As of January 1st, 2016 Mutual of Omaha’s (MOO) GRO (Garaunteed Return Option) rider will have four additional 100% refund windows for your clients to receive all of their money back. These windows are at policy years 21, 22, 23 and 24. These additional windows will now provide your client with six opportunities to get all of their premiums paid back, from years 20 through 25. MOO will continue to have the year 15 window at 50% as well. The result will be an enhanced GRO rider with the following liquidity windows:
- Year 15: 50% refund of premiums paid*
- Years 20, 21, 22, 23, 24, 25: 100% refund of premiums paid*
The GRO rider is provided on policies at no additional cost and will be included on policies as long as the guaranteed death benefit runs to age 100**
The enhanced GRO rider along with the enhanced Chronic and Terminal Illness riders provide protection for your clients for a wide range of contingencies; premature death, chronic illness expenses, terminal illness expenses, insurance needs changes and retirement income needs which can all be addressed with one simple product.
Please be aware that the changes on 1/1/16 will be accompanied by a minimal price correction (0-3%) which will have little to no impact on our pricing position***
GUL and GUL Plus applications signed on or after January 1, 2016 will receive the new rates and the enhanced GRO rider. For applications dated prior to January 1, 2016 and received by Mutual of Omaha prior to January 30, 2016 the old pricing and GRO rider will apply however, the client can choose to have the new GRO rider and pricing by contacting underwriting.
*Subject to a 35% of Death Benefit restriction
**The rider will be included as a general rule when you guarantee the death benefit to age 100, but sometimes this varies. Please always make sure that the GRO rider is showing up on the illustration.
*** Pricing will be higher in New York