Primerica vs. Mutual of Omaha

Today’s life insurance shoppers have a plethora of companies and products to choose from. In 2020, nearly 850 companies sold life insurance policies in the United States and its territories. For consumers, this can make choosing a provider more challenging than ever. To help you make the right decision for yourself and your family, it’s important to understand what options are available and how they fit with your financial needs and goals. To start, let’s look at two well-known insurers: Primerica and Mutual of Omaha.

Primerica Life Insurance Summary

Since opening its doors in 1977, Primerica has been dedicated to helping middle-income American families achieve financial well-being. Its products and services are offered nationwide using a multilevel marketing structure, and new customers typically receive a 30-minute financial needs analysis, which is designed to put them on a personalized path to achieving their goals. Although Primerica doesn’t offer online quotes or applications, convenient in-home consultations are available in many areas.

Primerica offers a broad selection of investment and debt management solutions, but its life insurance coverage is limited to standard term plans. These customizable policies provide coverage for up to 35 years, with level premiums throughout the term and affordable renewal rates. Policyholders may get additional benefits through riders, including a waiver-of-premium rider and a child rider that covers all eligible children in a household. Policy documents are delivered electronically, and most benefits are paid out within 14 days of filing the claim. Each family may only purchase a single policy.

Mutual of Omaha Life Insurance Summary

Mutual of Omaha has delivered innovative financial solutions, including an extensive selection of life insurance products, to customers since 1909. Its term plans range in duration from 10 to 30 years, with benefits starting at $100,000. Seniors up to the age of 80 may qualify for coverage, and many plans offer the option to renew protection or convert to a permanent policy.

Mutual of Omaha also offers permanent coverage options, including whole and universal policies, and accidental death plans designed to supplement more traditional coverage. The company’s whole life options feature level premiums and cash accounts that policyholders can borrow against. Universal plans offer flexible premiums and coverage to meet a policyholder’s changing financial needs. Consumers may choose a standard universal plan or opt for an indexed universal plan that protects the policy's value from downturns in the market. Accelerated benefits are included in all universal plans at no extra cost. 

Primerica vs. Mutual of Omaha Life Insurance Comparison of Riders

Customers who purchase policies through Primerica or Mutual of Omaha may increase their benefits or customize coverage through riders, usually at an additional cost. However, each of these companies offers a different selection of riders:

It's important to note that even within a company, different plans may offer different riders and availability may differ by state of residence. Additionally, riders that appear similar may have different benefits and limitations and offer varying amounts of coverage in each company. For example, critical illness riders at different companies may define the terms of a qualifying diagnosis differently or maintain unique lists of diseases that qualify you for benefits.

Primerica vs. Mutual of Omaha Life Insurance Comparison of Accessibility

Although Primerica’s term policies are available in all 50 states and in U.S. territories, online quotes aren't available, and interested parties must apply for coverage directly through one of the company’s agents. Qualified individuals may not be required to take a medical exam prior to approval, and once an applicant is approved, coverage may continue through age 95 without an increase in rates. However, some riders, such as the increasing benefits rider, may only be available to individuals below a certain age or those with non-rated coverage.

Most Mutual of Omaha policies require applicants to undergo a medical exam, which may make it difficult for individuals with health concerns to get approved for coverage. However, the company does offer a guaranteed-issue policy with a modest death benefit for individuals up to age 85. Coverage is assured, with amounts ranging from $2,000 to $25,000, and prices vary based on age and gender. Interested parties may apply online or over the phone.

Primerica vs. Mutual of Omaha Life Insurance Comparison of Company Ratings

Primerica boasts a superior rating of A+ for financial strength from AM Best, and the company has received accolades from reputable industry players such as Forbes, where it was named to the publication’s list of America’s Best Insurance Companies for 2022. Forbes also ranks Primerica among the best in state for term insurance in Ohio, Georgia and California. The company has been BBB accredited since 1980, with a rating of A+, which is the organization’s highest score.

Mutual of Omaha also maintains a reputation as a strong, stable business, with consistently high marks from major industry credit agencies, including a rating of A+ (superior) from AM Best. It joins Primerica on Forbes’ list of America’s Best Insurance Companies of 2022 and takes the No. 11 spot on U.S. News and World Report’s Best Life Insurance Companies of 2022 list. Mutual of Omaha has been accredited with the Better Business Bureau since 1940 and currently has a BBB rating of A+.

Choosing the Right Insurance Company for You

Before you choose an insurance company to work with, it’s helpful to understand your family’s financial needs and goals. This may involve examining your income, current debts and anticipated future costs, such as college tuition. By understanding what you need and what you can expect from a life insurance policy, you'll become a more informed consumer who can make savvy policy decisions and choose the right company and coverage to secure their family's financial future.