Liquidity Features
Withdrawing Money 3 Since you can never predict the future, it is comforting to have the ability to access your money. After the first policy year, the Oxford Life Royal Select ® Fixed Indexed Annuity allows for annual penalty-free withdrawals of up to 10% of your accumulated annuity value. For example, you can take interest only monthly payouts and also an additional withdrawal throughout the policy year, up to the 10% penalty-free amount. For amounts greater than the 10% penalty-free withdrawal amount during a policy year, there will be a surrender/withdrawal charge applied during the first ten years. The surrender/withdrawal charge is 10% in the first policy year and then reduces by 1% each policy year thereafter.
POLICY YEAR
1234567891011+
SURRENDER/ WITHDRAWL CHARGE
10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%
Market Value Adjustment The Oxford Life Royal Select ® annuity includes a Market Value Adjustment, which generally allows Oxford Life to credit rates higher than on those products without an interest adjustment. This adjustment may increase or decrease your surrender value, depending on the change in interest rates since your annuity purchase. Due to the mechanics of a Market Value Adjustment feature, the cash surrender value generally increases as interest rates fall. Likewise, when interest rates have increased over a period of time, the surrender value generally declines. The Market Value Adjustment is applied only during the surrender/withdrawal charge period and only on amounts that exceed the penalty-free withdrawal amount. Market Value Adjustments on any portion of IRS-Required Minimum Distributions (RMD) Terminal I llness Benefit – If you are first diagnosed as terminally ill more than one year after the policy date, you may surrender/withdraw this policy for its Account Value without reduction for any surrender/withdrawal charge. 4 Home Health Care Benefit – If you are first diagnosed as chronically ill more than one year after the policy date, are receiving home health care, and have been for the previous 90 days, you may request surrender/withdrawals from this policy without reduction for any surrender/withdrawal charge. 4 Nursing Home Benefit – If you are first diagnosed as chronically ill more than one year after the policy date, are confined to a nursing home, and have been for the previous 90 days, you may request surrender/withdrawals from this policy without reduction for any surrender/withdrawal charge. 4 Payout Options (Annuitization) 5 in excess of the penalty-free withdrawal amount are waived. Waiver of Surrender/Withdrawal Charges 4 • Period Certain Payments: Equal payment for a fixed period of up to 20 years. • Lifetime income: Equal payments will be made for the annuitant’s lifetime. • Lifetime income with Guaranteed Period Certain: Equal payments will be made for the longer of the annuitant’s remaining lifetime or the period agreed upon (5, 10, 15, 20 years). 3 Withdrawals of earnings will be subject to income tax and may be subject to a 10% IRS penalty tax, if taken prior to age 59½. It is important to evaluate whether an annuity is appropriate for you. Consider your age, income, net worth, tax status, financial objectives, liquidity needs, time horizon, risk tolerance, and other relevant information. 4 May vary by state. 5 In most states maturity occurs at age 95, but an early annuitization option is available after the first policy year.
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ROYAL SELECT ® PRODUCT GUIDE
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