Betcha you’re wondering why I’m writing an article called Mutual of Omaha Life Insurance vs. Gerber Life Insurance Final Expense showdown.
So I’m going to ask you to picture this:
You’re on a fixed income and don’t have a lot of extra cash lying around.
Which means that if you die, your loved ones would be on the hook for your funeral and other final expenses.
Uh oh. Sounds like a bit of life insurance is in order.
But, Things Aren’t Looking Good for Your Life Insurance Application…
Your health isn’t great, so you might have trouble getting a traditional life insurance policy, at least at a reasonable price.
Oh, and you’re starting to get up there in years, so you’re not exactly a prime candidate for term insurance.
Hmmmm. Now what? Well, I’m going to tell ya!
In this scenario, you don’t really need a big life insurance policy.
…what you need is final expense insurance!
Two of the top companies that offer final expense insurance are Mutual of Omaha Life Insurance and Gerber Life Insurance.
To help you decide between the two, I’m gonna explain what they offer and how you can find out which is the best for YOU.
But first…let’s talk a little bit more about final expense insurance.
Worried that a challenging family history of illness will negatively impact your premiums? This is a GREAT reason to contact an independent life insurance agent like those at Huntley Wealth. Some insurers are more lenient than others.
A spotty family medical history might have less impact than what you think on what you pay for life insurance. And a family history of cancer, high blood pressure, heart attacks and other medical conditions certainly doesn’t mean that you’ll struggle to find a solid life insurance policy. Life Insurance and Medical History Facts That You Don’t Know, Huffington Post
How Does Final Expense Insurance Work?
In a nutshell, final expense insurance offers seniors inexpensive coverage for a funeral, medical, and other final expenses.
Final Expense Insurance is also known as burial insurance, end-of-life insurance, and funeral insurance.
They’re all the same thing, so don’t get confused.
These plans typically offer policies with minimal face values between $2,000 and $100,000, depending on which company you choose.
The lower the face value of your policy the less a medical exam matters:
If you’re applying for a low face value policy, you may not even be asked to do a paramedical exam. For example, if you’re age 40 and applying for $50,000 of life insurance, MetLife requires no specific tests or measurements. And for some cases, MetLife asks for a “simple paramed” exam, encompassing the basic measurements and blood and urine work but without the paramedical question list. Guidelines for tests will vary among life insurers. The Lowdown on Life Insurance Medical Exams, The StreetDirectory.com
Do You Need A Medical Exam?
You want to know the best part?
That’s right, the death benefit is so low that insurance companies don’t bother to send a nurse to poke you with a needle.
Keep in mind, though, you may still need to answer a few health questions.
That being said, final expense insurance is nonetheless a great option for seniors who can’t qualify for a policy that requires an exam.
And your beneficiaries don’t have to use the money to pay for your burial. In fact, they can use it for whatever they want.
Lastly, final expense insurance is usually a form of whole life insurance, which means that you’re covered for life, and you can build a little cash value along the way.
…and if you didn’t know – your premiums stay the same throughout the life of the policy. Well now, that seems like a pretty good deal to me.
Now, let’s dig into Mutual of Omaha Life Insurance and Gerber Life Insurance’s final expense policies to see how they stack up in terms of their offerings.
Mutual of Omaha Life Insurance: Final Expense Offering
Mutual of Omaha Insurance has been around for more than 100 years and offers final expense coverage through its “Living Promise’ policies.
It’s a household name, so I’m sure you’ve heard of ’em.
You have two options from which to choose:
- Level Benefit Plan
- Graded Benefit Plan
So let’s take a moment to peruse their products:
Mutual of Omaha Life Insurance: Level Benefit Plan
This policy is designed for people between the ages of 45 and 85, and offers face values between $2,000 and $40,000, although the minimum starts at $5,000 for the state of WA.
The policy automatically comes with an accelerated death benefit for terminal illness or nursing home confinement.
To qualify, you have to be either:
- Diagnosed as having a terminal illness that, with a reasonable degree of certainty, will result in your death within 12 months or less. You need a physician to sign a statement affirming that you’ve met the standards.
- Confined to a nursing home for 90 consecutive days or more and are expected to remain there for the duration of your life.
This benefit is huge for people who need money now to pay for medical treatment or nursing home costs.
You can also opt for an accidental death benefit rider, which doubles your death benefit if you die as a result of an accident.
Mutual of Omaha Life Insurance: Graded Benefit Plan
This plan is for people between the ages of 45 and 80, or 50 and 75 in New York.
You can choose a death benefit from $2,000 to $20,000. Again, the minimum in the state of WA starts at $5,000.
