When it comes to buying burial insurance, getting quality coverage at an affordable rate should be your top priority. If you are currently shopping around for coverage, you should consider buying a policy from Mutual of Omaha. Their coverage options are available at great rates, and their plans accept people with moderate to severe health issues.
If you’re wondering whether or not you should buy a plan from Mutual of Omaha, here is what you need to know.
What Is Burial Insurance
Burial insurance is an alternative to traditional life insurance policies. These plans are easier to qualify for than traditional life insurance, which makes them a popular option amongst individuals with health issues.
Just like traditional life insurance plans, burial insurance plans pay out a death benefit to your beneficiaries when you die. To maintain your plan, you must pay monthly premiums up until the point you pass away. If you don’t keep paying your premiums, your policy will be void and when you die, there will be no death benefit payout.
How Does Burial Insurance Work
Burial insurance is strictly regulated, and there are some rules that you should know about. First, once you’ve been accepted into a policy, your premiums are fixed and they cannot be increased by the insurer. Similarly, the plans are permanent and they will never expire. The only time your plan will become inactive is if you do not continue making premium payments. Otherwise, when you die, your beneficiaries will receive the full death benefit as stated in your policy.
Cash Value
One important thing to factor in is the fact that burial insurance policies can build up cash value over time. This is much like whole life insurance policies, which allow policyholders to tap into the value of their life insurance policy to take out loans. These loans can be taken out after enough cash value has accumulated, but if the loan is not paid back, the amount will be deducted from your life insurance death benefit once you die.
How Can Death Benefits Be Used
When you purchase a policy from Mutual of Omaha, you can rest assured that the death benefit received by your beneficiaries can be used for anything they desire. That means it can be used to pay for your funeral expenses, hospital bills, or any other final expenses that may be incurred. Having this allows for a sense of security, as you can rest assured that your death won’t be a financial burden upon your family.
Mutual of Omaha Final Expense Insurance
Mutual of Omaha understands insurance, that’s why they offer insurance solutions of many varieties. In their catalog of final expense insurance options, you can find plans with no waiting period, and others that have one. These are some of Mutual of Omaha’s Burial Insurance options.
Living Promise – Level
If you want to get final expense insurance immediately, with no waiting period, you could go with the Living Promise plan that is offered by Mutual of Omaha. This plan has two different health ratings, meaning the level of coverage you receive will differ based on your health status.
The two ratings are the level death benefit and graded death benefit. If you manage to be approved for the level death benefit, there is no waiting period required after you qualify for coverage. Therefore, your coverage will kick in on day one after you purchase a policy.
This is a breakdown of the Level plan:
- Only sold by licensed brokers
- Immediate coverage with no waiting period
- Available in all states except New York
- Can be issued to people between ages 45 and 85
With the level option, you can also purchase an Accidental Death Rider. It will only cost you a bit extra every month, and it allows for a double payout of the death benefit if your death is caused by an accident.
This is a pretty great plan that offers some high-quality coverage, but it is only available to people who are in excellent health. Generally, you must answer no to all of the insurer’s health questions and have a height to weight ratio within their accepted range.
The Graded Plan
There is another option available for people who don’t have the best health condition. If you have some health issues and still need burial insurance, the graded plan is a great Mutual of Omaha option. This plan has a two-year waiting period, which is there to make insuring people with health issues possible.
If you happen to die during the two-year waiting period, 110 percent of your premiums will be refunded. If you are someone who can make it through the waiting period, your policy will become fully active.
There is an exception to the waiting period rule, though. If you happen to die due to an accident, your policy will kick in and pay out a death benefit. It isn’t just a partial payout either; accidental deaths always result in a full death benefit payment with this plan.
This is a breakdown of the Graded plan:
- Available in all states, excluding Arizona, Minnesota, North Carolina, and New York
- Can be issued to people between ages 45 and 80
- Coverage ranges between $2,000 to $20,000
- Two year waiting period for non-accidental death benefits to become active
Mutual of Omaha Insurance Riders
Riders are additional coverage options that you can apply to your burial insurance policy. Mutual of Omaha offers several riders with all of their final expense policies. The riders that are automatically included are as follows:
- Terminal Illness Rider – If you get diagnosed with a terminal illness and are given 12 months or less to live, you can access up to 50 percent of your death benefit while you are still living.
