What will we be covering in this review of the United of Omaha Bonus Flex Annuity?
In this United of Omaha annuity review, we will be going over the following important details:
- Type of annuity
- Realistic performance expectations
- Where the annuity is best used
- How the annuity 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 annuity because you want to ensure that you won’t run out of income in the future – especially if you live a nice, long life – then purchasing the United of Omaha Bonus Flex fixed deferred annuity could be a great way for you to accomplish that.
One reason for that is because this annuity allows you the opportunity to avoid the constant ups and downs of the stock market – even when it’s extremely volatile like during the Recession of 2008, and the Coronavirus pandemic of 2020.
The Bonus Flex annuity from United of Omaha also offers a fixed interest rate for a set period of time. In addition, when it comes time for you to convert the annuity over into an income stream, that income can last throughout the remainder of your lifetime, regardless of how long that may be.
However, before you go out and purchase this, or for that matter any annuity, it is really important that you first have a thorough understanding of the benefits that it may provide, as well as any possible drawbacks, because annuities can be very difficult (i.e., expensive) to get out of once you get in.
Over the past decade or so, fixed annuities have become much more popular with people who are retired, as well as those who are approaching that time in their lives, as they can help to alleviate the concern about running out of money in retirement.
However, due in large part to this increased demand, many insurance carriers have been introducing new products – and unfortunately, this can make a product that is already somewhat confusing even more so. This is oftentimes the case for well-informed consumers, as well as many insurance and financial advisors!
With that thought in mind, unless the insurance or financial advisor whom you work with has a primary focus on selling annuity products, you really should do some additional research on these types of financial products, as they can require that you deposit a large chunk of your retirement savings into them.
That’s where the Annuity Gator can come in!
Annuity and Retirement Income Planning Information You Can Trust
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Who exactly are we?
At Annuity Gator, we are a team of experienced financial and annuity professionals who focus on providing in-depth, and unbiased, annuity reviews on the Internet. These can be found in our massive annuity review database on our website.
We have been at this for quite a while now – far longer than our competitors have – even though there are now a number of “copycat” websites that are popping up. (Imitation is a form of flattery, isn’t it?!)
It is our mission to provide in-depth information and reviews about all types of annuities to consumers – as well as to financial professionals – so that they know exactly what they may (or may not!) be getting into when considering buying and/or selling an annuity.
These products tend to be highly complex, so it helps to get advice from someone who is adept in how annuities work, and who can pare down the massive amount of “fine print” into something that is more easily understood.
So, if you’re interested in learning more about the United of Omaha Bonus Flex fixed deferred annuity, you are definitely in the right place. Here you can find out how this annuity may – or may not – perform in certain situations.
Why do we provide information on drawbacks of annuities, as well as the possible benefits? The main reason is so that you know what you can anticipate. We believe that annuities can be a very good financial vehicle to have in your portfolio – but only provided that it fits in well with your other financial needs and goals.
With that being said, this United of Omaha annuity review is here to assist you with getting a better understanding of all of the small print so that you are more knowledgeable about the Bonus Flex annuity, and why it may – or may not – work for you.
So, if you are ready to begin the review, let’s go ahead and jump in!
The United of Omaha Bonus Flex Annuity at a Glance
|Product Name||Bonus Flex Annuity|
|Issuer||United of Omaha|
|Type of Product||Fixed Deferred Annuity|
|A.M. Best Rating (United of Omaha / Mutual of Omaha Insurance Company)||A+|
|Phone Number||(800) 646-7592|
Opening Thoughts on the United of Omaha Bonus Flex Annuity
United of Omaha traces its roots back more than 110 years. The company – then known as Mutual Benefit Health and Accident Association – began selling health and accident insurance in the early 1900s.
Today, the company offers a long list of financial and insurance products, including annuities, life insurance, long-term care coverage, disability insurance, critical illness insurance, investments, and even mortgages.
An affiliate of Mutual of Omaha, United of Omaha, holds in excess of $15 billion in cash and invested assets. Considered to be financially stable and able to pay out its policyholders’ claims, Mutual of Omaha Insurance Company and United of Omaha Life Insurance Company have earned strong ratings from three of the major rating services, including a(n):
- A+ from A.M. Best
- A1 from Moody’s Investors Service
- A+ from Standard & Poor’s
If you own a fixed deferred annuity, then the volatility of the stock market isn’t going to affect the amount of future income that you’ll receive from that product. So, for those who are seeking both safety and guarantees, 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 has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This United of Omaha annuity 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 Bonus Flex Annuity
The Bonus Flexible (or Bonus Flex) annuity from United of Omaha is described as product that offers tax-deferred growth and access to your money when you need it. It also allows for flexible contributions and has a variety of income payout options.
