Colonial Penn vs. Mutual of Omaha Life Insurance

In this article...
  • You can narrow down a list of potential life insurance providers by seeing what each company offers. Explore policies from Colonial Penn and Mutual of Omaha.

With more than 800 life insurance companies to choose from, shopping for a policy can be confusing, but educating yourself is a great way to make good coverage decisions. If you’ve narrowed down your selection of providers, it may be helpful to understand what each remaining company has to offer and how well their approach to life insurance fits with your family’s needs.

In this article, we’ll compare offerings from two popular life insurance companies: Colonial Penn and Mutual of Omaha.

Colonial Penn Life Insurance Summary

For more than 60 years, Colonial Penn has specialized in affordable, direct-to-consumer life insurance policies. Many of its policies are designed for older Americans, including a guaranteed acceptance plan that offers a modest death benefit for as little as $9.95 per month.

These policies are available to individuals between the ages of 50 and 85, and regardless of age or health risks, applicants don’t need to undergo a medical exam to be approved.

Colonial Penn also offers standard whole life insurance, which offers up to $50,000 of permanent coverage to individuals between the ages of 40 and 75.

These policies, which are available in most states, feature locked-in-premiums and flexible payment options, and they don’t require a medical exam for approval. The company also offers a two-part Living Insurance plan, which combines permanent life insurance with early payout options if the insured is diagnosed with certain critical or chronic illnesses.

Mutual of Omaha Life Insurance Summary

Since it opened for business in 1909, Mutual of Omaha has prided itself on delivering innovative financial solutions to its customers. Its offerings include a wide selection of life insurance products, including term plans that start at $100,000 of coverage.

Policies can be purchased for terms ranging from 10 to 30 years, and adults up to the age of 80 may qualify. Policyholders typically have the option to renew their coverage or convert some or all of it to a permanent policy.

Mutual of Omaha’s permanent coverage solutions include whole and universal policies. Its guaranteed whole life option, which offers coverage from $2,000 to $25,000 in most states, doesn’t require applicants to answer health questions or undergo a medical exam.

These plans have fixed premiums, so policyholders never have to worry about price increases. The company’s universal plans feature adjustable premiums and coverage, letting policyholders accommodate changing financial needs, and they include cash-value sub-accounts that policyholders can borrow against for any reason.

An accidental death plan is also available for individuals who want to supplement preexisting coverage.

Colonial Penn vs. Mutual of Omaha Life Insurance Comparison of Accessibility

Colonial Penn’s life insurance plans are designed to be accessible. Applicants aren’t required to take a medical exam or answer an extensive health questionnaire to be approved for coverage.

Individuals up to age 85 may get protection through Colonial Penn’s guaranteed issue plan, and individuals up to age 75 may qualify for its whole life coverage. The company offers simple online applications for its plans, and policyholders can select their ideal payment options.

However, it’s worth noting that Colonial Penn’s guaranteed issue plans may pay out a limited death benefit if the insured dies within the first two years of coverage.

Most individuals who apply for a Mutual of Omaha life insurance policy must undergo a medical exam, making it difficult for high-risk applicants to get approved for coverage.

However, individuals who don't qualify for a standard plan can get up to $25,000 of protection under the company’s guaranteed issue policy, which is available to applicants up to the age of 85. Guaranteed issue plans through Mutual of Omaha also offer graded benefits with a limited payout if the insured dies during the first two years of coverage.

Colonial Penn vs. Mutual of Omaha Life Insurance Comparison of Company Ratings

Mutual of Omaha consistently receives high marks for financial strength and stability from reputable industry ratings agencies, including an A+ (superior) from AM Best, which suggests the company is capable of meeting its insurance obligations.

The company has been BBB accredited since 1940, where it currently maintains a rating of A+. Mutual of Omaha also lands on many of the industry’s “best of” lists, including Forbes’ America’s Best Insurance Companies of 2022 and U.S. News and World Report’s Best Life Insurance Companies of 2022.

Colonial Penn is also accredited through the Better Business Bureau, although only since 2020, and it currently has a BBB rating of A+.

Although the company scores lower at AM Best, with an A- rating, the mark still suggests it has an excellent outlook for meeting its financial obligations. Colonial Penn has not been named to any notable “best of” lists in the last few years.

Colonial Penn vs. Mutual of Omaha Life Insurance Comparison of Riders

Many insurance companies offer riders, which can be added on to policies to help policy owners customize coverage or enhance their overall benefits. Although some insurers include standard riders with their plans, these extra benefits typically come at a cost. Additionally, not all riders are available with every type of policy. Here’s a look at what riders Colonial Penn and Mutual Omaha may offer:


Colonial Penn

Mutual of Omaha

Child rider


Terminal illness rider


Chronic illness rider


Critical illness rider


Waiver of premium rider


Accelerated death benefit rider



Residential damage rider


Common carrier death benefit rider


Disability income rider


Accidental death benefit rider



Colonial Penn also offers applicants the option of choosing a Living Insurance plan, rather than adding on riders. This solution combines permanent whole life insurance with early payout options that provide benefits if the insured is diagnosed with cancer, heart attack or stroke or a qualifying chronic or terminal illness.

Choosing the Right Insurance Company for You

Colonial Penn offers guaranteed plans that can help high-risk individuals get the coverage they need, but Mutual of Omaha may offer more coverage dollar for dollar on many policies.

However, although cost plays an important part in choosing the right insurance company, you may also want to consider other factors, including an insurer’s financial stability, customer service reputation and overall coverage options. Above all, as a knowledgeable consumer, you'll understand your family’s financial needs and goals and use that information to assess a company’s suitability before choosing the company that's right for you.

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