Mutual of Omaha Long-Term Care Insurance Review

Mutual of Omaha was founded in 1909, hitting $1 billion in benefits paid to clients in 1958. It made the annual Fortune 500 list for over two decades and holds the highest financial stability ratings from Moody’s, AM Best and Standard & Poor’s. All this makes Mutual of Omaha one of the most successful large companies in the country. Along with long-term care insurance, the company sells life, accidental death and disability insurance.

Pros
  • Coverage available to those aged 30 to 79
  • Website provides ample information, including estimated quotes
  • Waiver of Premiums included

Cons
  • Some medical conditions or medications may exclude you from coverage

Mutual of Omaha MutualCare Long-Term Care Insurance Solutions

Long-term care insurance can help make aging in place affordable for as long as possible. If you need some care in a nursing home, long-term care insurance can protect your retirement savings and your family’s finances by paying for facility care. Mutual of Omaha developed MutualCare Solutions long-term care insurance products which are designed to be flexible when it comes to paying for care in a variety of settings. Mutual of Omaha’s MutualCare Secure Solution and MutualCare Custom Solution are designed to protect your retirement assets by helping you pay for facility care, hospice, in-home care and more.

  • MutualCare Secure Solution Long-Term Care Insurance: MutualCare Secure Solution is a traditional long-term care policy providing security for retirement savings. This long-term care insurance offers $1,500 to $10,000 in monthly benefits for a nursing home, assisted living, adult day care and in-home care expenses. Mutual of Omaha’s MutualCare Secure Solution includes many other benefits, like a cash benefit, waiver of premium if you’re in a nursing home, assisted living facility or are receiving care in your home and a wide selection of riders to fine-tune your insurance coverage.

    MutualCare Secure Solution is best for those who prefer easy-to-understand benefits and are comfortable with a certain level of asset protection.

  • MutualCare Custom Solution Long-Term Care Coverage: MutualCare Custom Solution provides greater control over how you receive long-term care benefits. As the name of this long-term care insurance suggests, MutualCare Custom Solution is highly-customizable allowing for the perfect coverage level. This package includes more options for a return of premium at death to pay your survivors a lump sum minus claims paid. The benefit amount can be considerable if you never need to use the insurance. MutualCare Customer Solution has all the benefits of MutualCare Secure Solution, plus more options for benefits like inflation protection, joint waiver of benefits, greater cash benefit and higher policy limit depending on your preferences.

    MutualCare Custom Solution is best for individuals who want to be very specific with long-term care planning.

How a Mutual of Omaha Long-Term Care Insurance Policy Works

You will receive benefits from a Mutual of Omaha long-term care policy when your doctor or other licensed health care practitioner prescribes long-term care services. Your plan pays for covered services until reaching the policy limit. When you buy your long-term care insurance from Mutual of Omaha, you will make some choices which affect your coverage:

  1. Waiting Period: Also known as the elimination period, this is the number of calendar days between when you first receive care, and when the insurance starts paying medical bills. You pay costs out-of-pocket during the waiting period.

  2. Benefit Payments: You have two options regarding how you receive payments from your long-term care policy. A traditional reimbursement benefit pays bills you submit to Mutual of Omaha for reimbursement, up to the maximum monthly benefit of the plan. A cash benefit is typically 30 percent of the policy’s home health care benefit, used for professional care or care provided by friends or family members. The cash benefit has the advantage of no elimination period or submitting bills and waiting on payments.

  3. Continuation of Benefits: Mutual of Omaha continues to pay for long-term care as long as you remain chronically ill and eligible for benefits until reaching your policy limit.

Mutual of Omaha Long-Term Care Insurance Cost Estimates

To give you an idea of how much long-term care insurance costs with Mutual of Omaha, we ran quote estimates based on a single 60-year-old healthy client buying a MutualCare Secure Solution policy with a 36-month benefit multiplier (benefit period multiplied by 36 months to determine policy limit), 90-day elimination period and no additional benefits. Rates for married individuals were slightly lower.

Mutual of Omaha Long-Term Care Insurance
Monthly Benefits and Estimated Premiums
State Benefit
Amount
Premium
(Male)
Premium
(Female)
California $1,500
$2,500
$3,500
$72
$120
$168
$118
$197
$276
Connecticut $1,500
$2,500
$3,500
$71
$118
$165
$116
$193
$270
Florida $1,500
$2,500
$3,500
$87
$144
$202
$142
$236
$331
Montana $1,500
$2,500
$3,500
$99
$166
$232
$99
$166
$232
New Hampshire $1,500
$2,500
$3,500
$63
$105
$147
$103
$171
$240

Mutual of Omaha Long-Term Care Insurance Built-in Benefits

The following benefits, called Built-in Benefits, are included with each Mutual of Omaha long-term care insurance policy.

  • Alternate Care: Coverage for services or treatments not existing today, but become standard practice in the future.

  • Care Coordination: A care coordinator is a licensed health care professional provided to assess your needs, develop an individual care plan and help arrange for services.

