In the following review of Oxford Life Insurance, we will cover the history, policies, and ratings of this great company. We love this company for certain niche clients and we included them in our best final expense and burial insurance companies article. We will also touch on Christian Fidelity Life Insurance, a subsidiary of Oxford Life. Is Oxford Life Insurance the right company for you?
2017 Review of Oxford Life Insurance
In years gone by, the subject of life insurance was difficult and you could forgive all the confusion. With no technology, people would be forced to speak to their local agent and hope that they were honest and had no ties to particular companies. Over time, you would have to contact each life insurance company individually to see how they could help and even just to generate some quotes. However, it is a completely different ball game now.
With the introduction of the internet and technology, there is absolutely no excuse for having no coverage in this day and age. After just ten minutes online, you can receive quotes from all sorts of companies and complete as much research as you desire. Therefore, we are going to help your research with a review of Oxford Life Insurance. As you may have seen, we have been reviewing numerous different companies recently to see what company and what product will fit your needs. Without further ado, let’s get into it!
About Oxford Life Insurance
Founded in the mid-1960s, Oxford Life has over 50 years of experience in the life insurance industry and has seen many changes over the years. For example, 1997 saw the acquisition of Encore Financial – an insurance holding company based in Wisconsin. Initially, the aim was to promote financial security so that we could all live with dignity during retirement and they have stuck to this aim through the years.
At the beginning of this decade, they were announced within Ward’s 50 Benchmark Group for three years running which meant that they were among the top performers in the market. Now, they have nearly $1.2 billion in assets alone with revenue of $15 million each year. As well as being licensed across the US, they have developed an extensive product list which is something we will delve into a little later.
In truth, Oxford Life is quite unique because it manages its business strategy on a consolidated business including its two subsidiaries; North American Insurance Company (NAI) and Christian Fidelity Life Insurance Company (CFLIC). Ultimately, this means that the success of Oxford Life and its subsidiaries lies in their long-term commitment to stability, growth, and outstanding customer service.
As we mentioned in the introduction, more information is available now regarding life insurance companies than ever before. For the consumer, this is great news because you can do as much research as you require before finally making a decision. For some insurers, this is bad news because the consumer relies so heavily on ratings from agencies such as A.M. Best and the BBB. Whenever the ratings here are poor, we tend not to give them a second thought because we know there are better options in the industry. With this in mind, let’s see how Oxford Life Insurance scored.
A.M. Best – In case you were unaware, A.M. Best rates all companies depending on their financial stability. When choosing life insurance, this grade is pivotal because it shows whether the company can pay claims. If they cannot pay their claims, you would do better to look elsewhere. In terms of industry standards, the rating of ‘A’ seems to be the norm and some people refuse to look below this. Luckily, Oxford Life has been awarded with an ‘A-’ rating which is the equivalent to ‘Excellent’.
With this rating coming less than one year ago, it’s fair to say that the company are in a positive position with their finances. In addition to this, they were also given a ‘Stable’ outlook and a long-term issuer credit rating of ‘a-’ which means that they should still be able to pay claims long into the future. Considering A.M. Best has been reviewing the financial position of Oxford Life Insurance for nearly 40 years, we can be confident that they have the money to offer secure policies.
BBB – After finances, we then turn our attentions to customer service and the grading system used by the Better Business Bureau (BBB). As of this year, the BBB has been reviewing Oxford Life Insurance for 20 years so there is a good backlog of ratings to review. However, their current rating is perhaps the most important and this sits at a ‘B-’. In truth, this is somewhere in the middle because it isn’t the best you will find but there are certainly worse examples in the life insurance industry. Since the BBB scores every company on a scale of 0-100, Oxford Life has achieve a score within the 80s which is still impressive although not quite reaching the height of the many companies that achieve an ‘A’ rating.
There we have it, the official ratings for Oxford Life. In terms of finances, the company are in a great position and are comfortable when paying claims. As well as being able to do this now, they should be able to do it a long way into the future. With the customer service and interaction rating, this is normally one that improves over time as technology advances so we wouldn’t be surprised to see them increase in grades in the near future.
