Mutual of Omaha Final Expense Life Insurance Review



United of Omaha, one of the Mutual of Omaha family of companies offers an very competitive Final Expense policy called Living Promise.  This product is very well priced for the applicants that qualify for the coverage and is considered one of the best final expense (burial insurance) policies available.lion

First a few notes on Mutual of Omaha…  An A+ rated company by A.M. Best, they are one of the most widely recognized and well respected insurance companies in years past and now.  Many of you will remember Wild Kingdom hosted by Marlin Perkins on television, and if you didn’t have a Mutual of Omaha policy, you probably knew the name from Mutual of Omaha sponsoring the show.

They began offering coverage in 1910 as Mutual Benefit Health & Accident Association in the state of Nebraska.  By 1918 they merged with Omaha Health and Accident Association and later added United Benefit Life to provide pensions, life insurance and annuities.

In 1949, due to changing state regulations, Mutual Benefit formed Companion Life to provide benefits in the state of New York.   Finally in 1950 they change the name to Mutual of Omaha. They were a generation ahead of other competition.  Mutual even began using an IBM electronic data processing system in 1957 and was the first company selected in 1966 to administer the first Medicare Parts A and B benefits.

Final expense insurance is a generalized phrase used to describe small amounts of life insurance, primarily to cover the burial, cremation, funeral and other costs associated with dying.  It’s really more involved than just the cost of the funeral because that itself can consist of the service, embalming, flowers, casket or urn, limousine, transporting the body, and much more.  This is why many people call it “Burial Insurance”.

Calling it burial insurance can be a little confusing because the the money that the beneficiary receives can be used for what ever they want. There is no requirement that when the death benefit on a “final expense” or “burial insurance” policy is paid out, the money has to be used to pay the funeral expenses.  These are simply fancy words to describe a life insurance policy that typically is easy to get approved for and issued in small amounts like $5,000 to $25,000.

Advantages of the Mutual Of Omaha Final Expense Life Insurance Policy

United of Omaha has been offering policies for many years and has one of the most competitively priced plans and one of the best burial, final expense plans.  They do not offer a guaranteed issue, but they do offer two levels of benefits:  Immediate level death benefit and a graded death benefit.  It’s always better to try and qualify for the immediate rather than graded policy with all burial or final expense plans.Escalator

There are a series of health questions you must be able to pass and outlined in three sections.  In order the get the level death benefit, the applicant must be able to answer no to all the health questions in sections one, two and three. The first section of questions are your average questions that nearly all final expense or burial insurance policies ask.

If a person has ever been diagnosed with conditions like HIV/AIDS/ARC or Alzheimer’s, then no coverage will be offered. Our independent agents should be able to help find a guaranteed issue  policy with no health questions to pass.  Other conditions like having Lou Gehrig’s or recurrent cancer of the same type also would not be accepted for any level of coverage.

The Mutual of Omaha is considered to be a little tougher on the simplified issue final expense plans than most other companies.  As mentioned before, recurrent  or any type of metastatic cancer at anytime would cause a decline.  The majority of other companies only ask if the applicant has or had cancer in the last two to three years and don’t care if it metastasized or came back.  They just want to be sure there has not been any in for a certain stated amount of time.

Another very surprising difference is that if some has been diagnosed with insulin shock or been in a diabetic coma, that too will knock you out of there plan.  And then there is of course the question about being diagnosed with a terminal illness will to be asked. But no surprise there, almost every company wants to make sure a person is not expected to die in the next 12 months.

Again, United of Omaha has one of the best priced products for the final expense plan, so they are obviously doing something right if they have been around for as long as they have.  So, you have to expect that their products are priced properly and they are in it for the long haul.


Omaha does offer some other valuable features to their Level death benefit policy at no additional cost.

  • Coverage is available for ages 45 through 80, and up to $40,000.  Most other companies on the market today only go up to $25,000 for an immediate, level death benefit.  They do offer a reduced amount to $20,000 for the applicants who will only qualify for the graded death benefit.  This graded, $20,000 limit is about two time more death benefit with Omaha than other companies offering the graded policy which is usually up to $10,000.
  • If a policy holder is diagnoses with a terminal illness, or they have been in a nursing home for ninety days or more, and will remain there the rest of their life (this benefit may differ in other states), they can access the death benefit while they are still living.  This can help with out of pocket medical expenses so that bills don’t accumulate unpaid, or even to make a special purchase for any reason they want.  The money can be used for what ever the owner decides to do with it.  However, the illness or condition must be verified and documented by their physician.
  • There is one optional rider that can be purchased for an additional cost.  An Accidental Death rider can be added at the time of application if an applicant wants additional money to be paid the the beneficiary in the even they die from an accident.  This policy rider does not pay anything if the person loses a limb, finger, eyesight or hearing, like some other “accident” policies, but it will double the death benefit.  This rider may not be available in all states.

Don’t hesitate to have our independent agents get you the Best for Less!

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