When it comes to buying life insurance, finding the most affordable plan is a priority for the majority of consumers. The primary reason for electing a life insurance policy is so that the policyholder’s claim will be paid out in exchange for paying the premiums. In order to be sure that this will happen, the applicant will want to first verify that the insurance company selected is financially stable and strong enough to do so.
In this review, we’ll be discussing United of Omaha Life Insurance Company.
United of Omaha’s History and Company Information
Beginning in 1909, Mutual of Omaha was originally known as Mutual Benefit Health and Accident Association. In 1926, the company created a branch called United Benefit Life Insurance Company, which then later became Mutual of Omaha Life Insurance Company in 1981.
Headquartered in Omaha, Nebraska and located in the Mutual of Omaha Plaza, United of Omaha is a branch of the Mutual of Omaha.
Presently, the company is licensed to market annuities and life insurance products in all of the U.S., except for New York. Companion Life Insurance Company of New York, as the name implies, services the consumers in New York.
How United of Omaha is ranked by the National Rating Services
When choosing a life insurance company, it is critical that you investigate and analyze the financial strength and stability of the carrier.
Being that this purchase is a long term investment, you’ll want to verify that the company that you select will be around and is financially stable during the time that you have your policy.
You also want to ensure that the company is financially stable and has the ability to honor the payment of any claims.
The following reflects the ratings for United of Omaha as indicated by some of the leading insurance rating agencies:
|National Rating Service||Current Rating|
|A.M. Best||A+ (2nd out of 16)|
|Moody’s Investors Service||A (5th out of 21)|
|Standard & Poor’s||A+ (5th out of 21)|
|COMDEX Score||93 out of 100|
These strong ratings signify that United of Omaha is revered as a financially strong and stable company.
United of Omaha Life Insurance Products
Similar to other life insurance companies, United of Omaha offers term, universal, and whole life insurance products.
Term Life Insurance
United of Omaha offers three term life insurance products:
- Term Life Express
Providing death benefit amounts ranging from $50,000 up to $400,000, with 15, 20, and 30-year terms, the Term Life Express policy is available for consumers ages 18 to 65. Unfortunately, you do not have the ability to convert this policy into a permanent form of life insurance.
- Term Life Complete
This policy has a death benefit for $100,000, offers 15, 20, and 30-year terms, and is also available for those 18 to 65 years of age. In the first five years of the policy, you do have the ability to convert Term Life Complete to a permanent policy.
- Term Life Answers
Applicable for those ages 18 to 80, Term Life Answers provides $100,000 in death benefits, and is offered in 10, 15, 20, and 30-year terms. You will also have the option of converting to a permanent life insurance policy.
Universal Life Insurance (UL)
For those consumers seeking lifetime guaranteed death benefits and an accumulated cash value, Universal Life Insurance is a fantastic option. United of Omaha offers several different Universal Life Insurance policies.
Guaranteed Universal Life
Focusing more on the death benefit than the cash value component, the Guaranteed Universal Life (UL) policy is a frugal choice for the policyholder, especially when compared with whole life insurance products.
Major life events can happen, and during those times, you may find yourself reevaluating your life insurance coverage. With the Guaranteed UL policy, you have the option of making necessary changes due to the flexible premiums and death benefit coverage.
One of the greatest benefits of the Guaranteed Universal Life Insurance policy is that your monthly premiums are significantly less than those for whole life insurance coverage.
The Accum Universal Life (UL) Insurance policy focuses more on the accumulating cash value of the policy, rather than the death benefit, as seen in the before mentioned UL policy. In fact, there’s a guarantee that you’ll earn a minimum of 2% interest annually because the interest rate is based on the performance of the company’s investment.
This interest earned on your policy’s cash value becomes an asset that can be used in the future as an additional income source.
Life Protection Advantage (Indexed Universal Life)
The turbo-boosted form of the Accum UL policy is the Life Protection Advantage policy (Indexed Universal Life). This plan’s cash value is tied to the performance of the underlying market indices, which allows the policyholder to earn substantial interest.
An important feature of this policy is that you will not share in any market losses, only gains, because this policy has a floor of zero or higher.
In the event that the policyholder is diagnosed with a chronic or terminal illness, the Accelerated Death Benefit component allows for the access of part of the death benefit. The funds distributed from the cash value portion will be done on a tax-free basis.
Income Advantage (Indexed Universal Life Insurance)
The Income Advantage plan was created for consumers that plan to use their life insurance as a means to grow funds for retirement. Even though this plan is focused more on wealth accumulation, it still provides a guaranteed death benefit for your loved ones.
Policyholders are able to grow a substantial income due to the policy’s competitive floor and cap rates. These funds can then be accessed and distributed as tax-free income during retirement.
Contrary to other retirement plans, such as the IRA or 401(k), policyholders are not strained by early withdrawal penalties, minimum distributions, or annual contributions.
United of Omaha Whole Life Insurance
To round out its portfolio of life insurance products, the United of Omaha whole life products can accommodate adults as well as children.
Whole Life Guaranteed
This policy guarantees your acceptance and premiums without a medical exam or medical questions. Available for those 45 to 85 years of age, this policy provides $3,000 to $25,000 in life insurance coverage.
Children’s Whole Life
United of Omaha’s Children’s Whole Life policy provides coverage amounts of $5,000 to $50,000 for children ages 4 days to 17 years of age. Additionally, the policy guarantees up to $25,000 in coverage later on down the road, regardless of your child’s health.
In my 20+ years as an independent life and disability insurance broker, I have personally assisted thousands of clients with their life and disability insurance needs. Being independent, I represent many highly-rated insurance companies and, because I am not beholden to any one insurance company, my focus is to find the right company and policy for each individual client.
I believe that when people shop for insurance (or anything else, for that matter) on the Internet, they are looking for a simple, non-intrusive, non-pressure method of doing so. I strive to treat my prospective clients with the utmost respect and I believe an educated prospect can make the right decision without sales pressure.