Burial insurance is an easy way to provide benefits for end-of-life expenses. Learn more in our Mutual of Omaha Burial Insurance review.
No matter what kind of life insurance you want to get, it’s vital that you do some research on the company that offers it first. Mutual of Omaha is a high-quality insurance agency that’s been in business for over 100 years.
In this article, we’ll be focusing on a specific type of insurance that Mutual offers – burial insurance. Not only will we dive into the various benefits and pricing structures, but we’ll help you determine if burial insurance is right for you.
Mutual of Omaha Burial Insurance Review
Because life insurance is such a critical type of protection, you need to be able to trust the company insuring you. One of the best indicators for trust is how long that brand has been in business. Mutual of Omaha was founded in 1909 under the name Mutual Benefit Health and Accident Association.
In addition to life insurance, the company offers financial investments as well (think annuities). You can also get a mortgage through its sister company, the Mutual of Omaha Bank. As you probably would have guessed, the company is based in Omaha, Nebraska.
While a business’s longevity can help build trust, several ratings can help influence your decision. AM Best is an independent organization that ranks companies based on their credit history and ability to satisfy debt. Mutual of Omaha currently has a rating of A+, which is incredibly high. For reference, the highest score is A++.
Moody’s is another institution that ranks insurance companies, and it has given Mutual of Omaha an A rating as well. Moody’s focuses on the ratio of debt to assets, and it looks like Mutual has plenty of assets to go around.
Finally, the Better Business Bureau evaluates companies based on user ratings and complaints. Mutual of Omaha has an A+ rating there. This means that you can expect quality customer service if you have an issue with your insurance.
Overall, these rankings should give you confidence in buying a policy from Mutual of Omaha. However, that being said, it’s still vital to compare various insurance companies to find the best rate for you. Each insurer has different qualifications and requirements for their plans, so you might be able to save money elsewhere.
An Intro to Burial Insurance
Before we dive into our Mutual of Omaha Burial Insurance review, let’s discuss the essential elements of burial insurance. Also called “end-of-life insurance,” these policies differ from regular life insurance in a few key ways.
Here’s a quick breakdown.
- Permanent Coverage – Like whole life insurance, this kind of policy will cover you until you die, as long as you keep making payments. This way, you never have to worry about your plan lapsing and your loved ones missing out on a death benefit.
- Lower Payment Amounts – When buying regular life insurance, you can typically choose as much money as you need. Some policies can get into the millions, depending on a variety of factors. With burial insurance, however, you can typically only get $25,000 or less. Some plans can go up to $40,000, but you have to qualify for it and be in excellent health.
- Guaranteed Coverage – One reason why burial insurance is popular is that it can cover anyone. Even if you have a debilitating disease or condition, you can get insured. Most policies don’t require a medical exam.
- Higher Premiums – While guaranteed acceptance can be a benefit, it does come at a higher cost. Not only that, but you’ll likely have to wait two years before the benefits can pay out, so keep that in mind. Overall, the healthier and younger you are, the less you’ll have to spend each month.
- Return of Premiums – Usually, when buying life insurance, your premium payments can either go into a cash value sum (i.e., with whole coverage) or they expire with your plan (i.e., term coverage). With burial insurance, however, your beneficiaries will get a return on the premiums paid, even if you die within the two-year window. So, no matter what, you can ensure that some money will go to your loved ones.
Now that we understand the basics, we can look at how Mutual of Omaha delivers this kind of coverage to its clients.
Burial Insurance Plans – Living Promise vs. Guaranteed Acceptance
For some individuals, the idea of a two-year waiting period can make them nervous. Even if they aren’t diagnosed with a life-threatening condition, you never know what the future can hold. Fortunately, Mutual of Omaha offers full day-one coverage, which they call Living Promise.
If you qualify for this plan, you will not only pay lower premiums, but you won’t have to wait two years for the full death benefit. The other option is guaranteed acceptance, which costs more and has a waiting period. As a rule, avoid guaranteed plans unless you know you’ll get denied otherwise.
