Annuities
Life is full of unexpected events and often times, leaves us feeling uneasy, especially
when choosing a retirement savings option. Oxford Life’s deferred annuities provide
you with competitive interest rates and access to your money if unanticipated hardships
arise. Learn more about our annuity products below.
Oxford Life® Annuities
Oxford Life® Five-Year Guarantee Annuity
– Are you looking to avoid stock market risk? This modified single premium annuity
provides stability with interest rates that are locked in and guaranteed for the
first five contract years.
The Oxford Life® Series – This flexible
premium, tax-deferred annuity is designed to give you the flexibility to add money
on your terms, in case unexpected events should occur.
The Solution 4% Bonus - This flexible premium,
tax-deferred annuity is designed to maximize your savings by offering a 4% bonus
rate on all first year premiums.
See How the Oxford Life® Annuities Compare
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Oxford Life® Annuities
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CD/MM
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Stocks
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Tax-Deferred Accumulation
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Yes
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No
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No
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Avoids Market Risk
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Yes
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Yes
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No
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Avoids Probate Costs
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Yes
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No
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No
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Accelerated Benefit Provided
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Yes
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No
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No
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Guaranteed Values
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Yes
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Yes
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Yes
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Access to Portion of Funds Without Fees
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Yes
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No
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No
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Income for Life
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Yes
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No
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No
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Features Compared
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Oxford Life® 5-Year
Guarantee Annuity
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The Solution 4% Bonus
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The Oxford Life® Series
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Minimum Amounts
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$10,000 non-qualified
$5,000 qualified
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$10,000 non-qualified
$2,000 qualified
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$5,000 non-qualified
$2,000 qualified
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Initial Rate
Guarantee Period
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Years 1 - 5
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1 Year
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1 Year
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Premium Bonus
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N/A
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4%
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N/A
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Bonus Credited On
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Initial Premium
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Year 1 Premium
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N/A
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Minimum Rate
Guarantee
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2%
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1%
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1%
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Surrender Years
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10 Years
There is a 30-day window at beginning of sixth contract year in which you may withdraw
all or part of funds without surrender charges
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10 Years
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7 Years
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Surrender / Withdrawal Charges
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10%, 9%, 8%, 7%,
6%, 0%*, 5%, 4%,
3%, 2%, 1%
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10%, 9%, 8%, 7%,
6%, 5%, 4%, 3%,
2%, 1%
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9%, 8%, 8%, 7%,
6%, 5%, 4%
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Tax-Deferred Growth
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Yes
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Yes
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Yes
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Liquidity Features
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Yes
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Yes
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Yes
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Premium Type
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Modified Single Premium
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Flexible Premium
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Flexible Premium
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* There is a 30-day window of time, beginning in the sixth
contract year, in which you may withdraw all or part of your funds without being
assessed any surrender/withdrawal charges.
An Annuity Versus a CD
Using a conservative interest rate, a CD paying 3% interest will grow by 56% in
20 years. The same money in a tax-deferred annuity with a 3% interest rate will
grow by 69% in 20 years, resulting in a 13% higher appreciation of your money. If
the tax and interest rates are higher, the difference on the return is even greater
with tax-deferred growth.
This chart illustrates how effective tax deferral can be. A $25,000 initial premium
compounded at 3% annually over 20 years grows to $45,153 with taxes deferred. Once
taxes are paid on the lump sum distribution, the amount received is $42,130, still
much more than the $39,013 earned on a taxable investment over the same time frame.1
Notes:
1 Assumes a 25% ordinary income tax assessed yearly on
taxable investments and 15% at period end on tax-deferred investments with non-qualified
money. All figures were rounded to the nearest dollar amount. Actual tax rates may
vary for different taxpayers and assets (e.g., capital gains and qualified dividend
income) from that demonstrated. Actual performance of your investment will also
vary. Hypothetical returns are not guaranteed and do not represent performance of
any particular investment. If a withdrawal or distribution is taken before age 59
½, a 10% federal tax penalty may apply. Lower maximum tax rates on capital gains
and dividends would make the investment return for the taxable investment more favorable,
thereby reducing the difference in performance between the investments shown. Consider
your personal investment horizon and income tax brackets, both current and anticipated,
when making an investment decision.
