What will we be going over in this annuity review about the Oxford Life Multi-Select 10 Multi-Year Guaranteed Annuity?In this review, we will be discussing the following details about the Multi-Select 10 MYGA Annuity from Oxford Life Insurance Company:
- Product type
- Current rates
- Realistic short and long-term expectations
- Where the annuity works best
- Where the annuity may not work well
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in. At Annuity Gator, we make the complex, simple.If you’re thinking about buying an annuity because you want to be sure that you have a guaranteed stream of income in retirement, while at the same time keeping your money safe from market volatility, then a multi-year guaranteed annuity like the Oxford Life Multi-Select 10 fixed annuity from Oxford Life Insurance Company could be a good option for you. That is because, with a MYGA annuity, you can lock in a set interest rate for a certain period of time – in this case, for ten full years – knowing that your money will grow. These types of annuities can also offer you a lifetime income option (in some cases for two individuals, such as spouses or partners) so that you can stop worrying about running out of income in retirement. But, hold on! Before you run out and commit to this annuity – or for that matter, before you make a commitment to purchasing any annuity – it is recommended that you first have a good understanding of how the annuity works, and how it may (or how it may not) work for you and your specific financial goals and needs. MYGA annuities can have a long list of “rules” to abide by. For instance, you may be able to re-invest your proceeds at another set rate, once your initial time frame has elapsed. But that may or may not be the best idea, based on your specific needs. This can make it even more essential that you read over all of the fine print before you commit what could be a large percentage of your savings to this annuity. Otherwise, it could cost you a substantial amount to get out of it down the road. That’s where the Annuity Gator comes in!
Annuity and Retirement Income Planning Information You Can TrustIf this the first time you have been to our website, we would like to welcome you here to Annuity Gator. We are a team of annuity and retirement income specialists who focus on offering comprehensive – yet non-biased – annuity reviews online. You can check these out in our Annuity Review Database on our website. We have been educating both consumers and financial professionals about annuities for quite some time now – far longer than our competitors have – even though many of them would like to have you think otherwise. Due to our wide range of experience and longevity in this arena, we have become very good at what we do, and we’ve actually come to be known as a highly trusted source of annuity information online. If you have been reviewing annuities on the Internet, it’s possible that you have come across some conflicting information about these financial products. This, however, isn’t really all that surprising to us because there are many different types of annuities, and there are many different thoughts about them. Likewise, even though a particular annuity might be the right solution for someone else, it doesn’t mean that it’s the right solution for you and your specific objectives. This, in turn, is why it is so important to discuss your situation, your goals, and your options with an annuity specialist. In any case, if you’ve been seeking more information about the Multi-Select 10 MYGA annuity from Oxford Life, then you are in the right place. In fact, dare we say that our website is the only place online where you can obtain all of the information that you require for making a well-informed purchasing decision about this annuity. Before we get too far into this review, though, we do want to be perfectly clear in stating that we believe that annuities can be a very viable financial option for some people – provided that they fit in with your other short and long-term financial goals. So, if you’re ready to begin this Oxford Life Multi-Select fixed index annuity review, let’s go ahead and dive in!
The Oxford Life Multi-Select 10 Fixed Index Annuity at a Glance
|Issuer||Oxford Life Insurance Company|
|Type of Product||Multi-Year Guarantee Annuity (MYGA)|
|A.M. Best Rating||A- (Excellent)|
|Phone Number||(866) 641-9999|
Opening Thoughts on the Oxford Life Multi-Select 10 Fixed Index AnnuityOxford Life Insurance Company was founded in 1965, in Arizona, with a primary mission of supporting the senior market via life insurance, annuity, and Medicare Supplement insurance products. Throughout the years, the company has grown through the acquisition and development of both products and companies. There are several subsidiaries that are affiliated with Oxford Life Insurance Company, including: – North American Insurance Company – Christian Fidelity Life Insurance Company Because fewer companies offering defined benefit pension plans today, it is up to many individuals to make sure that they have enough income to last them throughout the remainder of their retirement years. This, however, can be a very difficult task, especially given that people are living longer life spans, meaning that savings must be stretched out for a longer period of time. One way to help with creating a guaranteed lifetime income for yourself – while also keeping your hard-earned principal safe and allowing market-linked growth – is through the purchase of a MYGA annuity. These tax-deferred financial vehicles provide safety when the market is down, along with an amount of return that you can count on for a set period of time. At the end of the time frame, you have the option to re-invest your funds at the then-current rates. Or alternatively, you can take your funds out of the annuity penalty-free. But, while this may at first glance seem like an ideal way to go with your savings, if something sounds too good to be true, it typically is! With that in mind, it is essential that you go over the “fine print” before you move forward with the purchase.
