Independent Review of the Mutual of Omaha Ultra Secure Plus Fixed Deferred Annuity
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 Ultra-Secure Plus Fixed Deferred 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’ve been thinking about purchasing an annuity so that you can get the tax-deferred benefits of having your money grow free of current taxation, and you also want to assure yourself that you will have an ongoing income in retirement, then the Mutual of Omaha Ultra-Secure Plus Fixed Deferred Annuity could be a good option for you.
One reason for this is because your principal will be safe – regardless of what happens in the market – while your funds grow and compound exponentially over time. Then, once you convert the annuity over into an income stream, you can be sure that money will flow in as anticipated.
But, before you go out and make a long-term financial commitment, it is really important that you know just exactly how this annuity may – or may not- work for you and your specific needs and goals.
Although annuities can and do offer some nice benefits, the reality is that these can also be highly confusing financial vehicles. And, if you jump into an annuity too quickly without knowing what to expect, you may be very disappointed. You will also find that once you’re in an annuity, these products can be quite difficult – and expensive – to get out of.
With that in mind, you need to learn as much as you possibly can about these products. That’s where the Annuity Gator comes in!
Annuity and Retirement Income Planning Information That You Can Trust
If this is your very first visit to our website, then please allow us to welcome you to Annuity Gator. We are a team of financial experts who are focused on providing very comprehensive and unbiased annuity reviews. We have been at this for quite a while not – far longer than our “copycat” competitors – and we have therefore become known as a highly trusted source of annuity information.
If you have spent any amount of time at all on the Internet looking for information about annuities, then you have likely run across a number of conflicting opinions about these products. This, however, is not all that surprising, as there are many, many products available in the marketplace, and various different thoughts about them.
While researching annuities online, you may also have noticed that there are other annuity websites out there that are touting how great and wonderful their products are by making some bold claims like:
- Lowest Fees
- Highest income payouts
- Guaranteed lifetime income
- Top-rated companies
Does this look at all familiar?
But, as enticing as these claims might sound, it makes it even more important for you to verify that they are actually true before you commit to placing a large chunk of your retirement savings into such a product.
If you have landed here at AnnuityGator.com in search of more details about the Mutual of Omaha Ultra Secure Plus Fixed Deferred Annuity, then you are in the right place. In fact, we dare say that this website is the only place where you will be able to find all of the key facts – which include the good and the not-so-good. This, however, is the only way to make a truly well-informed decision about this (or any other) financial vehicle.
In order to be completely clear here, we want to convey that we feel annuities are able to provide investors with some very good benefits. But, this is really only the case if the product fits in with your particular financial goals.
The review that you are in the process of reading right now was created with the intent of assisting you with better understanding all of the “fine print” that is associated with the Ultra Secure Fixed Deferred Annuity from Mutual of Omaha.
So, if you’re ready to begin, let’s dive in!
Mutual of Omaha Ultra Secure Plus Fixed Deferred Annuity at a Glance
|Product Name||Ultra Secure Plus|
|Issuer||Mutual of Omaha|
|Type of Product||Fixed Deferred Annuity|
|S&P Rating||AA- (Very Strong)|
|Phone Number||(800) 931-9210|
Opening Thoughts on the Mutual of Omaha Ultra Secure Plus 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.
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. This is due in large part to the fact that these financial vehicles can offer a guaranteed growth rate, while at the same time ensuring that your money is safe, regardless of what occurs in the stock market, or even in the overall economy.
You can also be sure that you will have an income stream that lasts for the remainder of your lifetime, no matter how long you may need it. But, even so, you still need to do your due diligence before committing to any annuity, as these products can, and often do, require that you deposit a substantial amount of money.
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 Fixed Deferred Annuity
According to Mutual of Omaha’s website, the Ultra Security Plus is a single premium deferred annuity where the initial interest rate can be guaranteed for either five or seven years.
This annuity offers several key features, including:
- Tax-deferred growth
- Competitive renewal rates
- A variety of different income payout options
In addition, you can obtain an additional 0.15% rate – which is added to the current rate – if you make a purchase of $50,000 and/or if your annuity’s current accumulation value is more than $50,000.
Just like other annuities, the funds that are inside of this annuity are allowed to grow and compound on a tax-deferred basis. This means that there is no tax due on the gain, until the time of withdrawal.
