Oxford Life Insurance Company first launched in 1965. Today Oxford is a wholly owned subsidiary of the U-Haul Holding Company, the parent company of U-Haul.

Headquartered in Phoenix, Ariz, Oxford Life Insurance Company is licensed to sell both life insurance and annuities in every state except for New York and Vermont. It focuses on selling products that help senior citizens in retirement. If you are considering an annuity from Oxford Life, here’s how it stacks up.

Why you can trust Forbes Advisor

Our editors are committed to bringing you unbiased ratings and information. Our editorial content is not influenced by advertisers. We use data-driven methodologies to evaluate financial products and companies, so all are measured equally. You can read more about our editorial guidelines and the investing methodology for the ratings below.

  • 75 companies considered
  • 7 criteria evaluated
  • 10 firms chosen as best

Oxford Life Insurance Annuity Features

Oxford Life Insurance Fixed Annuities

Oxford Life Multi-Select Annuities are fixed annuities paying a guaranteed interest rate. You can choose to lock in your rate from three years up to 10 years.

As of April 2023, the Oxford Life fixed annuity rates were as follows:

FIXED ANNUITY TERM ANNUAL INTEREST RATE
3 years
4.50%
4 years
4.55%
5 years
4.70%
6 years
4.95%
7 years
4.90%
8 years
4.85%
9 years
4.90%
10 years
4.95%

Oxford Life charges a surrender penalty if you cancel or make a lump sum withdrawal before the end of your fixed annuity term. Penalties start at 10% and go down by one percentage point a year until your fixed annuity term ends. At the end of your term you can move your money out penalty-free.

Oxford Life does have some flexibility in their fixed annuities, giving you options to withdraw money without penalties before your term is up. In the first year, you could withdraw your interest earnings. After the first year, you can withdraw up to 10% of your contract value without penalty.

Oxford Life also gives you penalty-free access to your annuity funds if you go to a nursing home, have a terminal illness, or need home health care.

The Oxford Life Multi-Select Annuities grow your savings for the future. You can also get this annuity to give you guaranteed payments for life for an additional fee of 0.50% of your portfolio value. The annuity doesn’t charge any other fees.

You must invest at least $20,000 to buy this annuity. You cannot buy this annuity if you are over the age of 85. Oxford Life sets a maximum purchase as well depending on your age:

  • Age 18 to 75: $1 million max
  • Age 76 to 80: $750,000
  • Age 81 to 85: $500,000

Oxford Life Insurance Fixed Index Annuities

Oxford Life offers three types of fixed index annuities. They all earn a return based on the performance of the S&P 500. Fixed index annuity options are a tradeoff between a larger upfront cash bonus paid on your initial deposit or a higher long-term investment return.

All three fixed index annuities come with the same 10% surrender charge as the fixed non-indexed annuities. It goes down by one percentage point a year until it’s gone after 10 years.

Oxford Life does allow you to make penalty-free withdrawals of 10% of your balance after the first year, as well as penalty-free withdrawals if you’re in a nursing home, have a terminal illness, or need home health care.

Oxford Life Royal Select

The Oxford Life Royal Select annuity pays an immediate 8% on your deposit. If you buy an annuity for $100,000, your balance turns into $108,000 for future income and growth. This is the largest bonus available with Oxford Life. You must keep your money in the annuity for at least 10 years to keep the full bonus.

This annuity pays a return split between a fixed rate and the performance of the market index, up to a capped limit. As of April 2023, Royal Select Returns were:

  • Fixed Rate: 3.70%
  • Monthly Average Cap: 6.60%

If you want guaranteed monthly lifetime income, you can add this feature for an additional fee of 0.95% of your balance per year. With this rider, Oxford Life promises that the balance of your account for future income payments will grow by at least 6.75% a year.

This guarantee is just if you collect lifetime income from Oxford Life’s annuities. If you pull your money out, the guaranteed return does not apply.

Oxford Life Silver Select

The Oxford Life Silver Select fixed index annuity pays an upfront 4% bonus on your deposit. You must keep your money in the annuity for at least 10 years to keep the whole bonus.

