Whole life insurance is a popular form of life insurance, as it never expires. These permanent life insurance plans also come with a fixed premium guaranteed to remain the same price throughout the entire contract duration, in addition to many other advantages.
When choosing a whole life insurance policy, the variety of options can be overwhelming, especially if you are in your senior years and are only looking for a small policy to accommodate burial and funeral expenses.
If you’re in the market for a smaller whole life insurance policy capable of providing financial protection for burial and final expenses, your search is highly likely to produce Mutual of Omaha Living Promise whole life insurance as a leading option.
Mutual of Omaha is a respected insurance company with many decades of experience. Their Living Promise whole life insurance plans have become one of the number one choices for senior life insurance planning.
The following review takes a close and very detailed look into the popular whole life insurance plan. We will examine everything in detail to what Living Promise can offer, from the eligibility requirements, coverage amounts, medical exam requirements, policy riders, and costs to help reduce the stress of choosing whole life insurance.
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Mutual of Omaha Living Promise Whole Life Insurance
Mutual of Omaha Living Promise Highlights
- Whole life insurance
- Premiums never increase
- Death benefit never decreases
- Guaranteed cash value growth
- No medical exam required
- Level and graded death benefit options
- Accelerated death benefit rider
Living Promise whole life insurance is one of Mutual of Omaha’s life insurance products designed for helping with final expenses and retirement planning.
It comes with lower death benefit options, affordable premiums, guaranteed cash value growth, and simplified underwriting that requires absolutely no medical exams.
Competitive premiums and a streamlined application process make Living Promise an appealing option. However, there are many details to consider about the popular Mutual of Omaha whole life insurance coverage.
So let’s take a closer look at what the coverage has to offer.
Mutual of Omaha Living Promise Overview
|Policy Features||Level Benefit||Graded Benefit|
|Coverage Amounts:||$2,000 - $40,000||$2,000 - $20,000|
|Underwriting Classes:||Standard Tobacco/Nontobacco||Standard (no tobacco distinction)|
|Contract Duration:||Guaranteed to age 100||Guaranteed to age 100|
|Policy Riders:||Accelerated death benefit rider|
Accidental death benefit rider
|No available riders|
|State Availability:||All states except NY||All states except AR, MT, NY, and NC|
Mutual of Omaha Living Promise Whole Life Insurance Issue Ages
Mutual of Omaha Living Promise is available to applicants who are between the ages of 45-85.
- The level benefit plan is available for those between the ages of 45 and 85.
- The graded benefit plan is available for individuals between the ages of 45 and 80.
Level and Graded Benefit Plans
Mutual of Omaha Living Promise whole life insurance includes two separate plans:
- Level benefit plan
- Graded benefit plan
A level benefit means that the death benefit remains level throughout the life of the policy. The level benefit plan is like having any other traditional type of life insurance coverage. The policy will pay out the full death benefit to beneficiaries after the policyholder’s death, even if the policyholder dies within the first two years or any time thereafter.
The graded benefit plan places a hold on paying out the full death benefit if death were to occur during the first two policy years. Qualifying for a graded benefit plan will have limited benefit and be costlier than a level benefit plan. This is because the insurance company can often approve coverage to an applicant with a medical history that would be considered high risk.
If the policyholder dies of natural causes within the first two years, the beneficiaries receive a return of all premiums plus 10% interest on the total amount of paid premiums. If the policyholder dies after the first two years, the full death benefit is paid to the beneficiary.
The graded benefit plan is not available in Arkansas, Montana, or North Carolina.
Level and Graded Death Benefit Qualification
Mutual of Omaha Living Promise does not require applicants to take a medical exam at all. Instead, the type of plan you qualify for will depend on your answers to the medical questions listed within the application for coverage.
Health questions are broken down into two parts. The first part contains a series of health questions known as the knockout questions. Answering “yes” to any health-related questions would result in immediate ineligibility for a Living Promise whole life insurance policy.
The second part of the application contains a series of health-related questions that, if answered “yes,” would potentially qualify an applicant for a graded benefit plan only.
If an applicant does not answer “yes” to any of the health questions listed within parts one and two, they will be eligible for the level benefit plan.
Along with your medical history, Mutual of Omaha considers your height and weight as part of eligibility for coverage. Your weight must fall within the range specified for your height. The weight range is very forgiving, so most people are not generally disqualified based on their build, but it is a qualification factor.
