How does this policy work?
This is a whole life insurance policy. The rates will never change at any age. The coverage will never decrease, and the policy will last forever. It comes with the guaranteed option for the insured children to purchase additional coverage (potentially up to an additional $250,000) later in life regardless of their health. Also, it comes with a waiver of premium for owner death. If the owner ever dies, Mutual of Omaha will waive all premiums for 90 days, so there is ample time for someone else to take over the policy. There is no waiting period for coverage to begin. When the policy is issued, the insurance takes full effect when your payments start. Since it’s a whole life policy, it will build cash value. Cash value is like a behind-the-scenes savings account. Every time you make a payment, a portion goes into this account that grows indefinitely. You can withdraw the money from this account anytime you want.
Is there a waiting period?
No. If the policy is approved, there is no waiting period, and coverage starts 100% the day your payments begin.
Will the policy ever expire or change?
The policy lasts forever. At no age will it end or change in value.
Do the rates ever increase?
No. The monthly price will remain the same forever.
How does the cash value accumulate?
With children’s life insurance (all companies), 50% of the premium is a safe estimate for how much each payment goes into the cash value account.
Is it whole life insurance?
Yes. There is no standalone term insurance for children from any company.
Yes. If you want to withdraw the cash value at 18, you may.
What happens when the child turns 18?
Nothing changes at 18. Companies like Gerber Life force you to transfer ownership to the children once they turn 18. Mutual of Omaha does not do this. When the kids turn 18, you can make them the owner or you can remain the owner. The choice is yours.
How does Mutual of Omaha compare to the Gerber Grow-Up Plan?
They are the same type of policy. However, Mutual of Omaha is about 50% less in cost, gives the children the guaranteed option to buy more coverage later in life, and waives all premiums for 90 days if the owner ever dies. Now, Gerber’s coverage does double in face value when the child turns 18. However, since they charge you double the cost, it’s not really worth it since you're paying about double what Mutual of Omaha charges.
Can you borrow from the cash value?
Yes. All life insurance plans that have cash value allow you to withdraw this money if you choose to.
Can the cash value be used for anything?
Yes. There are no restrictions on how you use this money.
Does the policy not payout for any reason?
Suicide is the only exclusion during the first 2 years.
The application has multiple kids on it, but will multiple policies be issued?
We make it easy by allowing you to add multiple kids on one application, but in the end, each child will have their own policy issued.
Does the policy end once they turn 17?
No. The policy never ends at any age. 17 is merely the maximum age for new applicants.
Can I buy more coverage than $50,000?
Unfortunately, $50,000 is the highest amount of coverage Mutual of Omaha offers for each child for their children’s whole life insurance.