  • Cash Benefit: The option to select a cash benefit, explained above.

  • Waiver of Premium: You don’t pay premiums while receiving covered long-term care services.

Mutual of Omaha Long-Term Care Insurance Optional Benefits

You can choose from many optional add-on benefits to further define a Mutual of Omaha long-term care policy to meet financial goals during retirement.

  • Inflation Protection: Increases benefits by a set percentage every year to help protect against the rising cost of long-term care services. Percentages are from three to five percent for a lifetime and three to five percent for 20 years for MutualCare Secure Solution. MutualCare Customer Solution adds 10- and 15-year durations at .25 percent increments.

  • Shared Care: If you and your spouse or partner buy the same Mutual of Omaha long-term care policies, you each have access to benefits on the other’s policy if needed.

  • Security Benefit: Provides an additional percentage to your policy’s monthly reimbursement to help pay for living expenses or a spouse or partner’s care.

  • Return of Premium: Refunds a portion of premiums paid minus any benefits paid out once you die.

mutual of omaha

Source: Mutual of Omaha

Mutual of Omaha Complaints

The Better Business Bureau accredits Mutual of Omaha and gives the company an “A+” rating. The company responded to and resolved all complaints filed with the BBB over the past three years. ConsumersAdvocate rates the company 9 out of 10, with a 4.5- out of 5-star rating from Mutual of Omaha long-term care insurance customers. ConsumerAffairs readers rate the company 3.1 out of 5 stars with the majority of the complaints speaking to the length of time it took to have claims paid. Again, Mutual of Omaha addressed complaints and is working with consumers to open the bottleneck on their premium payments.

Mutual of Omaha Long-Term Care Insurance Q&A

  • Does Mutual of Omaha offer any discounts on long-term care insurance?
    You are eligible for a 30 percent discount if you and your spouse or life partner each buy the same long-term care policy from Mutual of Omaha. If you want to purchase insurance only for yourself and you are in good health, you may qualify for a preferred rate with a 15 percent discount.

  • How can I buy a Mutual of Omaha long-term care policy?
    Because long-term care policies are customized to meet individual needs, you’ll need to speak with a licensed agent to discuss your needs and state requirements. You can call the number on the website, fill out the form on the site or call a local Mutual of Omaha agent to schedule an appointment. The quote tool on the site is very straightforward to use.

  • Will I pay income tax on my Mutual of Omaha long-term care insurance payout?
    You most likely won’t owe any income taxes on the distribution even though you’ll receive an IRS Form 1099 for long-term care insurance benefits paid each year. Be sure to check out IRS Publication 502 to see if you qualify to be able to deduct the cost of your coverage.

  • Does Mutual of Omaha long-term care insurance have a survivorship benefit?
    You can add a survivorship benefit rider to a MutualCare Custom Solutions policy. If you hold the long-term care insurance for 10 years or more and your spouse or partner dies, you will have continued coverage but pay no further premiums.

  • Do I have to meet in person with a Mutual of Omaha agent to apply for long-term care insurance?
    If you are under the age of 72 and free of certain medical conditions, Mutual of Omaha can interview you for your long-term care insurance application over the phone. The underwriter has the final say on whether an in-person meeting is required.

Conclusion

No one buys homeowner’s insurance because they expect to lose their home but to have a safety net to protect the asset. You may not plan on needing long-term care as you age, but having insurance to cover the cost of care will protect or stretch your retirement savings. Mutual of Omaha’s financial stability and decades of managing insurance policies makes the company a trusted name in long-term care insurance, and you can craft a long-term care insurance plan to meet your financial means and concerns.

Mutual of Omaha Reviews

Recent Reviews

August 07 2019 1:09AM

My mom has a long term care policy. She is 90 years old. We had to start using it last April for in home care. The agency that is coming into the home requires their money up front. They send Mutual of Omaha a invoice by fax at the first of month an middle of month. We have had to wait sometimes 3 weeks for a check. My moms checking account has bounced twice because they don’t send checks in a timely manner they keep saying they are behind but there is no reason for that happening. They should have direct deposit. Don’t understand why they don’t. They never have had to wait on my moms premium ever. Just really stressed taking care of her an having to worry about when they going to mail these checks.

Rhonda D.
Lexington, NC
August 03 2019 11:23PM

My wife and I have had Mutual of Omaha long term care insurance for 14 years. I bought it when I was 56 and now I'm 70 years old and retired. The premium stayed the same for 14 years and now when I can least afford it my premium increased 42%. Mutual of Omaha, in their premium increase letter, said the following; "Due to insureds both keeping their policies longer and staying on claim longer than originally assumed, combined with the cost of services continuing to increase, premiums are required to be increased in order to support future claim costs." I don't get it, why would you not keep your policy until you go into assisted living or die. Some Mutual of Omaha actuary screwed up big time and now the policy holders need to bail out the company. This is going to cost me another $3,300 per year which I have not contemplated in my retirement budget. There goes our travel budget.

Don C.
Castle Rock, CO
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