New York Life vs. Mutual of Omaha Life Insurance

The right life insurance policy can protect your family’s financial future, so it’s important to make smart decisions when shopping for coverage. A crucial part of that is choosing the right life insurance company. New York Life and Mutual of Omaha are two of the country’s top insurers, but whether one of these companies is right for you depends largely on your financial needs and goals and how well a provider can meet them. Let’s take a look at how these companies compare.

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New York Life Insurance Summary

Since New York Life Insurance Company opened its doors more than 175 years ago, it has grown to become the largest mutual insurer in the United States and has paid dividends to its policy owners for at least 166 consecutive years. The company offers a comprehensive selection of life insurance solutions, including term, whole and universal life products, and riders may be added on to enhance benefits. Most policies must be purchased directly through the company's financial advisors.

New York Life’s term policies provide temporary coverage that may be converted to permanent coverage during a contractual conversion period. Several types of term plans are available, including policies that feature $1 million or more of protection. For permanent coverage, New York Life offers standard and customizable whole life plans, which include cash value components that can be used to supplement traditional retirement income. Individuals up to the age of 90 may also qualify for coverage through New York Life’s universal and variable universal plans. These policies let investors customize their premiums and coverage levels to better address their changing financial needs.

Mutual of Omaha Life Insurance Summary

Founded in 1909, Mutual of Omaha has also been selling life insurance for more than a century. Its innovative financial solutions include term and permanent plans that offer coverage spanning from a modest $2,000 to more than $1 million, depending on the policy and the applicant’s financial needs. Riders may be added to many of these plans to enhance or customize coverage, but they may increase the monthly premiums.

Coverage through Mutual of Omaha’s term life plans starts at $100,000. Although the duration of coverage can range between 10 and 30 years, most policies are renewable or may be converted to permanent coverage. The company also offers lifelong coverage through whole and universal policies, including guaranteed issue plans, with coverage ranging from $2,000 to $25,000 in most states. Qualified individuals who need more coverage may opt for one of Mutual of Omaha’s universal plans, which feature flexible premiums and death benefits. This type of policy also includes a cash-value component that lets policyholders access money during their lifetime. Mutual of Omaha also offers accidental death plans, which are designed to supplement a policyholder's preexisting coverage.

New York Life vs. Mutual of Omaha Life Insurance Comparison of Cost

Life insurance premiums vary by policy type and coverage amount, regardless of the issuer. For example, term coverage is typically less costly than permanent coverage. However, when setting premiums, many companies use a unique algorithm to create a risk profile for each applicant. This formula often factors in an individual’s age, gender, family history and general health. Although the sheer number of factors affecting price can make it difficult to compare costs between companies, looking at the potential monthly premium charges for a model customer may help. Let’s explore the monthly premiums for a $1 million, 20-year term policy for a nonsmoking male with an average risk profile:

Applicant's Age	New York Life	Mutual of Omaha
35	$191.67	$74.18
45	$459.42	$171.36
55	$1,072.75	$406.14
65	$2,355.50	$1,359.02

For this model customer, New York Life's rates are more than double those of Mutual of Omaha. However, premiums vary based on a number of factors and may change at any time.

New York Life vs. Mutual of Omaha Life Insurance Comparison of Accessibility

New York Life’s universal plans offer financial protection to individuals up to the age of 90. However, many of its policies require applicants to undergo a medical exam, which may reduce the odds of approval for high-risk individuals. Unlike many companies, New York Life doesn’t offer a guaranteed-issue policy, so applicants who are denied coverage through the underwriting process may need to seek coverage elsewhere.

Mutual of Omaha also requires a medical exam as part of the underwriting process for many of its policies. This may make it difficult for individuals with health conditions or a family history of illness to get coverage. However, applicants who are denied coverage through the company’s standard underwriting process may still qualify for up to $25,000 of protection through its guaranteed-issue plan. Coverage is available for applicants up to 85 years old, but benefits are graded so if the insured dies during the plan’s initial two years, beneficiaries only receive a limited payout.

New York Life vs. Mutual of Omaha Life Insurance Comparison of Riders

Riders are supplemental benefits that may be added on to a life insurance policy to customize or enhance its coverage. Available riders vary among companies and plans, and most must be purchased for an additional premium charge. Both New York Life and Mutual of Omaha offer a substantial selection of riders, which are shown in the chart below.

Rider	New York Life	Mutual of Omaha
Child rider		X
Terminal illness rider	X	X
Chronic illness rider	X	X
Critical illness rider		X
Accelerated death benefit rider		X
Accidental death benefit rider	X	X
Common carrier death benefit rider		X
Disability waiver of premium rider	X	X
Disability income rider		X
Residential damage rider		X
Option to purchase paid-up additions rider	X
Return of premium rider	X
Money back option rider	X

New York Life also offers riders that customize the way a death benefit is paid. Policyholders may choose a level death benefit that equals the policy’s face amount or a fluctuating death benefit that includes the face amount plus any cash value.

Choosing the Right Insurance Company for You

Choosing an insurance company involves matching a company’s offerings with your specific financial needs and goals. That may mean looking at costs, policy availability and each company’s overall reputation. It’s also important to ask questions, so when you do sign a contract, you’re sure it’s the right policy for your family.