Living Promise Minimum and Maximum Coverage Amounts
The minimum coverage amount is $2,000 for either Living Promise plan, but each has different maximum coverage amounts. For example, the level benefit plan allows up to $40,000, while the graded benefit plan allows up to $20,000 in coverage.
In the state of Washington, the level benefit plan offers coverage of $5,000 to $40,000. The graded benefit plan is available with face amounts from $5,000 to $20,000.
The maximum coverage amount is also limited if you have additional life insurance plans from Mutual of Omaha. You cannot obtain more than $50,000 in coverage from all level benefit plans from the company. In addition, the graded benefit plans cannot exceed more than $25,000 in total coverage.
For example, if you already have a graded benefit plan from Mutual of Omaha with a face value of $15,000, your second policy cannot exceed $10,000.
Medical Exam Requirements
The Living Promise whole life plan does not require a medical exam as it falls under what is referred to as simplified underwriting. It is designed to provide a simple solution for those who want quick coverage.
Your medical history primarily determines whether you qualify for one of the two plans. Individuals with no significant health concerns are likely to qualify for a level benefit plan.
If you take prescription medications for issues such as diabetes or have a history of a pre-existing health condition such as cancer, COPD, or health conditions, you may qualify for the graded benefit plan and not the level benefit plan.
Individuals with more serious medical conditions, such as HIV, or who is currently bedridden or treated for cancer will not be eligible for a Living Promise plan.
Available Policy Riders
The Living Promise level benefit whole life insurance comes with an accelerated death benefit rider at no additional cost. The accelerated death benefit rider is a living benefit that allows you to receive a one-time benefit after being diagnosed with a terminal illness or confined to a nursing home.
In Connecticut, the accelerated death benefit is only available after being diagnosed with a terminal illness. It does not apply when confined to a nursing home.
In the state of Florida, the accelerated death benefit may be received if a physician certified that you are unable to perform at least two activities of daily living due to an illness.
An optional accidental death benefit rider is also available for the level benefit plan. Unlike the accelerated death benefit rider, the accidental death benefit includes an additional premium. Luckily, it only costs a few dollars per year for most applicants.
The premium for the accidental death benefit is based on your age. For example, if you are 45, you only pay an extra $2.77 for the optional rider. If you are 65, the accidental death rider is just $3.93 per year.
If you die from accidental bodily injury, the accidental death benefit rider provides a death benefit equal to the policy’s face value.
Mutual of Omaha does not offer any policy riders with the graded benefit plan.
Guaranteed Cash Value Growth
Living Promise is a whole life insurance policy that has a guaranteed cash-value account. A predetermined portion of each premium payment is deposited into a cash-value account that can be accessed if needed through a loan.
Withdrawing cash from the cash value account is similar to a loan from the bank. There is no time limit when the money needs to be paid back, but there is an annual interest charge of 8% for any outstanding amount.
Mutual Perks Program
Mutual Perks are a group of value-added services provided to policyholders at no additional cost. Some of the services and benefits provided include:
- Coupons and discounts
- Access to a health and fitness program
- Vision care
- Hearing health care
- Mortgages and refinancing
Policyholders receive discounts at local retailers and restaurants, coupons for national online merchants, and discounts on health and wellness products. Savings are also available on eye exams, eyewear, hearing tests, and hearing aids.
Mutual Perks are added at no extra cost. However, for an extra $25 per month, you gain the Mutually Well gym membership, which includes access to over 10,000 fitness clubs around the country.
Mutual of Omaha Living Promise Whole Life Insurance Frequently Asked Questions
Along with the coverage details discussed, you may have additional questions about Mutual of Omaha’s Living Promise whole life insurance. The following answers and questions should address anything not already covered.
However, if you have a follow-up question, please get in touch with us, and we will provide an answer and make we added it to the below list.
How Do You Apply for Mutual of Omaha Living Promise Whole Life Insurance?
Applicants may apply for a Mutual of Omaha Living Promise policy by submitting a paper application or we can assist with the electronic application process. Mutual of Omaha uses a program called Apptical to quickly process the initial application.
Your agent will use the Apptical program to begin an interview process after you have completed the application. The interview process includes a personal health interview (PHI) completed over the phone.
You typically need to verify information or answer questions related to:
- Your identification
- Your height and weight
- Confirmation that you signed the application
- Authorization of a prescription history check
- Health questions listed on the Living Promise application
While you answer the questions, Apptical checks your medical history. You may also need to answer a few additional questions to clarify some of the information provided.
What Determines Eligibility?
