Life insurance has been around for a long time. Many of the companies offering life insurance have been around for 150 years or more. It’s always been the same idea in mind.
Pay a monthly premium, and in exchange, if you pass away, your family is provided for in the form of a death benefit and a large lump sum cash payout.
That’s the old school of way of thinking about life insurance. A new way has arrived and it’s much more comprehensive and serves many more useful purposes than the old way of purchasing life insurance.
What am I referring to? Life insurance with Living Benefits.
That’s right. It’s exactly what it sounds like. It’s life insurance that in exchange for your monthly premiums, you can now place protection around your family that can be used not only at death but also while living.
So, what’s the catch? Honestly? Nothing. Often the premiums are no more inflated than a typical life insurance policy and the companies are just beginning to build these benefits into your policies to remain competitive amongst all the life insurance companies that are currently offering coverage.
One of the companies that do it exceptionally well is a company that’s been a Titan in the industry for longer than many of you have even been alive. Mutual of Omaha.
They are one of the best in the business at several forms of life insurance such as final expense insurance, accidental death insurance and yes, even life insurance with living benefits.
That’s what this post is all about. We are going to break down the hidden benefits that Mutual of Omaha can provide to you by purchasing their term life insurance products that include living benefits.
Mutual of Omaha Life Insurance Company. What Makes Them Great?
Like we stated before. Mutual of Omaha is one of the most respected and longest standing companies in the life insurance industry. I don’t know many individuals who haven’t at least heard the name.
Mutual of Omaha has been around since 1909. In 1950 is when Mutual of Omaha officially took on their name that they still have to this day. They were one of the first companies to offer accident insurance and one of the first companies to provide computer-based technology in the life insurance industry.
The modern Mutual of Omaha Life Insurance company focused primarily on marketing and delivering some of the best life insurance products possible to the consumers in the insurance industry.
Currently, Mutual of Omaha is backed by an A+ rating from the Better Business Bureau (BBB) and rest on one of the most reliable financial strengths ratings (A+) a company can receive from the main credit rating agencies such as A.M. Best.
Life Insurance Products Offered by Mutual of Omaha
Currently, Mutual of Omaha offers about the same line up of life insurance products you will see with all the major life insurance companies with a few additions. Here’s a look at them.
• Term Life Insurance
• Universal Life Insurance
• Whole Life Insurance
• Final Expense Life Insurance
• Accidental Death Life Insurance
• Children’s Whole Life Insurance
Nothing too out of the ordinary about these options that Mutual of Omaha offers but we are getting to that shortly.
Simplified Issue and Living Benefits with Mutual of Omaha
This is where we think Mutual of Omaha does an outstanding job with not only a unique product but a product that can offer total family protection.
Without even requiring a medical exam! It doesn’t get much better than that. Here are the details on the product.
Mutual of Omaha Term Life Express
The term life express products are Mutual of Omaha’s product that will have living benefits built into the policy and are currently offered in the following durations (or years).
• 10 Year Term (Level Premiums)
• 15 Year Term (Level Premiums)
• 20 Year Term (Level Premiums)
• 30 Year Term (Level Premiums)
The coverage amounts are somewhat limited on this product currently only ranging from 25,000 as a minimum face amount and 300,000 being the maximum face amount that you can opt to purchase.
I would say the real kicker or significant additional benefit is the mere fact that this policy is “simplified issue” which for all the non-insurance lingo readers, that means merely that no medical exam will be required when purchasing this policy.
How Does the Application Work for This Product?
It’s simple. As opposed to taking the medical exam like many other traditional fully underwritten life insurance policies will require, you will merely just answer medical questions with your agent and wait either a few days or up to a week to hear the results of your application.
If the information you provided is factual and your electronic database checks such as an RX Report (Electronic Prescription Report), DMV Check and MIB (Medical Information Bureau) all look good and align with the answers you provided, you should be approved quickly for this policy.
Complete Breakdown of Coverage
We mentioned previously that your minimum face amount is currently 25,000.00 in coverage and your maximum face amount is at 300,000 in coverage. It does, however, go based on your age so here’s a more complete breakdown for you.
Ages- 18-50– Full 300,000.00 Available
Ages 51-65- 250,000 Maximum Face Amount
Ages 65 Plus– Not Available
Wait, what? Yes, unfortunately, insurance companies typically only offer no-exam life insurance up to certain ages, and when you reach that specific age, you must turn to other options such as fully underwritten policies or even a final expense life insurance policy instead.