How an Insurance or Financial Advisor Might Pitch this Annuity to their Clients
If your insurance or financial advisor has talked to you about the Ultra Secure Plus Fixed Deferred Annuity from Mutual of Omaha, then it is likely that he or she keyed in on several areas, such as safety and guaranteed interest rate. Plus, because you may be concerned about outliving your income in retirement, it could also be that this individual placed a focus on the annuity’s lifetime income benefit.
But here’s the reality of the situation.
First, yes you can, in fact, keep your money safe. But at what price?
Well, if you choose to go with a 5-year guaranteed base rate (as of mid-2017) you’ll lock into a whopping 1.75%. If you lock in the rate for two additional years with the 7-year base rate, your hard earned money will earn 2.00%. (If you deposit and/or accumulate $50,000 or more in the annuity, Mutual of Omaha will provide an additional 0.15% rate on your money).
Today, given that we’ve been living in a lengthy period of historically low-interest rates, the “price” of safety and guarantees is that you aren’t going to earn all that much – even on a chunk that’s $50,000 or more.
In fact, when you compare these rates to the average of roughly 3% inflation over the past century, your retirement savings – at least the ones in this annuity – aren’t even going to meet, much less beat, inflation.
So where exactly does this leave you?
Well, for one thing, it could have a negative impact on your future purchasing power in that you may need to cut back on the goods and services that you want (or need) to buy in the future. This is particularly so if the income from this annuity will make up a significant portion of your overall retirement income.
What About the Fees with the Mutual of Omaha Ultra-Secure Fixed Deferred Annuity?
In addition to extremely low return, the other thing that you need to look out for with this (or any other) annuity is the fees that you may be charged. Here, if you should decide to withdraw more than 10% of the annuity’s contract value during the surrender period, then you will be hit with a surrender charge.
(Plus, if you do so before you have turned age 59 1/2, then you could also incur an additional 10% “early withdrawal” penalty from the IRS).
Just how long will the surrender charge period be?
With this particular annuity, the surrender period runs concurrently with the interest rate guarantee period. So, for example, if you choose to go with the five-year rate guarantee, then the surrender charge period is five years. Likewise for the seven-year guarantee.
The Annuity Gator’s End Take on the Ultra Secure Plus Fixed Annuity from Mutual of Omaha
Where this annuity works best:
While it definitely has a few flaws, the Mutual of Omaha Ultra Secure Plus Fixed Deferred Annuity could still be a viable option for those who are seeking the following benefits:
- Safety of Principal
- A guaranteed interest rate for five or seven years
- Guaranteed lifetime income
Where this annuity works the worst:
Conversely, this annuity may not fare so well for those who are looking for:
- A higher, market-related return opportunity
- Access to their money without penalty during the first eight years
It also may not be the right fit if you don’t intend on using the annuity’s lifetime income feature.
There can be a long list of factors that should ideally be considered when you are thinking about purchasing an annuity. In any case, though, these financial vehicles should be approached as a long-term commitment, as they can be quite expensive to get out of.
If you are still leaning towards purchasing the Mutual of Omaha Ultra Secure Plus Fixed Deferred Annuity, then you can be assured that your principal will be safe and that you can count on a guaranteed income in retirement.
But, even though this annuity can do this for you, the reality is that it may still fall somewhat short – and there could be a better alternative out there for you. In any case, the only way to really know for sure whether this annuity may work well for you is to have it tested. We can provide that for you and can offer you a spreadsheet of the results. If you would like to run your information through our annuity calculator, just let us know here through our secure online contact form.
Do You Still Have Any Other Questions? Did You Happen to Notice Any Mistakes in This Review?
We know that this annuity review was a tad bit on the long side. But we would much rather provide too much detail than not enough. That way, you can better compare the pros and the cons of an annuity that you may be considering purchasing.
However, if you do happen to still have any additional questions about this – or any other – annuity, then please feel free to contact us and one of our annuity experts can walk you through any of the questions or concerns that you have.
Any other annuities you would like to see reviewed?
Also, if there are any other annuities that you would like more information about, then just simply let us know that, too and our annuity geeks will get on the case and post more reviews asap.
The Annuity Gator