Company guides
Mutual of Omaha Mortgage Protection Insurance: Term Life, Living Benefits and What to Check
Mutual of Omaha mortgage protection insurance: how its term life, including Term Life Express with living benefit riders, can help pay off a mortgage.
Reviewed by Brian Carrozzi
Founder, RestAssured · Licensed life insurance agent
Updated · How we write and review
Short answer: Mutual of Omaha mortgage protection insurance is life insurance used to protect a home. Mutual of Omaha’s page “Life Insurance for Mortgage Protection and More” says “Paying your mortgage is a valuable option with life insurance,” and its Term Life Express highlight sheet says the policy can help “pay off the mortgage or other debts if you die.” Mutual of Omaha’s term life page says the death benefit “pays your beneficiary if you pass away during the term,” so the money goes to the person you name, not your lender.
Does Mutual of Omaha sell mortgage protection insurance?
Mutual of Omaha’s page “Life Insurance for Mortgage Protection and More” says “Paying your mortgage is a valuable option with life insurance,” “allowing your family to stay in your home after you’re gone.” Under “Options Available,” it lists:
- “Coverage amounts starting at $100,000 to over $1,000,000”
- “Waiver of premium options if you become disabled” (“Additional premiums apply”)
- “Simplified issue policies for those under 70 years of age that would like coverage quickly and easily, with no health exams”
- “Conversion options for those that would like to switch to permanent coverage later”
It doesn’t say which option applies to which policy. The same page separately mentions that “Mutual of Omaha Mortgage can assist with your new or refinanced mortgage”; this article is about life insurance, not mortgage loans.
Mutual of Omaha’s life events article says “paying off a mortgage is one of the top three reasons people buy life insurance.” For the basics, see what mortgage protection insurance is.
What does Mutual of Omaha term life offer?
Mutual of Omaha’s term life page describes “A fixed death benefit that pays your beneficiary if you pass away during the term” and says “Premiums will never increase throughout the life of the policy.” It lists an “Option to convert to a permanent plan,” and its comparison page shows “10-, 15-, 20-, or 30- year” terms. The disclosures name two term product lines: Term Life Express (“10, 15, 20, 30”) and Term Life Answers (“10, 15, 20” and “30”).
On rates, Mutual of Omaha says “factors that may affect the price include your age at the date of issue, gender, term duration,” “overall health, and tobacco use.” Ask for a quote for your age and loan.
Term Life Express at a glance
Mutual of Omaha’s Term Life Express highlight sheet, “Protect the Home and Life You Built For Your Family,” lists:
| Term Life Express | |
|---|---|
| Mortgage use | Money “to help pay off the mortgage or other debts if you die or help make the mortgage payments if you suffer a disability” (disability benefits come from optional riders; additional premium required) |
| Term lengths | 10-year, 15-year, 20-year and 30-year |
| Issue ages and coverage | “$25,000 - $550,000: ages 18-50”; “$25,000 - $250,000: ages 51-60”; “$25,000 - $150,000: ages 61-75” (“Maximum issue ages may vary by state, product and risk class.”) |
| Underwriting | “Simplified Underwriting” |
| Premium | “Full Guarantee: The premium is guaranteed for the entire term.” |
| Living benefit riders | Terminal Illness, Chronic Illness and Critical Illness Riders |
| Optional riders | Disability Income, Disability Waiver of Premium, Accidental Death Benefit, Dependent Children’s (“Subject to state approval and additional premium required.”) |
| Conversion | “convertible after policy year two through the lesser of a) the end of the level term period, or b) the policy anniversary following the Insured’s 70th birthday” |
| Free look | Return it “within 30 days of the date the policy is in force” |
| Underwriter | “United of Omaha Life Insurance Company” |
Source: Mutual of Omaha’s Term Life Express highlight sheet, hosted on its producer site; confirm with the agent that it matches the current version in your state. The sheet says, “Product base plans, provisions, features and riders may not be available in all states and may vary by state.”
What are Mutual of Omaha’s living benefits?
Mutual of Omaha’s Living Benefits Guide says “United of Omaha offers three Accelerated Death Benefit Riders at no extra charge on all Term Life Express” policies, and “These riders give you an option to access a portion of your death benefit early.” The highlight sheet describes them:
- Terminal Illness Rider: pays “if the insured provides evidence that their life expectancy is 12 months or less.”
- Chronic Illness Rider: pays if a physician certifies the insured “as unable to perform two of six Activities of Daily Living (ADLs) for 90 consecutive days,” or as needing substantial supervision “due to severe cognitive impairment.”
- Critical Illness Rider: pays if a physician certifies one or more listed conditions “within the last 12 months,” including “heart attack, stroke,” “life-threatening cancer” and others.
The guide says the acceleration “may not exceed 80 percent of the policy’s face amount as of the date of the first acceleration.” In its example, the amount “was reduced by an actuarial adjustment,” a “$100 administration fee” applied, and the “face amount was reduced by the amount requested.” It also says, “Definitions of chronic or critical illness may vary by state.” For more, see mortgage protection with living benefits.
Who underwrites it, and what about New York?
Mutual of Omaha’s term life page says “Term Life Insurance Underwritten by United of Omaha Life Insurance Company” and that United of Omaha “does not solicit business in New York.” It says, “In New York, Companion Life Insurance Company, Melville, NY 11747 underwrites life insurance and annuities.” New York buyers should ask which products and riders are available.
How is this different from PMI and lender credit life?
