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Ebony J. Howard, CPA
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- Published: March 21, 2023
- Updated: October 25, 2023
- 5 min read time
- This page features 10 Cited Research ArticlesKey Takeaways
- Mutual of Omaha is a century-old Fortune 500 company with ratings of “A+” by S&P Global Ratings, “A+” by AM Best and “A1” by Moody’s.
- Mutual of Omaha offers income annuities and deferred annuities.
- The provider charges no administrative fees on its annuities, although withdrawal/surrender charges might apply.
Mutual of Omaha History
Founded in 1909 and chartered as Mutual Benefit Health & Accident Association, Mutual of Omaha began issuing health and accident insurance to Nebraskan workers in 1910. The company grew and branched out, gaining licenses in 48 states and two territories by 1939.
In 1950, the company began pursuing its mission of pioneering the insurance industry under the Mutual of Omaha name. In 2014, it became the first insurance business to provide an online application for Medicare Supplement policies.
Mutual of Omaha grew by acquiring subsidiaries, expanding its reach and product lines to generate long-term financial security for its customers. Today, it offers a range of income and deferred annuities, among other financial services. United of Omaha Life Insurance underwrites its policies.
Mutual of Omaha companies have an “A+” rating from the Better Business Bureau.
Mutual of Omaha Company Reputation and Financial Stability
Mutual of Omaha has more than 14.6 million members and serves more than 5.3 million individual customers and more than 48,000 employer groups across all 50 states.
In 2021, it paid nearly $6.4 billion in benefits from nearly 6.3 million policies in force. The company has solid financial ratings from leading rating agencies and maintains a statutory surplus of $4 billion.
Besides its strong balance sheet and leverage profile, the company emphasizes community service and charitable giving through the Mutual of Omaha Foundation. In 2022, the foundation granted more than 6.2 million to more than 120 organizations through multiple channels all geared toward giving back to the community.
As of March 2023, Mutual of Omaha has earned strong ratings from three major rating services: AM Best, Moody’s and S&P Global.
Rating Agency Financial Strength Rating AM Best A+ Moody’s A1 S&P Global A+Source: AM Best, Moody’s, S&P GlobalInterested in Buying an Annuity?Connect with a specialist to find out how an annuity can offer you guaranteed monthly income for life.
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Annuity Products from Mutual of Omaha
Mutual of Omaha offers two varieties of annuity products — income and deferred annuities. United of Omaha Life Insurance underwrites these annuities.
Income annuities can help address one of people’s most common concerns — outliving your savings. They provide a consistent stream of income for people nearing retirement age or who are already retired. Income annuities can supplement income for a specific period or throughout your lifetime.Income Annuities Offered by Mutual of Omaha
- Income Access
- Differed Income Protector
- Income Annuity with Premium Return
Deferred annuities offer a fixed rate of return and tax-deferred growth, which helps accumulate assets for retirement. One feature of deferred annuities is that your investment will never decline in value. You can also choose from a variety of income payout options.Deferred Annuities Offered by Mutual of Omaha
Beat the Bank With Fixed Annuity Rates As High As 6%Start with a zero-commitment conversation to learn how annuities can help fund your retirement.
- Bonus Flexible Annuity
- Ultra-Secure Plus
*Ad: Clicking will take you to our partner Annuity.org.
Mutual of Omaha Annuity Fees and Charges
Mutual of Omaha charges no annual administrative fees for its annuities. The only charges you may encounter are withdrawal charges, which only take effect if you pull out more than 10% of your contract’s value in the first year of the policy. The charge applies to the amount you withdraw over the 10% allowable. The amount differs from year to year and from one annuity to another. As with all tax-deferred policies, withdrawals done before 59½ years of age are subject to a 10% income tax penalty by the Internal Revenue Service.
Besides withdrawal/surrender charges, a market value adjustment may also apply, depending on the current new money interest rate relative to the multi-year guaranteed interest rate.Exceptions may apply if the withdrawal is to cover:
- Damage of a residence
- Death of a spouse or minor dependent
- Confinement to a hospital, nursing home or long-term care facility
- Terminal illness or transplant surgery
Mutual of Omaha prides itself on having fee transparency. It says it discloses all relevant fees, charges and applicable waivers on its products. However, always read all the disclosures for any policy you’re ready to buy.
Contact Mutual of Omaha Customer Service
Customers have knocked Mutual of Omaha for poor customer service, which includes a perceived lack of communication and slow processing. However, the company says it maintains the flexibility to meet the unique needs of each customer through industry-benchmark customer service and payment services.
FAQs About Mutual of Omaha’s Annuity ProductsWhat are the different payout options available with Mutual of Omaha annuities?Mutual of Omaha offers a variety of annuities payout options, including life only, refund at death, period certain, life with period certain and joint and survivor life.Can you customize Mutual of Omaha annuities to fit specific retirement needs?Mutual of Omaha offers a variety of income and deferred annuities to give customers a broader choice and help them find a solution that meets their specific retirement needs.What is the process for setting up a Mutual of Omaha annuity?Although there are different annuities, the process for buying one is similar for each. You assess your current and future financial needs, then weigh your investment options against your short-, medium- and long-term objectives. Then complete an application, transfer money to buy the annuity and set a date when you want payments to start. A representative will guide you through this process.Advertisement
Connect With a Financial Advisor InstantlyLast Modified: October 25, 2023
10 Cited Research Articles
- Moody’s. (2023, March 5). Mutual of Omaha Insurance Company. Retrieved from https://www.moodys.com/credit-ratings/Mutual-of-Omaha-Insurance-Company-credit-rating-340400
- AM Best. (2023, March 1). AM Best Affirms Credit Ratings of Mutual of Omaha Insurance Company and Its Subsidiaries. Retrieved from https://news.ambest.com/newscontent.aspx?refnum=248191&altsrc=23
- Mutual of Omaha Foundation. (2022). Our Annual Impact — 2022. Retrieved from https://www.mutualofomahafoundation.org/
- Mutual of Omaha. (2022). Company Facts. Retrieved from https://www.mutualofomaha.com/about/newsroom/company-facts
- Mutual of Omaha. (2020). Company Profile; Timeline. Retrieved from https://www.mutualofomaha.com/about/company-profile
- Mutual of Omaha. (2020). Company Profile; Affiliates. Retrieved from https://www.mutualofomaha.com/about/company-profile/affiliates
- Mutual of Omaha. (n.d.). The Basics of Annuities. Retrieved from https://www.mutualofomaha.com/annuities
- Mutual of Omaha. (n.d.). Our Solutions for Annuities. Retrieved from https://www.mutualofomaha.com/annuities/plans
- Forbes. (n.d.). Mutual of Omaha. Retrieved from https://www.forbes.com/companies/mutual-of-omaha/?sh=3c6639652dcb
- Better Business Bureau. (n.d.). Mutual of Omaha companies. Retrieved from https://www.bbb.org/us/ne/omaha/profile/insurance-companies/mutual-of-omaha-0714-104000434
- Edited By
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