Mutual of Omaha Burial Insurance Review

Written by Jeff Root

As one of the best known Life Insurance Companies in the world Mutual of Omaha is one of the best known brands ever established.

Founded in 1909 as Mutual Benefit Health and Accident Association, offering life insurance and other products to individuals and groups, from its headquarters in Omaha, Nebraska.

The company is best known for its sponsorship of the 1960’s show Wild Kingdom. To this day it remains a mutual firm, with an annual revenue of 4.2 billion dollars.

Advantages of Burial Insurance:

  • Simplicity. You can get a policy quickly and easily online or on the phone.
  • Guaranteed acceptance. You do not have to take a medical exam.
  • Inexpensive premiums. The younger you are, the more affordable the coverage will be.

Disadvantages of Burial Insurance:

  • Price.  burial insurance is going to be more expensive than traditional policies because you are getting the guarantee and foregoing at the medical exam.
  • Graded death benefit. You typically have to wait two full years before your death benefit goes into effect.
  • Limited coverage. The funeral costs are going to be the only thing you can cover with your burial insurance policy so the total amount you get is going to be significantly less compared to another life insurance product.

Mutual of Omaha Review

Financial Strength

Rating Company Grade Financial
AM Best A+ Stable
Moody’s A1 Very Strong
Fitch AA- Strong
S&P AA- Strong

Consumer Bureaus and Reviews

BBB Mutual of Omaha has been listed with the Better Business Bureau since 1940 and carries an A+ rating. Of the complaints in the last four years, 44 were resolved in the last year.

Customer Claims

This department in the company has regular office hours and can be reached by phone during those hours, but not on weekends. The general understanding is that a local agent can help this process far better than an agent at the customer service phone numbers.

This is a traditional company and still relies on its agents for much of the face to face aspects of claims. On the website are several layers of support and claims forms are included but can be difficult to maneuver and navigate through.

At this time you can not file a claim online, the forms have to be downloaded, printed, filled out and mailed or faxed. The process has been known to be slow and cumbersome.

Life Insurance Policy Types

mutual of omaha burial insurance reviewThe company offers several types of life insurance policies including term, permanent and accidental death.

Mutual of Omaha Term Life Insurance 

Term Insurance is the least expensive of the life insurance products offered, while offering some of the highest dollar value payouts of products offered.

This is a level benefit offered for a specific amount of time (term). At the end of the term the policy must be renewed, or the premiums increase substantially. The policy terms end completely at age 80.

Mutual of Omaha Permanent Life Insurance

Permanent Insurance is offered in both Whole Life and Universal Life policy forms. This type of insurance stays in force for as long as the premium is paid, until the death of the insured, when the death benefit is paid. This policy type also has a cash buildup within the policy.

This is a type of savings feature that all permanent insurance has. It is a feature whereby the policyholder makes a small investment in the policy, the funds of which can be accessed when needed.

Mutual of Omaha Accidental Death Life Insurance

Accidental Death is a type of very affordable insurance for those with reduced means, who need some form of life insurance.

It covers accidental perils, such as automobile accidents, drowning, physical accidents such as falls or being crushed by a tree limb, just about any type of fatal event that is not disease related or intentional is covered.

Mutual of Omaha Supplemental Life Insurance

Mutual of Omaha offers several types of ancillary policies that cover health issues. These policies are offered to individuals and as group policies for employers.

Mutual of Omaha Disability Insurance

Disability Insurance helps during a serious illness or accident that causes a long break in the insureds income due to an inability to work or generate enough income to cover costs of living.

Mutual of Omaha Critical Illness Insurance

Critical Illness Insurance a type of policy that specifically helps when the insured becomes seriously ill and major medical does not cover all of the treatment costs, or if help is needed for monthly overhead and utilities during a long recovery period.

The Living Promise Plan

Those who are seeking coverage to help with final costs, such as burial or cremation, Mutual Of Omaha has its Living Promise Plan.

The Living Promise Plan is offered by United of Omaha, a subsidiary of Mutual of Omaha since 1919. This is the company that pays benefits directly to the persons named in the policy as beneficiaries.

This is a Guaranteed Issue policy with some basic requirements.  This means that the policy is guaranteed to be issued to almost any applicant, regardless of their health, without a medical exam.  Just some basic health questions have to be answered.

The Living Promise Plan is available for people ages 40-85.

There are two choices of type of policy form and face value:

Level Benefit – $2,000 – $40,000

Level benefit means that the burial insurance plan pays out immediately after the death of the insured.  These plans are usually less expensive because they are offered to those with a lower risk.

Graded Benefit – $2,000 – $20,000

Graded benefit means that the burial insurance plan pays out within a certain period of time after the death of the insured.  These plans are usually more expensive because they are offered to those with a higher risk.

