What Will Be Covered in this Annuity Review
In this annuity review, we will be going over the following information about the Mutual of Omaha Bonus Flexible Deferred Annuity:- Product type
- Fees
- Current rates
- Realistic long-term return expectations
- How it is used
- How it is most poorly used
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in. We make the complex, simple.
For those who have been considering the purchase of an annuity because they are seeking tax-advantaged growth of savings and the opportunity to receive income for life – regardless of how long you need it – the Mutual of Omaha Bonus Flexible Fixed Deferred Annuity could be a viable option for you. However, before going out and making a commitment on this – or any – annuity, it is recommended that you first have a good understanding of just exactly how this product works so that you know what to anticipate. Annuities are complex products, and the more “bells and whistles” they offer, the more confusing they tend to be. Because of that, many consumers aren’t really sure what they are purchasing – only to find out after they’ve purchased that the product really isn’t all that it was cracked up to be. Unfortunately, at that point, it is too late to get out of the annuity without having to pay a substantial withdrawal fee. This is definitely not the way to grow and/or protect your hard-earned savings.
Annuity and Retirement Income Planning Information You Can Actually Trust
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Mutual of Omaha Bonus Flexible Fixed Deferred Annuity at a Glance
| Product Name | Bonus Flexible Fixed Deferred Annuity |
|---|---|
| Issuer | Mutual of Omaha |
| Type of Product | Fixed Deferred Annuity |
| S&P Rating | AA- (Very Strong) |
| Phone Number | (800) 931-9210 |
| Website | https://www.mutualofomaha.com |
Opening Thoughts on the Mutual of Omaha Bonus Flexible Fixed Deferred Annuity
Mutual of Omaha is a widely recognized name in the insurance and annuity arena. Initially founded in 1909 as the Mutual Benefit Health & Accident Association, the company has grown and expanded over the years by way of adding additional products and services, as well as through various mergers and acquisitions. The Mutual of Omaha Bonus Flexible Fixed Deferred Annuity product is actually offered through United of Omaha Life Insurance Company, which is a division of Mutual of Omaha. Due to its conservative investment approach, Mutual of Omaha is considered to be strong and stable financially and has a good reputation for its timely payout of policyholder claims. This can definitely be a plus, as annuities are only as stable and consistent as the underlying insurance carriers that offer them. Although known predominantly for life insurance offerings, Mutual of Omaha actually provides a very well rounded list of both investment and coverage products, including:- Medicare Supplement Insurance
- Long-Term Care Coverage
- Disability Income Insurance
- Critical Illness Insurance
- Dental Insurance
- Cancer, Heart Attack, and Stroke Insurance
- Investments
- Mortgages
- Banking Products
- A+ (Superior) from A.M. Best Company
- A1 (Good) from Moody’s Investors Service
- AA- (Very Strong) from Standard & Poor’s
Before we get into the gritty details, here are some necessary legal disclosures…
This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Mutual of Omaha has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see out perspective when breaking down the positives and the negatives of this particular annuity. Before purchasing any type of insurance and/or investment product, it is important that you do your own due diligence, and that you consult a properly licensed professional if you should have any specific questions that relate to your individual situation. All of the names, marks, and materials that were used for this annuity review are the property of their respective owners. For more information on how to compare annuities in order to determine which one may be the best for you and your financial circumstances, click here to obtain our free annuity report.How Mutual of Omaha Describes the Bonus Flexible Fixed Deferred Annuity
The Bonus Flexible Fixed Deferred Annuity from Mutual of Omaha, which is offered through United of Omaha Life Insurance Company, is described as a product that provides tax-deferred growth, as well as access to your money when you need it. This annuity also allows for flexible contributions, and it has a variety of different income payout options. For those who are interested in guarantees, the Bonus Flexible annuity offers the following:- Purchase payments that are received in the first 12 months will be credited the current interest rate, plus 1%
- Purchase payments that are received after the first 12 months will be credited the current interest rate
- An additional 0.15% interest rate will be credited to accumulation values that are equal to or over $50,000
How an Insurance or Financial Advisor Might “Pitch” this Annuity
According to Mutual of Omaha the key benefits of a Bonus Flex Annuity are the additional interest rate opportunities and the flexible options that you have for making contributions and withdrawals. With that in mind, it is likely that an insurance or financial advisor who is offering this annuity to you will key in on the higher potential for interest that you have here, as well as the numerous different income payout options that you have. But hold a second on here. There are a few items that, while they sound nice, really don’t differentiate this annuity at all from other product – including other annuity products where you have the opportunity to earn an even higher rate of return, without any loss to principal in a down market. For example, don’t most annuities offer a variety of income payout options that include a(n):- Lifetime income
- Lump sum
- Specified period
- Specified amount
- You can withdraw 10% of your accumulated account value each year without a withdrawal charge or interest adjustment,
- Annuitization after the second contract year if applied to a payment option.”