Here is a breakdown of prices for Living Promise for both men and women (non-smoking).
Age 45 – Policy $10,000 – Male: $27.11/month
Age 45 – Policy $10,000 – Female: $22.61/month
Age 55 – Policy $10,000 – Male: $35.95/month
Age 55 – Policy $10,000 – Female: $27.71/month
Age 65 – Policy $10,000 – Male: $56.48
Age 65 – Policy $10,000 – Female: $41.01
Age 75 – Policy $10,000 – Male: $99.17
Age 75 – Policy $10,000 – Female: $72.41
Age 85 (Maxed Out) – Policy $10,000 – Male: $192.74
Age 85 (Maxed Out) – Policy $10,000 – Female: $135.90
As you can see, women tend to pay far less as they get older. Also, if you’re over 85, you will have to get guaranteed acceptance coverage, which will be a lot more.
Here is a breakdown of these same policies with the guaranteed plan.
Age 45 – $10,000 – Male: $32.50
Age 45 – $10,000 – Female: $27.00
Age 55 – $10,000 – Male: $45.00
Age 55 – $10,000 – Female: $37.50
Age 65 – $10,000 – Male: $66.00
Age 65 – $10,000 – Female: $51.00
Age 75 – $10,000 – Male: $121.00
Age 75 – $10,000 – Female: $98.00
Age 85 – $10,000 – Male: $166.00
Age 85 – $10,000 – Female: $139.50
Interestingly, the premium rates for both men and women stop increasing at age 80. This is because of the waiting period, so no matter how old you are, once you reach 80, your rate will be the same.
With both options, you can get up to $40,000 of insurance if you qualify. We’ll get into the qualification questions later on in the article.
Living Promise Plan: Level vs. Graded Benefits
When talking about standard burial insurance, plans can be one of three options: level, graded, or modified (guaranteed acceptance). Let’s break down the difference between them.
If you can get this policy, you should. The premiums are the lowest of the three, and you get coverage from day one. Best of all, no medical exam is required – you just need to answer a few questions about your health.
With Living Promise, you can get between $2,000 to $40,000, although coverage does vary by state. For example, those in Washington can only get between $25,000 and $40,000. This plan is open to anyone aged 45 to 85, and you can add several benefits riders as well. These riders include:
- Accelerated Death Benefit – You can borrow against your benefit amount to pay for the treatment of a terminal illness (i.e., cancer).
- Nursing Home Confinement – If you’re confined to a nursing home or long-term care facility because of your health, you can also borrow against your death benefit while alive.
- Accidental Death and Dismemberment – While your insurance pays out upon your death no matter what, this rider can deliver extra benefits if you die from an accident, like an auto collision or malpractice.
Again, keep in mind that these riders and coverage amounts can vary by state, so be sure to check with your insurance agent to see which options are available. Also, the accelerated death benefit and nursing home confinement are usually free to add, but not AD&D. Since your beneficiaries will receive additional funds, you have to pay extra for that rider.
If you don’t qualify for level benefits, the next best option is graded premiums. In this case, you will have to wait for two years for the full benefits to pay out.
The term “graded” refers to the fact that the amount paid within the two-year window will vary. With most burial insurance, your beneficiaries receive a portion of the death benefit, such as 40-percent in the first year and 75-percent in the second.
With Mutual of Omaha, however, the company will only repay any premiums paid plus 10-percent interest. This is the same as a guaranteed acceptance plan, so keep that in mind.
Graded benefits are available for individuals between 45 to 80, and they cap off at $20,000. One unique feature is that the policy will pay in full if you die from an accident or dismemberment at any point, including the initial two-year window. While your beneficiaries won’t get extra, it can provide some extra peace of mind.
Finally, some states do not have this plan, such as Arizona, Montana, or Washington. Again, check with your insurance agent to see what options you have. Next in our Mutual of Omaha Burial Insurance review we will cover the qualifier questions.
