What will we be discussing in this annuity review?In this review of the United of Omaha Ultra Premier 6 MYGA annuity, we will be discussing the following information:
- Annuity type
- How this – and MYGA annuities – work
- Benefits and drawbacks
- Fees to look out for
- How an insurance or financial advisor may present the annuity to you
- Where the annuity may work best
- Where the annuity might not work very well
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 researching the ways that an annuity can build up your tax-deferred savings, as well as provide you with a guaranteed lifetime income in retirement, then the United of Omaha Ultra-Premier 6 single premium deferred MYGA (multi-year guarantee) annuity may be a good choice for you. But, before you go out and purchase this annuity – or any annuity, for that matter – it is important that you first get a thorough understanding of how it works, and how it may (or may not) fit in with your short and long-term financial objectives. Over the past decade or so, the demand has really increased for fixed and multi-year guaranteed annuities. One reason for this is because of the volatility of the stock market, which could cause a substantial decline in your retirement savings with even just a small “correction”. Also, because a fixed annuity can provide you with a lifetime income stream in the future – regardless of how long you may need it – these vehicles could help to alleviate the fear of running out of income in the future when you need it the most. Due to the increased popularity of annuities lately, many insurance companies have been coming up with new “hybrid” products, which oftentimes include a long list of features and benefits – as well as confusion, both for consumers and financial advisors. So, unless the financial or insurance advisor that you work with has a key focus on offering retirement annuities, you need to read over the “fine print” before you move forward.
Annuity and Retirement Income Planning Information You Can TrustIf this the first time you have been to our website, please allow us to personally welcome you here. We are a team of experienced annuity experts who focus on providing comprehensive yet unbiased annuity reviews online. We have been doing this for quite some time – and much longer than our competitors have. Because of this, we have come to be known as a highly trusted source of annuity information online. Over the past several years or so, however, many “copycat” websites have started to pop up on the Internet. So, while that can be somewhat confusing for consumers, we take it as somewhat of a compliment. After all, imitation is the highest form of flattery, isn’t it?! While you’ve been researching annuities like the United of Omaha Ultra Premier 6 online, it’s likely that you’ve come across some conflicting information about these financial products. This really isn’t surprising to us, though, because there are many different opinions about them – some are good, and some are not so good. This is another reason why it is so important to have a good handle on how annuities work. That way, you will be in a better position to decide for yourself whether or not an annuity will truly fit in with your financial goals and needs. If you would like to know more about the Ultra Premier 6 MYGA annuity from United of Omaha, you are in the right place. In fact, dare we say that the Annuity Gator’s website is the only place on the Internet where you can see all of the important details that you need for making a well-informed decision. Why? Because we aren’t going to paint a rosy picture for you and focus on only the good stuff about the annuity. Rather, we will give you the complete picture – including all of the good, the bad, and yes even the ugly. But knowing the whole story can help you in determining whether or not this annuity is right for you. Before we get started on this annuity review, we want to state for the record that we believe annuities can be a nice addition to your portfolio. But that is only if you are purchasing the annuity for the right reason(s). So, if you’re ready to get started, let’s dive in!
United of Omaha Ultra-Premier MYGA 6 Annuity at a Glance
|Product Name||Ultra-Premier 6|
|Issuer||United of Omaha / Mutual of Omaha Insurance Company|
|Type of Product||Single Premium Deferred Annuity|
|A.M. Best Rating||A+|
|Phone Number||(800) 646-7592|
Opening Thoughts About the United of Omaha’s Ultra Premier 6 Annuity
United of Omaha traces its roots back more than 110 years. This company – which was formerly known as Mutual Benefit Health and Accident Association – started offering health and accident insurance back in the early 1900s.
Fast forward to today, though, and the company offers a long list of financial and insurance products, including annuities, life insurance, long-term care protection, disability income insurance, critical illness insurance coverage, investments, and home mortgages.
As an affiliate of Mutual of Omaha – a well-known and well-respected insurer – United of Omaha, holds over $15 billion in cash and invested assets. A financially stable company that is more than able to pay out its policyholders’ claims, Mutual of Omaha Insurance Company and United of Omaha Life Insurance Company have been given strong ratings from three of the major rating services, including the following:
- A+ from A.M. Best
- A1 from Moody’s Investors Service
- A+ from Standard & Poor’s
As the owner of a fixed deferred annuity, the constant up and down movements of the stock market aren’t going to have a negative impact on the amount of future income that you’ll receive from that annuity. With that in mind, if you are seeking both safety and guarantees for your financial plan, then this could very well be a good option.
On the other side of the coin, though, it’s important that you not make a quick decision, only to find out later on that there are features about this annuity that make it a bad fit for your overall financial plan.
Before we get into the gritty details, here are some legal disclosures…
This is an independent product review, not a recommendation to buy or sell an annuity. United of Omaha/Mutual of Omaha Insurance Company has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This review is meant to be an independent review at the request of readers so that they may see our perspective when breaking down the positives and negatives of this particular annuity. Prior to purchasing any type of investment or insurance 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 circumstances. All names, marks, and materials that were used for this review are the property of their respective owners.
For more information on how to compare annuities in order to determine which one may be right for you, click here to obtain our free annuity report.
How United of Omaha Describes the Ultra Premier 6 Annuity
United of Omaha/Mutual of Omaha describes the Ultra Premier annuity as a single premium deferred annuity. These annuities are purchased with one single lump sum of cash, which could be moved over from your personal savings and investments, or money that is “rolled over” from an IRA (Individual Retirement Account) or an employer-sponsored retirement plan, such as a 401(k).