Mutual of Omaha uses a build chart to assess your eligibility based on height and weight. The chart includes a minimum weight for different heights and a maximum weight for the level benefit and graded benefit plans.
For example, if you are 5’9” tall, you must weigh between 112 and 291 pounds to qualify for the level benefit plan. If you weigh between 291 pounds and 309 pounds, you may apply for the graded benefit plan. If you are 5’9” tall and weigh more than 309 pounds, you are not eligible for either plan.
Eligibility is also determined based on your medical history and prescription history. During the application process, you will need to answer a series of health questions. The health questions allow our agents to determine your eligibility for the level benefit plan or the graded benefit plan.
Eligibility is determined during the interview process. After answering the health questions, Mutual of Omaha will run a check of your prescription history and your medical information bureau (MIB) record. Based on the checks, you will receive one of the following four results:
- You are eligible for the plan
- There is a discrepancy between the coverage option and the prescription history check
- There is a discrepancy between the coverage option and the MIB check
- You are ineligible based on the answers to the health questions
Discrepancies between the coverage option and the medical checks occur when you do not qualify for the plan that you selected on the application. If you choose the level benefit plan and do not qualify, Mutual of Omaha may still be able to approve coverage for the graded benefit plan.
How Quickly Is Approval for Coverage?
Approval is almost instant for those who qualify through the online electronic application process. As a result, you should typically receive a response during the interview process instead of needing to wait several days or weeks.
Paper applications will take a little longer as they will need to go through processing and then be assigned to an underwriter for review. The average turnaround time for paper application approval is 3-5 business days.
What Happens After You Are Approved for Coverage?
If you are approved for Living Promise whole life insurance coverage, your agent will notify you of the approval and confirm your acceptance of the approval.
If approval is accepted, the insurance company will issue your policy and either electronically email or mail a hard copy of the policy. Your coverage will start from the date that you pay the first premium.
What Happens If You Are Denied Coverage?
You don’t need to be in perfect health to qualify for a Mutual of Omaha Living promise whole life insurance policy. The graded death benefit option allows applicants with certain high-risk health conditions to qualify for life insurance coverage.
However, these plans are not guaranteed approval. Not every applicant who applies will qualify, and applicants will be denied a policy if they cannot meet the underwriting guidelines.
If denied a Living Promise life insurance policy, your agent should check with other providers that may be able to offer a policy.
Mutual of Omaha offers a guaranteed acceptance policy, but they much more expensive than the Living Promise plans. However, you cannot be denied a policy regardless of your health.
Is Mutual of Omaha Whole Life Insurance Affordable?
Mutual of Omaha whole life insurance plans are relatively affordable. Yet, you are likely to pay slightly more compared to some of the other whole life insurance products out there.
The Living Promise plans come with higher premiums due to the features provided with these plans. For example, there is no medical exam, and approval is offered almost immediately. Your policy also builds cash value, which may be used to cover expenses later in life.
Basically, you pay a little more for the convenience offered by the Living Promise plans. However, you should also check out some of the rates for your age group to better understand the potential costs.
Mutual of Omaha Living Promise Sample Rates
|Male||$10,000 Level Benefit||$10,000 Graded Benefit||$20,000 Level Benefit||$20,000 Graded Benefit|
|Female||$10,000 Level Benefit||$10,000 Graded Benefit||$20,000 Level Benefit||$20,000 Graded Benefit|
Monthly male/female premium rates current as of 07/12/2021 representing the cost of a $10,000 and $20,000 Mutual of Omaha Living Promise whole life insurance policy both level, and graded benefit plans.
Is Mutual of Omaha Living Promise Whole Life Better Than the Competition?
Mutual of Omaha Living Promise is one of the fastest, easiest ways to obtain whole life insurance, which helps it stand out from the competition. The prices are also competitive.
While you may find slightly less expensive options elsewhere, you are unlikely to find a more streamlined application process than what you will experience when applying for a Mutual of Omaha Living Promise policy.
What Is Mutual of Omaha’s Cancellation Policy?
Mutual of Omaha does not publish its cancellation policy. However, the company must comply with state laws, which often require insurance companies to offer a “free look period.” The free look period is typically 10 days, but some states may require longer periods.
You can cancel your policy without penalty during the free look period. However, you will likely need to pay a surrender fee to cancel your policy after the free look period ends. Mutual of Omaha will also cancel your policy if you stop paying your premiums.
What Other Life Insurance Does Mutual of Omaha Offer?