- Nursing Home Confinement Rider – If you are confined to a nursing home for 90 consecutive days, you can access up to 50 percent of your death benefit.
These riders are included at no cost.
How Much Does Mutual of Omaha Funeral Insurance Cost
How much you are required to pay for burial insurance from Mutual of Omaha depends mostly on your age, health, gender, and the amount of coverage you wish to purchase. If you are a tobacco user, that will also impact your rates significantly. Generally, if you are a smoker, you can expect to pay as much as 40 percent more than non-smokers.
It is hard to specify exactly how much coverage will cost without getting quotes, but on average, you can expect coverage to range from $20 to $200 per month. The lowest rates will be available to people who purchase coverage at the earliest possible age, which is 45. Generally, women are given lower rates on life insurance, so a 45-year-old woman is in the best position to purchase burial insurance from Mutual of Omaha. For such a person, coverage could cost less than $30 per month. Although, that would be highly dependent on their answer to the health questions listed in the application.
As one grows older, the cost for final expense insurance rises as well. Once you pass age 70, you can expect to pay closer to $50 per month. By age 80, this rate will nearly double. The longer you wait, the more your policy will cost. With this in mind, it makes sense to purchase a policy sooner, rather than later.
Mutual of Omaha Burial Insurance: Pros and Cons
One insurance policy may work for some people, but that doesn’t mean it is the perfect fit for you. These are the upsides of purchasing a burial insurance policy from Mutual of Omaha:
- Affordable rates on quality coverage
- High coverage amounts, ranging up to $40,000
- Accidental death riders
- Diabetic-friendly
- Accepts applicants up to age 85
- Fast underwriting, with approvals in as little as 24 hours
- Financially stable insurer
- Unlimited primary and contingent beneficiaries
These are the downsides of a burial insurance plan from Mutual of Omaha:
- There is a 2-year waiting period required for people who have certain health issues
- These plans aren’t guaranteed issue, so not everyone can qualify
- Some applicants will need to participate in a phone interview to verify medical information
- Monthly payments cannot be mailed
- There is a waiting period for people with diabetes who are above age 80
How To Find The Best Burial Insurance
If you are hunting for the best burial insurance around, the task is best achieved with the help of an insurance agent. They will help you compare plans and gather quotes, allowing you to see all of your options before you make a selection. This is also helpful because insurance agencies typically have much wider access to insurance companies. Therefore, they can find policy options that you otherwise may have never become aware of.
A reputable insurance agency is out to achieve more than just earning money through its commission. The goal is to generate satisfying experiences with customers, ensuring that they will continue to work with them in the future. This leads to much greater service, allowing you to find the insurance you need to protect your loved ones from unexpected financial burdens.
Another good point to consider is that you can’t choose an insurance company based solely on their advertisements. Some companies don’t invest much into marketing and advertising because they are more concerned with offering high-quality coverage at affordable rates. The insurance agents do the marketing for them, and in exchange the insurers pay commissions.
Insurance agents are therefore in a great position to provide you with all the information you need to avoid overpriced or underqualified coverage options. Senior Life Services is a great way to get access to the best plans, like Mutual of Omaha’s selection.
Mutual of Omaha
If you want to know more about Mutual of Omaha before making a purchase, that makes perfect sense! Here’s what we know.
Mutual of Omaha is based out of Omaha, Nebraska, and they’ve been in business since 1909. This is a large insurance company that offers a range of different insurance products. They offer life insurance, medical insurance, long-term care insurance, dental insurance, accidental insurance, final expense insurance, and more!
They have millions of satisfied customers and plenty of great reviews.
Any life insurance purchased through Mutual of Omaha will appear as United of Omaha on the paperwork. This is because the shares of United of Omaha are owned by Mutual of Omaha.
You can trust this company because they are incredibly financially stable. In fact, this company has the highest financial rating that an insurance company can get. Across four of the most notable rating agencies, Mutual of Omaha received all A-level ratings.
Buy Burial Insurance From Mutual of Omaha
Our agents are here to help you get the burial insurance plan you need. To get started, please call Senior Life Services at (800) 548-3249.
