Mutual of Omaha Insurance Company was chartered in 1909 and offers a diversified line of individual and group health and accident insurance products nationwide. Mutual of Omaha is a mutual company (owned by the policyholders) which allows it to focus on the long-term needs of the policyowners not shareholders. Licensed to do business in all 50 states and the District of Columbia, Mutual of Omaha garners superior financial ratings from the leading objective independent ratings agencies: A+ by AM Best; A+ by Standard & Poor's; A1 by Moody's; 90/100 Comdex Percentile Score. With over 110 years of providing financial protection to individuals and families, Mutual of Omaha is an excellent choice for long term care insurance to help you to preserve your assets and receive quality care at home, in assisted living and nursing homes.
Mutual of Omaha offers two long term care insurance policies for you to consider:
There is not a significant difference with these two policies from a pricing standpoint. The Custom Solution policy will simply allow you to design your policy benefits with more fine tuning with respect to your benefit period, inflation protection, and elimination period options. Additionally, a few additional cost Rider options are only available on the Custom Solution policy.
Policy Type: Individually underwritten, reimbursement model, tax-qualified
Comprehensive: Home and Community Care, Assisted Living, Nursing Home
Issue ages: 30-79 (NY 30-75)
Underwriting Rate Classifications: Preferred, Select, Class 1
Premium Payment: Guaranteed Renewable contract, Lifetime premium payment
Discounts: 15% Partner discount 2 policies issued; 5% Partner discount 1 policy issued
State Partnership Benefits: Mutual of Omaha Secure Solution and Custom Solution are available as a Partnership policy in many states: • with the purchase of an Inflation Protection Rider for ages 75 and below • with or without the purchase of an Inflation Protection Rider for ages 76+. LTC Partnership policies may entitle the insured to Medicaid asset disregard benefits. This generally allows a person to keep assets equal to the insurance benefits received under a qualified Partnership policy without affecting the person’s eligibility for Medicaid.
Monthly Benefit: $1500 - $10,000
Secure Solution: 2 years, 3 years, 4 years, 5 years (Policy Limit Multipliers)
Custom Solution: $50,000 - $500,000 Policy Limit
Elimination Period - Calendar Days:
Secure Solution: 90 days, 180 days, 365 days
Custom Solution: 0 days, 30 days, 60 days, 90 days, 180 days, 365 days
Secure Solution: 3% compound, 4% compound, 5% compound, 3% compound 20 years, 5% compound 20 years
Custom Solution: 1% - 5% compound in 0.25% increments; inflation duration of 10 years, 15 years, 20 years; Buy-Up option for the lesser of 20 years or age 75.
Home Health Care: Benefits are provided to help you to stay at home as long as possible. These benefits include personal care services to assist with the activities of daily living: homemaker services to provide help with grocery shopping, meal preparation and housekeeping; Professional services of a registered nurse, home health aide or therapist; adult day care services
Facility Care: sometimes more care is needed than can be provided at home. Your policy also covers care in assisted living and nursing home up to 100% of your monthly benefit. Your policy will also pay to reserve your bed in a facility up to 30 days per calendar year for any reason.
Care Coordination: Finding long term care services may seem overwhelming. Mutual of Omaha will give you access to a care coordinator to help assess your needs, develop an individualized plan of care and help you to arrange for long term care services. Using the care coordinator services will also make you eligible for additional Stay at Home benefits including medical safety alert systems, home modifications, caregiver training, and durable medical equipment. These benefits are available on Day 1 and are not subject to the elimination period.
Cash Alternative Benefit: Electing to receive your policy benefits in cash may be a helpful strategy as you develop a permanent plan for care. There is no elimination period to satisfy, and no receipts to collect and submit for reimbursement. You can simply use the cash to pay for services to support your plan of care. The cash benefit limit is 25% of your initial monthly maximum up to $2000 monthly maximum. This cash benefit will increase annually with your optional inflation protection benefit.
Respite Care: Unpaid caregivers often need a break. Your policy includes a benefit to hire a temporary replacement up to 30 days per calendar year
Hospice Care: If you are terminally ill and not expected to live beyond 6 months, your policy will pay for hospice care received in any setting.
International Benefits: If you are traveling outside the US, UK or Canada, and your need for care arises, your policy will pay for benefits for a period up to 12 months.
Waiver of Premium: If you are receiving the cash benefit or covered home care services care at least 8 days per calendar month or are a resident of assisted living or a nursing home your premiums are waived.
Alternate Care: You may find that there are services or treatment in the future that do not exist today. Your policy will pay benefits for qualified treatment or services when recommended by your care coordinator.
Shared Care : If you exhaust your benefits but still need care, you can access benefits under your partner's policy, providing you leave at least 12 months of benefit for your partner. At death, the surviving partner will receive all unused benefits without having to pay the deceased partner's premium.
Waiver of Elimination Period For Home Health Care: This Rider allows you to receive your home care benefits immediately with no elimination period to satisfy. The days that your elimination period is waived will satisfy the elimination period for assisted living or nursing home care.
Non-Forfeiture Shortened Benefit Period: If for any reason you stop paying premiums and your coverage has been in force for three years, you will continue to receive paid-up coverage on a shortened benefit period basis with a Policy Limit equal to the sum of your paid-in premiums.
Security Benefit: If your partner does not have long term care insurance, this rider will increase your long term care benefit by 60% while you receive long term care services to be used to help pay for the care of your uninsured partner.