Oxford Life Insurance Policies
Now we know that Oxford Life is a respectable option for life insurance, you need to know what products they have. If they cannot meet your needs with the correct policy, you need to continue your search. With Oxford Life, and its subsidiary Christian Fidelity, you will find a variety of different simplified issue policies, as well as annuities and even options for Medicare. Despite this, we are going to focus on the life insurance products today since this is what you are seeking. In all, there are three different policies on offer focusing on the final expense section of the market.
Level Premium Final Expense
First, Oxford Life’s Assurance Final Expense Whole Life Insurance policy allows you to pay a consistent premium over a period of years before then seeing a death benefit go to your chosen beneficiary. Considering the average funeral costs $10,000 and you may also have debts, medical bills, and various other expenses, final expense accounts are becoming more important and Oxford Life has a good option.
As long as you are aged between 50 and 85, you have an opportunity to qualify for a policy with coverage between $5,000 and $30,000. Throughout the duration of the policy, the premiums will remain exactly the same as will the coverage as long as you pay all premiums. After you die, the death benefit will reach the beneficiary free from tax and the policy will also build a cash value. If you are looking to avoid a medical exam, this option could be the one as you only need to answer a few medical questions.
During the application, customers are normally given a decision at the first interview and can therefore be in place within a short period of time. As well as having the option to include a couple of riders, you can also decide how frequently you want to pay between monthly, quarterly, semi-annually, or annually. As you may know, you will pay less for your insurance when you pay less frequently as the insurance company doesn’t need to add on interest for effectively loaning you the coverage each period.
Oxford Life’s Assurance Final Expense Whole Life Insurance policy also offers riders.
- Terminal Illness Rider
- Common Carrier Rider
Single Premium Final Expense
As the name suggests, this single premium final expense whole life insurance policy does the same job and has the same requirements for entry except only one premium will be needed. Immediately, the value of your estate will increase and the policy will remain in place as long as you continue to pay the premiums. Once again, you will not need a medical examination but should answer a medical questionnaire. Also, you will hear whether you have qualified or not in the point-of-sale interview which is incredibly useful. Sometimes, we spend weeks waiting to hear back only to find that coverage has been rejected and the search needs to start again.
If you haven’t got the money to do this, the level premium policy seems more sensible but there are benefits to choosing this route. Firstly, you won’t have to pay the interest that gets added on top of your regular premiums. Secondly, the value of your estate will increase as soon as you buy the policy. Thirdly, there is nothing to worry about after the policy has been bought because the death benefit will be in place until required. Finally, you will still have a cash value that builds as well as every other extra that comes with a regular policy.
Advance Wealth Transfer
Again, this is a single premium policy but it works in a slightly different way. Over the years, we build up wealth and a significant amount of assets. Unfortunately, a good chunk of this is taken in taxes after we pass away so this is what the Advance Wealth Transfer policy looks to address. Essentially, it has been designed so that you can transfer your wealth to heirs with as few tax consequences as possible.
Available between the ages of 50 and 85, there is only one premium to pay and there will be a cash value to grow. Ultimately, there are some benefits to doing this aside from limiting tax starting with the safety you will have from market fluctuations. After this, financial emergencies will also be covered with liquidity features built-in to the policy.
Assurance Final Expense Whole Life Insurance
Oxford Life’s subsidiary, Christian Fidelity Life Insurance, offers a final expense simplified issue whole life insurance policy. The death benefit is guaranteed. Premiums remain level for the life of the policy. Cash value accumulation. Face amounts from $5,000 to $30,000. For ages 50 – 85.
Is Oxford Life the Best Option?
Before you do anything else, you need to consider your needs because this is the most important factor when buying life insurance. When doing this, you will discover how much coverage you need, how long you need the policy to last, whether you are happy to take a medical examination, whether you need a cash value component, and more. Once you have this shortlist of factors, you will find a policy to match you rather than molding your own needs around a life insurance product.
If you need coverage of up to $30,000 and are between the ages of 50 and 85, there is no reason why Oxford Life Insurance doesn’t provide a worthwhile consideration. Furthermore, it is beneficial if you want to avoid the medical exam but still have a cash value component to the policy. If you like all of these factors, you then need to decide whether you will pay regularly or get the payment out of the way at the very beginning. In truth, there are benefits to both so it all comes down to you and what you can/want to do.
Oxford Life Insurance Review Conclusion
There we have it, your complete guide to Oxford Life Insurance. If you like what you have read, why not give us a call today to see if they are the right fit for you?