The contributions that you make into this annuity during the first 12 months will be credited with the current interest rate, plus 1%. The purchase payments that are contributed after that will be credited with the current interest rate.
There are some additional features on this annuity, including a death benefit that will be paid out to a named beneficiary if you pass away before receiving back the equivalent of your premium contributions. (The beneficiary can opt for either a lump-sum payment, or a series of payment installments).
As a fixed annuity, the fluctuations in the stock market will not impact the value of your account. So, if you are looking for safety of principal, as well as a way to ensure that you’ll have retirement income for your lifetime, this annuity could be a potential option. That being said, there really isn’t anything special or out of the ordinary with this product either. So, there could be a better alternative for your specific short- and long-term financial goals.
In order to view the policy highlights for the Bonus Flexible annuity from United of Omaha, you can do so here.
How an Insurance or Financial Advisor Might “Pitch” this United of Omaha Annuity
Given that life is filled with so many uncertainties, when you have the opportunity to receive a guarantee, it can be a nice benefit – particularly when it has to do with your financial options. With that in mind, when it comes to the United of Omaha Bonus Flex Annuity, it is likely that an insurance or financial advisor that you’re working with would focus on the fact that you can get a guaranteed rate of interest for a set period of time (and a bonus on contributions during the first year), as well as that you can also count on a set amount of income for the remainder of your life.
However, whenever any type of guarantee is presented to you – particularly when it involves your money – when you look a little more closely, you may find that there are certain “tradeoffs” that you need to accept in order to attain those benefits. This can be the case with this annuity.
For instance, today, interest rates are painfully low. And unfortunately, you may not be able to generate much more here than you would by placing your money in a bond or money market account. And in the latter, you wouldn’t have to worry about any surrender fees if you opt to take your money out “early.”
For instance, the surrender/withdrawal charges on the Bonus Flex Annuity run for nine years after you have purchased the contract. This can be a long time to wait – particularly if you have an emergency that would require you to access the money.
United of Omaha’s Bonus Flex Annuity Surrender Charges
On top of that, if you take withdrawals prior to turning age 59 ½, you can also face an additional 10% “early withdrawal” penalty from the IRS. So, it really makes sense to ensure that the funds you put into this annuity are earmarked for the long-term. Otherwise, it could end up costing you big time!
The Annuity Gator’s End Take on the United of Omaha Bonus Flexible Fixed Deferred Annuity
Where it works best:
The bottom line with the United of Omaha Bonus Flex annuity may not be right for everyone. However, it could be a viable option if you are seeking the following benefits:
- A guaranteed rate of interest for a set period of time
- Safety of principal, regardless of what happens in the stock market
- A lifetime income that you can count on for as long as you need it
Where it works the worst:
On the other hand, this annuity might not be a viable option if you:
- Want the potential for higher growth
- Need to access your money during the annuity’s surrender period of 9 years
- Do not plan to use the lifetime income feature
There are many different factors that you should ideally consider when you are thinking about the purchase of an annuity. That’s because these products are a long-term commitment, and can cost you if you get out early.
Therefore, with that in mind, you should know how the annuity will produce a return, as well as how safe your money is inside the contract, and how (and when) the income from the annuity will pay out.
If you have been considering the purchase of a fixed deferred annuity such as the Bonus Flex product from United of Omaha, then you can be assured that your money will be safe, and that you will also be able to count on a steady stream of income for the rest of your life – regardless of how long that may be.
However, there may also be some additional items that you have not considered – and the only way to really know if a particular annuity is going to be right for you is to have it tested. We can provide this testing for you, and can also offer you a free, no obligation, spreadsheet with the results. So, if this is something that is of interest to you, then all you need to do is simply reach out to us here via our secure online contact form.
Still Have Questions About the United of Omaha Bonus Flexible Annuity? Did You Happen to Notice Any Mistakes in this Annuity Review?
We realize that this United of Omaha annuity review was a bit on the long side, so for that, we truly appreciate you sticking with us here to the end. However, we feel that providing our readers a tad “too much” information is always better than not providing them with enough.
Therefore, if you found that this review was beneficial for you, please feel free to share it and to forward it on to anybody else that you think may also benefit from it. Also, we know that the details about annuities – and other financial products, too – can and do change somewhat quickly. With that in mind, if you happened to notice anything in this review that needs to be corrected and/or updated, please let us know that as well, and we will get on the revisions right away.
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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
- Independent Review of the Mutual of Omaha Flexible Premium Annuity (FPA)