Oxford Life Royal Select

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This is a FIA by Oxford Life Insurance Company with a single premium deferred annuity provision. The annuity has a ten-year withdrawal charge period and contains a market value adjustment provision. The product contains an eight percent (8%) bonus calculated from the initial premium. The bonus is proportionately credited to the account value from day one of the contract. The bonus amount plus any interest amount vests over a ten-year period.

Royal Select Annuity Facts

Minimum and Maximum Premiums

The minimum single premium for this annuity is $10,000 while the maximum single premium is $350,000. Flexible premiums are not allowed with the Royal Select Annuity. The minimum and maximum single premium amounts apply equally under the qualified and unqualified status.

The annuity also provides for market value adjustment and free 30 day lookup period. This may however vary by state.

Issue age

The Royal Select annuity is issued to people aged between 0-80 years for the policy owner. Annuitants have an age restriction band ranging between 18 and 80 years. The age restriction for annuitization stands at 95 years.

Rider availability

The Royal Select Annuity has one available product rider. This is the Optional Guaranteed Lifetime Withdrawal Benefit. The rider is not available in NY. The company gives clients some highlighted instances where rides should be evaluated.

Free Withdrawals

This annuity allows policy holders to make 2 free withdrawals per policy year each limited to a maximum 10% the value of the annuity. The withdrawal is based on accumulation. Holders can also withdraw the interest amount only if they wish to. This is however only available after 1 year.

Above the 10% free withdrawal amount, additional withdrawals will be charged for early withdrawals. The charges start at 10.00% for the first years and reduce gradually as follows: 9.00%, 8.00%, 7.00%, 6.00%, 5.00%, 4.00%, 3.00% and 2.00%, and 1.00% for the tenth year.

The minimum amount for the free withdrawal is $600 and the account must remain with at least $2,000.

Vesting Schedule

This starts at 0 for the first year and increases by a factor of 10 to 100 in the eleventh year.

Market Value Adjustment

This is based on the Treasury Constant Maturity Rate. If the annuitant withdraws or surrenders their policy, the amount they receive will change depending on the aforementioned rate. The amount will either increase or reduce depending on the changes in interest rates.


The annuitization option is not available in all states. Annuitants have three annuitization options available to them. These are period certain payments, lifetime income equal payments and lifetime income with guarantee. For the latter option, equal payments are made for the period that’s longer between the remaining lifetimes or the period agreed upon between the client and Oxford Insurance.  Most states have a maturity age of 95 but there exist early annuitization options.

Systematic Withdrawals

Systematic withdrawals are available with the Royal Select annuity. These can only be done on a monthly, quarterly, semi-annual, or annual basis. The minimum amount that can be withdrawn is $100 while the minimum account value is $2,000.

Terminal illness

If the annuitant is diagnosed with terminal illness and this happens at least a year after the annuity’s date of issue, then the annuity’s surrender charges will be waived for the entire period of the annuitant’s illness. This option is however not available in all states.

Nursing home confinement

If the annuitant is confined in a nursing home for at least 90 days and after at least a year after the date of issue, then the surrender charges for withdrawal will be waived on during the confinement period. The nursing home waiver is not available in CA CT FL MA NJ OR and PA.

Death Benefit

The death benefit for the annuitant is the greater amount between the accumulation value or the GMV (Guaranteed Minimum Value) at the date of death. If the annuity was jointly owned, the benefit is paid after the death of the first joint owner.

State specific

This product is not available in AL CT MS MT NY PR VT and WV As of February 23, 2015

Withdrawal Provisions

The confinement, long term care, MVA, nursing home care and terminal illness waiver are not available in CA MA NJ OK OR PA and WA

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