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Mutual of Omaha Long-Term Care Insurance Review


Between possibly declining health, changing family situations and the psychological stress of approaching your later years, getting older can be very difficult. It doesn’t get any easier when you add in the financial stress of having to pay for necessary long-term care. Long-term care is an umbrella term that covers a variety of personal care services a person might need in their later years or if they become disabled. Generally speaking, these services fall into one of three buckets: home care, assisted living and skilled nursing. Mutual of Omaha is one major provider of long-term care.

Long-term care is quite a pricey set of services. As of 2021, the average cost of living in a nursing home is about $93,075 per year for a semi-private room. There are a number of ways to plan ahead for paying for this potentially huge expense. Medicaid may cover some costs, and a 1035 exchange can be used to get money for care. There are also state partnership programs that can cover some costs.

Long-term care insurance is a strong option for covering these expenses as well. It works like any other insurance product where you pay a premium earlier in life in exchange for payments towards long-term care later in life.

Shopping around for long-term care is extremely vital. According to the Long Term Care Insurance Price Indexes produced by the American Association for Long-Term Care Insurance, rates for virtually identical coverage could vary by over 110% by provider. For help with long-term care insurance, consider working with a financial advisor.

Overview of Mutual of Omaha

Mutual of Omaha was founded in 1909 and is headquartered, as the name suggests, in Omaha, Nebraska. The firm, which is not publicly traded, offers a wide variety of insurance products, including life insurance.

There are more than 5,500 employees at Mutual of Omaha as of 2018, and nearly 5.2 million product customers. According to the National Association of Insurance Commissioners (NAIC), Mutual of Omaha posted financial gains in 2020 after two years of net losses.

The firm has fairly strong financial strength ratings. They go as follows:

  • A+ Superior rating from A.M Best Company, Inc. (second highest out of 16)
  • A1 Good rating from Moody’s Investor (fifth highest out of 21)
  • A+ Strong rating from S&P Global (fifth highest out of 21)

Mutual of Omaha Long-Term Care Policy Features & Riders

Mutual of Omaha Long-Term Care

The exact premiums you’ll pay for long-term care at Mutual of Omaha depend on how much money you want to end up getting each month during your collection phase. The firm has a calculator where you can determine exactly what your payments will be. Other determining factors include where you live, your marital status and gender.

Using Mutual of Omaha’s calculator, here are a few potential premium costs:

  • For a 55-year-old single man living in Columbus, Ohio, looking for a monthly payout of $3,000, estimated monthly premiums would come to between $86 and $171.
  • For a 45-year-old married woman living in Alexandria, Virginia seeking a monthly payout of $3,500, estimated premiums would come to between $82 and $191.

There will be a waiting period, also known as an elimination period, during which you cannot collect benefits and all long-term care costs will fall to you. The length of this period varies and is determined when you purchase your insurance contract.

There is also an inflation protection rider available for policy holders, increasing your benefits each year to keep pace with inflation, which can raise the cost of care. Spousal shared care is also an option you can add.

The look-back period during which you can cancel your policy may depend on the state you live in. Some, for instance, mandate a 30-day free look-back period.

One benefit offered at Mutual of Omaha is a return of premium rider. So if you die before all of your premium payments have been paid out, your family will get a partial refund of the remaining funds.

Mutual of Omaha Customer Satisfaction

There are a total of 11 complaints regarding long-term care insurance filed against Mutual of Omaha, according to the NAIC. This gives the firm a complaint ratio of 0.42 for long-term care insurance complaints, which means they have fewer than average.

Mutual of Omaha received an A+ rating from the Better Business Bureau.

How to Contact Mutual of Omaha

Mutual of Omaha offers various types of insurance, including long-term care insurance, across the country. The best way to connect with an agent is to fill out the contact form on its website.

Bottom Line

Mutual of Omaha Long-Term Care

Mutual of Omaha offers long-term care insurance across the country for premiums that vary based on age, location, marital status and gender. There is a calculator available to help you determine what your premium might be. However, this is only an approximation, as long-term care costs can vary significantly based on your personal situation.

Mutual of Omaha has a considerable number of benefits in its LTC offerings. The firm provides inflation protection and spousal shared care with its long-term care, and has a look-back period that may depend on what state you live in. The firm is well-rated and has strong financial strength.

Retirement Planning Tips

  • To get help acquiring long-term care insurance and seeing how it might work into you plan, consider working with a financial advisor. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors in your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • If you get long-term care insurance, you’ll need to work your premium payments into your budget. Use SmartAsset’s free budget calculator to come up with a spending plan that incorporates this expense.

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