Mutual Of Omaha: Is Their Life Insurance Worth It?

Mutual of Omaha is a well-known name in the life insurance industry, offering a diverse range of policies, including whole, term, universal, and accidental death insurance. Founded in 1909, the company has a solid financial position and is owned by its policyholders. One of Mutual of Omaha's standout features is its guaranteed-issue whole life policies, which do not require a medical exam, making them attractive to those who want to avoid the hassle of medical evaluations. However, the company has received mixed reviews, with some customers praising their exceptional service and swift claims processing, while others express frustration over denied or delayed claims and challenging customer experiences. Overall, Mutual of Omaha is a good choice for those seeking a variety of policy options and no-exam whole life insurance, but be sure to read the fine print and understand the limitations and state-specific terms before committing to any policy.

Mutual of Omaha's customer satisfaction ratings

Mutual of Omaha has received mixed customer satisfaction ratings across different platforms. On Trustpilot, the company has an average rating of 1.5 stars out of 5, with customers reporting issues with unresponsive representatives, filing claims, and receiving payouts. Similarly, on the Better Business Bureau (BBB) website, Mutual of Omaha has an average rating of 1 out of 5 stars, with numerous complaints about denied claims, delayed payouts, and poor customer service. However, it is important to note that these reviews represent only a small fraction of Mutual of Omaha's customer base and may not be representative of the overall experience.

On the other hand, Mutual of Omaha has also received positive feedback from its customers. On Reddit, some users have shared their positive experiences with the company, recommending it for products such as final expense insurance and child life insurance. Additionally, Mutual of Omaha ranked 6th out of 21 companies in J.D. Power's 2024 U.S. Life Insurance Study for overall customer satisfaction, scoring 659 compared to the industry average of 648. This indicates that the company's customer satisfaction levels are slightly higher than the industry average.

According to Bankrate, Mutual of Omaha carries strong customer satisfaction and financial strength ratings from various third-party evaluators. The company has a Superior (A+) rating for financial strength from AM Best and an A1 rating from Moody's. Additionally, it has a very strong rating (A+) with Standard & Poor's. These ratings reflect Mutual of Omaha's financial stability and ability to fulfil its obligations to policyholders.

In terms of customer complaints, Mutual of Omaha's life insurance policies are underwritten by United of Omaha, which has received fewer complaints than average for individual life insurance over the past three years, according to the National Association of Insurance Commissioners (NAIC) data. This suggests that the company receives an average number of complaints expected for an organization of its size.

Overall, while Mutual of Omaha has received mixed customer satisfaction ratings, it has also been recognized for its strong financial stability and average to above-average customer satisfaction levels in certain studies and evaluations.

Pros and cons of Mutual of Omaha's life insurance

Pros of Mutual of Omaha's Life Insurance

Mutual of Omaha has been in the insurance business for over 100 years and offers a wide range of life insurance products, including term life insurance, permanent life insurance, and accidental death insurance. Here are some of the pros of choosing Mutual of Omaha for your life insurance needs:

• Diverse Product Line: They offer term, whole, and universal life insurance options, as well as accidental death insurance, to meet a variety of customer needs.
• No Medical Exam Required: Mutual of Omaha provides whole life insurance policies without a medical exam, making it convenient for those who may have health issues.
• Convertibility: Policyholders are allowed to convert their term life plans into permanent plans without undergoing a medical exam.
• Strong Customer Satisfaction and Financial Strength Ratings: Mutual of Omaha has received high ratings from third-party evaluators for customer satisfaction and financial strength, indicating their reliability and stability.
• Endorsements and Riders: They offer a long list of endorsements, or riders, that provide additional coverage options, such as child life insurance, chronic illness coverage, and critical illness coverage.

Cons of Mutual of Omaha's Life Insurance

While Mutual of Omaha has many positive features, there are also some potential drawbacks to consider:

• Limited Availability: Mutual of Omaha life insurance is not available in all 50 states, so customers in certain states may not have access to their products.
• Online Capabilities: They do not offer online quotes or applications for term life insurance, and their overall online capabilities are limited compared to some other insurers.
• Age Restrictions and Policy Terms: The age restrictions and policy terms for Mutual of Omaha's life insurance products can vary by state, which may be a disadvantage for some customers.
• Claims and Payout Issues: Some customer reviews mention issues with claims being denied and delays in receiving payouts, which could be a concern for potential customers.

Mutual of Omaha's financial strength

The company's financial position is further reinforced by its ranking in J.D. Power's 2024 U.S. Life Insurance Study, where it scored higher than the industry average for overall customer satisfaction. Mutual of Omaha's life insurance policies are underwritten by United of Omaha, which has received fewer complaints than average over the past three years, according to the National Association of Insurance Commissioners (NAIC) data.

Additionally, Mutual of Omaha has strong financial strength ratings from reputable agencies. It has an A+ (Superior) rating from AM Best, an A1 rating from Moody's, and an A+ rating from Standard & Poor's. These ratings provide confidence in the company's long-term stability and ability to pay claims.

