Independent Review of the Mutual of Omaha Ultra Secure Plus 7 Year Annuity
What Will Be Covered in this Annuity Review?
In this review, we will be covering the following details on the Mutual of Omaha Ultra Secure Plus 7 Year Annuity:
- Product type
- 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 have been considering the purchase of an annuity because you want to get a guaranteed interest rate on your funds, and you want your hard earned savings to remain safe – regardless of what happens in the stock market – then the Mutual of Omaha Ultra Secure Plus 7 Year Guarantee annuity – could be a good option for you.
One reason for this is because this particular annuity provides the opportunity to grow your funds using a guaranteed rate of return for seven full years, while at the same time protecting your principal – in any type of market environment.
It also offers an income stream that can last for the remainder of your lifetime. This, in turn, can help to rid you of the worry about your future income running out – at a time that you need it the most.
But, while this all might sound really enticing (which is exactly how insurance and annuity salespeople want it to sound), any time that anything sounds too good to be true, it usually is. With that in mind, it is essential that, if you’re considering the purchase of an annuity, you first do some research so you know exactly how the product works, and what it will cost, as these products can end up requiring a significant commitment of both money and time.
Annuity and Retirement Income Planning Information That You Can Trust
If this is your first visit to our website, then please allow us to officially welcome you here to AnnuityGator.com. We are a team of annuity pros who focus on offering very comprehensive – and unbiased – annuity reviews. We have been at this for quite a few years now – longer than our competitors. And, because of the in-depth reviews that we provide, we have become a highly trusted source of annuity information online.
Over the past decade or so, however, there have been a number of “copycat” websites that have popped up on the Internet. While some of these can give you information about annuities, what you are likely to find is that they are oftentimes just simply reiterating what our information already shows.
You’ve probably run across some highly conflicting details about annuities if you’ve spent any amount of time on the Internet researching them. This isn’t too surprising, though, because as annuities have become more popular, whether or not they are good products has become more controversial. This is the case with consumers and advisors alike.
It is possible that you have also recently gone to an annuity seminar. Here, the presenter may have given you more in-depth details about the Mutual of Omaha Ultra Secure Plus 7 Year annuity – or some other similar product. It could be that your attendance at that seminar that has ultimately brought you here to our website in search of more information.
If you really want to know more about the Ultra Secure annuity from Mutual of Omaha, you are definitely in the right place. Here at Annuity Gator, we are known for providing straightforward information about annuities, which goes far past the nice, rosy brochures you may get from your financial advisor.
Typically, the product pieces that are produced by insurance carriers that offer annuities make it out to sound like annuities are the best of all worlds. But there are always two sides to every story. Unfortunately, in order to find the details about potential drawbacks, you may need to delve deeper into the annuity’s “fine print” – which quite honestly can be about as fun as getting a root canal.
That’s where the Annuity Gator comes in!
Just to be blatantly clear here, we want to state for the record that we do believe that annuities provide some awesome benefits – provided that they fit in well with an individual’s (or a couple’s) short- and long-term financial goals.
With that being said, let’s dive into this annuity review!
Mutual of Omaha Ultra Secure Plus 7 Year Annuity at a Glance
|Product Name||Ultra Secure Plus (7 Year)|
|Issuer||Mutual of Omaha|
|Type of Product||Multi-Year Guarantee (MYGA) / Fixed Annuity|
|S&P Rating||AA- (Very Strong)|
|Phone Number||(800) 931-9210|
Opening Thoughts on the Mutual of Omaha Ultra Secure Plus 7 Year 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.
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
- Banking Products
The company is highly rated by the major insurer rating agencies. These ratings include a(n):
- A+ (Superior) from A.M. Best Company
- A1 (Good) from Moody’s Investors Service
- AA- (Very Strong) from Standard & Poor’s
Over the past few years, fixed annuities in have become much more popular with investors. One of the key reasons for this is because these products can provide the opportunity for a guaranteed rate of growth, while also keeping the account value safe and sound, no matter what occurs in the stock market.
And, as with other types of annuities, a fixed annuity will also be able to pay out a lifetime income in retirement so that you don’t have to worry about your income stream running out. In this case, you can count on a specific amount of income in the future.
However, while this may sound like a win-win-win scenario, the truth is that whenever something sounds too good to be true, it very well may be. In any case, it can be beneficial to at least check the information further, in order to ensure that you know all of the advantages, as well as any potential drawbacks.
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 Ultra Secure Plus Annuity
Mutual of Omaha describes the Ultra Secure Plus annuity as a financial vehicle that offers tax-deferred growth, as well as competitive renewal rates.
This particular annuity is purchased with one, single premium, and it offers an initial interest rate that is guaranteed for a number of years. In this case, the rate you receive would be locked in for seven years, regardless of what happens in the market and/or with interest rate.
If you opt to deposit more than $50,000, you’ll actually receive a slightly higher guaranteed rate. Here, an additional 0.15% would be added to the interest rate that is given on your purchase payment and the accumulation values that are over that amount. (You are allowed to make additional deposits of $500 or more during the first policy year).
