Mutual of Omaha vs Colonial Penn: which one fits you

Two good companies, two different jobs. The choice between Mutual of Omaha and Colonial Penn is less about which is “best” and more about which one is built for your situation.

Here’s the short answer on Mutual of Omaha vs Colonial Penn. Both are long-established, reputable carriers that sell senior final-expense whole life. Mutual of Omaha’s Living Promise tends to fit people who can answer a few health questions, because it can pay the full benefit from day one and stretch each dollar further. Colonial Penn’s $9.95 plan fits people who want guaranteed acceptance with no health questions, a name they know, and a simple application. Your health and your coverage amount decide it.

Mutual of Omaha vs Colonial Penn at a glance

Both companies sell whole life built for final expense, coverage designed to handle a funeral and small end-of-life bills, with a premium that’s locked for life and coverage that doesn’t expire. The differences come down to how you qualify, when the full benefit is payable, how much coverage a dollar buys, and the financial strength behind the claim. Here they are side by side.

Notice there’s no “loser” column. The health question that Mutual of Omaha asks is exactly what lets it offer day-one coverage and a lower cost per dollar. The health question Colonial Penn skips is exactly what makes it available to nearly everyone. Each strength is the other side of the same tradeoff. The rest of this page explains what that means for you.

Where Mutual of Omaha shines, and who it fits

Mutual of Omaha is a top-rated, policyholder-owned insurer that’s been keeping promises since 1909. Its final-expense plan, Living Promise, comes in two versions. The Level plan pays the full benefit from day one for applicants who answer the health questions favorably, with no waiting period. The Guaranteed version accepts nearly everyone with a two-year graded benefit, for people who don’t qualify for Level.

Two things make it stand out. First, financial strength: AM Best assigns Mutual of Omaha a rating of A+ (Superior), one of its highest tiers for the ability to pay a claim that may be filed decades from now. Second, value when you qualify: because the Level plan asks a few health questions, it can price competitively and pay in full from the start, which often means more coverage per dollar than a guaranteed-acceptance plan.

Mutual of Omaha tends to fit when:

• You can answer a few health questions and likely qualify for the Level plan.
• You want full coverage from day one, with no two-year graded period.
• You care about a top-tier financial strength rating behind the policy.
• You want the most coverage per dollar your health allows.

For the full picture, including how its rates land against other A-rated carriers, see our Mutual of Omaha life insurance review.

Where Colonial Penn shines, and who it fits

Colonial Penn has sold life insurance since 1957 and is part of CNO Financial Group, a publicly traded insurer. Its signature $9.95 plan is guaranteed-acceptance whole life sold in “units”: you buy coverage at $9.95 per unit per month, and how much a unit is worth depends on your age and sex. For ages 50 to 85, there are no health questions and no medical exam, so you can’t be turned down for your health.

Its real strength is certainty and simplicity. If a health history has made other coverage hard to get, guaranteed acceptance means you’re approved. The premium per unit is locked for life, the coverage never shrinks, and the application is short. The tradeoff is a two-year graded period for natural-cause death (accidents are covered from day one) and a higher cost per dollar than a health-qualified plan, which is the price of skipping the health questions.

Colonial Penn tends to fit when:

• You’ve been declined before, or health issues make other coverage hard to get.
• You want no health questions and a simple, familiar application.
• You need a smaller, final-expense-sized amount rather than a large benefit.
• A two-year graded period is an acceptable trade for guaranteed acceptance.

For how much a unit actually buys by age, and where it fits best, see our Colonial Penn life insurance review.

Which should you choose

Instead of asking which company is better, ask one question first: can you answer a few basic health questions? That single answer points most people cleanly to one plan or the other.

If your health is average or good, start with Mutual of Omaha’s Living Promise Level plan. Answering a few questions is what earns you day-one coverage and, usually, more coverage per dollar. For a person in reasonable health, paying the guaranteed-acceptance price when you don’t have to is money left on the table. Compare its number to two or three other A-rated carriers to be sure it wins for your profile.

If you’ve been declined, or a serious condition makes other coverage hard to get, Colonial Penn’s guaranteed-acceptance plan may be exactly the right tool, and for some people it’s the one that gets them covered at all. The two-year graded period and the per-unit pricing are the trade for certainty, and for the right person that trade is well worth it.

If you want a larger amount, say $50,000 or more, neither burial plan is really built for that. A level whole life policy that asks a few health questions usually gives you far more coverage per dollar. Our overview of final expense coverage walks through where each type fits.

The honest next step either way is to see real numbers for your age and health side by side, rather than choosing off a commercial or a brochure. That comparison is free, and it takes about ten minutes.

When to keep what you have, and when not to call us

Here’s the part most comparisons skip: often the right move is to change nothing. If you already own a policy from Mutual of Omaha or Colonial Penn, the premium fits your budget, and it covers what you need, switching rarely helps. Starting over can even reset a fresh two-year graded period if you no longer qualify for day-one coverage. A review that ends in “keep what you have” is a successful review.

So don’t replace a policy you’ve held for years just because another plan looks cheaper on a commercial, the comparison only means something when it’s run on your real age and health. Don’t drop guaranteed-acceptance coverage to chase a health-qualified plan until you’ve confirmed you’d actually qualify. And if your beneficiary is current and the coverage still fits, there may be nothing to do at all.

When a change does make sense, a licensed professional will read both quotes with you and tell you plainly which gives you more, including when the answer is “keep what you have.” That’s the whole point of a free policy review: the truth about your real numbers, with no pressure attached.