Mutual of Omaha is one of our top carriers offering Guaranteed Universal Life (GUL) Insurance. Although GUL policies are fairly easy to compare, similar to term life insurance, there are also differences.
Some carriers are strong in certain niches or have something unique about their policy provisions and riders. We look at what makes Mutual of Omaha’s GUL policies different.
Guaranteed Universal Life Insurance is often labeled “Term for Life”, “Term to 100” or “No-Lapse Term”. This product is rather simple in that it is not designed for cash accumulation, but simply to provide permanent, guaranteed life insurance – with no moving parts.
We will look at the details of Mutual of Omaha’s GUL policies, but first let’s look at the carrier.
The History and Financial Ratings of Mutual of Omaha
As of June, 2015 Mutual of Omaha was ranked 391 on the Fortune 500 list. They were founded in 1909 as the Mutual Benefit Health and Accident Association. They have grown at a tremendous pace since their founding. Based in Omaha, Nebraska, Mutual of Omaha has several subsidiaries including United of Omaha, and United World.
Mutual of Omaha is often recognized for their association with the long running television program, Wild Kingdom, which they sponsored for close to 25 years. In the insurance industry, they are recognized as a very strong, stable and diverse carrier. They are competitive and have solid products in life insurance, long-term care insurance, disability insurance and several other lines.
Their strong financial position is evidenced by the ratings from AM Best, Moody’s and Standard & Poor’s.
- A.M. Best: A+ (2nd highest of 16) Rated for overall financial strength and ability to meet ongoing obligations to policyholders.
- Moody’s: A1 (5th highest of 21) Rated for current financial strength and ability to withstand financial stress in the future.
- S & P: AA- (4th highest of 21) Rated for financial strength to meet obligations to policyholders.
Mutual of Omaha Guaranteed Universal Life Insurance Review – Four GUL Products
There are four GUL products:
- GUL This is their main GUL product which we will refer to below.
- GUL PLUS This product is essentially the same as the GUL. The only difference is that it is designed to accommodate single premium payments or “dump-ins” of large amounts.
- GUL Express This product is designed for face amounts for as low as $25,000 and is Simplified Issue. The premiums are higher because of the non-medical underwriting. There is only one non-tobacco underwriting class and one tobacco underwriting class.
- GUL Survivor This is a second-to-die policy that is designed for estate tax purposes or for a business insuring a key person/employee.
Features and Benefits of Mutual of Omaha’s GUL
This section will focus on Mutual of Omaha’s most competitive and popular products – their GUL and GUL Plus.
Mutual of Omaha uses the age of your last birthday for pricing purposes.
The vast majority of carriers use your nearest birthday when determining rates. So, if you turn 40 on January 1 and you get a quote in November, insurance companies will consider you as age 40. That’s your nearest birthday. However, Mutual of Omaha uses “Age Last Birthday” pricing, so this can be a distinct advantage.
Guaranteed Refund Option (GRO)
- This is a policy provision (not a rider with additional cost). The “Option” term just means that policyholders have the can choose whether on not to exercise this option.
- The Guaranteed Refund Option allows seven different “60-day windows” when the policy can be surrendered in exchange for a full refund of premiums paid. The first window is at the end of year 15, when 50% of the premium will be refunded. The other 6 windows are at the end of years 20, 21, 22, 23, 24 and 25 – when 100% percent of the premium would be refunded.
- This option is nice to have in case needs change and the coverage is no longer needed or desired.
- This option, when exercised, often compares favorably to Return of Premium term life insurance policies. It is a good alternative to ROP term.
Accelerated Death Benefit and Chronic Illness Rider
If the policyholder is diagnosed with a terminal or chronic illness, they have the option to receive part of the policy’s death benefit. The death benefit will be accelerated (within limits) if there is life expectancy is less than 12 months.
The other part of this rider – Chronic Illness – allows the insured to access part of the death benefit if unable to perform 2 out of 6 Activities of Daily Living (or has a cognitive impairment).
This rider is included in the policy at no extra cost.
Very Competitive with Higher Face Amounts – $250,00 and above.
Whereas some carriers such as Sagicor Life (reviewed here) are most competitive with lower face amounts, Mutual of Omaha is the opposite. They are very strong with higher face amounts. Yes, they offer a product – GUL Express – with lower face amounts, but it isn’t very competitively priced.
Most Competitive with “dial down” ages of 100 and 105.
With the exception of a few carriers like MetLife, most carriers allow you to choose the guaranteed age. MetLife (reviewed here) has very good rates, but their guaranteed age only goes to 95. With Mutual of Omaha, you can choose a guaranteed age up to 120. However, their rates are most competitive with guaranteed ages of 100 and 105.
Ability to “Catch-up” with missed premiums.
The GUL and GUL Plus policies allow catch up premium without affecting the guarantees. Many carriers are rather inflexible in this regard, so this is an important feature. Of course, it’s best to read the details of this provision.
Single Pay Option (or limited pay). This is the distinguishing feature of the GUL Plus.
- Most carriers either prohibit a single pay option or have restrictions on the amount that can be paid in the first premium.
- Why a single pay option? This might be a good fit for someone who wants to make a one-time lump sum payment into a GUL because of an inheritance or receipt of a significant amount of money from sales of property or other assets.
- Mutual of Omaha has very competitive rates on Single Premium policies, especially policies with larger face amounts.
Mutual of Omaha has the following riders (optional benefits at an additional cost) for their GUL and GUL Plus:
- Guaranteed Insurability Rider – This rider provides the policyholder an option to periodically increase the policy face amount without additional underwriting .
- Accidental Death Benefit Rider – This rider provides additional coverage for accidental death.
- Disability Waiver of Policy Charges Rider – Waives the premium in the event of a disability.
- Dependent Children’s Rider – This rider provides coverage for children up to their 23rd birthday or the date the policyholder reaches the age of 65 .
Mutual of Omaha has made our “Best 5 Guaranteed Universal Life Insurance” list for good reason. Not only are their products competitively priced, but they have strong policy provision (at no extra cost). Unlike some carriers who put out a GUL with limited features, it’s apparent that Mutual of Omaha understands the market by designing very good products.
We will be happy to provide customized comparison quotes showing different “dial in” guarantees for all the leading carriers. Please contact us for more information or advice.