Oxford Life Insurance Company was founded in 1965, and it has since grown to own a few insurance businesses. The company only offers fixed indexed annuities and a multi-year guaranteed annuity (MYGA), so it has no variable or immediate contracts. Outside of these products, Oxford provides life insurance and Medicare supplemental insurance policies.
If you’re considering an annuity, a financial advisor can help you figure out which one best suits your retirement savings situation.
| Annuity | Fees | Annuity Type | Minimum Initial Premium | More Information |
|---|---|---|---|---|
| Oxford Life Royal Select® Find an Advisor |
| Fixed indexed annuity | $10,000 | Annuity TypeFixed indexed annuityMinimum Initial Premium$10,000 |
| Oxford Life Silver Select Find an Advisor |
| Fixed indexed annuity | $10,000 | Annuity TypeFixed indexed annuityMinimum Initial Premium$10,000 |
| Oxford Life Select Series Find an Advisor |
| Fixed indexed annuity | $10,000 | Annuity TypeFixed indexed annuityMinimum Initial Premium$10,000 |
| Oxford Life Multi-Select® Find an Advisor |
| Multi-year guaranteed annuity (MYGA) | $20,000 | Annuity TypeMulti-year guaranteed annuity (MYGA)Minimum Initial Premium$20,000 |
Oxford Life Insurance Company received an A- rating from A.M. Best in regards to its overall financial strength. On A.M. Best’s scale, this equates to an “Excellent” rating.
Oxford Life Royal Select®
The Oxford Life Royal Select® fixed indexed annuity features the highest premium bonus that the company offers, at 8%. This applies to your account’s accumulation value, which begins with a minimum initial premium of $10,000. Your bonus will vest over a ten-year period, and you must purchase the optional guaranteed lifetime withdrawal benefit to receive it. In short, the combination of the bonus and benefit rider will allow your accumulation value to grow by 8% upfront and by 6.75% annually for a decade, respectively.
You’ll get a fixed account and an indexed account with this annuity, and you can allocate as much as you want to each. The money in your indexed account grows according to the performance of the S&P 500, whereas the fixed account receives a predetermined interest rate.
The maximum issue age for this contract is 80 years old. In addition, the death benefit is equal to the value of your account upon your death.
Fees
There are no annual contract fees to worry about with the Oxford Life Royal Select annuity. However, if you choose to add on the optional guaranteed lifetime withdrawal benefit, you’ll incur a 0.95% fee.
During your first year as an annuitant, you can withdraw up to the amount of interest you earned penalty-free. After this, 10% of your contract can be withdrawn without fees. Beyond these limits, Oxford charges withdrawal fees.
| Withdrawal Fee Schedule | ||||||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11+ |
| 10% | 9% | 8% | 7% | 6% | 5% | 4% | 3% | 2% | 1% | 0% |
On top of possible withdrawal fees from Oxford, the IRS may charge you a 10% penalty if you withdraw before age 59.5. Standard income taxes also apply.
Realistic Return Expectations
As of Feb. 2021, Oxford Life Insurance is offering a 1.30% rate for the Royal Select annuity’s fixed account. Returns related to your indexed account will vary depending on how the S&P 500 performs.
Oxford Life Silver Select
The Oxford Life Silver Select fixed indexed annuity comes with a 4% premium bonus, as well as an optional guaranteed lifetime withdrawal benefit. When you combine the two perks, they work out to:
- A 4% boost to your initial premium of at least $10,000
- A 6.75% annual increase of your future income payments for the first 10 years of your contract’s life
As with any fixed indexed annuity, annuitants can place money in both an indexed account and a fixed account. The indexed account will either gain or lose value depending on the performance of the S&P 500. On the other hand, the fixed account earns interest according to an interest rate the Oxford Life decides on.
Oxford’s standard death benefit applies to this annuity, as beneficiaries receive an amount equal to your account value. You must be 80 years old or younger to purchase this contract.
Fees
The only fee that you might need to pay in relation to this annuity is a 0.95% guaranteed lifetime withdrawal benefit fee. This is optional, though. Outside of this fee, there are no annual contract charges.
After your first year of contract ownership has passed, you can feel free to withdraw as much as 10% of your account value annually. Anything beyond this will result in the following withdrawal charges.
| Withdrawal Fee Schedule | ||||||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11+ |
| 10% | 9% | 8% | 7% | 6% | 5% | 4% | 3% | 2% | 1% | 0% |
A 10% income tax penalty is awaiting any annuitants that withdraw from their contract prior to age 59.5. This doesn’t preclude you from paying typical income taxes on your withdrawal, though.
Realistic Return Expectations
Behind just the Oxford Life Select Series annuity, this contract has the second-highest fixed account interest rate at 1.70%, as of Feb. 2021. Any money you allocate to your indexed account will earn variable returns based on the S&P 500’s performance.