The Oxford Life Silver Select then has higher rates for both the fixed return and the maximum performance cap versus Royal Select. As of April 2023, the rates were:

  • Fixed Rate: 4.00%
  • Monthly Average Cap: 7.40%

You can also set up this annuity with guaranteed payments for life. The rider costs 0.95% per year. If you have this rider, the Oxford Life Silver Select annuity promises a growth rate of 7.15% per year on your balance for future income.

Oxford Life Select Series

If you want a fixed index annuity with a shorter time frame, you could consider the Oxford Life Select Series annuities. These annuities can last three years, five years, seven years or 10 years.

At the end of your selected period, you can take out your money surrender charge free. Until then, the Oxford Life Select Series annuities charge a 10% penalty, which goes down by one percentage point each year.

The Oxford Life Select Series fixed index annuities do not offer an upfront bonus. In exchange, they pay the highest of the three fixed index annuity rates. As of April 2023, the rates were:

  • Fixed Rate: 4.30%
  • Monthly Average Cap: 8.20%

You can set these annuities up with the guaranteed lifetime income benefit for 0.95% per year. If you have this rider, the Oxford Life Select Series annuities promise a return of 7.55% for your income benefit.

Oxford Life Variable Annuities

Oxford Life does not sell variable annuities. It only offers fixed and fixed index annuities.

Oxford Life Immediate Annuities

While Oxford Life does not sell a standalone immediate annuity, it gives you the option to start income payments on all its other products whenever you want. It’s up to you whether you want some growth first or if you want to start payments immediately.

Advantages of Oxford Life Annuities

  • Competitive rates with guarantees. The Oxford Life annuity rates are reasonably competitive. It does an especially good job offering income and performance guarantees for fixed index annuities.
  • Immediate bonus on some fixed index annuities. The Oxford Life Royal Select annuity pays an upfront bonus of 8% while the Oxford Life Silver Select pays 4%. You immediately see a return on your investment after signing up.
  • Penalty-free early access to funds. During the first year of any annuity contract, you can withdraw your interest earnings penalty-free. After the first year, you can take up to 10% of your balance each year penalty free. Oxford Life also lets you make penalty-free withdrawals if you develop a terminal illness, go into a nursing home, or need home health care.
  • Low fees. Oxford Life charges an annual fee for its guaranteed lifetime income rider but that’s it. Its annuities do not charge any other annual or administrative fee.
  • Payment flexibility. If you start collecting income payments from Oxford Life, you can choose to stop them later. That gives your balance time to regrow again for the future. Most annuity companies do not let you stop payments after they’ve started.
  • Financial stability. The credit rating company AM Best gave Oxford Life an A (Excellent) rating for its financial strength. It believes Oxford Life is in good shape to pay future claims.

Downsides of Oxford Life Annuities

  • No variable annuities. If you want a variable annuity to try earning more in the market, you’ll need to look elsewhere. Oxford Life does not sell these products.
  • Long surrender charges. Except for annuities with shorter terms, Oxford Life annuities all come with a surrender period of 10 years, which is longer than many other annuity options.
  • Limited customization. While the Oxford Life annuities let you set up a guaranteed lifetime income rider, they don’t offer other options for customization. For example, you can’t set up your annuity to pay for long-term care or to create a larger death benefit for your heirs.
  • High contribution minimum. You must pay at least $20,000 to set up a fixed annuity with Oxford Life. Other companies let you get started with $5,000 or less.
  • Maximum contribution limit. You can only put up to $1 million in an Oxford Life Fixed Annuity if you are 75 or younger. The limit decreases as you get older and falls to $500,000 max for those in their 80s. Fixed annuities are not available from Oxford after you turn 85.
  • Young company. At less than 60-years-old, Oxford Life is still a relative newcomer in the life insurance and annuity space. It doesn’t have the same market experience as other competitors which have been around for well over a century. While 60-years doesn’t make it a rookie exactly, other companies have proven their ability to weather catastrophic financial events like the great depression and still pay their beneficiaries.

