National Western Impact 10 Annuity


National Western Life Impact 10 Annuity is a tax-deferred savings account designed for investors wanting to invest safely for retirement by earning interest based on positive changes in a stock market index, protecting the principal from market loss, and delivering a retirement income for life.  A 7% premium bonus is included.

The NWL Impact 10 offers liquidity, flexibility, and growth potential to protect you and your family. Peace of mind now, and in the future. The NWL Impact 10 Annuity is a flexible premium deferred annuity. It is a long–term contract intended as a secure planning vehicle for retirement accumulation and income.

The NWL Impact 10 Annuity provides the important benefits of many tax-deferred annuities:

  • interest accumulation
  • safety
  • tax-deferral
  • liquidity

Like any annuity issuer, National Western incurs expenses to sell and issue its annuity policies, including compensation to its agents, bonus amounts and/or additional interest (if applicable), option costs, and various other expenses and these expenses are taken into consideration when interest rates, caps, and participation rates are established and reset.

You will receive all benefits as set forth in the Contract.


7% Premium Bonus

Each premium payment in the first Policy Year receives a premium Bonus Percentage of 7%, but this bonus is not immediately available to you for partial withdrawal or full surrender.

The full Bonus Value is immediately available to you for the purpose of your death benefit, beginning in the first Policy Year.

If you take a partial withdrawal or fully surrender your policy, the Bonus Value is only available based on the 10 year Bonus Vesting Schedule.

In accordance with the Bonus Vesting Schedule, if you take any partial withdrawals or fully surrender your Policy in years 1-7, no portion of the Bonus Value will be available to you in those years.

Your bonus is vested 25% at the end of year 8, and 50% at the end of year 9.

At the end of Policy Year 10, the full Bonus Value will be available.

Note that all vesting occurs at the end of the Policy Year.


Withdrawal Charges

This is a long-term accumulation annuity.

If you surrender your policy during the first 10 Policy Years, you will incur a Withdrawal Charge and your Bonus Value will not be fully vested.

In addition, if you take a partial withdrawal, you will incur both a Withdrawal Charge and a reduction in your Bonus Value unless you exercise one of the available options to avoid Withdrawal Charges, which are described later in this brochure.

Interest is charged on any withdrawal from the processing date to the next Option Term End Date.

Any partial withdrawal taken without a Withdrawal Charge within the 12 months prior to the date of a full surrender will be subject to the full Withdrawal Charge on that amount at the time of full surrender.

If you surrender your policy, Withdrawal Charges are calculated by multiplying the Account Value, plus any withdrawals taken without Withdrawal Charges in the 12 months prior to the full surrender of the Cash Surrender Value, by the Withdrawal Charge Rate.

If you take a partial withdrawal, Withdrawal Charges are calculated by multiplying the partial withdrawal amount, less any unexercised amounts available to you without a Withdrawal Charge, by the applicable Withdrawal Charge Rate shown on the schedule below.

Available Options to Avoid Withdrawal Charges

You may exercise one of the following options to access your Policy’s Account Value without Withdrawal Charges.

  • One withdrawal of up to 10% of the Account Value plus any Vested Bonus Value may be withdrawn without a Withdrawal Charge each Policy Year after the first. Remember that partial vesting does not begin until the end of Policy Year 8.
  • Systematic interest withdrawals of interest earnings can be taken without a Withdrawal Charge each Policy Year after the first as long as each payment is at least $100 and does not invade the principal. The systematic payments may be paid monthly, quarterly, semi-annually, or annually.
  • IRA Required Minimum Distribution (if applicable) in all Policy Years.
  • Waiver of Withdrawal Charge after Qualifying Medical Stay.
  • Terminal Illness Benefit.
  • Policy Loan (100% Fixed Interest – Option B) (maximum loan amount may vary by state).

At the end of the 10-year Contract Term, you may withdraw the full Contract Value or take a partial withdrawal without any Withdrawal Charges or Bonus Vesting requirements.

You do have the right to keep the Contract Value with National Western Life for the rest of your life where it will continue to earn interest at a rate not less than the Minimum Guaranteed Interest Rate that has been re-determined at the end of your Contract Term.

Please note: All withdrawals may be subject to federal income tax.

Withdrawals prior to age 591 ⁄2 may be subject to an additional 10% federal income tax penalty, and if a trust is named as the Owner, such withdrawals may be subject to this additional 10% federal income tax penalty regardless of age.


Interest Credit Options

In addition to the option to earn a fixed rate of interest, you also have Indexed Interest Credit Options.

All Indexed Interest Credit Options available at issue may not be available on renewal.

Once selected, any current Interest Credit Option is effective for the full Policy Year.

You may elect to allocate the premium to more than one Interest Credit Option.

The Interest Credit Allocation Percentages for available Interest Credit Options can be any whole number percentages, in any combination, whose total is 100%.

You may change to any available Interest Credit Option for the following Policy Year by submitting a completed Interest Allocation Election Notice at least 5 business days prior to the Policy Anniversary.

Fixed Interest Option Option B 

This option provides for a fixed rate set by National Western Life as described in the Policy.

The Interest Rate on the portion of the Account Value allocated to Interest Credit Option B is declared in advance by NWL and is guaranteed for the first Policy Year.

This Interest Rate is located on page three of the Policy.

The interest rate in the first Policy Year will likely be higher than the interest rate in subsequent Policy Years.

