Mutual of Omaha is one of the largest, oldest insurance companies in the United States, offering a number of different products. Here, we are going to exclusively discuss and review Mutual of Omaha’s Living Promise policy – better known as Mutual of Omaha’s final expense insurance policy.
Mutual of Omaha issues all life insurance products under the name United of Omaha. What does that mean? Basically, United of Omaha and Mutual of Omaha are the same company. To keep things consistent, we will refer to United of Omaha as Mutual of Omaha throughout this review.
Let’s go over the basics of of how these policies work. Mutual of Omaha’s final expense policies pay out to the policyowner’s chosen beneficiary(ies). So, while they are designed to cover final expenses such as funeral service, burial, etc., any money that is left over stays in the pocket of the beneficiary. Most people love this, since they’d prefer for their loved ones to keep any money that is leftover rather than the funeral home!
These policies have three basic features – 1) premiums that are guaranteed to stay level and NEVER to increase, 2) coverage that is guaranteed NEVER to decrease, and 3) coverage that is guaranteed NEVER to expire (so long as the premiums are paid, of course). These are the three important elements of all quality final expense products, and Mutual of Omaha is no different. Great deal, right? This guy thinks so…
Mutual of Omaha has two different types of final expense policies – 1) Level, and 2) Graded.
The LEVEL product has immediate, first day coverage, meaning the full face amount of the policy will pay out even if the insured passes within the first two years (or any time after that). This is the best option for those who can qualify. The issue ages for the level product is 45-85, and it is available in every state except for New York. The coverage amounts are as low as $2,000, and as high as $40,000.
The GRADED product has a two year waiting period before the policy will pay the full face amount for anything except an accidental death (accidental death is covered even within the first two years, meaning there is first day coverage for an accidental death). If you pass from natural causes within the first two years, the beneficiary only receives 110% of the premiums that were paid into the policy. The issue ages are 45-80, and the most coverage you can apply for is $20,000.
So, how do you know which policy you may qualify for? The process is simple. You do not need to complete a medical exam. Your qualification will be determined based on your answers to certain health questions, that you will answer yes or no.
Also, the company will look at your prescription history and your MIB report (MIB stands for Medical Information Bureau, which is a nonprofit based in the US and Canada since 1902, which is used to assess an individual’s risk and eligibility during the underwriting of life, health, disability income, critical illness, and long-term care insurance policies).
The most important factor in determining whether you qualify for Level coverage is the health questionnaire. The health questionnaire is comprised of two parts – Part One and Part Two. In order to qualify for Level coverage, your answer must be “No” to all questions in Part One and Part Two. If you answer “Yes” to any question in Part One, you cannot qualify for either Level or Graded coverage. If you answer “No” to all questions in Part One, but “Yes” to a question in Part Two, you qualify for the Graded product.
Part One Questions (If “Yes” to any question, you cannot qualify for any coverage)
1. Are you currently:
(a) bedridden or confined to any hospital, nursing home, long term care facility or skilled nursing facility; or receiving or been advised to receive care or in a nursing home, hospice care, or home health care?
(b) requiring assistance with activities of daily living such as taking medications, bathing, dressing, eating, toileting, getting in and out of a chair or bed, or control of bowel or bladder problems?
(c) requiring any of the following (other than for fractures, bone or joint surgery, including replacement): wheelchair, electric scooter, or oxygen equipment to assist breathing (excluding use for sleep apnea)?
2. Have you ever been:
(a) diagnosed as having Acquired Immune Deficiency Syndrome (AIDS), Aids Related Complex (ARC), or Human Immunodeficiency Virus (HIV) Infection (symptomatic or asymptomatic) or been treated for AIDS, ARC, or HIV by a physician or health care provider?
(b) diagnosed with, been treated for or been advised by a physician or health care provider to receive treatment for Alzheimer Disease, Dementia, Huntington’s Disease, Sickle Cell Anemia, Myelodysplastic Syndrome (MDS), Lou Gehrig’s Disease (ALS), Quadriplegia, Paraplegia, Down’s Syndrome, mental incapacity, congestive heart failure, Cirrhosis, Metastatic Cancer or recurrent Cancer of the same type?
(c) diagnosed with insulin shock, diabetic coma, or had an amputation due to diabetic complications or diagnosed with End Stage Renal Disease or requiring dialysis?
(d) advised to received or have received an organ or bone marrow transplant?
(e) diagnosed by a physician or health care provider as having a terminal medical condition that is expected to result in death in the next twelve (12) months?