Mutual of Omaha does offer a final expense plan known as the Living Promise that may be an excellent fit for you.
The Return of Premium Feature with Mutual of Omaha Term Express
With Mutual of Omaha, you have the option to select a level plan or a return of premium plan. Here is the breakdown of how these both works.
Level Plan- You Pay Your Premiums in Exchange for the Death Benefit.
Return of Premium of Plan- Same Idea except if you surrender or cancel the policy you will be given back a portion of your premiums.
Which Option Should You Pick to Include Living Benefits?
To Include the living benefits with your plan with Mutual of Omaha, you must select the plan that’s a return of premium (ROP). The other option does not offer them.
The good news is that with Mutual of Omaha, with the return of premium plan, the living benefits are built into the plan for no extra charge.
The Accelerated Death Benefit Rider with Mutual of Omaha
Like I stated before, you will have to select the return of premium plan only to qualify for this additional benefit.
With this benefit, if you are diagnosed by a certified physician to having 24 months or less to live, you are eligible to accelerate 92% of your total death benefits. If you elect to take this option with Mutual of Omaha, the policy will then be terminated.
Florida Has A Different Benefit Amount
In Florida, you need to have a life expectancy of 12 months or less. If this is the case, you are eligible to accelerate up to 94% of the death benefit while living and at this time, the policy will then be terminated.
The Living Benefit Rider with Mutual of Omaha
The previous rider we just discussed was known as the Accelerated Death Benefit Rider.
This rider we are going to cover now is identified as the Living Benefits Rider with Mutual of Omaha.
If you can qualify for this rider and have opted to add it to your policy, you will only be allowed to accelerate up to 80% of the total death benefit while living. Here’s how you can qualify for this benefit.
Chronic Illness- Chronic illness with Mutual of Omaha is classified as being certified by a physician within the last 12 months as unable to perform 2 of the 6 daily living activities (ADL’s) for at least 90 consecutive days.
You can also qualify for your benefits under the Chronic Illness portion of your rider if you require substantial supervision to protect yourself and have severe cognitive impairment.
If you are curious what the daily living activities may entail, here’s a look at the 6 of them.
• Transferring (Getting Out of Bed or Out of a Wheelchair with No Assistance)
• Maintaining Continence
If you can’t perform 2 of these 6 activities. You would be qualified for your living benefits. I know it seems depressing even to consider how expensive life may get at this stage of life or this stage of health but the care that may be needed in these situations could be devastatingly expensive.
Having a life insurance policy that can assist paying for these costly bills and helping you avoid financial ruin could be extremely beneficial to you and your family’s financial protection and futures.
Critical Illness Rider- We still have the third option you can qualify for your living benefits under which is known as the critical illness rider.
This can also advance you your death benefit while living if you are certified by a licensed physician as having any of the following health conditions.
• Kidney Failure
• Life-Threatening Cancer
• Major Organ Failure
• Heart Attack
These can all be extremely costly circumstances that could, unfortunately, bankrupt a family as well.
Having protection for all three areas we have discussed is not only a fantastic option for your life insurance purchase but the most ethical decision to make towards protecting yourself and your loved ones.
Do I Have Other Options for Life Insurance with Living Benefits?
Absolutely. As a matter of fact, you have options that we even recommend considering or comparing before pulling the trigger on which policy may or may not be the best for you.
We think that the following life insurance companies offer some of the best life insurance with living benefits in the industry.
• American National Life Insurance Company (ANICO)
• Phoenix Life Insurance Company
• Protective Life Insurance Company
• Foresters Life Insurance Company
• Ameritas Life Insurance Company
What Should I Do Next?
If you believe that living benefits can be as powerful as we know they can be, you can start by just filling out the form on your left.
It will ask for necessary information but then allow you to compare rates with all the top-rated life insurance companies that currently offer living benefits as a built-in-perk for your policy.
We always recommend working with an independent life insurance agency only who can allow choosing between multiple policies and companies.
Tailor making your policy to fit your needs is how life insurance should be.
Final Word. Consider Mutual of Omaha as One of Your Options for Living Benefits
Like I stated before, you clearly have options for several fantastic companies that currently provide living benefits built into the company’s life insurance products.
Finding a policy that fits your needs and your budget is the name of the game.
If you are still unsure about how living benefits work or what you should consider doing next, feel free to give us a call at the number in the top right-hand corner of the screen.
We are always eager to help and if you think that you got this on your own, simply begin by filling out that instant rate form on this page.
Start comparing the rates through various companies and find the best policy with living benefits to fit your needs.