Mutual of Omaha - Important Announcements for 2020
Mutual of Omaha is financially strong and will continue to focus on growing their company. Their commitment to growth is what helps ensure that they will be around when it comes time to deliver on the promises made to the policyholders.
This continued growth requires an investment of capital, and as a mutual company, they rely primarily on their earnings to create new capital. Recently, statutory earnings have been impacted by several economic factors, including a prolonged low interest rate environment. They are proactively addressing this trend in 2020 to produce positive statutory earnings and maintain long-term financial strength. One way they will be doing this is by making changes to the life insurance product portfolio.
Effective January 1, 2020, Mutual of Omaha will be:
- Discontinuing sales of the Guaranteed Universal Life (GUL) product
- Repricing both the Level and Graded Living Promise Whole Life final expense products. Even with these changes, Living Promise will remain one of the most competitive final expense products in the marketplace:
- The level benefit plan will experience a price increase for most cases
- The graded benefit plan will experience a price decrease, which will better align the pricing with the guaranteed-issue direct-to-consumer product
- Repricing the Term Life Express Non-Return of Premium (TLE Non-ROP) product
- Discontinuing sales of the Term Life Express 20-Year Return of Premium product
Please refer to the Frequently Asked Questions document for more information as well as transition rules.
As we look ahead to 2020, Mutual of Omaha remains committed to the brokerage market.
- On the fully-underwritten life side, Mutual of Omaha has a strong IUL portfolio, consisting of a client-friendly, low-cost accumulation IUL and a competitively-priced protection IUL.
- The simplified-issue life portfolio continues to be robust. With the November 1, 2019 introduction of IUL Express, Mutual of Omaha now offers a full portfolio of simplified-issue products, including IUL Express, GUL Express, Term Life Express, Living Promise Whole Life, Children's Whole Life and Guaranteed ADvantage accidental death. They will be furthering our commitment to this market in early January when they introduce Automated Underwriting, an instant decision tool, for Term Life Express and enhancing the TLE eApplication screens.
- The long-term care, disability and critical illness products will remain strong and will continue to be a focus in 2020.
- The annuity portfolio will remain one of the strongest for growth and versatility - providing competitive rates on deferred annuities and strong payouts on income annuities.
Please give BUA a call at 1-800-792-6795 if you have any questions about these changes.