Dear Valued Oxford Life Producer, Last month, we communicated details on why we made "mid-month" rate changes to our annuity products. As a follow up, we'd like to further explain those changes, some additional adjustments coming in June and July and more specifically, why they are relevant for the current rate environment. If you recall, in our last letter we made you aware that interest rates were at lows not seen since the 1940s. Who could have imagined that in the short period of time since that statement, rates would decline to levels NEVER BEFORE SEEN! As of the date of this letter, the 10-year United States Treasury Note is trading at 1.45%. To give you an idea of how drastic this rate decline has been, the 10-year Note closed March 30th at 2.23%. Because of this record low interest rate environment, Oxford Life will be making changes to our annuity products effective as outlined below. These actions are being taken to help Oxford Life maintain our financial strength and to keep our promises to our current and future policy holders. 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. EFFECTIVE 6/11/12 Oxford Life Income Protector™
Low Band $10,000 - $24,999 From 2.00% to 1.25%
High Band $25,000 - $350,000 From 2.40% to 1.75% Oxford Life Bonus Ten™
Fixed Rate Strategy From 1.25% to 1.00%
Monthly Average Annual Reset Cap From 2.75% to 2.00%
Annual Point to Point Annual Reset Cap From 2.75% to 2.00% To take advantage of our rate hold policy, applications or faxed copies of applications/checks/transfer forms must be received in our home office by 6/10/12. EFFECTIVE 7/1/12 The payout factors for the Guaranteed Lifetime Withdrawal Benefit (GLWB) rider on the Bonus Ten and the Income Protector have been changed to the rates shown below. Attained Age | 50-54 | 55-59 | 60-64 | 65-69 | 70-74 | 75-79 | 80+ | Single Payout | 3.00% | 3.50% | 4.00% | 4.50% | 5.00% | 5.50% | 6.00% | Joint Payout | 2.50% | 3.00% | 3.50% | 4.00% | 4.50% | 5.00% | 5.50% |
We are pleased to announce that also effective 7/1/12, the Bonus Ten FIA will be available for sale in Pennsylvania, New Jersey, Missouri and Washington. Brochures and applications will be available shortly. We truly appreciate your hard work, dedication and continued partnership. While decisions like these are never easy, they are necessary for us to remain competitive in this historic low interest rate environment. Thank you again for your support. Sincerely, 
Mark Haydukovich
President and CEO | 
Michael A. Quaranta
VP & Chief Marketing Officer |
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