The Consumer Financial Protection Bureau (CFPB) says private mortgage insurance “is a type of mortgage insurance you might be required to buy,” that “PMI protects the lender—not you,” and that “PMI is arranged by the lender and provided by private insurance companies.” See PMI vs. mortgage protection insurance.
The Texas Department of Insurance (TDI) says “Credit life pays the balance of a loan if you die before the loan is paid off,” and “If you already have life insurance, you might not need credit life. Instead, you can assign some of the death benefits to the lender to pay the loan balance.” The New York Department of Financial Services (NY DFS) says it “need not be purchased from the organization granting the loan.”
| PMI | Lender credit life | Mutual of Omaha term life | |
|---|---|---|---|
| What it does | Protects the lender (CFPB) | Pays the loan balance if you die (TDI) | Pays a fixed death benefit if you die during the term (Mutual of Omaha) |
| Who gets the money | The lender (CFPB) | Toward the loan (TDI) | “your beneficiary” (Mutual of Omaha) |
| Who arranges it | The lender (CFPB) | “need not be purchased from the organization granting the loan” (NY DFS) | Underwritten by United of Omaha; Companion Life in NY (Mutual of Omaha) |
What to check before you buy
- Term length vs. your loan. Mutual of Omaha’s term vs. whole life article says, “Term life insurance matches certain financial responsibilities, such as mortgage terms or the years till retirement.” Compare the term with the years left on your loan.
- Coverage vs. your balance. Compare your age band’s limit with what you owe.
- Which product you’d get. Ask whether you’d be offered Term Life Express or Term Life Answers, and why.
- Health questions or exam. Mutual of Omaha says “Term life insurance typically requires a medical exam and detailed health questions,” while the Term Life Express sheet lists “Simplified Underwriting.” Ask what your application involves.
- Living benefit riders and conversion. Ask which riders and conversion terms apply in your state.
- Beneficiary. TDI says the insurer pays “the person you name in your policy.” Talk with them about the house.
- The application. The NAIC says, “It’s important to tell the truth on the application,” and TDI says “Life insurance policies have a two-year contestable period.”
- Affordability. The NAIC says, “Before you buy a life insurance policy, be sure you can pay the premiums,” and TDI says, “Don’t choose a policy on price alone.”
The bottom line
Mutual of Omaha describes mortgage protection as life insurance: its term life pays your beneficiary if you die during the term, and Term Life Express includes terminal, chronic and critical illness riders at no extra charge, with issue ages 18-75. Unlike PMI, which the CFPB says protects the lender, it pays the person you name. Check the term, amount and riders against your loan.
A licensed agent can go over these options and compare them with other term and mortgage protection policies, with no obligation. Here’s how calling RestAssured works.
RestAssured is not an insurance company or an insurance agency; we connect callers with independently licensed insurance agents. RestAssured is not a lender and isn’t affiliated with any mortgage lender or servicer. RestAssured is not affiliated with or endorsed by Mutual of Omaha. The licensed agents who work with us are appointed to offer Mutual of Omaha policies and may earn a commission if you buy one. To buy directly from Mutual of Omaha, contact Mutual of Omaha. Product names are trademarks of their owners.
Frequently asked questions
Does Mutual of Omaha offer mortgage protection insurance?
Mutual of Omaha has a page called “Life Insurance for Mortgage Protection and More” that says “Paying your mortgage is a valuable option with life insurance.” Its term life page says the death benefit pays your beneficiary if you die during the term.
Who gets the money from Mutual of Omaha term life insurance?
Mutual of Omaha’s term life page says the death benefit “pays your beneficiary if you pass away during the term,” and its disclosures say your beneficiary “may use the proceeds for any purpose, unless otherwise directed.” Your beneficiary can choose to use it to pay off the mortgage.
Does Mutual of Omaha term life have living benefits?
Mutual of Omaha’s Living Benefits Guide says United of Omaha offers terminal, chronic and critical illness accelerated death benefit riders at no extra charge on all Term Life Express policies. The guide says acceleration may not exceed 80 percent of the face amount and reduces the death benefit.
What ages can get Mutual of Omaha Term Life Express?
The Term Life Express highlight sheet lists issue ages 18-50 for $25,000-$550,000, 51-60 for $25,000-$250,000 and 61-75 for $25,000-$150,000. It says maximum issue ages may vary by state, product and risk class.
Is Mutual of Omaha mortgage insurance the same as PMI?
No. The CFPB says private mortgage insurance is arranged by the lender and “protects the lender—not you.” Mutual of Omaha’s term life pays your beneficiary if you die during the term.
Sources
- Mutual of Omaha: Life Insurance for Mortgage Protection and More
- Mutual of Omaha: Term Life Insurance
- Mutual of Omaha: Compare Life Insurance Products and Get a Quote
- Mutual of Omaha: 7 Life Events Where Life Insurance Can Help
- Mutual of Omaha: Term vs. Whole Life Insurance - Side by Side
- Mutual of Omaha: Term Life Express highlight sheet (Protect the Home and Life You Built For Your Family)
- Mutual of Omaha: Living Benefits Guide (Term Life Express and Indexed Universal Life Express)
- CFPB: What is private mortgage insurance?
- New York State Department of Financial Services: Types of Policies
- Texas Department of Insurance: Life insurance guide
- NAIC: A Consumer's Guide to Life Insurance
This article is for general education. Policy features, prices and eligibility vary by insurance company and state; your agent will explain the specific terms of any policy before you apply.