Reduced Benefit for Home Health Care and/or Assisted Living: You have the option to reduce your home care or assisted living benefit to 50% or 75% of your nursing home benefit.
Return of Premium: if you are concerned about not using your policy benefits, you can add a return of premium benefit that will refund to you an amount up to the full amount of your premium paid less claims. Your policy must be in force for 10 years.
Joint Waiver of Premium (Custom Solution only): If one partner is receiving long term care benefits this rider will waive the premiums on both policies.
Survivorship (Custom Solution only): If one partner dies after the policies have been in force for 10 years, the premium is waived for the surviving partner for the remainder of his/her lifetime.
Professional Home Health Care (Custom Solution only): This rider makes additional funds available when the monthly costs for services provided by a skill professional specializing in physical, respiratory, occupational, or speech therapy, audiology, nutrition, or chemotherapy administration exceeds the maximum monthly benefit of your policy. Your policy will pay up to an additional 100% of your monthly benefit up to a period of 365 days.
AM Best: A+
Standard and Poor's: A+
Assets: 9.1 Billion
Over the past 10 years, Mutual of Omaha has been the #1 underwriter of traditional long term care insurance policies. It's policy contracts are very comprehensive and are highly flexible to meet comprehensive home health care needs. Additionally, the Mutual of Omaha policies are priced very well within the marketplace.
Let's take a look at a few policy pricing comparisons with the 4 leading underwriters: Mutual of Omaha, Northwestern Mutual, and New York Life, and National Guardian for the following benefits.
$4500 month, 3 year benefit periods, 3% compound inflation protection, 90 day elimination period, 100% home care.
Single male applicant age 50, best available health rating
National Guardian $117.00 month
Mutual of Omaha 146.78 month
Northwestern Mutual $244.69 month
New York Life $290.57 month
Single female applicant age 50, best available health rating
National Guardian $180.00 month
Mutual of Omaha $243.22 month
New York Life $404.18 month
Northwestern Mutual $440.83 month
Single male applicant age 60, best available health rating
National Guardian $150.00 month
Mutual of Omaha $188.54 month
Northwestern Mutual $265.05 month
New York Life $344.14 month
Single female applicant age 60, best available health rating
National Guardian $231.00 month
Mutual of Omaha $320.95 month
Northwestern Mutual $464.91 month
New York Life $516.61 month
As you can see at current pricing for the above 50 and 60 year old individuals Mutual of Omaha currently offers the 2nd most competitive premiums in the marketplace.
The only long term care insurance underwriter that will be currently priced more competitive for you than Mutual of Omaha will be National Guardian Life.
Policies offered through New York Life and Northwestern Mutual will be significantly more expensive for you than Mutual of Omaha.
The Mutual of Omaha underwriting process is similar to most traditional long term care insurance underwriters. Medical records will be ordered and reviewed to determine eligibility. For applicants ages 64 and younger a telephone health interview will be completed. For applicants 65 and older, a face-to-face interview will be completed. Cognitive screening exercises to evaluate short term memory recall are part of the application process.
For certain health conditions, Mutual of Omaha is an excellent underwriter to consider.
For other issues, Mutual of Omaha can be a challenging underwriter. For example, if you have a family history of Alzheimer's or dementia, Mutual of Omaha can be more restrictive in its pricing and issuance of coverage.
For example, should either your parents or siblings have a history of Alzheimer's or dementia, Mutual of Omaha will limit the issuance of its long term care insurance coverage to an initial monthly long term care benefit of $5000. In addition, Preferred rates will be unavailable for you with this family history.
If you have a family history of Alzheimer's or dementia with 2 immediate family members (Parents/siblings) your application will be declined.
We will be pleased to review your health history with you to determine which company will be the best underwriter to submit your application to.
If you seek traditional long term care insurance, the Mutual of Omaha policy is an excellent choice to consider. The Mutual of Omaha LTC policy costs are very competitive within the arena in 2021. Currently only one LTC underwriter (National Guardian Life) will offer you a less expensive policy than Mutual of Omaha. Will it be worthwhile for you to pay more premium for the Mutual of Omaha policy today?
Possibly. Here are a few points to consider.
The National Guardian Life LTC policy is not as flexible for you for home health care needs as the Mutual of Omaha policy will be for you.
A few of the differences with these 2 policies are; Mutual of Omaha allows independent home health aides to provide home care for you; National Guardian requires you to use home health aides provided by home care agency. The Mutual of Omaha contract will reimburse you on a monthly basis. National Guardian Life reimburses you on a daily biases. For home health care services, being reimbursed on a monthly basis may provide you with more flexibility. The elimination period with Mutual of Omaha is a calendar day elimination period. With National Guardian Life, your elimination period is calculated by dates of service. You will have to provide a paid receipt for a day of care received to eliminate the day from your deductible. Mutual of Omaha will not require you to pay out of pocket to satisfy your calendar day elimination period. Thus, your benefits may begin sooner with the Mutual of Omaha policy. Mutual of Omaha also provides a cash alternative benefit which is unavailable through the National Guardian Life policy.
So, possibly the Mutual of Omaha contract is worth more premium for you than the National Guardian policy.
We could analyze your specific situation with regards to benefits, health ratings, and discounts to help you to determine your best policy value.
To discuss your needs and to receive personalized illustrations and advice please contact me directly at (800) 891-5824.
Or you may complete my easy quote request form. I look forward to helping you to find your best policy value.