When people ask me about mutual of omaha guaranteed issue life insurance, I often tell them it’s like having a safety net when you thought there wasn’t one available. After working with families for years, I’ve seen how Mutual of Omaha’s guaranteed issue policies can provide peace of mind for people who might otherwise go without coverage.
For a complete overview, see how term life insurance works.
Let me walk you through everything you need to know about this option, including when it makes sense and when you might want to consider alternatives.
What Is Mutual of Omaha Guaranteed Issue Life Insurance?
Mutual of Omaha’s guaranteed issue life insurance is exactly what it sounds like—coverage that’s guaranteed to be approved regardless of your health condition. No medical exam, no health questions, no possibility of being declined. If you’re between ages 45 and 85, you can get approved.
But here’s the catch (and I always believe in being upfront about the trade-offs): this type of policy comes with a graded death benefit. That means if you pass away from natural causes within the first two years, your beneficiaries receive only a return of premiums paid plus interest, not the full death benefit.
Think of it like this—the insurance company is taking on unknown risk by not asking health questions, so they protect themselves with this waiting period. It’s not ideal, but for many families, it’s better than having no coverage at all.
How Mutual of Omaha’s Guaranteed Issue Works
The application process is remarkably simple. You’ll answer basic questions about your age, where you live, and who you want as your beneficiary. That’s it. No questions about your health history, medications, or whether you’ve been to the doctor recently.
Coverage amounts typically range from $2,000 to $25,000, which makes this a final expense product rather than a wealth replacement tool. The premiums are fixed, meaning they won’t increase as you age, and the policy builds a small amount of cash value over time.
In my experience, most people use these policies to cover funeral costs, outstanding medical bills, or to leave a modest inheritance for their children or grandchildren.
The Graded Death Benefit Explained
This is the part I always make sure my clients understand completely. During the first 24 months, if you pass away from illness or natural causes, your beneficiaries receive:
- Year 1: Return of all premiums paid plus 10% interest
- Year 2: Return of all premiums paid plus 10% interest
- Year 3 and beyond: Full death benefit
However, if death occurs due to an accident during those first two years, the full death benefit is paid immediately. After the two-year period ends, the full death benefit applies regardless of the cause of death.
I’ve had clients ask me, “Why would I pay premiums for two years just to get my money back?” My answer is always the same—you’re not just getting your money back. You’re getting immediate accident coverage, and you’re securing future coverage that kicks in fully after 24 months. Plus, you’re getting peace of mind knowing your family won’t be left with nothing.
Who Should Consider Guaranteed Issue Coverage?
In my practice, I typically recommend Mutual of Omaha’s guaranteed issue life insurance for people in specific situations:
Recent serious health diagnoses - If you’ve been diagnosed with cancer, had a heart attack, or have another condition that would likely lead to a decline with traditional coverage, guaranteed issue might be your best option.
Multiple health conditions - When someone has diabetes, heart disease, and COPD all at once, even simplified issue policies might decline them.
Previous life insurance declines - If you’ve already been turned down by other companies, guaranteed issue provides a path to coverage.
Ages 75 and older - Traditional life insurance becomes much more expensive and restrictive at these ages, making guaranteed issue more competitive.
Immediate need for accident coverage - The full death benefit applies immediately for accidental death, which provides valuable protection from day one.
Mutual of Omaha: Company Background and Strength
Before recommending any insurance company, I always look at their financial stability. Mutual of Omaha has been in business since 1909, which means they’ve weathered the Great Depression, multiple recessions, and every major economic event of the past century.
They maintain an “A” (Excellent) rating from A.M. Best, which indicates strong financial stability and claims-paying ability. This matters because you’re making a long-term commitment, and you want to be confident the company will be there when your beneficiaries need to file a claim.
The company is also well-known for their customer service, which I can confirm from my own experience working with them. Claims are typically processed quickly, and their customer support team is knowledgeable about their products.
Costs and Pricing Considerations
I won’t sugarcoat this—guaranteed issue life insurance is expensive compared to traditional coverage. You’re paying for the convenience and guarantee of approval, which comes at a premium.
For example, a healthy 60-year-old might pay $30-40 per month for a $10,000 traditional term policy, while the same person might pay $60-80 per month for a $10,000 guaranteed issue policy. The difference becomes even more pronounced as coverage amounts increase.
However, I always remind clients to compare this to the alternative. If you can’t qualify for traditional coverage, guaranteed issue isn’t expensive—it’s your only option for leaving something behind for your family.