Oxford Life Select Series
The Oxford Life Select Series of fixed indexed annuities comes in four versions that you can choose depending on how long you want to lock up your money for. Your choices are terms that last three years, five years, seven years or ten years.
Variable annuities invest your money, while fixed annuities have a fixed interest rate. Fixed indexed annuities look to combine the benefits of each of these types of contracts by including two accounts: a fixed account and an indexed account. In the case of Oxford, the indexed account will track the performance of the S&P 500, and the fixed account will stick to a preestablished interest rate.
The maximum issue age for this contract is 80 years old, and the death benefit is equal to your account value at the time of your death.
Fees
Those who open this annuity won’t have to pay any annual fees, unless they annex the optional guaranteed lifetime withdrawal benefit rider onto their account. If you choose to do this, you’ll have to pay a 0.95% fee each year.
Oxford allows customers who have owned their contract for at least one year to remove up to 10% of their account value annually. Fees come into play if you withdraw more than that, though.
| Withdrawal Fee Schedule | |||||||||||
| Term Length | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11+ |
| 3 Years | 10% | 9% | 8% | 0% | |||||||
| 5 Years | 10% | 9% | 8% | 7% | 6% | 0% | |||||
| 7 Years | 10% | 9% | 8% | 7% | 6% | 5% | 4% | 0% | |||
| 10 Years | 10% | 9% | 8% | 7% | 6% | 5% | 4% | 3% | 2% | 1% | 0% |
If you’re under 59.5 years old and you make a withdrawal from your contract, the IRS will levy a 10% income tax penalty on you. You will be on the hook for standard income taxes as well.
Realistic Return Expectations
Oxford Life Insurance has different fixed account interest rates for each of its available terms:
- 3-Year: 1.30%
- 5-Year: 1.75%
- 7-Year: 1.85%
- 10-Year: 2.15%
The performance of your indexed account, however, is dependent on how the S&P 500 index does over time.
Oxford Life Multi-Select®
The Oxford Life Multi-Select® annuity comes in eight variations that all feature different interest rate guarantee periods. These range from 3 to 10 years in length. Depending on what you pick, you’ll receive a preset interest rate that lasts for that period of time.
Your term also dictates the length of your withdrawal fee schedule, meaning longer terms keep early withdrawal penalties around longer. The trade-off, though, is that longer terms usually come with better interest rates.
The death benefit for this annuity is equal to your contract’s full accumulation value. You can also add the guaranteed lifetime withdrawal benefit to help boost your eventual income payments.
Fees
Annual contract fees are kept to a minimum with this annuity, as you’ll only have to pay charges if you choose to add the guaranteed lifetime withdrawal benefit to your contract. In this case, your annual fee will be 0.50%.
Immediately following your first anniversary as an account holder, Oxford Life will let you withdraw as much as 10% of your contract value each year. Fees do apply to withdrawals beyond this cap, though.
| Withdrawal Fee Schedule | |||||||||||
| Term Length | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11+ |
| 3 Years | 10% | 9% | 8% | 0% | |||||||
| 4 Years | 10% | 9% | 8% | 7% | 0% | ||||||
| 5 Years | 10% | 9% | 8% | 7% | 6% | 0% | |||||
| 6 Years | 10% | 9% | 8% | 7% | 6% | 5% | 0% | ||||
| 7 Years | 10% | 9% | 8% | 7% | 6% | 5% | 4% | 0% | |||
| 8 Years | 10% | 9% | 8% | 7% | 6% | 5% | 4% | 3% | 0% | ||
| 9 Years | 10% | 9% | 8% | 7% | 6% | 5% | 4% | 3% | 2% | 0% | |
| 10 Years | 10% | 9% | 8% | 7% | 6% | 5% | 4% | 3% | 2% | 1% | 0% |
If you decide to withdraw from your annuity contract before turning 59.5 years old, the IRS will slap you with a 10% income tax penalty on top of your normal income tax rate.
Realistic Return Expectations
MYGAs typically offer better interest rates the longer you lock your money up. However, Oxford’s Feb. 2021 rates show that this rule doesn't apply consistently across all terms. Here’s an overview:
- 3-year term: 1.60%
- 4-year term: 2.25%
- 5-year term: 2.35%
- 6-year term: 2.65%
- 7-year term: 2.50%
- 8-year term: 2.70%
- 9-year term: 2.55%
- 10-year term: 2.60%
Tips for Building an Investment Portfolio
- If you want some help managing your investments and retirement income planning, a financial advisor might be worth looking into. Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.
- Formulating a precise asset allocation is a great first step to setting yourself up for success in investing. This all-important strategy considers your risk tolerance to determine what kinds of investments should occupy different percentages within your portfolio. If you don’t know where to begin, stop by SmartAsset’s asset allocation calculator.
All information is accurate as of the writing of this article.
