meet your unique needs and goals. The agent will take into account various factors, including your age, health, financial situation, and future goals, to craft a customised solution.
While IUL offers many benefits, it's important to remember that it also comes with some risk and complexity. Universal life insurance has variable premiums and death benefit amounts, and the performance of the policy depends on the chosen interest-crediting options. Therefore, it's crucial to work with an agent to fully understand the product and ensure it aligns with your specific needs.
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Frequently asked questions
No, you cannot borrow from Mutual of Omaha term life insurance. However, you can borrow from whole and universal policies, which are types of permanent life insurance that build cash value.
Term life insurance provides coverage for a specific period, typically up to 30 years. It is more affordable than permanent life insurance and does not build cash value.
Whole life insurance provides coverage for the entire life of the insured person, whereas term life insurance only provides coverage for a fixed period. Whole life insurance also accumulates cash value over time, whereas term life insurance does not.
Universal life insurance is a type of permanent life insurance that offers a flexible death benefit and premium amount. It also accumulates cash value, which can be borrowed or withdrawn. Term life insurance, on the other hand, has a fixed death benefit and premium, and does not accumulate cash value.
Yes, Mutual of Omaha allows you to convert your term life insurance policy to a permanent plan later on without requiring a medical exam or conversion fees.