Mutual of Omaha's commitment to its financial strength is evident through its diverse product offerings, strong ratings from agencies, and positive customer satisfaction scores. The company's financial position is solid, and it continues to maintain its stability and ability to meet future obligations.

Mutual of Omaha's life insurance plans

Mutual of Omaha offers a wide range of life insurance products, including term life insurance, permanent life insurance, and accidental death insurance. Here are the key details about their life insurance plans:

Term Life Insurance:

• Term options of 10, 15, 20, and 30 years.
• Policyholders can convert the policy to a permanent policy at the end of the term without a medical exam.
• Coverage starts at $25,000 and goes up to $300,000 for the Term Life Express option, and starts at $100,000 for the Term Life Answers option.
• Term Life Express is available for individuals ages 18-80, while Term Life Answers is for ages 18-70.

Permanent Life Insurance:

Mutual of Omaha offers two types of permanent life insurance: Whole Life Insurance and Universal Life Insurance.

#### Whole Life Insurance:

• Available for individuals aged 45-85 (50-75 in New York).
• Does not require a medical exam and includes a cash value component.
• Children's whole life insurance is also offered.
• Death benefit ranges from $2,000 to $25,000.

#### Universal Life Insurance:

• Includes standard universal life and two indexed universal life options.
• The cash value of indexed universal life insurance policies is tied to the performance of a market index.
• AccumUL Answers universal life insurance offers a lifetime death benefit with payouts between $25,000 and over $1 million for individuals ages 18-85.
• Income Advantage Indexed Universal Life Insurance is available for individuals ages 18-85 and has no limits on coverage. It offers significant growth potential as it is tied to the S&P 500.

Accidental Death Insurance:

• A separate policy designed to cover death due to a covered accident, including work-related incidents.
• Offers up to $1,000,000 in benefits.
• A good option for customers who do not qualify for other types of life insurance policies.

Riders and Customizable Coverage:

Mutual of Omaha offers a long list of endorsements or riders, which are add-ons that provide additional coverage. These riders include:

• Child life insurance rider
• Chronic illness rider
• Critical illness rider
• Terminal illness rider
• Accidental death benefit rider
• Additional insured term rider
• Disability rider
• Guaranteed insurability rider
• And more

Customer Satisfaction and Complaints:

Mutual of Omaha has received mixed reviews from customers. While some praise the company for its excellent service and swift claims processing, others have expressed frustration over denied claims, issues with receiving payouts, and poor customer service. The company has also received complaints regarding limited online capabilities and a lack of physical agent locations in all 50 states.

According to the National Association of Insurance Commissioners (NAIC) complaint scores, Mutual of Omaha's life insurance policies have received fewer complaints than average over the past three years. Additionally, in the 2024 J.D. Power Individual Life Insurance Study, Mutual of Omaha ranked sixth for overall customer satisfaction, scoring 659 compared to the industry average of 648.

Mutual of Omaha's life insurance alternatives

Mutual of Omaha Life Insurance Alternatives

Mutual of Omaha offers a range of life insurance products, including term, whole, and universal life insurance. The company also provides accidental death insurance, which can be a good option for those who don't qualify for other types of policies. However, if you're considering alternatives to Mutual of Omaha, here are some options to explore:

• New York Life Insurance: New York Life offers the ability to convert term policies to permanent life insurance. Their whole life insurance policies build cash value early on, providing flexibility for retirement planning. New York Life also offers variable universal life insurance, allowing buyers to invest and grow their cash value. The company is known for its knowledgeable agents who can guide you through the process.
• Northwestern Mutual Life Insurance: Northwestern Mutual is a well-known competitor with competitive pricing on whole life insurance for individuals of all ages and health risks. Their policies build cash value early, providing quick access to funds. They also offer variable universal insurance, but it comes with significant fees and risk. Northwestern Mutual provides trusted life insurance services and has high financial strength ratings.
• Prudential: Prudential is a good alternative if you're primarily interested in term life insurance. They offer three term policy options, compared to Mutual of Omaha's single term choice. Prudential also provides four options for universal life insurance, including indexed universal life, survivorship universal life, and variable universal life. However, their customer service rankings are mixed, with a below-average score in the J.D. Power customer satisfaction study.
• State Farm: State Farm is an excellent option if you're seeking term life insurance. They received the 2024 Bankrate Award for best term life insurance company and also offer home and auto insurance, making it convenient for those who prefer bundling their insurance products. State Farm provides online quoting for term life insurance and holds the highest financial strength rating from AM Best.
• Globe Life Insurance: Globe Life Insurance offers both term and whole life insurance without a medical exam. Their coverage limits are lower compared to Mutual of Omaha, but they cater to a diverse range of customers, including those on limited incomes with their low-cost burial insurance options.

Frequently asked questions