The Oxford Life Silver Select Fixed Indexed Annuity offers you the opportunity to benefit from the increase of the stock market without the downside risk of owning stocks.
Benefits and Features
Tax-Deferral
Tax-deferred growth allows your money to grow faster because you earn interest on dollars that would otherwise be paid in taxes. Your premium earns interest, the interest compounds within the policy and the money, you would have paid in taxes earns interest.
Company Financial Strength
All of Oxford Life Insurance Company’s tax-deferred annuities are backed by the financial strength of the Company’s investment portfolio, which emphasizes high-quality bonds that provide liquidity and competitive interest rates.
Death Benefit
Oxford Life Insurance Company will payout, as the Death Benefit, the Account Value to your beneficiary upon the death of the owner or if non-natural owner, the annuitant. Your beneficiary may choose to receive the payouts in either a lump sum or a series of income payments.
Oxford Life Insurance is another option if you’re wanting to leave a death benefit to your beneficiaries, tax-free.
Lifetime Income
Oxford Life Insurance Company can provide you with a guaranteed income stream with the purchase of your tax-deferred annuity. You have the ability to choose from several different annuity payout options, including life or a specified period.
May Avoid Probate
By naming a beneficiary, you may minimize the delays, expense, and publicity often associated with probate. Please consult with and rely on your own legal or tax advisor.
3 Accumulation Strategies
The Fixed Account Strategy
For a simple and reliable interest crediting rate over time, the Fixed Account will provide the consistent earnings that you are looking for.
The interest rate is credited daily, guaranteed for one full year, and determined on each policy anniversary.
This account is designed to provide returns similar to traditional fixed annuities and other conservative accumulation vehicles.
You cannot lose previously credited interest.
The Monthly Average Strategy
Interest earnings on the indexed account are linked to the S&P 500, a popular measure of the U.S. stock market’s performance.
This method takes into consideration the monthly average of the S&P 500 values on the 12 monthly index dates of the policy year.
This average is compared to the S&P 500 value on the prior policy anniversary, or in the first year, the policy date, in order to determine any percentage gain.
This “averaging” method will serve to moderate market fluctuations.
Earnings are credited annually and are related to the monthly average appreciation of the S&P 500 index.
You cannot lose previously credited interest.
The Annual Point-to-Point Strategy
Interest earnings on this indexed account are linked to the S&P 500, a popular measure of the U.S. stock market’s performance.
The Point-to-Point account method is based on the annual change in the S&P 500.
On each policy anniversary, the S&P 500 value is compared to the index value on the prior policy anniversary to determine the percentage gain.
Earnings are credited annually and are related to the annual appreciation of the S&P 500 index.
You cannot lose previously credited interest.
Optional Guaranteed Lifetime Withdrawal Benefit
The Optional Guaranteed Lifetime Withdrawal Benefit (GLWB) was designed for people age 50 and above who are interested in guaranteed income during their retirement.
GLWB is an optional Benefit you can add to your policy.
Designed to generate a higher level of guaranteed lifetime income, the GLWB allows you to control when you receive income payments.
Since this Benefit works in concert with your annuity, together the two can provide you ways to enhance your long-term income.
In exchange for an annual cost, this Benefit offers you the ability to achieve a guaranteed lifetime income stream.
If purchased, your premium will begin to accumulate as an Income Account Value.
Upon utilizing the GLWB, an amount determined by your age and Income Account Value will be available for GLWB.
This income is available to you without a surrender charge, Market Value Adjustment or electing an annuity payout option.
Income Account Value
The most important feature of the Guaranteed Lifetime Withdrawal Benefit is the guaranteed growth of the Income Account Value.
The Income Account Value is only used as the base for calculating your Guaranteed Lifetime Withdrawal Benefit payments.
It is not available for Death Benefits or other withdrawals from the policy.
Note: Guaranteed Lifetime Withdrawal Benefit payments and excess withdrawals will reduce both your policy’s Account Value and your Income Account Value.
All withdrawals or surrenders will be taken from your Account Value.
Guaranteed Lifetime Withdrawal Benefit Payments
You choose how frequently you receive your GLWB payments: monthly, quarterly, semi-annually or annually.
When you first elect GLWB payments, your annual payments will be based on your current Income Account Value multiplied by a percentage based on your age.
Automatic Step-Up
On each policy anniversary following your first elected GLWB, you are eligible for a step-up.
The annual income withdrawal will be increased (stepped-up) if your Account Value exceeds the Income Account Value at the time you began taking withdrawals under the GLWB.
You must notify us if you do not want us to increase the amount of your GLWB.
Excess Withdrawals
Withdrawals in excess of the GLWB will cause future GLWB withdrawals to be reduced by the same proportion that the policy’s Account Value is reduced by the excess withdrawals. GLWB payments will stop if excess withdrawals, withdrawal charges or market value adjustments (MVA) reduce the Account Value of the policy to zero.
Spousal Continuation
If the owner’s spouse is the sole primary beneficiary and elects to continue the policy, the benefits of the GLWB will also continue, providing the spouse becomes the sole annuitant and sole owner of the policy.
If the spousal beneficiary assumes the policy before any GLWB withdrawals have been taken, the Benefit simply continues in the Accumulation period.
Spousal continuation does not restart the withdrawal charge schedule.
If a GLWB has been taken by the time of spousal continuation, the spouse can elect to receive a GLWB until the Income Account Value is equal to zero, at which time the withdrawals stop and the policy will terminate, or continue to receive a GLWB for the surviving spouse’s remaining lifetime if the owner elected a joint lifetime payout.
Liquidity Features
Withdrawing Money
Since you can never predict the future, it is comforting to have the ability to access your money.
After the first policy year, the Oxford Life Silver Select Fixed Indexed Annuity allows for annual penalty-free withdrawals of up to 10% of your accumulated annuity value.
For example, you can take interest-only monthly payouts and also an additional withdrawal throughout the policy year, up to the 10% penalty-free amount.
For amounts greater than the 10% penalty-free withdrawal amount during a policy year, there will be a surrender/withdrawal charge applied during the first ten years.
The surrender/withdrawal charge is 10% in the first policy year and then reduces by 1% each policy year thereafter.
Market Value Adjustment
The Oxford Life Silver Select annuity includes a Market Value adjustment, which generally allows Oxford Life to credit rates higher than on those products without an interest adjustment.
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 (RMD) in excess of the penalty-free withdrawal amount are waived.
Waiver of Surrender/Withdrawal 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 Account 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 request 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 request surrender/withdrawals from this policy without reduction for any surrender/withdrawal charge.
Payout Options (Annuitization)
- Period Certain Payments: Equal payment for a fixed period of up to 20 years.
- Lifetime income: Equal payments will be made for the annuitant’s lifetime.
- Lifetime income with Guaranteed Period Certain: Equal payments will be made for the longer of the annuitant’s remaining lifetime or the period agreed upon (5, 10, 15, 20 years).
