What’s Covered In This Review
In this review, we’ll cover the following information on the Oxford Life Insurance Company’s Multi-Select 7 Fixed Annuity:
- Product Type
- Fees
- Current Rates
- Realistic long term return expectations
- How it is used
- How it is most poorly used
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If you’ve been seriously thinking about purchasing an annuity because you want to assure yourself of long-lasting retirement income in the future, then the Oxford Life Multi-Select 7 fixed annuity could be a good choice for you. One of the primary reasons for this is because this annuity offers protection of your hard-earned principal, as well as the option to choose a guaranteed income for life – regardless of how long you live.
But, before you run out and sign on the dotted line to buy this annuity, it is wise to first get a complete understanding of just exactly what this annuity does, and how it may – or may not – work for you and your specific goals.
Over the past several years – and primarily since the market and economic crash of 2008 – fixed annuities have become more in demand because of their safety and their guarantees. That’s because, with a fixed annuity, you can sleep more soundly at night, knowing that whatever occurs in the market will not deplete the value of your account.
With that in mind, though, there is always at least two sides to every story – and in this case, it is important to consider that because we’ve been in a historically low-interest rate period of late, it can be difficult for fixed annuities to keep up with future inflation, in turn, negatively affecting the amount of income that you’ll have available for goods and services in the future.
In addition to that, an annuity should always be considered a long term financial endeavor. These products will typically contain a surrender period, during which you can be charged a pretty hefty fee for taking out more than a certain amount of your account value each year.
This annuity review is here to help you with better understanding the features and the benefits of the Oxford Life Multi-Select 7 fixed annuity. The review won’t just include the positive, though, but also information about the potential drawbacks. That’s because we feel you really need to know the whole story before you can make a buying decision.
Annuity and Retirement Planning Information You Can Trust
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We have been doing this for many years now – much longer than some of the other annuity websites that you may have run across in your search for annuity information. In fact, there are a number of copycat sites out there that will make bold claims about their annuity offerings but are really just looking for your name and contact information.
We have been doing this for quite some time – far longer than most of our competitors – and because of that, we have become known by many consumers and financial advisors as a trusted source of annuity information.
If, during your search for more details about annuities, it is probable that you’ve seen other websites on the Internet that tout some pretty bold claims, such as having the lowest fees, high annuity payouts, and/or representing the best annuity carriers. But, while these claims can sound extremely enticing, it is important to find out if they are true – and in some cases, these sites are only giving you part of the story.
Before coming to a decision regarding whether or not the Oxford Life Multi-Select 7 fixed annuity is for you, then, please continue to read on so that you will gain all of the pertinent facts.
If you’re ready to begin, let’s dive in!
Oxford Life Insurance Company Multi-Select 7 Fixed Annuity at a Glance
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8+ |
|---|---|---|---|---|---|---|---|---|
| Charge Per Withdrawal | 7% | 6% | 5% | 4% | 3% | 2% | 1% | 0% |
Opening Thoughts on the Multi-Select 7 Fixed Annuity from Oxford Life Insurance Company
Oxford Life was founded in 1965, in Arizona. While the company only has a little more than 50 years in the insurance industry, it has quickly grown and expanded by adding products and services, as well as through acquisitions. For example, Oxford acquired Encore Financial, which owned the stock of North American Insurance Company – a firm that was well regarded in the industry as a third party administrator of Medicare Supplement insurance plans. Oxford also owns Christian Fidelity Life Insurance Company – which in turn, was the owner of Dallas General Life.
The company is considered to be strong and stable financially, with an A- (Excellent) rating from A.M. Best Company and a grade of B- from the Better Business Bureau (BBB), which is on an overall grade scale of A+ to F. Oxford Life offers life insurance, Medicare Supplement products, and annuities.
Before we get into the gritty details, here are some necessary legal disclosures…
This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Oxford Life Insurance Company has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners.
For additional information on how to compare fixed annuities so that you can decide which may be the best one for you, in order to obtain our free annuity report.
How Oxford Life Describes the Multi-Select 7 Fixed Annuity
The Multi-Select 7 fixed annuity from Oxford Life is a fixed deferred annuity that provides compounded, tax-deferred growth. The annuity grows at a fixed interest rate for 7 years that is determined at the time of contract issue. (In addition to the Multi-Select 7, Oxford Life Insurance Company also offers annuities that have a 10-year rate guarantee, a 9-year rate guarantee, an 8-year rate guarantee, a 6-year rate guarantee, a 5-year rate guarantee, a 4-year rate guarantee, and a 3-year rate guarantee.
This annuity offers several features that may make it attractive to those who are saving for retirement and want to ensure that principal is safe and that there will be income to last throughout retirement. For example, there are no up-front sales charges, so 100 percent of the deposit will start earning interest immediately.
And, while there are surrender charges for withdrawing more than 10 percent of the contract value during the surrender period, these charges may be waived in certain circumstances, such as:
- A diagnosis of a terminal illness (more than one year after the policy date). With this terminal illness benefit, the annuity holder may be able to surrender/withdraw the policy for its accumulation value without reduction of any surrender/withdrawal charge.
- A diagnosis of a chronic illness (also more than one year after the policy date), or the receipt of home health care for the previous 90 days. In this case, using the home health care benefit, surrenders/withdrawals can be taken without reduction for any surrender/withdrawal charge.