3. In the last 12 months, have you been:
(a) advised by a physician to have a surgical operation, diagnostic testing other than for routine screening purposes or for those related to HIV/AIDS, treatment, hospitalization, or other procedure which has not been done or for which results are not known?
(b) diagnosed by a physician or health care provider as having heart disease or heart surgery or any kind?
4. In the past 2 years, have you been diagnosed with, been treated for or advised by a physican or health care provider to receive treatment for any form of cancer (except basal or squamous cell skin cancer)?I
Part Two ( if you answer “YES” to any questions in Part Two, you are eligible only for the Graded Benefit Product.
5. Have you ever (a) received care or treatment for, or (b) been advised by a physician or health care provider to seek treatment for:
(a) Diabetes before the age of 50 or diabetes at any age with complications or Retinopathy (eye), Nephropathy (kidney), Neuropathy (nerve), or Peripheral Vascular Disease (PVD or PAD)?
(b) Hepatitis C?
(c) Chronic Lung Disease, including Chronic Obstructive Pulmonary Disease (COPD), Chronic Bronchitis, Emphysema, or Sarcoidosis?
6. In the last 4 years, have you: (a) received care or treatment for, or (b) been advised by a physician or health care provider to seek treatment for:
(a) Cancer, Leukemia, Melanoma, or any other internal cancer (except basal or squamous cell skin cancer)?
(b) Chronic Kidney Disease, Systemic Lupus or Scleroderma?
(c) Bipolar Depression, Schizophrenia, Parkinson’s Disease, or Multiple Sclerosis?
7. In the past 2 years, have you: (a) received care or treatment for, or (b) been advised by a physician or health care provider to seek treatment for:
(a) Coronary Artery Disease, Heart Attack, Coronary Artery Bypass Surgery, Angioplasty, Cardiomyopathy, irregular heart rhythm, or Valvular Heart Disease with surgical repair or replacement?
(b) Stroke or Transient Ischemic Attack (TIA)?
8. In the past 2 years, have you:
(a) been convicted of or currently awaiting trial for a felony?
(b) been treated for or been advised to be treated for alcohol or drug abuse or convicted more than once of reckless driving or driving under the influence of drugs and alcohol?
(c) used unlawful drugs in any form or abused or misused prescription drugs?
9. In the past 2 years, have you been hospitalized by a physician or health care provider for any mental or nervous disorder?
10. In the past 12 months, have you consulted a physician for a chronic cough, unexplained weight loss of greater than 10 pounds, fatigue or unexplained gastrointestinal bleeding?
Some other important things to note about Mutual of Omaha’s final expense policies are that they are permanent, so they do build cash value. If you have used tobacco or nicotine within the past 12 months, your premiums will be higher. Also, if you want to pay your premiums monthly, you must set up an automatic bank draft.
Another important aspect of these policies are the available riders. Mutual of Omaha includes an Accelerated Death Benefit for Terminal Illness or Nursing Home Confinement Rider in the policy at no additional cost.
For the terminal illness rider, if you are diagnosed with a terminal illness and are given 12 months or less to live, you may (but are not required to) accelerate as much as 50% of your death benefit while you are still alive. However, whatever amount you decide to accelerate will reduce the death benefit accordingly.
The nursing home rider allows you to accelerate up to 50% of the death benefit if you are confined to a nursing home for 90 consecutive days or expect to be indefinitely.
There is also an optional accidental death rider available, which will double the payout to the beneficiary if the insured passes away as a result of an accident. Unlike the terminal illness and nursing home riders, you must pay for the accidental death rider.
Not every rider is available in every state, and the accidental death rider is not available for the graded plan.
Let’s sum up with a quick discussion about the strength of Mutual of Omaha. The company has been around since 1909, and they have an A+ (Superior) financial strength rating from A.M. Best. Generally, Mutual of Omaha is a very strong company, with a name that is recognizable to the majority of Americans.
If you decide to apply for either the Level or Graded Mutual of Omaha policy, you cannot apply directly through the company – you must go through a broker, like SeniorWholeLife.com.
At Senior Whole Life, we have many clients who are extremely happy when they are approved with Mutual of Omaha, due to their competitive rates, financial strength, and quality customer service.
Working with an independent agent, like the ones at Senior Whole Life, opens the doors to the best insurance companies, like Mutual of Omaha. We are familiar with the application process, underwriting niches, and competitive premiums for different ages, genders, and health conditions. We will ask you questions – not to be intrusive, but to get to know more about you so that we can find the best company for your situation.
We can help find the best company for you, and can facilitate the application process for you.