Mutual of Omaha: A Tale of Two Products

We’ve studied the Mutual product line backwards and forwards, and one fact jumped out at us right away: Some Advisors are running about half of their illustrations wrong. It effects both term and perm products, and the issue is significant. Here’s what you SHOULD see if you run it properly:

  • Mutual of Omaha is #1 or #2 in 66% of cells in full pay and ten pay guaranteed to maturity designs.

Here’s what you might see if you simply use the age:

  • Mutual of Omaha is #5 or #6 in most cells, at best

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Bottom line: if you use the age, you are going to be wrong half of the time, and you might as well just go run some completely other product, because Mutual, run correctly, is extremely competitive, meaning #1 or #2 in an astonishing number of cells, for 50% of the population, and only top five for the rest of them.

If we look at term insurance Mutual is even more dominant: Look at all the green! #1 across the board!

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Work a little harder than your competition by making the producer actually cough up the DOB and you have a major competitive advantage.

Once you have the illustration run correctly, you can start stacking the other benefits on top of the great price:

Term Insurance: Conversion to any product Mutual offers, including GUL. They also allow conversion even if you need chronic illness benefits, making this the ultimate “wait and see” planning tool. One caveat: this is not guaranteed, only current company policy, so focus on this as a reason to buy MOO instead of another carrier rather than a true risk management solution.

Permanent insurance: The only way to convince an Advisor to sell on something other than price is to make it incredibly easy for them to articulate why a client should pay more. With Mutual, you barely even have to ask them to pay more if the client can use age last birthday, and they receive far more value than if they bought a vanilla NLG contract. Some Advisors are using this type of presentation format when responding to NLG quote requests, and they are starting to sell more Mutual as a result.

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