The premiums are level, meaning they won’t increase over time, and the policy includes a small cash value component that grows slowly. While you shouldn’t buy this as an investment, the cash value can be borrowed against if needed.
Alternatives to Consider First
Before jumping into guaranteed issue coverage, I typically explore other options with my clients:
Simplified issue life insurance might work if you can answer “no” to 10-15 basic health questions. These policies often have higher coverage limits and better pricing than guaranteed issue, though they’re still more expensive than fully underwritten coverage.
Group life insurance through an employer might provide some coverage without health questions, though it’s usually limited and not portable if you change jobs.
Accidental death insurance provides coverage only for accidental death but at much lower premiums. While limited, it might make sense as a bridge while you’re waiting out the graded benefit period on a guaranteed issue policy.
Application Process and What to Expect
The application for Mutual of Omaha guaranteed issue coverage can often be completed in a single phone call or online session. You’ll need basic information:
- Personal details (name, address, date of birth)
- Beneficiary information
- Coverage amount desired
- Payment method
There’s no medical exam, no waiting for medical records, and no possibility of being declined based on health. In most cases, coverage can begin within a few days of completing the application.
The policy will be delivered by mail, and you’ll typically have a 30-day free look period to review everything and make sure it meets your needs.
When Guaranteed Issue Doesn’t Make Sense
I’m always honest with my clients about when guaranteed issue coverage might not be the right choice:
If you can qualify for traditional coverage - Always try simplified issue or fully underwritten coverage first. The savings can be substantial.
If you’re very young - People in their 40s and 50s with health issues might want to work on improving their health and reapplying for traditional coverage later.
If you need large amounts of coverage - The maximum coverage limits on guaranteed issue policies (typically $25,000) might not be sufficient for your needs.
If cost is the primary concern - There might be less expensive ways to provide for your family’s immediate needs.
My Experience with Mutual of Omaha Claims
Over the years, I’ve helped families file claims with Mutual of Omaha, and I can say their process is straightforward. They clearly explain the graded benefit provisions upfront, so families know what to expect.
The claims team is professional and processes requests promptly. They don’t look for reasons to deny claims—they simply follow the policy terms as written. This reliability is one of the reasons I continue to work with them.
Making the Right Decision for Your Family
When I sit down with someone considering guaranteed issue coverage, I always ask them to think about their primary goal. Is it to:
- Cover final expenses so family members aren’t burdened?
- Leave a small inheritance for children or grandchildren?
- Pay off outstanding debts?
- Provide immediate accident protection?
If the answer aligns with what guaranteed issue coverage can provide, and if traditional coverage isn’t available, then it often makes sense to move forward.
I also remind clients that having some coverage is almost always better than having none. Even with the graded benefit period, you’re creating a financial safety net that wasn’t there before.
- Understand that guaranteed issue coverage accepts anyone aged 45-85 without medical exams or health questions, making it ideal for people who can’t qualify for traditional life insurance policies.
- Expect a graded death benefit where natural deaths in the first two years only return premiums plus 10% interest, while full coverage kicks in after 24 months regardless of cause of death.
- Consider this coverage primarily for final expenses like funeral costs and medical bills rather than wealth replacement, since coverage amounts typically range from modest to moderate levels.
- Know that premiums remain fixed and won’t increase with age, plus the policy builds small cash value over time for added financial security.
- Recognize that accidental death pays the full benefit immediately even during the first two years, providing some protection right from the start of your policy.
The Bottom Line on Mutual of Omaha Guaranteed Issue
Mutual of Omaha’s guaranteed issue life insurance isn’t the cheapest coverage available, and it’s not the most comprehensive. But for people who can’t qualify for traditional life insurance, it provides a reliable path to coverage with a financially strong company.
The key is understanding exactly what you’re buying—immediate accident coverage and full coverage after 24 months, with premiums that reflect the risk the insurance company is taking by not asking health questions.
If you’re interested in learning more about Mutual of Omaha guaranteed issue coverage or want to explore whether you might qualify for less expensive alternatives, I’d be happy to help. As an independent agent, I can walk you through all your options and help you find the coverage that makes the most sense for your situation and budget.
Related Reading
- 30 Year Term Life Insurance: The Complete Guide
- 10 Year Term Life Insurance: The Complete Guide
- Life Insurance for Parents: The Complete Guide
- 20 Year Term Life Insurance Cost in 2026
Ready to get started? Contact me for a free consultation and let’s find the right coverage for your family. I’ll help you understand all your options and make sure you’re getting the best value for your specific circumstances.