In this case, if the insured dies within the first 2 years of the policy from natural causes, an additional 10% death benefit will be paid out.

Both versions of the Living Promise Plan offer the following:

  • The premium never increases during the life of the policy
  • Death benefit never decreases
  • Can not be canceled as long as the premium is paid
  • Builds a cash value that can be loaned to the insured
  • As of this time death benefit will be paid to the beneficiary tax-free

How Much Does Mutual of Omaha’s Burial Insurance Cost?

The below chart shows the annual cost per $1,000 of coverage for male and female applicants ages 45 through 80.

Age Male Non Tobacco Male Tobacco Female Non Tobacco Female Tobacco
45 $24.99 $31.50 $21.80 $28.02
50 $29.16 $37.85 $24.12 $31.71
55 $35.38 $46.70 $28.31 $39.46
60 $44.44 $62.71 $33.33 $46.59
65 $59.06 $85.15 $42.48 $59.32
70 $79.21 $116.35 $56.22 $79.19
75 $108.23 $157.60 $77.76 $107.58
80 $145.45 $213.78 $107.00 $147.79

When compared with other no medical exam and guaranteed life insurance, burial insurance options on the market, Mutual of Omaha is fairly competitive in pricing.

As your health, occupation, family history, and a myriad of other factors come into play, it can be difficult to make rate comparisons without first knowing more information about your situation.

Give us a call today to discuss your burial insurance options.

How to Choose a Guaranteed Issue Life Insurance Policy

For many people, a term policy would be the best financial tool to meet the needs of a family if one or more salaries can be lost due to premature death.

Later in life, if there is no coverage, many times the basics cost of funerals are just beyond the reach of a the fixed incomes of the parties involved.

That is a perfect time for a burial life insurance policy. Many fall in the range listed below and are manageable with little effort on the parts of the recipients.

These rates are similar for many people and do increase as the insured ages.

When there is a serious illness involved, but time is not the most pressing issue a final expense, or burial insurance policy can be a real solid choice for people without much income to place in the area of future planning.

As the baby boomers come to the twilight of their lives, in the millions, fixed incomes and reduced retirement incomes are driving the life insurance industry to meet the final needs of seniors everywhere.

The population is growing and many people need some form of insurance after 80 because people are living longer in general. Retirement incomes are just not stretching as far or for a long as they once did. Mutual of Omaha is offering their plans to meet this need as quickly and comprehensively as they can.

Guaranteed Issue Life Insurance Rates for Smokers

Tobacco use can increase the rates that you are given for your premium.  If you compare the rates from the companies above and below you will see that Mutual of Omaha is not the only provider whose smoker rates are higher than non-smoker rates, regardless of policy type.

Mutual of Omaha Guaranteed Issue Rates for Female Smokers

Note that these are for healthy smokers who are females looking for $10,000 of coverage.

Age Mutual Of Omaha Foresters Financial Transamerica
50 $31.18 $31.29 $31.43
55 $36.37 $38.67 $38.32
60 $43.08 $45.77 $44.67
65 $53.96 $57.71 $56.00
70 $67.87 $72.18 $73.68
75 $89.31 $94.42 $98.95
80 $135.69 $135.19 $134.74

Mutual of Omaha Guaranteed Issue Rates for Male Smokers

Note that these are for healthy smokers who are males looking for $10,000 of coverage.

Age Mutual Of Omaha Foresters Financial Transamerica
50 $34.40 $40.59 $36.89
55 $41.41 $50.01 $47.27
60 $51.91 $60.57 $59.02
65 $68.94 $76.06 $78.99
70 $95.52 $98.32 $106.76
75 $135.67 $132.49 $143.47
80 $212.14 $181.75 $193.47

Mutual of Omaha Burial Insurance Review – Wrapping it Up

Overall Mutual Of Omaha offers a strong and stable company outlook but needs to boost its claims handling, as it is somewhat outdated.  The reviews have been good in general and the company responds to adverse reviews and tries to resolve issues quickly and efficiently.

In the long term, this company is still viable and is appealing to many people for its traditional and long standing company name. They still maintain some of the most well known, and well-received policy choices in the industry.

Overall though, Mutual of Omaha is just one of many life insurance providers on the market.

Understanding which life insurance company is best for you can be difficult and take a long time if you try to do it on your own, that’s why we are here.

Our independent life insurance agents work with over 20+ of the best life insurance companies in the world. Our agents take the time to get to know your personal situation, and what type of life insurance is best for you and your family.

Give us a call today, or use our quoteing engine to compare the best burial insurance rates instantly!

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About Burial Insurance Coverage
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