NATIONWIDE PEAK® 10 FIXED INDEXED ANNUITY
Bonus Income+ Rider
With Nationwide Peak® 10, your clients are guaranteed not to lose any of their initial investment or credited earnings due to underlying index performance.
• 10% bonus added to the Income Benefit Base at contract issue; based on the purchase payment/initial premium
• Guaranteed 7.0% simple interest roll-up of the Income Benefit Base3 for 10 years or until the first-lifetime withdrawal, whichever is first
• Not available with beneficially owned contracts
• Joint life income option available
When it comes to your retirement, guaranteed income can mean a lot.
In addition to the Guaranteed Income Solution, the Nationwide Peak® 10 Fixed Indexed annuity includes the optional Bonus Income+ Rider. For an additional cost, the Bonus Income+ Rider provides a 10% bonus credit, a 7% roll-up rate, a joint option, and other features that may benefit your clients. The Bonus Income+ Rider must be elected at the time the contract is issued, and when added to Nationwide Peak 10, it provides:
A 10% bonus credit
Included in your clients Income Benefit Base, calculated on total premium; no vesting schedule.
7% roll-up rate
On the original Income Benefit Base for the first 10 years or until your clients first-lifetime withdrawal, whichever comes first.
Take one non-lifetime withdrawal that will not stop the 7% simple interest roll-up rate on the Income Benefit Base and will not lock in the lifetime withdrawal percentage.
A joint option
Available at an additional cost, for the continuation of income for the surviving spouse.
No waiting period
Begin your lifetime withdrawals immediately.
Guaranteed lifetime income
That won’t decrease, even if the clients contract value goes to zero.
Issue ages: The maximum issue age for the owner is 85 for both single or joint-life contracts.
Costs: There is an additional fee that is charged quarterly to the account value. The rider has no waiting period and you’ll continue to receive lifetime withdrawals even if the contract value falls to $0. Note: If this rider is elected, the Guaranteed Income Solution will not apply.
When your spouse needs retirement income: The Bonus Income+ Rider offers a Joint Option, which is available for an additional cost. Choosing to add the Joint Option guarantees that your surviving spouse will continue to receive the same level of income — uninterrupted and for the rest of their life.
How Income Benefit Base Grows
To help you potentially stay ahead of inflation, you will receive a 10% bonus credit to your Income Benefit Base on the first day of your contract. The bonus is considered in all calculations going forward.
The Bonus Income+ Rider also offers a guaranteed 7% simple interest roll-up rate each year for the first 10 years or until your first lifetime withdrawal,
whichever comes first. At each contract anniversary, the Income Benefit Base becomes the greater of the contract value or the roll-up value. Here is an example of how it could grow.
* The illustrations used here contain hypothetical figures and do not represent actual results. Past performance is no guarantee of future performance or of values of indexed life insurance. Different time scenarios will produce varying results, which could be less or more favorable depending on the performance of each entity. Fixed indexed annuities are not stock market investments and do not directly participate in any stock or equity investments.
The lifetime withdrawal percentage is based on the younger spouse’s age at the time of your first-lifetime income withdrawal. Keep in mind that the lifetime income amount may be lower when the Joint Option is elected. Your lifetime withdrawals may begin as early as age 45, but the longer you wait, your lifetime withdrawal percentage and Income Benefit Base may be higher.
How the Bonus Income+ Rider may increase retirement income
IN YEAR 1, Darrin purchases a Nationwide Peak 10 Fixed Indexed Annuity and the Bonus Income+ Rider for $100,000. Darrin happens to come from a long line of family who lives into their late 90s.
Because of the 10% bonus credit, Darrin’s income benefit base is now $110,000.
He’s also guaranteed a 7% simple interest roll-up rate on his income benefit base each year for the first 10 years or until his first-lifetime withdrawal, whichever comes first.
Investment goal: Guaranteed income for retirement that he can’t outlive
George and Louise
married, age 65 (both)
Investment goal: Guaranteed income for retirement that continues as long
as either spouse is living
How the Bonus Income+ Rider with Joint Option may provide some certainty for married couples
IN YEAR 1, George purchases a Nationwide Peak 10 Fixed Indexed Annuity and the Bonus Income+ Rider with Joint Option for $100,000 and names his wife, Louise, as the co-annuitant.
Because of the 10% bonus credit, George’s income benefit base is now $110,000. He’s also guaranteed a 7% simple interest roll-up rate on his income benefit base each year for the first 10 years or until his first-lifetime withdrawal, whichever comes first.
Bonus Income+ Rider also includes:
The ability to take one nonlifetime withdrawal that will not stop your roll-up or lock in the percentage of your lifetime withdrawals
A Joint Option, which guarantees your surviving spouse will continue to receive the same lifetime withdrawals, uninterrupted and for the rest of his or her life. (Rates for this feature are based on the age of the younger spouse.)
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