The Value of Whole Life insurance
When you purchase a guaranteed whole life policy, the greatest value you’ll receive is knowing your legacy and loved ones will be protected when you’re gone. But did you know there are other great benefits which add value to whole life insurance? Learn what these benefits are and how they can help you now and in the future.
In this article:
Benefits of whole life insuranceValue to Mutual of Omaha policyholdersHelp secure your family’s futureBenefits of whole life insurance
Guaranteed whole life insurance offers many benefits, including permanent life insurance coverage and fixed premiums. Unlike term life insurance, which only covers you for a specific period, or set number of years, whole life insurance provides coverage for your entire life.
When you pass away, your beneficiaries will receive a guaranteed death benefit to help pay for end-of-life expenses, including funerals. With whole life insurance, you’ll never have to worry about outliving your policy or renewing it at a higher cost.
Another value of whole life insurance are consistent premiums. When you enroll in a policy, the premium payment amount you pay from day one will remain the same throughout your life, even if the market fluctuates.
Plus, unlike other life insurance policies such as term life, once you’re enrolled, your whole life insurance premium won’t increase as you age. You can budget for this expense knowing there won’t be any surprise increases in premiums or added fees in the years to come.
Enroll today for the best rate. Premiums are determined by your age at the time of enrollment, so the sooner you enroll, the lower your premium will be.
Monthly payment for $10,000 coverage
| Age | Female | Male |
|---|---|---|
| 50 years old | $30.40 | $40.20 |
| 60 years old | $42.70 | $56.90 |
| 70 years old | $63.90 | $86.70 |
| 80 years old | $126.90 | $157.10 |
30-day money-back guarantee
Can’t decide if a Mutual of Omaha guaranteed whole life insurance policy is for you? You don’t have to commit right away. Enjoy a 30-day risk-free look to make sure you’re completely satisfied with your policy.
If you decide within those 30 days that you’re no longer interested in the guaranteed whole life policy, you’ll receive full reimbursement of your premium. There’s no risk to enrolling in a policy with this money-back guarantee.
Understanding whole life insurance cash value
Another valuable feature of a whole life insurance policy is the cash value component. Each time you make a payment for your whole life policy, you’re building cash value. Over time, the cash value of your policy builds through a fixed interest rate of 5.66%.
Think of it like a savings account within your policy, made up of the funds you’ve accumulated by paying premiums. The longer you have a policy, the more cash value you have.
You can access your cash value by borrowing against it. This means you take out a loan from your policy and use the cash value to pay for personal expenses. Withdrawal fees may apply if you borrow against it.
You don’t have to repay the loan, but the amount you’ve borrowed will be deducted from your death benefit when you pass away. If you do repay your loan, the amount paid is applied toward your interest first before paying the principal.
What is a graded death benefit?
One term you may hear along with cash value is a graded death benefit. This helps an insurance company offset risk, as no health exam or questionnaire is required to be accepted. This is industry standard for a guaranteed whole life policy.
Here’s how a graded death benefit works:
During the first two years, if you die from natural causes (any cause other than accidental), your beneficiaries will receive all premiums paid, plus 10%. After two years, the full benefit is paid for death due to all causes.
For accidental death — independent of sickness and all other causes — full benefits are paid from the first day our policy is issued. All benefits will be paid less any outstanding policy loan.
Tax benefits of whole life insurance
Guaranteed whole life insurance offers numerous tax advantages, including tax-deferred growth on your policy's cash value. This implies that you aren't required to pay taxes on the interest until you decide to withdraw funds, enabling your cash value to grow more rapidly through compounding.
You can also use your cash value as a tax-free loan. If you do borrow against your cash value, in an amount that is equal to or less than the premiums you’ve paid, you don’t need to pay taxes on the withdrawal.
Finally, the death benefit of your policy is paid out to your beneficiaries tax-free. They’ll receive the full amount of your policy, so they have one less thing to worry about.
Customize your whole life policy with riders
To add even more value to your whole life insurance policy, consider riders. Riders are optional features that allow you to customize your policy to your personal needs. Some riders are available at the time you purchase your policy, while others can be added later.
Riders you may be able to add on to your policy include:
Accidental death rider
Provides additional payment to beneficiaries if the policyholder passes away from an accident while they are actively paying premiums.
Cancer rider
Provides additional payment to beneficiaries if the policyholder passes away due to cancer. The death benefit amount may vary based on the policyholder’s age.
Stroke and heart attack rider
Provides additional payment to beneficiaries if a policyholder passes away from a stroke or heart attack.
Value to Mutual of Omaha policyholders
Mutual of Omaha policyholders enjoy even more benefits that encourage them to live life to the fullest and empower them to take care of their own policy.
One such benefit is Customer Access, an online portal where customers can review their policy, make payments, revise account information and update their beneficiaries. Customer Access is available anytime and is accessible on your desktop and mobile device. You’ll never have to worry about waiting to call during business hours — everything is there when you need it.
Another benefit unique to Mutual of Omaha customers is Mutual Perks, a program that provides value-added services and discounts. Customers enjoy discounts at retailers, special rates on a health and fitness program, savings on vision care and much more.
Guaranteed payout to your beneficiaries
When you purchase a guaranteed whole life insurance policy, you’re agreeing to a promise. You’ll pay premiums and in turn, when the time comes, your loved ones will receive a payout. With Mutual of Omaha, you’ll never have to question this promise. Your beneficiaries are guaranteed to receive a payout.1
The payout process is fast and easy, with most claims paid within 24 hours. Simply call us, visit our website or mail in a request to receive your payout.
Who should consider life insurance?
Guaranteed whole life insurance is a great way to ensure your legacy and loved ones are protected. With this policy, you’ll enjoy:
Guaranteed acceptance for ages 45-85 (in NY, 50 -75)
Affordable rates that never increase
Benefits that are never reduced because of age or health
No medical exams or health questions to answer
Most claims are paid within 24 hours.2
Help secure your family’s future
With end-of-life expenses ranging from a few thousand dollars to upwards of $10,0003, a guaranteed whole life policy provides peace of mind that your loved ones will be cared for when you’re gone.
Use this final expense calculator to estimate the correct amount of coverage for you.