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Mutual of Omaha Long Term Care Insurance Review

by Jack Lenenberg

Mutual Of Omaha Long Term Care InsuranceToday, Mutual of Omaha is one of the top 5 long term care insurance providers.  

Mutual of Omaha offers 2 long term care insurance policies:

  1. Secure Solution
  2. Custom Solution

Purely from a policy design and benefit option viewpoint, the Mutual of Omaha LTC policies are probably the most flexible long term care insurance policies offered today.  With a multitude of inflation protection, benefit period and elimination period options, Mutual of Omaha will allow you to choose the long term care benefits that best meet your unique needs like no other policy.

For the purposes of this review, I will focus on the Mutual of Omaha Secure Solution long term care insurance policy.

Mutual of Omaha Secure Solution LTC Policy Options

Benefit Periods: 2 years, 3 years, 4 years, 5 years; Shared Care option available for Couples with 12 month benefit period reserved

Monthly Benefit: $1,500-$10,000

Home Care: 100%, 75% or 50% of the Nursing Home Monthly Benefit

Cash Benefit: 30% of Home Care Monthly Benefit

Elimination Period - Calendar Days; 90 Days, 180 Days, 365 Days

Inflation Protection: 5% Compound, 4% Compound, 3% Compound, 5% Compound 20 year cap, 3% compound 20 year cap

As you can see, you have a wide range of options with Mutual of Omaha to completely customize your benefits according to your needs.

In comparing the Mutual of Omaha policy to other long term care insurance policies available today, it is unique in the following ways:

Calendar Days Elimination Period

The Elimination Period within almost every long term care insurance policy is a "Date of Service" waiting period. Thus, with a Service Day waiting period you only reduce your deductible by a day if you have a receipt for qualified care evidencing you came out of your own pocket with a payment for caregiving services.

Not so with Mutual of Omaha.  The Mutual of Omaha Elimination Period is satisfied after your number of calendar days has expired from the date of your claim being opened.

A few policies offer Calendar Days as an option, most notably the Genworth Privileged Choice Flex 3 policy. However, Calendar Days elimination period is a standard benefit with Mutual of Omaha.

Cash Alternative Benefit

In lieu of accepting a 100% Home Care Monthly Reimbursement benefit Mutual of Omaha Secure Solution will offer you a 30% Cash Alternative Monthly Home Care benefit. 

The Mutual of Omaha Custom Solution policy offers you a 40% Cash Alternative Benefit.

The Cash Alternative Benefit can be a helpful feature if you happen to need care but do not require the services of licensed caregivers. Perhaps you may have family nearby that can provide your care for you, for instance.  For example, let's say you buy a $6000 month benefit. With the Cash Alternative Benefit, you could notify Mutual of Omaha at the beginning of the month in writing that you would prefer to receive $1800 month in cash, no questions asked;  and no receipts required.

The Transamerica Trans Care III policy is the only other notable long term care insurance that includes a cash alternative benefit.  Of course, MedAmerica offers a 100% Cash policy, but that is entirely different (and much better than cash alternative reduced benefits).

Inflation Protection Option with a 20 Year Cap

Typical inflation protection options within long term care insurance policies today are 3% compound or 5% compound.  Some companies, like Genworth Financial, also offer 4% compound.

Mutual of Omaha offers a unique additional option that is well worth considering for applicants in their later 60's or early 70's-----the 20 years Cap option.  With this option you receive the benefit of either 3% compound or 5% compound inflation protection growth for a 20 year time period.  For applicants near age 70, this solution may provide you with the greatest inflation protection for the most likely period of time that you will need coverage while saving you premium over purchasing unlimited 3% compound or 5% compound inflation protection.

Spouse Security Benefit option

If your spouse is not insurable you can still ensure your spouse is cared for while you receive long term care services.  With the Spouse Security Benefit, Mutual of Omaha will pay you an additional 60% of your monthly long term care benefit each month you are eligible for long term care services.  This additional money can be used to provide care and living expenses for your uninsured spouse.

Mutual of Omaha Long Term Care Insurance Financial Ratings

When buying long term care insurance it is important to consider a policy from highly-rated financially sound insurance companies.  Mutual of Omaha has a long history in the insurance industry paying its first claim in 1909. Mutual of Omaha consistently garners high ratings from the leading independent industry rating organizations such as AM Best, Moody's and Standard and Poor's.

Financial Ratings of Leading LTC Companies

Currently Mutual of Omaha is rated A+ from AM Best, and A+ from Standard and Poor's.  Mutual of Omaha's Comdex score is a 91 out of 100.

Mutual of Omaha Comparative Long Term Care Insurance Costs

So, Mutual of Omaha has a flexible policy and high financial ratings.  Well, how are the rates of Mutual of Omaha when compared with other companies selling long term care insurance?

Mutual of Omaha has moved to gender based pricing.  Mutual of Omaha's rates for women are higher than its rates for men.  For men, its rates are excellent. For women, Mutual of Omaha's rates are reasonable.

Now, please keep in mind that long term care insurance rates are dependent upon many factors including age, health history, State of residence, whether you reside with another individual, and the amount of coverage you purchase.

That being said, here are current rates for a fairly "cookie cutter" long term care insurance policy.Cookie Cutter

Age 60, Married female applicant, Maryland resident, $4500 month benefit, 3 year benefit period, 3% compound inflation protection, 90 day waiting period, best available health classification rate.

Company Cost Comparison Spreadsheet Example

Mass Mutual $1785 (A++, AM Best)

Mutual of Omaha $2024 (A+, AM Best)

Transamerica $2296 (A+, AM Best)

Northwestern $3321 (A++, AM Best)

New York Life $4305.03 (A++ AM Best)  

Mutual of Omaha LTC Underwriting Classifications

Mutual of Omaha has 4 underwriting classifications:  Preferred, Select, Class 1, and Class 2.  Additionally, Mutual of Omaha will consider certain risks that other underwriters may not entertain such as diabetes under control with insulin use; diabetes in conjunction with heart disease; cancer with metastasis; and prior stroke history with no residual complications.

Conclusions

The Mutual of Omaha long term care insurance policies are well worth your consideration today.   Purely from a benefit design standpoint Mutual of Omaha offers extremely flexible policies that provide you the ability to customize your benefits in practically any possibility.  From a cost perspective, the policy is priced within the range of fair value.

LTC Partner is a leading nationwide long term care insurance agency.  To receive your free side-by-side customized quote comparisons from the leading providers such as Mutual of Omaha, Mass Mutual, Genworth, John Hancock, Lincoln Moneyguard, Pacific Life, State Life, New York Life, State Farm, Northwestern Mutual, Nationwide,  and more please call us at (800) 891-5824.  Or complete our quote request form.


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Jack Lenenberg, J.D.