- The need for care in a nursing home facility. If the annuity holder is initially diagnosed as being chronically ill more than one year after the policy date – and he or she is confined to a nursing home, and has been for the previous 90 days – then they may make surrender/withdrawals from the annuity without a reduction for any surrender/withdrawal charge.
It is important to note, though, that withdrawals of earnings will be subject to income tax. They may also be subject to an additional 10% IRS early withdrawal penalty if taken prior to turning age 59 1/2.
The annuity has other features, too, such as a death benefit. Here, if the annuitant dies, a named beneficiary (or beneficiaries) would receive the full accumulation value of the annuity. (This may be taken in one lump sum, or alternatively in a series of several payments over time).
How a Financial Advisor Might “Pitch” This Annuity
If you have been presented this annuity by a commissioned financial or insurance sales representative, it is likely that they will highlight the annuity’s positives – such as its guarantees – but to simply gloss over other attributes that could be considered drawbacks. This isn’t to say that financial or insurance advisors are bad – because most of these professionals will work to do what is right for their clients. In that vein, however, they may leave it up to you to determine whether or not certain products are really the best way to go.
Given that, it is probable that they would key in on the protection of principal that the annuity can provide, as well as its guaranteed interest rate for 7 years. In the case of the Multi-Select 7 from Oxford Life, you will have a 30-day window after the 7-year rate guarantee expires in order to decide what to do with your accumulation value. At that time, you can either remove all of it or let the cash balance in the account roll over into a new 7-year rate guarantee period.
Because so many retirees today are worried about outliving their income in retirement, many insurance and financial representatives may also pitch the annuity by highlighting its lifetime income feature.
Even though it can be comforting to know that your money is safe and sound, this can actually be a false sense of security in certain cases – and this annuity could very well be one such case. Given the extremely low-interest rates that are being offered on fixed products – including fixed annuities – you may have no loss of principal, but you may also not be able to keep up with rising inflation over time. This, in turn, means that you may not have enough income in the future to purchase the goods and services that you will need in retirement. (This can be particularly true if the income from this annuity will make up the bulk of your retirement income).
Are There Any Fees on the Oxford Life Multi-Select 7 Fixed Annuity?
When it comes to fees, the Multi-Select 7 from Oxford Life Insurance Company has no loads or sales charges. But that doesn’t necessarily mean that there are no fees at all.
As with most other annuity products, this annuity does have a surrender period where you can be charged a fee if you withdraw more than 10 percent of the contract’s value. Here, there is a seven-year window of surrender fees that are laid out as follows:
| Product Name | OptiChoice |
|---|---|
| Issuer | Lincoln Financial Group |
| Type of Product | Fixed Index Annuity |
| S&P Rating | AA- (Lincoln National Life Insurance Company) |
| Phone Number | (888) 916-4900 |
| Website | www.lfg.com |
The Annuity Gator’s End Take on the Oxford Life Multi-Select 7 Fixed Annuity
Where it works best:
As a fixed annuity, the Oxford Life Insurance Company’s Multi-Select 7 fixed annuity will typically be a viable option for those who have the need for:
- Principal protection
- A set rate of interest – at least for the first 7 years (possibly longer, if another 7 year period is chosen)
- Guaranteed lifetime income in the future
Where it works the worst:
Conversely, this annuity may not work out so well if you are looking for:
- A high rate of return
- A liquid financial vehicle where you can withdraw as much money as you want at any time
In addition, if you do not plan to use the guaranteed lifetime income feature, then this annuity may not be your optimal choice.
In any case, given the information about the Multi-Select 7 annuity from Oxford Life, it can still be somewhat difficult to make an across-the-board determination in terms of whether or not certain investors will or won’t benefit from this annuity. The only way to really know if this annuity will work for you is to have it tested.
We can provide that test for you by using our annuity calculator and plugging in figures that are more specific to your particular situation. So, if you’d like more detail as it pertains to you and this annuity, please contact us here via our secure contact form.
You can also get more details on how you can compare the best annuity options for you. Just simply so that you can immediately download our free report on how to compare annuities.
In Summary
Over the past decade or so, annuities have become much more popular – primarily as a way for retirees to ensure that they will have at least some amount of income for the remainder of their lives. With a fixed annuity, it can be comforting to know that you will have a set rate of return and safety of principal – regardless of what occurs in the stock market.
But even with these guaranteed, along with a lifetime income stream, it is still important that you factor in all of the information. Because annuities are long-term commitments, you need to be sure that the one you go with is right for you.
With the Oxford Life Multi-Select 7 fixed annuity, while you can take advantage of some attractive features, this annuity may still fall somewhat short. And quite honestly, there very well could be some better alternatives out there for you (especially if you are looking for the opportunity for a higher rate of return on your money).
So, if you still have any additional questions or concerns about this – or any other – annuity, then please feel free to reach out to us through our secure online contact form here.
Has This Annuity Review Sparked Any Additional Questions or Concerns? Did You Notice Any Mistakes in the Review?
Annuities can be somewhat complex products – even the fixed annuities that may not have quite as many “moving parts” as variable or fixed index annuities. But in any case, these financial vehicles can still be somewhat confusing – even for well-informed consumers. In that case, if this review has sparked any additional questions or concerns that you may have, please let us know and we’ll be happy to address them.
Likewise, if you noticed that any of the information in this Oxford Life Insurance Company Multi-Select 7 fixed annuity review needs to be revised or updated, please give us a shout and let us know that too. We’ll be happy to get right on this and make any necessary corrections to the review.
Are there any other annuities that you would like us to review?
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The Annuity Gator
