When I talk to families about life insurance, Mutual of Omaha comes up frequently—and for good reason. This Nebraska-based company has been protecting American families since 1909, building a reputation that spans over a century. But is mutual of omaha mortgage protection insurance the right choice for your family’s needs?
For a complete overview, see our comprehensive final expense guide.
Having worked with dozens of life insurance carriers over the years, I can tell you that Mutual of Omaha stands out in several key areas. They’re not the flashiest company, and they don’t spend millions on Super Bowl ads, but what they do offer is solid, reliable coverage with competitive rates and excellent customer service.
Let me walk you through what I’ve learned about Mutual of Omaha’s mortgage protection and life insurance options, so you can make an informed decision for your family.
What Is Mortgage Protection Insurance?
Before diving into Mutual of Omaha specifically, let me clarify what mortgage protection insurance actually is. It’s essentially term life insurance designed to pay off your mortgage if you pass away unexpectedly. The idea is simple: your family keeps the house without the burden of monthly mortgage payments.
Now, here’s something important I always explain to my clients—mortgage protection insurance is just a marketing term. What you’re really buying is decreasing term life insurance. The coverage amount goes down each year as your mortgage balance decreases.
While this might sound logical, I often recommend regular term life insurance instead. Here’s why: with level term coverage, your family gets the full death benefit regardless of your remaining mortgage balance. They can pay off the house and still have money left over for other expenses.
Mutual of Omaha’s Approach to Life Insurance
Mutual of Omaha offers several types of life insurance, including term policies that work perfectly for mortgage protection. What I appreciate about their approach is the flexibility—they don’t lock you into a decreasing benefit if that doesn’t make sense for your situation.
Term Life Insurance Options
Their term life products include:
- 10, 15, 20, and 30-year level term policies
- Coverage amounts from $25,000 to $10 million
- Conversion options to permanent life insurance
- Competitive rates for healthy applicants
Whole Life Insurance
For those interested in permanent coverage with cash value, Mutual of Omaha offers whole life policies that:
- Build guaranteed cash value
- Pay dividends (though not guaranteed)
- Provide lifelong coverage
- Can supplement retirement income
Financial Strength and Stability
One thing I always research before recommending any insurance company is their financial stability. Mutual of Omaha holds strong ratings from the major rating agencies:
- A.M. Best: A (Excellent)
- Standard & Poor’s: A
- Moody’s: A2
These ratings matter because life insurance is a long-term commitment. You want to know the company will be around to pay claims 20 or 30 years from now. Mutual of Omaha’s consistent ratings give me confidence in recommending them to clients.
The company manages over $40 billion in assets and has paid over $15 billion in claims and benefits. That’s the kind of track record that speaks to reliability.
Underwriting and Health Requirements
When it comes to getting approved for coverage, Mutual of Omaha takes a balanced approach to underwriting. They’re neither the most lenient nor the most strict—they fall somewhere in the middle, which often works in applicants’ favor.
Preferred Plus Requirements
To qualify for their best rates (Preferred Plus), you typically need:
- No tobacco use for 36 months
- Excellent health with no significant medical conditions
- Good build (height/weight ratio)
- Clean driving record
- No dangerous hobbies or occupations
Health Conditions They Handle Well
In my experience, Mutual of Omaha is particularly reasonable with:
- Well-controlled diabetes (Type 2, diagnosed after age 40)
- Treated high blood pressure (as long as it’s stable)
- Cholesterol issues (when managed with medication)
- Previous cancer (depending on type and time since treatment)
- Mental health conditions (if stable and well-managed)
The key is control and stability. They want to see that you’re managing your health proactively.
The Application Process
Mutual of Omaha offers several application options depending on the coverage amount and your age:
Simplified Issue
For smaller amounts (typically under $300,000), they offer simplified underwriting:
- No medical exam required
- Just health questions on the application
- Faster approval (often within days)
- Perfect for basic mortgage protection needs
Fully Underwritten
For larger amounts or if you want their best rates:
- Medical exam (usually at your home or workplace)
- Blood and urine tests
- Detailed health questionnaire
- Medical records may be requested
- Takes 2-4 weeks typically
Costs and Competitiveness
When I run quotes for clients, Mutual of Omaha consistently ranks in the competitive range—not always the cheapest, but rarely the most expensive either. Their sweet spot is offering good value for the coverage and service you receive.