Alternatives to Oxford Life Annuities

MassMutual Annuities

If you want to work with an annuity company with a long-term track record, MassMutual is one of the oldest in the country. It has been in business since 1851. MassMutual is known for offering high-quality immediate income annuities.

Nationwide Annuities

If you want a variable annuity, Nationwide does a great job with this product. Despite being more known for auto and home insurance, Nationwide is also a top annuity provider. It scored #3 in customer satisfaction for annuity sales, according to a 2022 survey from J.D. Power.

AIG Annuities

AIG is another large, international insurance company that has been operating for over 100 years. They offer a range of all annuity types, including variable annuities with performance guarantees.

Allianz Annuities

Allianz is a company to consider if you want a fixed index annuity. Its annuities also charge low fees. In contrast to Oxford Life, Allianz offers many ways to customize your contract.

Athene Annuities

Having only launched in 2008, Athene is by far the youngest company on this list. Since opening, it has expanded into a top annuity provider. Athene does a good job providing annuity benefits, like guaranteed lifetime income, without charging an additional fee the way Oxford Life does for this feature.

How Annuities Work

An annuity is a type of insurance contract. You first pay money upfront, either as a lump sum deposit or a series of payments. Then, the annuity pays a return on your balance.

The annuity can also turn your balance into guaranteed future income. The income payments can last a set period of time and can even be guaranteed to last your entire life.

There are a few common types of annuities available with different investment setups:

  • Fixed. A fixed annuity pays a guaranteed interest rate. It’s like a Certificate of Deposit from a bank. You pick how many years you want the annuity to last, and then it guarantees the fixed return during this time. Fixed annuities are safe, predictable, and usually have lower fees.
  • Variable. A variable annuity lets you pick between various subaccounts for investing, which are like mutual funds. How much your balance grows depends on the investments. A variable annuity might offer some performance guarantees, like it promises you a minimum income no matter what happens with your investments. Variable annuities have more risk and usually charge higher fees.
  • Fixed Index. A fixed index annuity bases its return on some market index, like the S&P 500. There’s usually a limit on your highest possible earnings, called a cap, and a floor limiting losses. Many fixed index annuities guarantee you won’t lose money.
  • Immediate. An immediate annuity starts paying you income shortly after you buy the contract, within one year. There’s no extended period to grow your balance before you start collecting income.

Annuities have many pros and cons, so be sure to do your due diligence.

Looking For A Financial Advisor?

Get In Touch With A Pre-screened Financial Advisor In 3 Minutes

What to Look for in an Annuity

Annuities can be large, long-term investments. After buying one, it’s expensive to change your mind because of the surrender charge. As a result, these are purchases that you should carefully research first.

While the right fit depends on your personal goals and circumstances, some features to look for in a quality company include:

  • Competitive returns. You are buying an annuity to grow your money and income. Make sure that what an annuity is offering is competitive. This includes both the growth rate as well as guarantees for income payments.
  • Reasonable fees. Annuities charge annual fees. High fees drain your overall return and growth. Some companies charge more than others, so be sure to check.
  • Good product selection. A variety of annuity products allows you to pick one that best fits your goals. You should also see if the company would allow you to customize the annuity with different riders for more benefits.
  • Some early access to your balance. While annuities come with surrender charges, some companies let you take out money early, either as a percentage of your balance and/or for specific reasons. This early access gives you more budget flexibility.
  • Backed by a financially secure company. Since annuities can last years if not decades, you want to be sure your company will still be in business to make all your payments. Check a company’s financial rating using the third-party service A.M. Best. You can also see how a company scored for customer service with J.D. Power.

To make sure you’ve fully vetted your options, consider getting quotes from multiple annuity companies. You could also meet with a financial advisor not earning a commission from selling these products to get their opinion.

Looking For A Financial Advisor?

Get In Touch With A Pre-screened Financial Advisor In 3 Minutes

Find A Financial Advisor

Via Datalign Advisory