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Mutual of Omaha – 2023 Burial Insurance Review

Jun 22, 2023 | Reviews

Mutual of Omaha – 2023 Burial Insurance Review

When it comes to purchasing burial insurance, seniors seeking quality coverage at an affordable rate deserve special consideration. If they are currently exploring coverage options, it would be worth their while to consider Mutual of Omaha as a provider. Mutual of Omaha offers coverage options at favorable rates and extends acceptance to individuals with moderate to severe health conditions, addressing their unique needs.

If seniors are contemplating whether to secure a policy from Mutual of Omaha, here is what they should know.

Understanding Burial Insurance

Burial insurance serves as an alternative to traditional life insurance policies and is particularly beneficial for seniors with health challenges. These plans offer easier qualification criteria compared to traditional life insurance, making them popular among individuals seeking coverage.

Similar to traditional life insurance plans, burial insurance plans provide a death benefit to beneficiaries upon the policyholder’s passing. Maintaining the policy requires consistent monthly premium payments until the time of death. Failure to meet premium obligations will render the policy void, resulting in no death benefit payout upon passing away.

How Burial Insurance Operates

Burial insurance is subject to strict regulations, and it is essential to be aware of certain rules. Once accepted into a policy, seniors can rely on fixed premiums that the insurer cannot increase. Furthermore, these plans are permanent and do not expire. The policy only becomes inactive if premium payments are discontinued. Otherwise, upon the policyholder’s death, the full death benefit, as specified in the policy, will be paid out to the beneficiaries.

Cash Value Considerations

An important aspect to consider is the potential accumulation of cash value over time in burial insurance policies. This feature is similar to whole life insurance policies, allowing policyholders to access the value of their policy through loans. However, if the loan is not repaid, the outstanding amount will be deducted from the life insurance death benefit upon the policyholder’s passing.

Utilizing Death Benefits

When seniors opt for a policy from Mutual of Omaha, they can take solace in knowing that the death benefit received by their loved ones can be utilized for any purpose they deem necessary. This flexibility allows beneficiaries to cover funeral expenses, hospital bills, or any other final costs that may arise. Such security ensures that the passing of a loved one will not become an additional financial burden on the family.

Mutual of Omaha Final Expense Insurance

Mutual of Omaha recognizes the importance of insurance, particularly for seniors, and strives to provide a range of insurance solutions. Within their selection of final expense insurance options, they offer plans that accommodate various needs. These plans include both immediate coverage options and those with a waiting period. These offerings fall under the umbrella of Mutual of Omaha’s Burial Insurance plans.

Living Promise – Level

For seniors seeking immediate final expense insurance coverage without a waiting period, Mutual of Omaha offers the Living Promise plan. This plan features two different health ratings, allowing the coverage level to be adjusted based on the individual’s health status.

These ratings are the level death benefit and graded death benefit. If approved for the level death benefit, there is no waiting period required after qualifying for coverage. Therefore, policyholders can enjoy coverage starting from day one of their purchase.

Here are the key features of the Level plan:

  • This plan is exclusively sold through licensed brokers.
  • Immediate coverage is available, eliminating the need for a waiting period.
  • It is available in all states except New York.
  • The plan can be issued to individuals aged 45 to 85.

Additionally, the level option provides the opportunity to include an Accidental Death Rider for a slightly higher monthly cost. This rider ensures a double payout of the death benefit if the policyholder’s passing is caused by an accident.

While the Level plan offers excellent coverage, it is important to note that it is primarily available to individuals in excellent health. Generally, one must answer negatively to all health-related questions posed by the insurer and have a height-to-weight ratio within their acceptable range to qualify.

The Graded Plan

For seniors with less optimal health conditions who still require burial insurance, Mutual of Omaha offers the graded plan as a viable option. This plan includes a two-year waiting period, which makes it possible to provide coverage to individuals with health issues.

During the waiting period, if the policyholder passes away, 110 percent of the premiums paid will be refunded. However, if one successfully completes the waiting period, the policy becomes fully active.

There is an exception to the waiting period rule. In the unfortunate event of an accidental death, the policy will take effect and provide a full death benefit payout.

Here are the key features of the Graded plan:

  • It is available in all states, except Arizona, Minnesota, North Carolina, and New York.
  • The plan can be issued to individuals aged 45 to 80.
  • Coverage amounts range from $2,000 to $20,000.
  • The waiting period for non-accidental death benefits to become active is two years.

Mutual of Omaha Insurance Riders

To further enhance the burial insurance policies, Mutual of Omaha offers additional coverage options called riders. These riders are automatically included with all final expense policies. The following riders are provided at no additional cost:

  • Terminal Illness Rider: In the event of a terminal illness diagnosis with a life expectancy of 12 months or less, policyholders can access up to 50 percent of their death benefit while they are still alive.
  • Nursing Home Confinement Rider: If an individual is confined to a nursing home for a continuous period of 90 days, they can access up to 50 percent of their death benefit.

