The long-term care insurance (LTCI) marketplace has been in a consolidation period over the last few years. What once saw many companies offering LTCI, there are now just a handful of providers. Among them, Mutual of Omaha (MOO) is one of the best long-term care insurance companies available. In the following Mutual of Omaha long-term care insurance review, we will investigate the company’s history, ratings, LTCI product and the features offered, so that you can decide if MOO is the right choice for you.
About Mutual of Omaha Insurance Company
Mutual of Omaha is a mutual insurance company owned by its policyholders. Mutual of Omaha first began in 1909 as Mutual Benefit Health & Accident Association. 2018 will mark the company’s 109th year. Mutual of Omaha Insurance Company has various subsidiaries, including United of Omaha Life Insurance Company, which focuses on life insurance and annuity products for individuals and groups and Companion Life Insurance Company, which offers individual and group life insurance and annuities in New York.
For 2016, Mutual of Omaha reported record GAAP pre-tax operating income of $526.3 million on revenues of $7.9 billion, compared with operating income of $499.7 million on revenues of $7.2 billion in 2015.
Mutual of Omaha Insurance Company Financial Ratings
Mutual of Omaha is one of the top rated insurance companies in the U.S. the following are the financial ratings for Mutual of Omaha, United of Omaha Life Insurance Company and Companion Life Insurance Company.
- A.M. Best rating: A+, Superior
- S&P rating: AA-, Very Strong
- Moody’s rating: A1, Good
- Fitch rating: N/A
- Comdex ranking: 93 (out of 100)
- BBB rating: A+
Mutual of Omaha Insurance
Mutual of Omaha Insurance Company, through its various subsidiaries, offers an assortment of products and services, such as
- Life Insurance,
- Disability Insurance,
- Long Term Care Insurance,
- Critical Illness,
- Medicare Supplement Plans,
- Dental Insurance,
- Vision Insurance,
- Employee Benefits, and
- Financial Advisors
Mutual of Omaha Long Term Care Insurance
In our opinion, the best option to protect you and your loved ones from the high costs associated with LTC is long term care insurance (LTCI). Traditionally, long term care insurance provides reimbursement for costs associated with long term care.
Some plans also allow cash indemnity up to a certain amount of the income benefit.
In order to be eligible for LTC benefits, one of two scenarios must occur:
- You are unable to perform 2 of 6 activities of daily living (ADLs); or
- You require care due to a cognitive impairment such as Alzheimer’s disease, Parkinson’s disease, or Dementia.
Your long-term care benefits provide help for different services and costs including in home care, nursing home care, or care in an assisted living facility. Your income benefit is typically income tax free up to certain amount. For 2017, the maximum per diem limit is $360 a day.
To receive your long-term care benefits you must meet the requirements mentioned above regarding ADLs or cognitive impairment. In addition, you must file a claim with the insurer and wait for the policy’s elimination period to end. Your elimination period is the time that must pass until you can receive your income benefits. Elimination periods are counted as either a calendar day or as service days.
Once you are eligible to receive benefits, you can receive benefits for as long as your benefit pool or benefit period lasts.
Mutual of Omaha offers both standard long-term care insurance and hybrid long-term care insurance. We will focus on the Company’s traditional LTC policies under its MutualCare Solutions portfolio, MutualCare Secure Solution and MutualCare Custom Solution.
MutualCare Secure Solution vs MutualCare Custom Solution
Both products are underwritten by Mutual of Omaha Insurance Company. MutualCare Secure Solution (MSS) is a traditional long-term care insurance policy. MutualCare Custom Solution (MCS) provides greater flexibility and customization.
Both LTC policies are available for ages 30-79. Both policies are Partnership Qualified*. Both policies provide 12 month international benefit.
In addition, both policies offer:
- Nursing Home Benefit 100%
- Assisted Living Facility Benefit 50%, 75% or 100% of maximum monthly benefit
- Home Health Care Benefit 50%, 75% or 100% of maximum monthly benefit
- Adult Day Care Benefit Up to 100% of the monthly home health care benefit
- Stay-at-Home Benefits Up to two times the maximum monthly benefit
- Caregiver Training
- Durable Medical Equipment
- Home Modification
- Medical Alert System
MutualCare Secure Solution
MutualCare Secure Solution uses a benefits multiplier with benefit periods of 2, 3, 4 and 5 years. The elimination period options available are 90, 180 or 365 calendar days. A cash benefit is available up to 30% for for home health care.
MSS income protection benefits include 3%, 4%, or 5% compound interest for life or 20-Year 3% or 5% compound interest.
MutualCare Custom Solution
MutualCare Custom Solution uses a pool of dollars to determine maximum policy limit, with options including $50,000 to $500,000
in $500 increments. The available elimination periods include 0, 30, 60, 90, 180 or 365 calendar days. A cash benefit is available up to 40% for home health care.
MCS income protection benefits include 1% to 5% compound interests in .25% increments for life, 20 years or 15 years.
*Under the Long-Term Care Partnership Program, some states require that policies include an automatic 5% compound inflation protection. The requirement is lower in certain states. If you want to make sure that your LTC policy meets your specific State’s Long-Term Care Partnership Program guidelines, check what your specific state requirements are before designing your LTC insurance policy.
Additional Benefits of Mutual of Omaha Long-Term Care Insurance
Alternate Care Benefit: Provides coverage for certain qualified services or treatments not specified in the policy, since scientific advancements may present better options than we currently know about.
Bed Reservation Benefit: allows bed reservation for up to 30 days per calendar year if you require hospitalization.
Care Coordination Benefit: provides optional services of a care coordinator who will assess your needs, develop an individualized plan of care and help arrange for long-term care services.
Home Health Care Benefit: You will receive 100 percent of the maximum monthly benefit (with the option to reduce to 75 percent or 50 percent) to help pay for home health care services.
Shared Care Benefit: This optional rider allows you and your spouse to access benefits under each other’s policy.
Joint Waiver of Premium Benefit: Premiums are waived for both spouses if one spouse is on claim (MCS policy only).
Buy-Up Option: allows you to increase inflation protection once a year. Only available on Mutual Care Custom Solution policies.
Return of Premium: provides a return of premium on your LTC insurance policy.
Mutual of Omaha Review Conclusion
Long term care is expensive and the costs and services will likely to increase into the future. Currently, you can expect to pay around $100,000 a year for a nursing home and $50,000 a year for assisted living. A 2016 Genworth report showed that in home care currently costs around $3,800 a month. These numbers are growing annually thanks to inflation.
So what can you do? The first step would be to get informed. We can help you with the life insurance long term care planning side. Simply reach out to us by phone or email to get started. If you are interested in a Mutual of Omaha Long-Term Care Insurance policy or any of the other companies we represent, please give us a call today.