What will we be covering in this review?
In this annuity review, we will be covering the following details regarding the Mutual of Omaha Income Access Immediate Annuity:
- Type of product and it’s features
- 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.
If you’ve been considering the purchase of an immediate annuity because you have a lump sum of money that you want to convert to an income stream – and you want to assure yourself that the income you receive will last for the remainder of your lifetime – then the Mutual of Omaha Income Access Immediate annuity could be a viable option for you.
But, before you run out and make a long-term financial commitment to this product – or to any annuity, for that matter – it is imperative that you first get a good understanding of just exactly how this annuity works, and how it may or may not work for you and your specific financial needs and goals.
Throughout the past decade or so, annuities have become quite popular. And immediate annuities have been very attractive to retirees. One key reason for this is because over time, the defined benefit pension plan has been disappearing, in turn, leaving the responsibility of ensuring lifetime income up to the individual (as versus the employer).
The good news is that an immediate annuity can provide you with the ongoing income that you need – and in many cases, these products may also allow income to last for the remainder of your spouse’s life as well.
But an annuity is also a very long-term commitment – and, once you make the decision to convert that sum of cash into income, there is no turning back…even if you need the money for an unexpected financial emergency.
With that in mind, it is essential that you first read the fine print about any annuity you are considering. This can help you to anticipate how the product will really work – and what you might need to give up in order to take advantage of the product’s guarantees.
Annuity and Retirement Income Planning Information You Can Trust
If this is your very first visit to our website, allow us to welcome you here to AnnuityGator.com. We are a team of experienced financial pros who are highly focused on offering the most comprehensive, and unbiased, reviews of annuities. We’ve been at this for many years – much longer than our competitors, and so we have become a well-known source of annuity information.
With that in mind, if you’ve been in the process of looking for more information about annuities via the Internet, then it’s a good possibility that you have noticed there’s a lot of conflicting information out there about these products. This, however, isn’t really a surprise, because there is also a great deal of confusion about how they work, and which type may be best for certain circumstances.
You may also have attended an annuity seminar or workshop recently where, in return for a free dinner or lunch, you were provided with details about the Mutual of Omaha Immediate Annuity, or some other similar financial product.
Attending this seminar may even be the catalyst that has ultimately led you right here to our website.
But even though there are a plethora of websites that market their annuities to consumers, there are a fair number of these sites that will attempt to “lure” you in by making very enticing claims like:
- High-income payments
- Lowest annuity fees
- Guaranteed lifetime income
- 7 – 8% Rate of Return
- Look familiar?
While these claims can be inviting, the truth is that it is absolutely essential that you first make sure that they are actually true. This is particularly the case if you are seriously thinking about moving a large sum of your retirement savings into one of them.
Whatever the reason is that you landed here on our AnnuityGator.com website, you are definitely in the right place if you want to find out more about the Immediate Annuity from Mutual of Omaha.
That’s because we provide all of the details and resources, including not just the good, but also the bad and the ugly. This is really the only way that you will be able to make a truly well-informed buying decision (or alternatively, making the decision to pass on this annuity, and move on to something else that may be more suitable for your specific financial goals).
This annuity review is provided here for you in order to help you ensure that you’re moving in the right direction with this (and/or other) annuity and to guide you in what to look for in terms of the pros and the cons.
So, if you are ready to get started, let’s go!
Mutual of Omaha Immediate Annuity at a Glance
|Issuer||Mutual of Omaha|
|Type of Product||Immediate / Income Annuity|
|S&P Rating||AA- (Very Strong)|
|Phone Number||(800) 488-7566|
Opening Thoughts on the Mutual of Omaha Immediate Annuity
Mutual of Omaha has been in the business of providing financial stability and protection to its customers since 1909. The company has thrived financially throughout the years, even though depressions and recessions.
This insurer offers a long line of life insurance, annuities, and health coverage such as Medicare Supplement.
Mutual of Omaha and its affiliates have received high ratings from the insurer rating agencies, including a(n):
- AA- from Standard & Poor’s
- A+ from A.M. Best
- A1 from Moody’s Investors Service
Given that people are living longer lives (on average) today, knowing that you have a guaranteed source of income can be comforting – particularly if you have chosen the lifetime income option, which will provide you with an incoming cash flow for as long as you need it (as well as for the lifetime of another individual, such as your spouse, if you choose that option).
However, even though it is nice to be able to count on a lifetime income stream before you move forward with a long-term, non-reversible financial commitment, there is some information that you need to know.
Before getting into the nitty-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 our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners.
For additional information on how to compare fixed annuities so that you can decide which may be the best one for you, click here in order to obtain our free annuity report.
How Mutual of Omaha Describes Its Income Access Immediate Annuity
Mutual of Omaha describes its Ultra-Secure Plus immediate annuity as a single premium immediate annuity that offers optional income features – which can provide you with the opportunity for additional income.