The difference with this policy is that if you die of natural causes (really any cause other than an accident) in the first two years, your beneficiaries will receive all the premiums you’ve paid plus 10%.
If you die after the first two years, though, your beneficiaries will get the full death benefit, regardless of how you die.
Note that this plan isn’t available in Arkansas, Montana, or North Carolina and it doesn’t come with any riders attached.
One big bummer when it comes to Mutual of Omaha Insurance is that you have to contact an agent to get a quote, so the information isn’t readily available online.
Gerber Life Insurance: Final Expense
Unlike Mutual of Omaha Life Insurance, Gerber Life Insurance offers just one final expense policy.
…they call it Gerber Guaranteed Life.
The policy is designed for people between the ages of 50 and 80, and you can get coverage between $5,000 and $25,000.
If you live in South Dakota, though, your maximum is $15,000.
So what makes Gerber Guaranteed Life worth considering?
Gerber Life Insurance: No Health Questions for YOU!
…it’s a guaranteed acceptance policy, which means there are no health questions!
That’s right. You can get this policy with even the worst of medical conditions. One thing to keep in mind, though: It has a graded death benefit restriction.
Again, this means that if you die within the first two years of owning the policy for any reason other than an accident, your beneficiaries get your premiums back plus 10%.
But if you die after two years, they get the full amount.
As for cost, here’s how Gerber Life Insurance rates look:
FIND OUT IN 2 MINUTES IF WE CAN BEAT GERBER LIFE INSURANCE RATES
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*Rates as of March 2018; the rates include a discount for setting up automatic payments.
What’s the Damage?
There’s no solid way to compare Gerber Insurance rates with Mutual of Omaha Life Insurance rates.
Yep – the fact that I was unable to obtain numbers for Mutual of Omaha Life Insurance prevents me from really crunching those numbers.
However, you could probably guess that the Gerber Life Insurance premiums are a bit higher – at least for someone who is relatively healthy.
Guaranteed acceptance policies take on more risk because the underwriters have no idea what sort of health you’re in.
Which means they are going to pass the cost of taking that risk on to you by way of more expensive rates.
So if cost is your primary concern Gerber Life Insurance may not be the right insurer for you.
However, if poor health is the issue, then Gerber Life Insurance will probably be a better option.
….so, the winner of the Mutual of Omaha Life Insurance vs Gerber Life Insurance Final Expense Showdown is…
Which Should I Choose?
Yep. If you’ve been reading any of my articles, you know how I feel about comparing life insurance companies.
Get yourself to an independent life insurance agent, like those at Huntley Wealth, right now.
I bet you think this is just a little bit of self-promotion.
NOPE. I would give this advice to ANYONE – even if I didn’t work in the industry.
The thing is – not all life insurance companies approach medical conditions the same way. In fact, there are insurers that are more lenient than others on specific conditions and we know who they are.
If you go comparison shopping you could save THOUSANDS of dollars over the term of your policy.
We can even find the right fit for you if you opt for final expense insurance.
In a nutshell, there’s really no one best option out there for everyone. Both of these companies offer different products that may or may not suit you.
So let’s check out a couple of different scenarios to clarify my thoughts:
A Little Clarification
- If you have a serious medical condition that might come up when you’re asked questions about your health, you may want to skip the risk altogether and get Gerber Guaranteed Life.
- If you think you might die in the next two years due to natural causes, Mutual of Omaha’s Level Benefit Plan is your best bet.
- If you don’t have any serious medical issues and you’re OK with a graded benefit plan, Mutual of Omaha Life Insurance may offer lower rates.
Although if you don’t have any serious medical issues, it’s possible that final expense life insurance isn’t the right path for you AT ALL!
Hmmmm, I have to wonder why you aren’t calling Huntley Wealth right now to see if we have a better plan…
Speaking of Huntley Wealth – We Sure Know a Lot About Final Expense Life Insurance
Whatever your situation, working with an independent life insurance agent can help you narrow down your choice.
For example, Huntley Wealth can do ALL the comparison shopping for you. Yep.
This can save you a ton of time and money.
Plus, we can help you navigate the choppy waters of life insurance. I’m sure that Mutual of Omaha Life Insurance policy is looking mighty fine…
…but my guess is we can do better.
Supermen and women don’t jump over buildings in a single bound.
They make sure their families are covered on the days when they’re simply human.
In my opinion, TRUE superheroes plan.
So, whether it’s Mutual of Omaha Life Insurance, Gerber Life Insurance, or some other company that offers final expense coverage…
…give Huntley Wealth a call at 888-603-2876, and we’ll give you the inside scoop!*While we make every effort to keep our site updated, please be aware that "timely" information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.