You are also allowed to make minimum additions of at least $500 to the Ultra Premier 6 annuity during the first policy year. These additional contributions will be credited with the new money interest rate that is in effect at the time you make the addition(s).
The initial interest rate is guaranteed for 6 full years. Along with the interest rate guarantee, the Ultra Premier 6 MYGA annuity from United of Omaha offers:
- Tax-deferred growth (so none of the gains are taxed until the time of withdrawal)
- Competitive renewal rates (once the initial 6-year rate lock period has expired)
- A variety of income payout options – which includes income for the remainder of your life, no matter how long you may need it to pay out for you
While you are allowed to access up to 10% of the money in the contract in any given year without incurring a penalty, there is a surrender charge that will be incurred if you withdraw even more during either the first 6 years. (The length of the surrender period corresponds with the 6-year interest rate guarantee period).
There are a few exceptions in that the surrender charges will be waived for money that is accessed due to the following:
- Confinement to a hospital or long-term care facility (for at least 30 days)
- Unemployment (if the owner of the annuity has received unemployment benefits for at least 60 days)
- Disability (once you have been disabled for 90 days)
- Terminal illness diagnosis
- Death of a spouse or minor dependent (either up to 50% or 25% of the contract)
- Damage to your residence (if your primary residence incurs damage of $50,000 or more)
- Transplant surgery (if you undergo transplant surgery, whether as an organ donor or a recipient, for any of the following organs – heart, liver, lung, kidney, pancreas, or bone marrow)
To check out more of the in-depth details regarding the United of Omaha Ultra Premier 6 fixed deferred annuity, you can view the Fact Sheet here.
How a Financial or Insurance Advisor Might “Pitch” the Ultra Premier 6 Annuity
Today, people are living much longer than ever before in history. While that can be positive in many ways, though, it can also enhance the worry of outliving your income in retirement, because your assets and your income will be forced to last for a much longer period of time.
Many people who are preparing for retirement are extremely concerned about growing their savings, while at the same time keeping their principal safe. Therefore, it is possible that an insurance or financial advisor might present this annuity as a vehicle for accomplishing both of those goals in one single financial vehicle. As an added bonus, there is also the option to choose income for life with this product, either for just one individual or for two individuals.
The Ultra Premier 6 is a Multi-Year Guarantee Annuity, or MYGA. So, the base interest rate at the beginning of each term is guaranteed to be the base interest rate at the end of the term as well. So, in this case, you have a six-year rate guarantee. This can certainly help you to sleep better at night for an extended period of time, knowing that your rate will stay the same if rates continue to go down.
Unfortunately, though, just the opposite can happen, too. So, if rates go up – which they very well could over the next six years – your money will be locked into this annuity and you could incur a surrender charge fee just to get it out!
In fact, due to its low rate of interest, there are actually numerous other financial vehicles that you might consider that would still offer you the safety that you’re seeking – along with a set rate of growth – but without having your money locked up for a long period of time. Depending on which alternative you gravitate towards, you could also be able to remove the worry about various charges and fees.
What About Any Fees on the United of Omaha Ultra Premier 6 MYGA Deferred Annuity?
While variable annuities are oftentimes the “bad guys” when it comes to charges and fees, fixed annuities can also have their fair share of “gotchas” to look out for. As an example, just like with most other annuities, you will incur a surrender charge if you take out more than just 10% of the contract’s value in the first six years.
On top of that, you could also owe gains taxes on the money – and, if you are under the age of 59 ½ if you make such withdrawals, there can also be an additional 10% “early withdrawal” penalty from the IRS.
The Annuity Gator’s End Take on the Ultra Premier 6 MYGA Annuity from United of Omaha
Where it works best:
Although this annuity may not be ideal for everyone, it could be a nice option if you are seeking the following features:
- Guaranteed growth for a set period of time (in this case, six full years)
- Protection of your principal in any type of market environment
- Guaranteed income in retirement
Where it works the worst:
This annuity may not, however, work very well in all situations. This is especially the case if you:
- Are seeking the opportunity for a higher rate of return
- Want or need to access more than just 10% of your money within the surrender charge period
- Do not plan to use the lifetime income feature on the annuity
You need to consider a long list of factors prior to making the purchase of an annuity. Some of these should ideally include the annuity’s ability to grow your money, as well as the way in which it protects your principal.
In addition, because many people purchase annuities in order to attain a long-term (or even a lifetime) income in retirement, this too is a key criterion. So, if you are considering the purchase of a multi-year guaranteed annuity product like the Ultra Premier 6 from United of Omaha, you can be assured that your money will be safe, regardless of what occurs in the stock market. You can also be sure that you will receive income in the future – possibly even for your entire lifetime, as well as the lifetime of another individual that you choose.
However, even given all of the great features and benefits that this annuity can provide you with, there could still quite honestly be a better option out there for you. This is especially true if you are hoping to obtain a higher rate of return on your money, while still keeping your principal safe from market ups and downs. Plus, in some cases, you might not be required to “lock-up” your principal for a long time period.
In any case, the only way to really be sure of whether or not the United of Omaha Ultra Premier 6 years MYGA annuity may be right for you is to have it tested, based on your specific criteria. We can provide this testing for you. If you would like to have the numbers run based on your personal financial figures, then just let us know by contacting us via our secure online form right here.
Do You Have Any More Questions About the Ultra Premier 6 Annuity? Did You Notice Any Mistakes in this Review?
We know that this Ultra-Premier 6 year annuity review was a bit lengthy – and because of that, we would like to thank you for staying with us through to the end of it. But, we would much rather give you a tad bit “too much” information that not give you enough.
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The Annuity Gator
P.S. If you would like to read more of our United of Omaha/Mutual of Omaha annuity reviews here are some links to check out: