New Guaranteed Refund Option Rider from United of Omaha

Life Insurance

We here at Pivot, wanted to make you aware of some exciting changes coming to United of Omaha’s Guarantee Universal Life (GUL) and Guarantee Universal Life + products. As of October 1, 2014, they have lowered their GUL premiums to be more competitive for non-tobacco users ages 45-75. In addition, they are introducing a new refund option rider on qualifying policies. Qualifying applications with a signed date on or after October 1, 2014, will automatically be issued with this rider at no additional cost. You will not qualify for this rider if you are approved with a substandard or tobacco rate under age 50 or with a substandard table rating of 5-16 at ages 50 and above.

This product may offer a better life insurance product solution than term life insurance for your given situation. Read on to learn more.

In a nut shell, this new rider is designed to provide you with three 60-day windows where you can surrender the policy and get your money back - no questions asked. Talk about flexibility!! You may need coverage now but not later and this rider gives you options as your situation changes. The only state the rider is not currently approved in is New York.

Here’s how it works:

  • You purchase a GUL or GUL + policy and continue to make the required premium payments. The required premium is the amount that guarantees the death benefit through age 100.
  • United of Omaha will review your eligibility for the rider annually. If the premiums paid are insufficient, you will have a 60-day period to pay the catch-up premium amount without forfeiting the rider.
  • At the 15th, 20th and 25th policy anniversary, you have a 60-day window where you have the opportunity to surrender your policy and get your cash back. If the policy’s surrender value is greater than the refund amount, you would receive that amount instead.
  • If you do not exercise the rider, there will be no impact on the policy. As long as the appropriate premiums are paid, the policy will remain in force and you will continue to have a guaranteed death benefit.

60 day Window at Anniversary

Guaranteed Refund Amount*

Year 15

50% of Premiums

Year 20

100% of Premiums

Year 25

100% of Premiums

* The Guaranteed Refund Option refund amount is capped at 35%of the policy face amount and is reduced by withdrawals and loans.

About the author:  Michele Cleary has been in the business for over 35 years and holds a CLTC designation. She believes that life insurance can give you and your family peace of mind, especially when you have other things to worry about. Michele now has 4 grown children and knows that proper planning is essential. You can reach her at 1-800-651-1953 or