Oxford Life Multi-Select 3 Guaranteed Fixed Annuity offers:
Interest rates are guaranteed for the period you elect an issue. At the end of the guarantee period, you will have a 30-day window where you may choose to renew the guarantee period you originally elected.
Depending on your circumstances and financial goals at this time, this convenient option assures you of a competitive current interest rate and an easy transition to a new guarantee period.
If no election is made during this window, Oxford Life will automatically renew your annuity for the same guarantee period.
If a withdrawal or surrender is made within this 30-day window, no surrender charges or market value adjustment will apply.
After the 30-day window, a new guarantee period, guaranteed interest rate, surrender charge period, and market value adjustment will be applied.
Renewal rates for subsequent guarantee periods will be based on competitive current interest rates and financial circumstances and may differ from the initial guaranteed interest rate.
Your interest rates are guaranteed never to go below 1%.
You will not pay taxes on your annuity interest income until you withdraw funds from your annuity. Taxes on the interest credited to your annuity are currently deferred by state and federal law until withdrawn, when your income tax bracket may be lower.
Roth IRA qualified withdrawals may be income tax-free.
No Administrative Fees
You will receive interest on 100% of your accumulation value.
Payout Options (Annuitization)
- Period Certain Payments: Equal payments for a fixed period of up to 30 years.
- Lifetime income: Equal payments will be made for your lifetime.
- Lifetime income with guaranteed period certain: Equal payments will be made for the longer of your remaining lifetime or the period agreed upon (5, 10, 15, 20 years, or more).
Related Reading: What is Period Certain?
The death benefit will equal the full accumulation value. No surrender/withdrawal charges will apply. Oxford Life Insurance is another option if you’re wanting to leave a death benefit to your beneficiaries, tax-free.
Market Value Adjustment (MVA)
Oxford Life’s Multi-Select 3 annuity includes a Market Value Adjustment, which generally allows Oxford Life to credit rates higher than on those products without an interest adjustment.
This adjustment may increase or decrease your surrender value, depending on the change in interest rates since your annuity purchase.
Due to the mechanics of a market value adjustment feature, the cash surrender value generally increases as interest rates fall.
Likewise, when interest rates have increased over a period of time, the surrender value generally declines.
The market value adjustment is applied only during the surrender/withdrawal charge period and only on amounts that exceed the penalty free withdrawal amount.
Market value adjustments on any portion of IRS-required minimum distributions in excess of the penalty-free withdrawal amount are waived.
Since you can never predict the future, it’s comforting to have the ability to access your money. Oxford Life’s Multi-Select 3 annuity offers systematic withdrawal of interest in the first year, or two penalty-free withdrawals per year cumulatively, up to 10% of your accumulated value starting in the second year.
Surrender/withdrawal and MVA charges will apply to withdrawals in excess of the penalty-free amount.
A surrender charge applies to withdrawal amounts that are greater than the penalty-free amount. Each guarantee period has its own surrender charge schedule. The amount of the surrender charge is a percentage of your account value, which generally decreases over time as shown in the chart below.
If you renew into a new guarantee period, surrender charges will reset.
Waiver of Surrender and Waiver Charges
Terminal Illness Benefit
If you are first diagnosed as terminally ill more than one year after the policy date, you may surrender/withdraw this policy for its accumulation value without reduction for any surrender/withdrawal charge.
Home Health Care Benefit
If you are first diagnosed as chronically ill more than one year after the policy date, are receiving home health care, and have been for the previous 90 days, you may make surrender/withdrawals from this policy without reduction for any surrender/withdrawal charge.
Nursing Home Benefit
If you are first diagnosed as chronically ill more than one year after the policy date, are confined to a nursing home, and have been for the previous 90 days, you may make surrender/withdrawals from this policy without reduction for any surrender/withdrawal charge.
GUARANTEED LIFETIME WITHDRAWAL BENEFIT
An Optional Guaranteed Lifetime Withdrawal Benefit Rider is available on Oxford Life’s Multi-Select 3 Annuity that can help secure your financial future.
THE RIGHT DECISION FOR YOU
Depending on your financial goals and how much income you will need, electing to add the Guaranteed Lifetime Withdrawal Benefit (GLWB) could be the right decision for your retirement plan. The GLWB allows you to prepare for the need for additional income and lets you maintain control over your annuity to empower retirement. You can be confident knowing the payments will be there for you in the future and cannot be outlived.
WHAT IS A GUARANTEED LIFETIME WITHDRAWAL BENEFIT
A GLWB is an optional Rider or coverage, that can be added to your Base Policy to provide for the withdrawal of payments without penalties. The payments are guaranteed for life even if the cash surrender value of your annuity goes to zero. Very often, GLWBs are used as a supplement to Social Security or other retirement income sources.
