Mutual of Omaha – Mortgage Protection Insurance Review (2024)

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Mutual of Omaha

In 1909, Creighton University medical student Dr. C.C. Criss and his wife Mabel founded Mutual of Omaha as Mutual Benefit Health and Accident Association. Today this Fortune 500 company offers a full range of insurance and financial products for people and businesses in the United States.

Mutual of Omaha also provides financial services such as life insurance, Medicare Supplement, long-term care coverage, annuities, and group insurance such as disability, life, and 401(k) plans. With a long-term commitment to providing the highest service levels, individuals and groups throughout the country rely on Mutual of Omaha for financial peace of mind.

Does Mutual of Omaha Offer Mortgage Protection Insurance?

Mutual of Omaha offers mortgage protection insurance to cover mortgage payments if the policyholder cannot make them. The plan pays the mortgage protection insurance directly to the lender, including principal and interest. Like life insurance, the plan pays out after the policyholder passes.

However, mortgage protection insurance also may cover mortgage payments if the homeowner becomes disabled and unable to work. Some policies also cover job loss and other significant life occurrences. For example, the mortgage lender is the policy beneficiary, and if the homeowner passes away, the rest of the mortgage is paid off. If the policyholder is ill or other covered events arise, the plan covers mortgage payments for a set time.

Mutual of Omaha Mortgage Protection Insurance Cost

Mortgage protection insurance costs vary based on several crucial factors. Overall, the higher the risk, the more costly the premiums. Also, the policy amount determines the price, as more insurance requires higher premiums. Other factors also influence the cost of mortgage protection insurance, including:

  • Health Condition – Policyholders with poor health, diagnosed conditions, or working in dangerous occupations pay more for coverage.
  • Age – As policyholders get older, MPI policy costs increase because of the increased risk of illness or death.
  • Gender – Another factor influencing MPI costs is gender, as men usually pay more for this coverage than women.
  • Location – Based on the property location, the risks could be higher in areas near flood zones, waterways, and storm conditions. As a result, the premiums for MPI are higher.
  • Lifestyle Habits – Like other insurance coverage, smokers and nicotine users typically pay more for a plan than non-smokers.
  • Additional Coverage – Some policyholders require additional coverage, known as an insurance rider, and these add-ons increase premiums.

Riders for Mutual of Omaha Mortgage Life Insurance

Life events other than the policyholder’s death may not be covered under basic mortgage protection insurance. Additional coverage is available to cover these occurrences, such as:

  • Bankruptcy to protect the mortgage payments in the event of financial duress
  • Critical illness to cover a specific mortgage payment period or the entire mortgage
  • Disability if the policyholder becomes disabled and cannot make mortgage payments
  • Unemployment coverage if the borrower involuntarily loses work for a covered reason
  • Accelerated access to provide benefits before death in certain circumstances, such as chronic illness
  • Accidental death if the policyholder dies in an accident
  • Return of premium after the policy term ends if unused
  • Overload protection protects against excessive loans on the mortgaged property
  • Primary, additional, and children insured for added coverage
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