On Wednesday, October 1st, 2014, Mutual of Omaha released revised rates for their GUL product. According to the carrier, the intent of the revision is to release the Guaranteed Refund Option (described below) and to maintain or improve their competitiveness in the nonsmoker risk classes on an age last birthday (ALB) basis for full and 10-pay scenarios, especially for insureds between the ages of 45 and 75. Accordingly, Mutual of Omaha maintains top competitiveness in the age last birthday market.
For the most part, the new revision delivers on what Mutual of Omaha says it will. The old product was especially competitive in the 10-pay scenarios, and most of the full pay scenarios above age 40. With small decreases for nonsmokers ages 40 and up of around 0-3%, the revision manages to improve on the old product’s impressive standing by expanding its competitiveness in these areas. When dropping the guarantee to ages 105, 100, and 90, the revision maintains or improves over the old product’s standing. Mutual of Omaha continues to struggle with single pay scenarios, running into guideline limitations and premium restrictions.
The big revision for this product was the addition of the Guaranteed Refund Option (GRO) rider, automatically included with the policy. This rider provides a money back guarantee in given time intervals as described below. This type of feature is only offered on two other industry products and has been sought after since the closure of Lincoln Benefit Life.
Cash surrender values at year 20 and targets ranked primarily below average.
Guaranteed Refund Option:
This Rider provides for an enhanced surrender value if you surrender the policy during the 60 day period following the 15th, 20th, or 25th policy anniversary. If surrendered under the Guaranteed Refund Option, values will equal 50% of the premiums paid upon the 15th policy anniversary, or 100% of the premiums paid upon the 20th or 25th policy anniversary. Partial withdrawals and loans will be deducted from the premiums paid when calculating the benefit.
Rates were updated on the LifeTrends website on Thursday, October 2 nd.