What will you learn in this annuity review?
In this review of the United of Omaha UltraPremier annuity, we will be discussing the following details:
- Type of annuity
- How it works
- Pros and cons
- Charges and fees
- How an advisor might present the annuity
- Where the annuity works best
- Where the annuity works the worst
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 thinking about purchasing an annuity so that you can attain tax-deferred savings, as well as a guaranteed lifetime income in retirement, then the United of Omaha Ultra Premier single premium deferred MYGA (multi-year guarantee) annuity may be a good choice for you.
However, prior to running out and committing to this annuity – or to any annuity, for that matter – it is important that you first get an in-depth understanding of how the product works, and how it may or may not fit in with your specific financial goals and needs.
Over the past decade or so, demand has increased for fixed rate annuities. A large part of this is likely due to the volatility of the stock market, as even a slight “correction” could cause a substantial rift in your retirement savings.
Also, because an annuity can provide you with a lifetime income stream in the future – regardless of how long you may need it – these vehicles can also help you alleviate the fear of running out of income down the road.
Yet, due to the increased popularity of annuities lately, many insurance companies have been coming up with new products, which will oftentimes include a long list of features and benefits – as well as confusion, both for consumers and financial advisors who offer them. So, unless the financial or insurance advisor that you work with has a key focus on offering annuities, you should really read over the “fine print” before making a long-term commitment.
Annuity and Retirement Income Planning Information You Can Trust
If this the first time you have been to our website, please allow us to personally welcome you here to AnnuityGator.com. 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!
While you’ve been researching annuities online, it’s likely that you have run across some highly conflicting details about these products. This really isn’t surprising, though, as there are many different opinions about them – some good, and some not so good.
This is yet another reason why it is so important to get a good handle on how annuities work, so that you can 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 annuity from United of Omaha, you are definitely in the right place. In fact, we dare state that the Annuity Gator’s website is the only place online where you’ll see all of the important details that you need for making a well-informed decision.
One reason for this is because we aren’t going to paint a rosy picture for you and focus on only the good stuff. Rather, we provide the whole picture – good, bad, and yes even the ugly. But this can help you in determining whether or not this annuity is right for you.
Before we get started, though, and in order to be clear here, we want to state for the record that we believe that annuities can be a great addition to your portfolio. But that is only provided that you’re purchasing the annuity for the right reason(s).
So, if you’re ready to get started, let’s jump in!
United of Omaha Ultra Premier Annuity at a Glance
|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 on the United of Omaha Ultra Premier 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/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 Annuity
United of Omaha/Mutual of Omaha describes the Ultra Premier annuity as a single premium deferred annuity that is purchased with one lump sum. (This can be funds from personal savings, or money that is rolled over from an IRA or employer-sponsored retirement plan like a 401k).
You are also allowed to make minimum additions of at least $500 to the Ultra Premier 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 either 5 or 7 full years. Along with the interest rate guarantee, the Ultra Premier annuity from United of Omaha offers:
- Tax-deferred growth (which means that none of the gains are taxed until the time of withdrawal)
- Competitive renewal rates
- A variety of income payout options
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 5 or 7 years. (The length of the surrender charge will correspond with the interest rate guarantee period that you choose).
There are, however, some exceptions in that the surrender charges will be waived for money that is accessed due to the following events:
- 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 annuity, you can view the Fact Sheet here.
How a Financial or Insurance Advisor Might “Pitch” this Annuity
Today, people are living much longer than ever before – and, while that can be positive in many respects, it can also bring about the worry of outliving your income in retirement. With many people who are preparing for retirement being concerned about growing their savings, while at the same time keeping their principal safe, it is possible that an insurance or financial advisor would present this annuity as a vehicle for accomplishing both of those goals. Plus, there is also the option to choose income for life with this product, either for just one individual, or for two individuals.
As a Multi-Year Guarantee Annuity, or MYGA, 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. And, with this particular product, you can choose from either a 5-year or a 7-year rate guarantee. This can certainly help you to sleep better at night, knowing that your rate will stay the same if rates continue to go down.
But unfortunately, just the opposite can happen, too. So, if rates go up – which they very well could over the next five or seven years, your money will be locked into this annuity and you could incur a fee just to get it out!
In fact, due to its low rate of interest, there are actually numerous other financial vehicles that you could consider that would still offer you the safety that you’re seeking – and a set rate of growth – but without having your money locked up for a long period of time. You could also quite frankly not have to worry about the myriad of charges and fees.
What About Fees on the United of Omaha Ultra Premier Annuity?
While variable annuities are oftentimes the “bad guys” when it comes to charging fees, fixed annuities can also have their fair share of charges 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 either the first 5 or 7 years, depending on the interest rate guarantee that you chose.
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.
United of Omaha Ultra Premier Surrender Charge Schedule
|1st Year||2nd Year||3rd Year||4th Year||5th Year||6th Year||7th Year|
The Annuity Gator’s End Take on the Ultra Premier 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, either 5 or 7 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 from United of Omaha, then 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.
In any case, the only way to really be sure of whether or not the United of Omaha Ultra Premier annuity may be right for you is to have it tested, based on your specific criteria. We can provide this 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 Annuity? Did You Happen to Notice Any Mistakes in this Annuity Review?
We know that this annuity review was a bit on the long side – and for that, we truly thank you for sticking with us through to the end here. Our feeling is, though, that we would much rather give you a tad bit “too much” information that not enough.
Therefore, if you felt that this review was helpful to you, then please feel free to share it and forward it on to anyone else that you think might also benefit from it. Likewise, if this review posed even more questions, then please let us know that, too.
Are there any other annuities that you would like to have us review?
There is a long list of annuity products out there in the marketplace today. So, if there is one (or more than one) that you would like to have us review, please let us know the name, or names, of the annuity, and our annuity “geeks” will get to it ASAP.
Thank you for visiting our AnnuityGator.com site and be sure to check back often for new and updated information regarding all things annuity.
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:
- 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)