Before we get into the gritty details, here are some legal disclosures…This is an independent product review, not a recommendation to buy or 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 review is meant to be an independent review at the request of readers so that they may see our perspective when breaking down the positives and negatives of this particular annuity. Prior to purchasing any type of investment or insurance product, it is important that you do your own due diligence and that you consult a properly licensed professional if you should have any specific questions that relate to your individual circumstances. All names, marks, and materials that were used for this review are the property of their respective owners. For more information on how to compare annuities in order to determine which one may be right for you, click here to obtain our free annuity report.
How Oxford Life Describes the Multi-Select 10 MYGA AnnuityOxford Life Insurance Company’s website describes the Multi-Select Multi-Year Guaranteed Annuity as an annuity that allows you to enjoy the stability of predictable growth for a time period that you choose. This annuity offers an interest rate that is guaranteed for ten full years so that the growth of your account is steady and predictable. There are some other nice perks with this annuity, such as the ability to withdraw up to 10% of the contract value – even during the surrender period. In addition, this annuity allows you to access the account value penalty-free if you require nursing home or home health care, and/or if you have been diagnosed with a terminal illness. There are also some additional features here that can allow you to attain even more guarantees. For example, you can add a guaranteed lifetime withdrawal benefit, or GLWB, rider, which allows you to elect lifetime withdrawals and generate a stream of income that you cannot outlive. You also have the option of starting and stopping income from this annuity at any time. To view the Oxford Life Insurance Company’s product page for the Multi-Select fixed indexed annuity, go here. As of this writing, there are several different rate lock periods you can choose from, including 3 years, 4 years, 5 years, 6 years, 7 years, 8 years, 9 years, and even 10 years. Longer time periods will receive higher rates. You can take a peek at the current rates for each of the guarantee periods here.
How an Insurance or Financial Advisor Might “Pitch” the Multi-Select 10 MYGA AnnuityWith interest rates in the U.S. still at historical lows, it can be quite difficult to secure a good return on your money without having to incur more risk as a “tradeoff.” The Multi-Select 10 MYGA annuity from Oxford Life allows you to lock in a competitive interest rate, and you will receive that rate for the time selected – even if rates drop lower in the economy. Plus, when the time comes for you to turn on the income stream, you could choose an option that ensures you won’t run out of money in the future, no matter how long you may need it to keep flowing in. The guarantees associated with the Multi-Select 10 annuity is likely what an insurance or financial advisor would focus on when presenting this product to his or her clients. But it’s really important to be careful here, as a jack of all trades is oftentimes a master of none. Even the “guarantees” on the Multi-Select annuity can cost you. For instance, adding the Guaranteed Lifetime Withdrawal Benefit will require an additional annual fee of .50% of the annuity’s accumulation value. So, this can have an impact on the actual return. On top of that, is it extremely important to keep in mind that the income account is not the same thing as the accumulation value. Rather, the rate here is only used for calculating the monthly GLWB payments, and it may not be distributed as a lump sum. Plus, even though insurance companies will oftentimes acclaim that their annuities are “liquid,” this is not the case, at least entirely. That’s because you will find a surrender charge if you decide to withdraw more than 10% of your contract value during the annuity’s surrender period. With that in mind, be sure that you are aware of how long you will have to have your money “locked in.” You can take a look at the Oxford Life Multi-Select annuity information on the insurance company’s website by going here.
What About Any Fees on the Multi-Select 10 Annuity from Oxford Life?While you won’t incur an up-front agent commission that is taken from your account, it does not mean that you won’t be hit with any fees at all on this annuity. For example, in addition to the annual 0.50% annual cost of the GLWB rider, you may also be dinged with a surrender charge if you take more than 10% of the contract value in any given year out of the annuity during the surrender period. In addition to the 10-year option, there are several other rate lock guarantee periods offered on the Oxford Life Multi-Select annuity series. These include 3-years, 4-years, 5-years, 6-years, 7-years, 8-years, and 9-years. The surrender period directly corresponds with the rate guarantee period you select. So, for instance, if you opt for the 3-year rate lock, your surrender period will last for just three years. However, going with the 10-year rate guarantee will also lock you into a 10-year surrender charge period!
Oxford Life Multi-Select Annuity Surrender Charge Schedule
|Year / Guarantee Period||1||2||3||4||5||6||7||8||9||10||11+|
The Annuity Gator’s End Take on the Oxford Life Multi-Select 10 MYGA AnnuityWhere it works best: Although the Oxford Life Multi-Select 10 annuity may not be the ideal option for everyone, it could be a good addition to your portfolio if you are seeking the following features:
- The option to lock in a competitive interest rate for ten full years
- Protection of your principal – even in a downward moving market
- Guaranteed income in retirement (for you and another individual, if you choose)
- Want or need to access more than just 10% of your money during the surrender period
- Do not plan to use the lifetime income feature on the annuity