This annuity also offers some added benefits, such as a death benefit, whereby the accumulation value (less any applicable premium tax) will be paid out to a named beneficiary in the event of the annuitant’s passing.
How an Insurance or Financial Advisor Might “Pitch” the Ultra Secure Plus 7 from Mutual of Omaha
Today, you aren’t likely to find an over-abundance of guarantees…especially when it comes to financial products. So, if you have been presented this annuity by an insurance or financial advisor, one of the main areas that they’ve keyed in on is the 7-year rate guarantee that comes with this annuity. Here, you are locked into a set rate for the first seven years of owning the product.
But is this necessarily a good thing?
The answer to this actually depends on the rate that is being offered, as well as the lost opportunity cost of any other potential investment that comes along during that 7-year time frame that could offer you a better return.
For instance, if interest rates rise after you have locked into a 7-year commitment, then you could very well feel like you’re “locked in”….because you pretty much are! In this case, annuities with multi-year interest rate guarantees can be a bit like CDs in that you have your money locked up for a certain amount of time, and if you withdraw it early you are hit with a penalty.
With the Mutual of Omaha Ultra Secure Plus 7 Year annuity, the surrender period will last for the first full seven years that you own this product. So, unless the money you deposit here is money that you don’t plan to use for anything else within the next seven years, then it could be an ok tradeoff. Otherwise, be careful before moving forward.
It’s also extremely important that you pay close attention to what happens with your money after the initial interest rate guarantee has elapsed. That’s because, if you opt to renew for another guarantee period, your surrender period will start all over again. (Yep, that’s the tradeoff for having an interest rate guarantee).
On top of all that, just like with other fixed annuities, over the past ten years or so, the return that is offered by the insurance carrier is nothing to jump up and down about. As of this year, the interest rate that is offered on this product is 2.2% (although you could raise that up by an additional 0.15% if you plunk down more than $50,000).
So in this case, given that the average rate of inflation over the past 100 years has been in the neighborhood of 3%, you will be lucky to be able to meet – much less beat – inflation, which in turn could have a negative impact on your future purchasing power in retirement.
What About the Fees?
When it comes to fees, most fixed rate multi-year guarantee annuities pay lower commissions (which are oftentimes built directly in, so it won’t have as much of an impact as would a 5 or 6% up-front sales commission).
However, as mentioned above, with the longer-term rate guarantee, you will typically see a surrender charge that matches the guarantee period on the product – so in this case, you’d need to be mindful of surrender charges for the first full seven years on any amount you withdraw from the annuity that is more than 10% of its value. Plus, if you renew for another guarantee period, bam! another surrender period begins all over again.
The Annuity Gator’s End Take on the Mutual of Omaha Ultra Secure Plus 7 Annuity
This particular annuity will usually work the best for those who are looking for:
- Principal protection
- A guaranteed rate of interest (at least for a set period of time)
- Guaranteed lifetime income in the future
Where it works the worst:
On the other hand, this annuity may not fare so well for those who:
- Want the opportunity for a higher rate of return on their money
- Want to access more than just 10% of the contract value within the first seven years (i.e., don’t want their money locked in for a multi-year time period), and then possibly again if they choose another guarantee period at the time of renewal
- Do not plan on using the lifetime income feature
There are a number of important factors that should be taken into consideration if you are thinking about purchasing an annuity. These should include – but they are not limited to – how the annuity can produce a return, how safe your money will be, how the income will pay out, and whether or not there are any other optional features that may be added to the annuity (as well as any added costs).
If you are considering the purchase of a multi-year guaranteed product like the Mutual of Omaha Ultra Secure Plus 7 annuity, then you can be assured that your principal will be safe – regardless of what happens in the stock market. You can also count on a guaranteed lifetime income, no matter how long you may live (provided, of course, that you choose the annuity’s lifetime income payout option).
Yet, even with all of the seemingly nice features that are included with this annuity, there could still be a better alternative out there for you – particularly if you are seeking the opportunity for a higher return.
The only way to truly know how this annuity may perform, based upon your particular situation and needs, is to have it tested. We can do that for you by running the numbers through our annuity calculator, and can then provide you with a spreadsheet showing the results.
In order to receive this information, just simply contact us via our secure online contact form here.
Do You Have Any Additional Questions About the Ultra Secure Plus 7Annuity from Mutual of Omaha? Did You Notice Any Mistakes?
We understand that this annuity review went a tad bit long. So, we thank you for sticking with us through to the end here. When we go about creating our annuity reviews, though, we would much rather “err” on the side of being “too long” as versus not long enough.
Therefore, if you found that this annuity review was helpful for you, then please feel free to forward it on to anyone else that you think may benefit from it. Alternatively, if this review led you to have even more questions, then please let us know that, too.
Are there any other annuities that you would like to see reviewed?
There are lots and lots of annuities available in the marketplace today. So, if you would like to see a particular annuity reviewed, then just let us know the name of the annuity (or annuities), and our team of annuity “geeks” will get on the case. So, be sure to check back soon for the new reviews.
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