Dear Valued Oxford Life Producer, As you are aware, interest rates have been trending downwards over the past year and are now at lows not seen since the 1940s. The 10-year treasury that was yielding 3.34% one year ago is now trading at 1.84%. This is a further drop from a 2.30% rate just a little over a month ago. Unfortunately, this interest rate action is not limited to Government Bonds. The yields of the corporate bonds that we purchase are also at unprecedented low levels and are causing a direct impact on the interest rates that we are able to offer. It should be no surprise that lower investment earnings increase the cost of guarantees, reduce the interest rates we can credit and limit the commission we can pay. Lower investment earnings also leave us with a lower amount available to spend on call options that support our fixed indexed annuity products, thus reducing the caps on our indexed crediting strategies. Because of this difficult interest rate environment, Oxford Life will be making the following changes to our annuity products effective 5/16/12. Oxford Life Income Protector™
Low Band $10,000 - $24,999 From 2.40% to 2.00%
High Band $25,000 - $350,000 From 2.90% to 2.40% Oxford Life Bonus Ten™
Fixed Rate Strategy 1.25%
Monthly Average Annual Reset Cap 2.75%
Annual Point to Point Annual Reset Cap 2.75% As this low interest rate environment continues, we believe the policy benefits of creatively designed products such as the Income Protector helps counter the downward pressure on rates. Faced with this persistent challenge, we take great pride that A.M. Best has revised its outlook to positive from stable and affirmed the financial strength rating of Oxford Life at B++. We appreciate your continued support of Oxford Life and want to assure you that we remain committed to providing quality, competitive products for your clients. Sincerely, 
Mark Haydukovich
President and CEO | 
Michael A. Quaranta
VP & Chief Marketing Officer |
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