Mutual of Omaha has several life insurance products, including:
- Term life insurance
- Whole life insurance
- Universal life insurance
- Accidental death insurance
The term life insurance from Mutual of Omaha offers benefits up to $100,000 and terms of 10, 15, 20, or 30 years. Universal life insurance provides an alternative to simplified whole life insurance. It offers increased flexibility, more policy riders, and more risk.
Accidental death insurance offers death benefits up to $1,000,000 with low premiums. However, it only pays the death benefit in the event of accidental death. If you die of natural causes, the company does not pay the death benefit. Annuities, investments, mortgages, and reverse mortgages are also available through Mutual of Omaha.
Mutual of Omaha Company Customer Service
Mutual of Omaha is often praised for its reliable customer service. You can contact the company directly, work with a local agent, or request to be connected to an agent.
Mutual of Omaha’s customer support team is available via phone or email during standard business hours on the weekdays and reduced hours on Saturdays.
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Advantages of Mutual of Omaha Whole Life Insurance
Mutual of Omaha whole life insurance offers several benefits that help make it a highly recommended insurance option:
- No medical exams
- Over the phone approval
- Premiums never increase
- Your policy cannot be canceled
- Online final expenses calculator
Living Promise is a true “no-medical exam” insurance product. You do not need to schedule a medical exam with a paramedical examiner. Instead, the interview process can be completed entirely over the phone. You need to answer some health questions, and underwriting will take care of the rest to potentially provide immediate approval.
If you continue paying the premium, Mutual of Omaha cannot cancel your policy for any reason. Your policy, including your premiums and death benefit, is locked in for life. You gain coverage for your final expenses that you can count on, as the policy never changes.
If you do not know how much coverage you need, you can use Mutual of Omaha’s online final expenses estimator. The online calculator includes the average prices for common final expenses, including cremations, traditional funeral services, burials, and family travel expenses. The prices are based on the averages for your state, giving you a realistic look at the potential costs.
Disadvantages of Mutual of Omaha Whole Life Insurance
Despite the many advantages that come with the Living Promise plans, these insurance products also offer a few potential disadvantages:
- A limited selection of policy riders
- Limited coverage amounts
- Some options not available in every state
- Disqualifying health conditions not listed online
Mutual of Omaha only offers two policy riders for the level benefit plan. Included is the accelerated death benefit rider at no additional cost. In addition, the accidental death benefit rider is available with an extra premium.
You cannot add any policy riders to the graded benefit plan. It is simply a no-frills whole life insurance plan with a full death benefit payout that is eligible after policy year two. If death occurs before policy year two, your beneficiary will only receive the total amount of premiums paid plus 10% interest.
The maximum coverage amount is relatively small for both plans. The level benefit plan has a maximum amount of $40,000, while the graded benefit plan is capped at $20,000. Therefore, if you anticipate needing more funds to cover your final expenses, you may need multiple policies or an alternative life insurance product.
As with insurance products, the availability of policy riders and plans varies from state to state. For example, the graded benefit plan is not available in several states. Some states also have different requirements for the accelerated death benefit rider, which can be confusing.
Some health conditions may disqualify you from applying for one or both plans.
How to Get a Mutual of Omaha Living Promise Whole Life Quote
You can obtain an instant quote for Mutual of Omaha Living Promise insurance using our online quote tool. You simply need to provide a few details, including your gender and the coverage amount, to estimate the cost of your new insurance plan.
Another advantage to getting your quote with No Medical Exam Quotes is that our online quote tool will run comparison rates from other providers that offer a similar coverage option. That way, you will know if Mutual of Omaha Living Promise is the best option based on price or if another company can beat their rates.
Conclusion – Is Mutual of Omaha Living Promise Whole Life Insurance Worth it?
Mutual of Omaha’s whole life insurance offers convenient options for those who want coverage without any hassle. Living Promise is a no-medical exam insurance product with instant approval and affordable premiums.
You can only add an accelerated death benefit rider or accidental death benefit rider to the level benefit plan. The maximum coverage amounts are also relatively small. Yet, you are unlikely to find many plans with faster approval.
You can get approved over the phone after answering a few basic questions about your medical history. While the maximum coverage amount is limited to $20,000 to $40,000, you can still obtain a large enough death benefit to cover your final expenses.
The Living Promise plans are available for individuals between the ages of 45 and 85. If you meet the eligibility requirements, the Living Promise can offer extra peace of mind with premiums that never increase and benefits that never decrease.