For mortgage protection specifically, here’s what I typically see:
- Healthy 35-year-old: Very competitive rates, often in the top 5 carriers
- Ages 45-55: Still competitive, especially with minor health issues
- Over 55: Rates can vary more based on health, but still reasonable
The key advantage is their underwriting flexibility. Sometimes a carrier that’s slightly more expensive upfront will actually save you money because they offer you a better health class.
Customer Service Experience
This is where Mutual of Omaha really shines. Their customer service consistently ranks above average in industry surveys. When my clients have questions about their policies or need to make changes, the process is usually smooth.
They offer:
- 24/7 customer service phone line
- Online policy management
- Mobile app for policy information
- Multiple ways to pay premiums
- Quick claims processing
I’ve had clients who needed to file claims, and the process was handled professionally and promptly. That peace of mind is worth something.
Pros and Cons of Choosing Mutual of Omaha
The Good
- Strong financial ratings and over 100 years in business
- Competitive rates for healthy applicants
- Flexible underwriting that considers the whole person
- Excellent customer service and claims-paying reputation
- Multiple product options to fit different needs
- Conversion features on term policies
The Considerations
- Not always the absolute cheapest option available
- Limited simplified issue amounts compared to some competitors
- May not be the best choice for high-risk applicants
Is Mutual of Omaha Right for Your Mortgage Protection Needs?
Based on my experience working with this company, Mutual of Omaha is an excellent choice if you’re looking for:
- Reliable, long-term coverage from a stable company
- Reasonable rates with good customer service
- Flexibility in underwriting if you have minor health issues
- The option to convert term coverage to permanent life insurance later
They’re particularly good for families who want straightforward coverage without a lot of bells and whistles, but with the confidence that comes from dealing with a well-established company.
My Recommendation: Think Beyond Just Mortgage Protection
Here’s something I always discuss with clients considering mortgage protection insurance: don’t limit yourself to just covering the mortgage balance. Your family will have other expenses if something happens to you—daily living costs, college funds, final expenses, and more.
Instead of decreasing term insurance that only covers the mortgage, consider level term life insurance for the same cost. You might find that $500,000 or $750,000 in level coverage costs about the same as mortgage protection insurance, but provides much more flexibility and protection.
Getting Started with Mutual of Omaha
If you’re interested in exploring Mutual of Omaha’s life insurance options, the process is straightforward. I work directly with Mutual of Omaha and can help you navigate their products to find the right fit. Whether you’re looking for basic coverage or something more comprehensive, I’ll make sure you understand your options.
The key is getting multiple quotes and comparing not just prices, but also the companies’ financial strength, customer service, and underwriting approaches. What looks like the cheapest option on paper might not be the best value when you consider the whole package.
Related Reading
- Graded Benefit Whole Life Insurance: Your Complete Guide
- Affordable Final Expense Insurance: Your Complete Guide
- Burial Insurance for Seniors Over 80: Your Complete Guide
- Burial Insurance for Seniors Over 70: Your Complete Guide
Ready to protect your family’s financial future? I can help you compare Mutual of Omaha against other top-rated carriers to make sure you’re getting the best coverage at the best price. Schedule a free consultation and let’s find the right solution for your family’s needs.
Remember, the best life insurance policy is the one you actually have in place when your family needs it. Don’t let perfect be the enemy of good—get started with quality coverage from a reliable company like Mutual of Omaha, and you can always adjust later as your needs change.
- Consider regular level term life insurance instead of mortgage protection insurance since your family receives the full death benefit amount rather than a decreasing benefit that only covers the remaining mortgage balance.
- Choose Mutual of Omaha for reliable coverage backed by strong financial ratings (A ratings from major agencies) and over a century of experience serving American families.
- Take advantage of their flexible term life options with 10, 15, 20, and 30-year policies ranging from $25,000 to $10 million in coverage, plus conversion rights to permanent insurance.
- Expect solid customer service and competitive rates from this Nebraska-based company that prioritizes reliability over flashy marketing campaigns.
- Build permanent wealth with their whole life insurance options that provide guaranteed cash value growth, potential dividends, and lifelong coverage for those wanting more than term insurance.