Plan Qualifier Questions
As we mentioned, you don’t have to submit to a medical exam for burial insurance, but you do have to fill out a questionnaire. You must be open and honest when providing answers. If the insurance company discovers that you lied, they will deny benefits and cancel your coverage altogether.
There are two rounds of questioning. The first contains “knockout” conditions, which means that if you answer yes to any of them, you aren’t eligible for coverage. If you don’t have any of the conditions listed, you can receive either level or graded benefits. Mutual of Omaha will tell you which option you can have based on your answers to part two.
Here are the questions Mutual of Omaha will ask in part one:
“Are you currently:
Bedridden, confined to any kind of nursing facility, or receiving home health care?
Need help with daily activities such as bathing, eating, taking medicine, toileting, dressing, getting in or out of a chair/bed, or control of bladder or bowel problems?
Require an electric scooter, wheelchair, or oxygen equipment (CPAP is acceptable)?”
“Have you ever had or been diagnosed with or treated for:
AIDS, HIV, or an AIDS-related complex?
Alzheimer’s, dementia, mental incapacity, congestive heart failure, metastatic cancer, a recurrence of previous cancer, sickle cell anemia, Lou Gehrig’s disease, paraplegia, quadriplegia, Down’s Syndrome, myelodysplastic syndrome, or hunting’s disease?
Diabetic coma, insulin shock, dialysis, or amputation due to diabetes?
Were you advised to receive a bone marrow, tissue, or organ transplant?
Terminal condition expected to cause death in 12 months?”
“In the last 12 months, have you been:
Advised to have any surgery, diagnostic test, hospitalization, treatment, or other procedure that hasn’t been completed or for which results are unknown? (this is referring to pending situations)
Had a heart surgery or been diagnosed as having heart disease? (this is relating to the initial diagnosis)”
“In the last two years:
Been diagnosed with, treated, or been advised to seek treatment for any form of cancer (basal and squamous cell are the exception)?”
Here are the questions Mutual of Omaha will ask in part two:
“Have you ever been diagnosed with, treated for, or been advised to seek treatment for:
COPD, emphysema, chronic lung disease, or sarcoidosis?
Diabetes before age 50
Diabetic complications such as neuropathy, retinopathy, nephropathy, or peripheral vascular disease?”
“In the last four years have you been diagnosed with, treated for, or been advised to seek treatment for:
Cancer (except basal or squamous cell)?
Bipolar disorder, schizophrenia, multiple sclerosis, or Parkinson’s disease?
Chronic kidney disease, scleroderma, or systemic lupus?”
“In the last 24 months have you been diagnosed with, treated for, or been advised to seek treatment for:
Valvular heart disease with surgical repair, coronary artery disease (events such as blockages or stent procedures), irregular heart rhythm, heart attack, artery bypass surgery, angioplasty, stroke or mini-stroke (TIA attack)?”
“In the prior 24 months have you:
Been convicted of or presently awaiting trial for a felony offense?
Received treatment for drug or alcohol abuse, been convicted more than once of driving recklessly or DUI, or used unlawful drugs in any form or abused or improperly used prescription drugs?
Have you been confined to a hospital for any nervous or mental disorder?”
“In the past 12 months:
Experienced unexplained weight loss greater than 10 pounds, consulted a doctor for a chronic cough, fatigue, or gastrointestinal bleeding?”
Some of these questions can be worded poorly, so be sure to ask your agent for clarification, rather than taking a guess. Remember, your answers will determine your coverage options, so you never want to leave that to chance.
Also, the company will look at your medical records, as well as your prescription history. They do this to verify that the information you provided was accurate. Again, if you lied, you’ll be denied coverage.
That is our Mutual of Omaha Burial Insurance review.
Contact NextGen Life Insurance Today
If you’re feeling overwhelmed at the steps you have to take to get burial insurance, let us help. Not only can we assist you in getting a plan from Mutual of Omaha, but we can compare rates and coverage options to fit your needs. Don’t wait until it’s too late, call us today.