- 10% or 20% payment increase, based on your health condition
- 3% inflation protection
- 50% payment increase for nursing home confinement
- Survivor continuation option
This annuity also offers a return of the premium feature that can be triggered by the annuitant being diagnosed with a terminal illness, or even via the cancellation of the contract, provided that certain criteria have been met.
There is also the option to return the annuity’s premium to a named beneficiary at the annuitant’s death, or alternatively to purchase (at an additional cost) an enhanced death benefit, which doubles for accidental death.
The Income Access is primarily geared towards those who want to replace income once their employer paycheck stops – and a paycheck that can last throughout the remainder of their lifetime, regardless of how long that may be.
For an outline of this annuity’s features, along with a comparison of immediate versus deferred annuities, you can take a look at the Mutual of Omaha product brochure HERE.
How an Insurance or Financial Advisor Might “Pitch” this Annuity to their Customers
Most people are thrilled when they receive a guarantee. This is especially true when it comes to financial issues. The Mutual of Omaha Income Access Immediate Annuity can provide you with guarantees when it comes to your income in retirement. This includes giving you an income stream that lasts for the rest of your life – no matter how long you end up needing it. This, in turn, can alleviate one of the biggest fears on the minds of retirees today – outliving income in retirement.
With that in mind, because most retirees are concerned about running out of income, it is likely that an insurance or financial advisor who is offering this annuity will key in on the income guarantee that it provides.
But, even though this may ease your concerns regarding having income for the remainder of your lifetime, the reality is that there are some things about this annuity that may make it not so ideal for you.
For example, first, once the annuity has been converted to income, the decision is non-reversible. This means that you will not be able to dig into your lump sum of cash – even if you have a financial emergency. Given that, it is imperative to keep in mind that the purchase of an annuity is a long-term decision.
Plus, if you need access to all of your principal once you have purchased this annuity, you will only receive a portion of it back if you make such a withdrawal during the first six years.
What About Any Fees on this Annuity?
The Income Access Immediate Annuity from Mutual of Omaha won’t necessarily riddle you with fees. However, there are some areas to watch out for, as it’s not necessarily a free walk in the park, either.
For instance, making a withdrawal of your money during the first six years will result in you only getting a portion of your funds back from the insurance company. The schedule below shows the percent that would be returned each policy year.
The Annuity Gator’s End Take on this Annuity
Where this annuity works best:
Although an immediate annuity might not be the best option for everyone, the Income Access annuity from Mutual of Omaha could be a good alternative for you if you:
- Are entering retirement or you are already retired
- Are concerned about outliving your savings and your income
- Have other retirement resources that can still be invested for growth
- Want to also provide an income stream for your spouse
Where it works the worst:
Even given its numerous benefits, though, this annuity might not be the right choice if you:
- Feel that you may need some (or all) of your funds for potential emergencies during the first six years
- Do not plan to use the annuity for income
If you have been thinking about purchasing an immediate annuity, but you still are not sure whether or not you should move forward because you just don’t know if this is the right product for you, then it is essential that you attain a deeper understanding of how this annuity works, and how it could fit in with your overall financial needs and goals.
We can answer any of the additional questions or concerns that you may have about this, or any other, annuity product. So, please feel free to reach out to us directly here.
The good news is that if you are leaning towards the Income Access annuity from Mutual of Omaha, you can be assured that you will receive ongoing income for as long as you may need it, regardless of how long that may be.
Even so, however, the only way to really know whether or not this annuity will work well for you and your situation is to have it tested. We can perform this testing for you, using our annuity calculator, and we will provide you the results at no charge or obligation. If you are interested in this information, just simply let us know here through our secure online contact form.
Need Any Additional Information? Did you Happen to Notice Any Mistakes on this Review?
We realize that this annuity review was somewhat lengthy, so for that, we appreciate you sticking with us through here to the end. But our thought is that we would much rather give you “too much” detail about a product than not nearly enough, as this is the only way to make a truly well-informed decision about it. So, if you feel that this annuity review was beneficial, please feel free to share it and forward it on to anybody else that you think may also be helped by it.
We also understand just how fast financial and insurance product information can – and does – change. So, if you did happen to notice any information in this annuity review that was out of date or needs updating, please let us know that, too, so that we can get it revised as soon as possible.
Are there any other annuities that you would like to also see reviewed?
If you have been shopping for annuities, it is possible that you’ve been presented with several different options. So, if you’ve come across any other annuities that are not included in our review database, please let us know that, too so that we can do our research and analysis and add it to our site.
The Annuity Gator
P.S If you would like to read more of our Mutual Of Omaha annuity reviews here are some links to check out:
- Mutual of Omaha Ultra Secure Plus 7 Year Annuity
- Mutual of Omaha Ultra Secure Plus Fixed Deferred Annuity
- Mutual of Omaha Bonus Flexible Fixed Deferred Annuity
- Mutual of Omaha Ultra Income Immediate Annuity