What About Fees on the Mutual of Omaha Bonus Flexible Fixed Deferred Annuity?
You also need to look out for fees when you purchase – and own – an annuity. The Bonus Flexible Annuity here is no different. This is particularly true if you withdraw more than 10% of the contract’s value within the first eight full years. That’s because you’ll be hit with a surrender charge. And, while that charge decreases over time, if you need to unlock most or all of your funds during the first few years, you could find yourself at bay for incurring a charge of 7 or 8 percent.Withdrawal Charge Schedule
| Contract Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9+ |
|---|---|---|---|---|---|---|---|---|---|
| Charge % | 8 | 8 | 7 | 6 | 5 | 4 | 3 | 2 | 0 |
The Annuity Gator’s End Take on the Mutual of Omaha Bonus Flexible Fixed Deferred Annuity
Where this annuity works best: While it admittedly has a few flaws, the Mutual of Omaha Bonus Flexible Fixed Deferred Annuity could still be a viable option for those who are seeking the following benefits:- Safety of Principal
- A higher interest rate than that of most savings accounts and other fixed rate financial vehicles
- Guaranteed lifetime income
- A higher, market-related return opportunity
- Access to their money without penalty during the first eight years
In Summary
If you’ve been teetering on the brink of purchasing an annuity for retirement income purposes, but you’ve been hesitant to move forward because you just aren’t sure which annuity might be right for you, it is important that you know all of the ins and the outs of a particular product before you sign on the dotted line. This is because an annuity should always be considered as a long-term financial commitment – and if you do end up determining that a particular annuity just isn’t for you after you’ve purchased it, it can be fairly expensive to get out of it. If you are still considering the Mutual of Omaha Bonus Flexible Fixed Deferred Annuity, there are definitely some nice features – such as the fact that your money will be safe, and that you can be assured that you’ll receive an ongoing stream of dependable income in retirement. But even so, this particular annuity could still fall somewhat short – and quite frankly, there could very well be a better option out there for you. In order to get a better idea of how this annuity may perform based on your specific parameters, it should be tested. We can perform this testing for you, free of charge, and will provide you with the results. If this is something that is of interest to you, then please just simply contact us here through our secure online form.Do You Still Need Any Additional Information? Did You Happen to Notice Any Mistakes?
We realize that this annuity review was a bit lengthy – and for that, we thank you for sticking with us through to the end. But we would much rather provide too much detail on an annuity than not enough. So, if you felt that this annuity review was helpful, then please feel free to forward it on to anyone else that you think may benefit from it, too. Also, as humans will often do, we also understand that information about annuities can change quickly. Therefore, if you happened to notice any details in this review that were out of date or that need correction, please let us know that as well, and we will get it fixed quickly. Are there any other annuities that you would like to also see reviewed? If you have checked out our list of annuity reviews and there is another annuity (or more than one other annuity) that is not currently in our annuity review database, but that you would like to see reviewed, please let us know the name of the annuity or annuities and our team of annuity “geeks” will get right on it. So, be sure to check back with us soon to see any updates. Best, The Annuity Gator
