Mutual of Omaha Living Promise Review for 2024
How Does Mutual Of Omaha Living Promise Whole Life Insurance Work?
The affordable premiums, high coverage options, and day one coverage makes Mutual of Omaha’s Living Promise whole life policy one of the best burial insurance products on the market.
Mutual of Omaha’s Living Promise whole life insurance policy is designed specifically for seniors aged 45-85 who want coverage for funeral expenses without undergoing a medical exam. Here are the key features:
- Coverage Amount: You can apply for up to $40,000 in coverage.
- No Medical Exam: The policy doesn’t require a medical exam, making it easier and quicker to get coverage.
- Level Death Benefit: If approved for the level death benefit, there’s no waiting period, and the full benefit is available immediately upon approval.
- Purpose: The primary purpose of this policy is to cover funeral expenses so that your loved ones aren’t burdened financially.
- Flexibility: While designed for funeral expenses, the cash payout can be used by beneficiaries for any purpose.
- Tax-Free Payout: The benefit paid out to beneficiaries is tax-free, providing them with the full amount.
- Beneficiary Choice: You can choose the beneficiaries who will receive the benefit.
- Ease of Purchase: The policy can be purchased for any reason, offering flexibility in its use.
This policy is especially popular among seniors because it provides a straightforward way to ensure that funeral costs are covered without the need for a medical exam. The ability to designate beneficiaries and the tax-free payout add to its appeal.
Check out a detailed list of the features and policy limitations below:
| Product Details | Policy Type: Whole Life Insurance |
| New Applicant Age Range: 45-85 | |
| 2-Year Waiting Period: No (subject to underwriting approval) | |
| Coverage Amount Range: $2,000-$50,000 | |
| States Available: All States (except New York) | |
| Product Benefits | Premiums Stay the Same Forever: Yes |
| Builds Cash Value: Yes | |
| Policy Duration: Lifetime | |
| Terminal Illness Rider: If you are diagnosed with a terminal illness and given 12 months or less to live, you can access up to 50% of your death benefit. There is no cost for this rider. | |
| Nursing Home Confinement Rider: You can receive up to 50% of your death benefit if you are confined to a nursing home for 90 consecutive days. There is no cost for this rider. | |
| Optional Riders: Accidental Death (2X the payout for accidental death) | |
| Application Details | Where to Apply: Agencies licensed to sell Mutual of Omaha products (you can’t buy this plan directly from them) |
| Phone Number to Apply: 1-800-644-2926 | |
| Medical Exam Required: No | |
| Guaranteed Acceptance: No | |
| Application Approval Time: 10 Minutes to 3 Business Days |
Common health conditions still eligible for no waiting period coverage:
Aneurysm
Arthritis
Asthma
Blindness
Blood clots > 2 years ago
Blood thinners
Cancer > 4 years ago
Circulatory surgery > 2 years ago
Crohn’s disease
Depression
Diabetes (type 2)
Diverticulitis
Epilepsy
Fibromyalgia
Grave’s disease
Heart attack > 2 years ago
Heart surgery > 2 years ago
Hepatitis A or B
High blood pressure
High cholesterol
Scleroderma
Seizures
Sleep apnea
Squamous/basal cell skin cancer
Stroke/TIA > 2 years ago
Tumors (non-cancerous)
What is the living promise level death benefit?
Mutual of Omaha’s Living Promise coverage offers two benefit plans, with the first option being the “Level Death Benefit.” Here’s a breakdown of this option:
- No Waiting Period: If approved for the Level Death Benefit, there is no waiting period. You are fully insured from the day you make your first payment.
- Coverage for Natural or Accidental Death: This option provides coverage for both natural and accidental death.
- Eligibility: Eligibility for the Level Death Benefit is determined based on your responses to the health questionnaire. You must answer “no” to all health questions (excluding the tobacco question) in the application.
- Accidental Death Rider: For an additional cost, you can add the accidental death rider to your policy. This rider increases the payout to 200% of the death benefit if you die from an accident.
Overall, the Level Death Benefit option provides immediate coverage without a waiting period, as long as you meet the eligibility criteria based on your health questionnaire responses. Adding the accidental death rider can provide additional financial protection in the event of an accident.
How does the graded death benefit work on the living promise?
Mutual of Omaha offers the “Graded Death Benefit” option if you respond affirmatively to questions 5-10 in the application. Here are the key details of this option:
- Graded Death Benefit: This benefit plan comes with a two-year waiting period.
- Waiting Period: During the first 24 months after policy issuance, if the insured passes away, Mutual of Omaha will refund 110% of the premiums paid instead of the full death benefit.
- Purpose: The Graded Death Benefit option is designed for individuals who may have certain health conditions or risk factors that prevent them from qualifying for the Level Death Benefit without a waiting period.
- Premium Refund: In the unfortunate event of the insured’s passing during the waiting period, the beneficiaries will receive a refund of 110% of the premiums paid. This refund provides some financial support despite the waiting period.
Under Mutual of Omaha’s Graded Death Benefit plan, if the insured passes away due to an accident within the first two years, the full death benefit will be paid out, bypassing the waiting period. This is an important exception to note for beneficiaries.
However, it’s worth mentioning that the Graded Death Benefit plan typically comes with a higher premium compared to the Level Death Benefit plan. While the Graded Death Benefit plan offers coverage despite health conditions or risk factors that may prevent immediate qualification for the Level plan, applicants should consider the cost implications and weigh them against their coverage needs and financial situation.
Below is a rate chart showing the rates for level and graded death benefit:
| AGE | Level Benefit Female $10,000 | Graded Benefit Female $10,000 | Level Benefit Male $10,000 | Graded Benefit Male $10,000 |
|---|---|---|---|---|
| 45 | $22.61 | $27.77 | $27.11 | $36.31 |
| 50 | $24.31 | $30.22 | $30.68 | $40.09 |
| 55 | $27.71 | $37.29 | $35.95 | $45.35 |
| 60 | $32.87 | $42.51 | $43.76 | $56.87 |
| 65 | $41.01 | $49.93 | $56.48 | $68.44 |
| 70 | $53.24 | $63.87 | $74.61 | $86.69 |
| 75 | $72.41 | $88.47 | $99.97 | $113.21 |
| 80 | $98.43 | $125.67 | $139.73 | $156.82 |
Should You Buy?
Mutual of Omaha’s Living Promise level death benefit option is often considered a top choice for seniors seeking death insurance, and here’s why:
Firstly, their premiums are usually among the lowest compared to other insurance providers, making it a cost-effective option.
Secondly, the level plan has no waiting period, which means you’re covered immediately. This is a big advantage as many insurance companies impose a two-year waiting period, like the 9.95 plan from Colonial Penn.
Lastly, Mutual of Omaha includes living benefits at no extra charge. The accelerated death benefit rider allows policyholders to access up to 50% of their coverage while they’re still alive in case of a terminal illness diagnosis or being confined to a nursing home for 90 days. And the best part? You don’t have to pay extra for this rider.
So, to sum it up, Living Promise offers competitive premiums, immediate coverage, and valuable living benefits, making it a standout option for seniors.