How Much Does Mutual of Omaha Funeral Insurance Cost

The cost of burial insurance from Mutual of Omaha varies based on several factors, including age, health, gender, and desired coverage amount. Tobacco use also has a significant impact on rates, with smokers generally paying up to 40 percent more than non-smokers.

Providing an exact cost without obtaining quotes is challenging. On average, monthly coverage costs can range from $20 to $200. Those who purchase coverage at an earlier age, such as 45, tend to secure the most affordable rates. Additionally, women typically receive lower rates on life insurance. For example, a 45-year-old woman may pay less than $30 per month for burial insurance from Mutual of Omaha, depending on their responses to health-related questions in the application.

As one progresses in age, the cost of final expense insurance naturally increases. Once an individual reaches age 70, the monthly premium can be expected to be closer to $50. By age 80, this rate nearly doubles. Delaying the purchase of a policy leads to higher costs. With this in mind, it is advisable to obtain a policy sooner rather than later, considering the rising expenses associated with age.

Mutual of Omaha Burial Insurance: Advantages and Disadvantages for Seniors

While an insurance policy may be suitable for some individuals, it’s essential to find the perfect fit for you. Here are the benefits of considering a burial insurance policy from Mutual of Omaha, taking into account the needs and concerns of seniors:

  • Accessible rates offering quality coverage at an affordable price.
  • Significant coverage amounts available, ranging up to $40,000, ensuring adequate financial protection.
  • Accidental death riders included to provide additional peace of mind.
  • Diabetic-friendly policies that cater to the specific needs of individuals with diabetes.
  • Acceptance of applicants up to the age of 85, acknowledging the importance of coverage for seniors.
  • Fast underwriting process, with approvals possible in as little as 24 hours, respecting the urgency of securing insurance.
  • A financially stable insurer, providing reassurance and stability for seniors and their families.
  • The option to choose unlimited primary and contingent beneficiaries, granting flexibility and control over the policy.

However, it’s essential to consider the limitations and challenges that seniors may encounter when considering a burial insurance plan from Mutual of Omaha:

  • A mandatory 2-year waiting period for individuals with certain health issues, ensuring the insurer’s financial viability.
  • Not everyone may qualify for these plans since they aren’t guaranteed issue policies.
  • Some applicants may need to participate in a phone interview to verify their medical information, which can be an additional step in the application process.
  • Monthly payments cannot be mailed, potentially requiring alternative payment methods for seniors who prefer traditional means.
  • Individuals with diabetes above the age of 80 may face a waiting period before their coverage becomes active, taking into account specific health considerations.

How to Discover the Ideal Burial Insurance

When searching for the best burial insurance option, seniors may find it helpful to engage the assistance of an insurance agent. These knowledgeable professionals can provide guidance and support in comparing plans and obtaining quotes, ensuring seniors have a comprehensive understanding of all available options. Additionally, insurance agencies often have broader access to insurance companies, allowing them to present policy choices that seniors may not have been aware of independently.

Reputable insurance agencies strive for more than mere financial gain through commissions. Their goal is to cultivate satisfying experiences for customers, ensuring a lasting relationship based on trust and understanding. By delivering exceptional service, these agencies assist seniors in finding the insurance they require to safeguard their loved ones from unexpected financial burdens.

Moreover, it’s important to note that selecting an insurance company based solely on advertisements may not provide the full picture. Some companies prioritize offering high-quality coverage at affordable rates rather than extensive marketing campaigns. In these cases, insurance agents serve as valuable resources, bridging the gap between insurers and seniors, and helping them avoid overpriced or underqualified coverage options. An excellent option to gain access to the best plans, such as Mutual of Omaha’s selection, is to consider us.

Burial Insurance Explained

Burial insurance covers the final expenses, including funeral costs, providing financial support to seniors and their families during a challenging time.

Mutual of Omaha: A Trusted Provider

Before making a purchase, it’s natural to desire more information about Mutual of Omaha. Here’s what you need to know:

Mutual of Omaha is an established insurance company headquartered in Omaha, Nebraska, operating since 1909. This large insurer offers various insurance products, including life insurance, medical insurance, long-term care insurance, dental insurance, accidental insurance, final expense insurance, and more.

With millions of satisfied customers and positive reviews, Mutual of Omaha has gained a reputation for excellence and reliability.

When purchasing life insurance through Mutual of Omaha, the policy will be registered as United of Omaha on the paperwork. This is because Mutual of Omaha owns the shares of United of Omaha.

The financial stability of Mutual of Omaha is noteworthy, as the company holds the highest financial rating achievable by an insurance provider. Receiving A-level ratings from four prominent rating agencies, Mutual of Omaha offers seniors the assurance they seek.

Obtain Burial Insurance from Mutual of Omaha

Our compassionate agents are here to assist seniors in obtaining the burial insurance plan that meets their needs. To get started or for further inquiries, please call us at (800) 398-9821.

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