WILL YOU BE READY FOR RETIREMENT
When planning for the future, costs such as inflation, income taxes, and long term care are often forgotten. A GLWB can help cover necessary living expenses as well as recreational and unanticipated costs.
CREATE A PREDICTABLE LIFETIME INCOME STREAM
Due to advancements in medicine and technology, people are living longer than previous generations. Now more than ever, you will need to create a predictable income stream that you cannot outlive. Your solution is Oxford Life’s Guaranteed Lifetime Withdrawal Benefit (GLWB) which is available for issue ages 18 through 80.
HOW IS YOUR GLWB PAYMENT AMOUNT DETERMINED?
Your initial GLWB payment will be calculated based on your attained age at the time you elect to begin payments.
Your initial single deposit paid for your annuity, reduced by the same percentage as any Withdrawals and initial state premium tax, if any, from the Base Policy, prior to electing the GLWB will be multiplied by a payout percentage factor to determine your lifetime benefit payments.
The lifetime payout factors increase with age, so similar to Social Security benefits, your GLWB payment will be higher the longer you delay starting payments.
GLWB payments can be started and stopped at any time, and you can decide how frequently you receive your payments: monthly, quarterly, semi-annually, or annually.
If an IRS mandated Required Minimum Distribution (RMD) is required, you will be able to take the greater of the annual GLWB payment or the annual RMD payment without surrender charges.
HOW ADDITIONAL WITHDRAWALS AFTER BENEFIT PAYMENTS BEGIN WILL IMPACT YOUR PAYOUT
After GLWB payments begin, any withdrawals taken from the Base Policy will result in future GLWB payments being reduced by the same proportion that the Accumulation Value is reduced by the additional Base Policy withdrawals.
GLWB payments will stop if additional withdrawals, withdrawal charges, or Market Value Adjustments (MVA) reduce the Accumulation Value of the Base Policy to zero.
SINGLE LIFE AND JOINT BENEFIT FACTORS
At the time you elect to start receiving Oxford Life’s GLWB, you may choose a payout based on either a Joint Life or a Single Life basis.
Single Life Payout
With the Single Life payout option, the Owner and Annuitant must be the same person. The payout factors are determined based on your age at the time of the payout election.
In the case of a non-natural owner, the payout factor will be based on the age of the Annuitant. Your initial deposit will be reduced by state premium taxes if any.
Joint Life Payout
With the Joint Life payout option, we will make payments until the death of the last surviving joint payee. The Joint Life payee must be a legal spouse, as defined under Federal law, and the state where the policy is issued. The payment factor will be based on the age of the younger joint payee.
WHAT HAPPENS WHEN THE POLICYHOLDER DIES?
The GLWB terminates at the death of any Owner unless the Owner’s surviving spouse is the sole beneficiary and elects to become the Owner and Annuitant of the Base Policy and qualifies to continue this Rider under any of the following conditions:
- If you elected the GLWB based on a Joint Life payout, then the deceased Owner’s surviving spouse can continue to receive GLWB payments in that amount for the rest of his or her life without regard to the Accumulation Value, or
- If an owner dies before GLWB payments begin, the deceased Owner’s surviving spouse may continue this Rider with the Base Policy, or
- If GLWB payments have already begun and the Accumulation Value is greater than zero, the Policy Owner’s surviving spouse may choose to either:
- Surrender the Base Policy and receive the Accumulation Value in a lump sum or any other payout option available in the Base Policy, or
- Continue receiving GLWB payments in the same amount until the Accumulated Value is reduced to zero or the deceased Owner’s surviving spouse dies; whichever is sooner. Upon the death of the surviving spouse, the beneficiaries will receive the remaining accumulation value, if any.
GUARANTEED LIFETIME WITHDRAWAL BENEFIT CHARGES
The GLWB must be purchased at the time the Base Policy is issued.
- You must be at least 60 years of age to elect to begin receiving GLWB payments.
- The fee for the GLWB is .50% of the Accumulated Value of the deferred annuity policy.
- The GLWB fee is deducted at issue and on each Policy Anniversary until either the Policy or Policy Rider terminate.
- The annual charges will continue to be deducted even in years when a withdrawal is taken when GLWB payments have been elected and whether or not interest is credited to the policy.
- A change in ownership will terminate the benefit.
Retirement Income Planning
If you’re spending the interest from a CD or a fixed annuity to supplement your retirement income, consider a deferred annuity with a lifetime income rider. These annuities would offer a guaranteed income for life (even if the annuity ran out of money), removing the concern of making your money last in retirement and running out of money.
Some lifetime income riders offer a retirement income that increases to keep up with inflation, help pay for long-term care expenses, and offer an enhanced death benefit to help your beneficiaries.