What is Promise Living?
Promise Living traditional or whole life insurance by Mutual of Omaha is a type of permanent life insurance with a simplified underwriting process that requires no medical exams. Like most permanent insurance policies, a part of the premiums paid are allocated to savings, which accumulate cash value. You can take loans out against this money, withdraw it, or use it to pay premiums.
The policy has two types: a level benefit plan, or a graded benefit plan. The difference is in the way you can access the benefits contained in your policy.
Key Concepts
Its main advantages include:
- You can purchase coverage when you are between 45 and 85 years of age.
- Face amount of $2,000 to $40,000 (from $25,000 to $40,000 in Washington).
- Full Benefits.
- Simplified underwriting process with no medical exams.
Who is Promise Living Designed For?
This product is designed specifically for people over 45 years of age who need life insurance that will guarantee them sufficient coverage to allow their loved ones to pay for expenses such as funeral costs, medical bills, or other bills left behind by the insured upon their death. All this for a very reasonable price and premiums that adapt to your coverage.
How Does Promise Living Work?
Promise Living Life Insurance is very simple. The underwriting process is simplified, meaning that you won’t have to undergo medical exams of any type. You will, however, have to answer a few questions, and there are some differences depending on how the insurance is set up (whether you choose a level or graded benefit plan).
Types of Promise Living Plans
Level-Benefit Plan
If you choose this option, you can have a policy that will guarantee coverage with a face value between $2,000 and $4,000 dollars (between $25,000 and $40,000 in Washington). This benefit is handed over in full upon the death of the insured, and you are eligible to purchase a policy from ages 45 to 85.
During the underwriting process, you will be asked whether you are a smoker or not. Other than this, your MIB (medical information bureau) data will be verified, as well as information from pharmaceutical companies. You will also be required to answer a telephone questionnaire.
In addition, level benefit insurance has other benefits. For example, the accelerated or advance benefit for terminal illness, or for hospital confinement (not available in New York).
With this option, the insured can choose to collect the benefit prior to their death if they are diagnosed with a terminal illness with a life expectancy of less than 12 months from the time doctors sign their report. You can also receive the benefit early if the insured is required to be permanently interned under medical care. Under these conditions, when they have been confined for at least 90 days, they can claim the benefit. (This option is not available in New York.)
In the state of Florida, you can also receive the death benefit in advance if the insured is unable to carry out at least two basic daily activities without help.
A Limited Benefit plan is also offered in the event of accidental death, which includes an additional benefit equal to the face value of the policy if the death is the result of an accident. This accidental death must be unrelated to any type of illness.
Graded Benefit Plan
If you choose the graded benefit option, if the insured passes away due to natural causes (not resulting from an accident) during the first two years the policy is in effect, beneficiaries will receive 110% of the premiums paid up to such time. If the death occurs after two full years have passed from the signing of the policy, they will receive the full benefit.
If the death is the result of an accident, the full benefit will also be paid, independently of how long the policy has been in effect.
With this type of policy, the face value can range from $2,000 to $20,000 dollars. In addition, the underwriting process is even simpler, because it doesn’t consider whether the person is a smoker or not. The insurance company simply verifies the information available in medical and pharmaceutical records and telephone interviews will be carried out.
This product is not available in AR, MT, NC, or WA.
Exclusions
Promise Living Insurance has some exclusions you should be aware of. The death benefit will not be disbursed if the insured commits suicide before the policy has been in effect for two years (or just one year in North Dakota). In these cases, the money paid as premiums will be returned, less any loan taken out against the cash value.
