What is Mutual of Omaha’s final expense insurance and how does it work?
United of Omaha burial insurance is a whole life insurance policy with permissive underwriting, making it suitable for seniors with health problems. The cost of a policy might range from $2,000 to $40,000. The primary purpose of the final expense plans is to cover the costs of burial and other funeral expenses. You can, however, use the money on whatever you like. It’s simple to grasp because it’s a life insurance policy. Here are the pertinent policy elements you should be aware of.
- Premiums that are never going to go up.
- Policies that are indefinite and do not expire.
- Coverage that won’t go down in price.
- Over time, the cash worth of a property increases.
Your beneficiaries will get a tax-free cashier’s check equal to the amount of coverage you purchased because it is life insurance. The cash payment provides your family with the monies they need to cover your final expenses. There are no limitations on how you can use the funds. That’s a good thing because every funeral establishment in the country accepts cash. If there is any money left over, which happens rather frequently, it will be given to your recipient.
The following riders will be included with every United of Omaha last expenditure insurance policy.
- If you are diagnosed with a terminal illness and given 12 months or fewer to live, you can obtain up to 50% of your death benefit while you are still alive.
- Nursing Home Confinement Rider: If you are confined to a nursing home for 90 days, you can collect up to 50% of your death benefit.
You don’t have to pay for those extras. They are included in the coverage at no additional expense.
The alternative that does not require a two-year waiting period
“Living Promise” is the name given to United of Omaha’s final expense policy for seniors, which provides complete day-one coverage. There are two health ratings for Living Promise. There are two types of death benefits: level and tier. There is no waiting period if you are authorized for the level benefit. From the first day, you are fully insured. The Level Plan is broken down into the following sections. Except for New York, it’s available in every state. The issuers’ ages range from 45 to 85. The coverage amounts range from $2,000 to $40,000 (with a $5,000 minimum in Washington). Only licensed brokers, such as Choice Mutual, are allowed to sell the product (you cannot buy it directly from them) There is no waiting period for coverage, policy examples, Application example
You can also buy the Accidental Death Rider with the level plan. It is usually only a few dollars more. If an accident is the cause of death, Mutual of Omaha will pay double the death benefit under this rider. Please keep in mind that if you don’t add this rider, your insurance will still pay out the full amount in the event of an accident. When you die in an accident, this rider doubles your compensation. To be eligible for the level plan, you must answer no to all of the health questions and have a height-to-weight ratio that falls within certain parameters. Call us at 1-800-644-2926 if you want to make things easier for yourself or if you’re not sure if you’re qualified for the no waiting period plan. Within 60 seconds, we can tell you what you’ll be eligible for.
- The graded strategy
- United of Omaha also offers a two-year waiting period plan. It’s known as the “graded plan.”
- If you die during the first two years of this plan, they will return 110 percent of your payments. The waiting period ends after two years, and you are completely insured.
- The only exemption to the waiting period is if someone dies in an accident. Accidental death would result in a total reimbursement of the death benefit even if it occurred during the waiting period.
- The graded plan is broken down as follows:
- Except for Arkansas, Montana, North Carolina, and New York, it’s available in every state.
- The issuers’ ages range from 45 to 80.
- The coverage amounts range from $2,000 to $20,000 (with a $5,000 minimum in Washington).
- Only licensed brokers, such as Choice Mutual, are allowed to sell the product (you cannot buy it directly from them)
- Non-accidental death has a two-year waiting period.
- An example of an application
- a policy examples
Take a look at the health questions to see if you’re eligible for the graded plan. Mutual of Omaha will offer you their graded program if you answer yes to any of those questions.
Advantages and disadvantages
It’s important to note that no single life insurance provider can meet everyone’s needs.
While Mutual of Omaha is undoubtedly one of the best funeral insurance companies in the country, they, too, have advantages and disadvantages.
- Low costs.
- Amounts of coverage are high (up to $40K).
- Option for an unintentional death rider.
- There is no coverage for a waiting time.
- Many health conditions are accepted via lenient underwriting.
- Diabetic-friendly, with insulin, included.
- New applicants as young as 85 years old are welcome to apply.
- This is a simple application.
- Underwriting in a hurry (approvals are typically less than 24 hours).
- Financial strength is unrivaled in the industry.
- You may examine and manage your policy online.
- The policy is mailed in both print and digital (PDF) formats.
- There is no limit to the number of primary and contingent (backup) beneficiaries.
- In New York, it is not available.
- For any of these health conditions, there is a two-year waiting time.
- This is not a guaranteed issue (you must medically qualify).
- Applicants will be chosen at random for a phone interview to clarify some of their medical information.
- Monthly payments cannot be mailed in.
- The use of Direct Express cards is not permitted.
- For diabetics under the age of 50, there is a waiting period.
If you qualify for their instant coverage plan, as we said at the beginning of this article, you should acquire it right away.
Advice on how to choose the best insurance coverage
There is only one thing you must do when looking for final expense insurance. You may think this is overly simplistic, yet it is correct. Let’s say you’re looking for final expense insurance. In that scenario, all you need to do is locate a reliable independent agency that represents a diverse range of businesses. Then allow them to assist you in determining the appropriate policy for you.
- We offer this guidance since only independent organizations can provide the most affordable plans with no waiting period.
- An independent agency will evaluate different carriers’ proposals to determine which one offers the best plan for you.
- You won’t be able to choose which companies will accept you on your own.
- Many businesses do not advertise on television. It doesn’t mean they’re untrustworthy just because you don’t recognize their names. It would be beneficial if you also looked at these firms, as they have reasonable rates and outstanding underwriting. Companies that do not advertise in the mass media must rely on licensed agencies to sell their coverage.
If you try to avoid dealing with an agent, you should expect to pay more and face a longer wait time. Independent agents are here to assist you rather than to sell you something. If you phone us, for example, all we do is ask you questions about your health and aspirations. Then we’d suggest which funeral insurance company is the best fit for you. We’ll assist you in getting accepted if you’re ready to apply. We’ll give you time if you need it. There are no sales pitches or time constraints. Just straightforward advice and consideration.
Company history of Mutual of Omaha
Mutual of Omaha, based in Omaha, Nebraska, has been in operation since 1909. They are a large insurance firm that provides a variety of insurance options. Life insurance, Medicare insurance, long-term care insurance, dental insurance, accidental death insurance, and so on are among the services they provide.
All life insurance policies issued by Mutual of Omaha (including Mutual Omaha burial insurance) will be labeled “United of Omaha” on the paperwork. The companies United of Omaha and Mutual of Omaha are the same.
United of Omaha is the brand name for all of its life insurance products. It would be an understatement to say they are financially secure. They have the best financial ratings available to an insurance firm.
Here are their ratings from some well-known rating agencies:
- A+ from A.M. Best (Superior)
- A1 from Moody’s (Good)
- A+ from S&P Global.
- A+ rating from the Better Business Bureau
You can rest assured that they will be able to pay their claim when the time comes.