After the first Policy Year, these interest rates will be declared from time to time, are not guaranteed, and are subject to change.

Indexed Interest Options

All Indexed Interest is credited annually and locked-in. Indexed Interest earned, if any, is based on a formula linked in part to the underlying index(es) of the available Indexed Interest Options.

Fixed indexed annuities are not stock market investments and do not directly participate in any stock or equity investments.

The indexes may not include any dividends paid on the underlying stocks.

When you purchase the NWL Impact 10, you are not directly investing in a stock market index.

Indexed Interest is not earned or credited until the Policy Anniversary.

Until the Policy Year is over and the necessary Index Values are available, the Indexed Interest formula cannot be calculated.

If publication of an Index is discontinued, or the calculation is substantially changed, or an Index is not available to us, we will substitute a suitable alternative index, subject to the approval of the Commissioner of Insurance of the state where the Policy was issued, and notify you in writing.

The Participation Rates and Asset Fee Rates are declared at issue and guaranteed for the first Policy Year only.

For subsequent years, these rates are declared by NWL on each Policy Anniversary, are not guaranteed, and are subject to change.

In subsequent Policy Years, the Participation Rates will likely be lower, and the Asset Fee Rates will likely be higher, than in the first Policy Year.


Additional Benefits

Terminal Illness Benefit

Upon receiving satisfactory documentation, Withdrawal Charges will be waived for full surrender or partial withdrawal if the Annuitant is first diagnosed after the Policy Date with an illness from which he or she is not expected to recover and is expected to die within twelve (12) months.

National Western Life reserves the right to obtain a second medical opinion at the Company’s expense.

Benefit terms and/or benefit availability may vary by state.

See the Policy for complete details and requirements.

Waiver of Withdrawal Charge after Qualifying Medical Stay

You may withdraw up to 75% of the Account Value plus any Vested Bonus Value without a Withdrawal Charge after certain medically necessary stays as outlined in the Policy.

The Annuitant must be 75 years or younger on the Policy Date, and each stay must be for at least 90 consecutive days.

The stay must be in a hospital and/or nursing facility (as defined in the Policy), and the Annuitant must receive at least intermediate care (as described in the Policy) for 90 consecutive days during the stay.

The stay must begin at least 180 days after the Policy Date and must not be for a medical condition that involved a prior stay of any length in the two-year period before the Policy Date.

The stay must not have been recommended by a physician in the two-year period before the Policy Date.

Any withdrawal in excess of 75% of the Account Value plus any Vested Bonus Value will be subject to the Policy’s regular Withdrawal Charge. Benefit terms and/or benefit availability may vary by state.

See the Policy for complete details and requirements.

Policy Loan

Starting the 2nd Policy Month (4th Policy Year in Virginia and Vermont), a policy loan for a minimum of $500 may be taken for up to 60% of the Contract Value (100% of the Cash Surrender Value in Florida, Virginia, and Vermont) if the Interest Credit Allocation Percentage for Interest Credit Option B is 100%.

Any loan must be repaid before allocation to any other Interest Credit Option can be elected.

All or part of a loan may be repaid at any time, but each payment must be at least $25. The interest on the loan must be paid annually at 7.4% in advance.

If not, the interest will be added to the amount of the loan.

Also, cash loans are not available for IRAs or Roth IRAs or for some other qualified plans.

If any loan amount is owed to us when a Settlement Option is elected or upon the Annuitant’s death, whichever occurs first, such amount will be treated as a partial withdrawal and will be subject to Withdrawal Charges.

See endorsements for complete information; certain limitations and exclusions may apply.

Endorsement terms and/or availability may vary by state.

Optional Withdrawal Benefit Riders

There are optional Withdrawal Benefit Riders that can be added to the NWL Impact 10 annuity at issue.

The election of one of these riders can provide guaranteed minimum income benefits for the life of a single Annuitant or Joint Annuitants without the election of a Settlement Option.

A charge applies to each rider, and riders may not be available in all states.

Please refer to the separate Withdrawal Benefit Rider consumer disclosure brochures for complete descriptions of the benefits, features, and applicable charges for each optional rider.

The charges and benefits of the Withdrawal Benefit Rider will be deducted from the Account Value of the Policy and may reduce the benefits provided by the Policy.

Settlement Options

You may elect to receive the Contract Value as a series of payments, referred to as Settlement Options, beginning on the Annuity Date.

The Annuity Date, which is stated in your Policy, is 22 years from the Policy Date and cannot be changed (in Florida, the Annuity Date can be changed to a date after the first Policy Anniversary).

The Settlement Options that may be elected by the Owner include:

  • Income for Life
  • Life Income with a Guaranteed Period
  • Life Income with Installment Refund
  • Survivorship Annuity
  • Monthly Income for a Fixed Period
  • Annual Income for a Fixed Period
  • Proceeds Held at Interest Only

A Guaranteed Interest Rate of 1.25% is used in calculating payments for the Settlement Options.

National Western Life may, at its option, use an Interest Rate that is higher than the Guaranteed Rate.

Consult the Policy for complete details of these options.


Death Benefits

At the death of the Annuitant before the Annuity Date, the Beneficiary may choose to receive the Account Value and the Bonus Value as a single sum or paid out under an available Settlement Option.

At the death of the Annuitant after the Annuity Date, the Beneficiary will receive any unpaid guaranteed amounts under the Settlement Option in force on the date of death.

No other death benefits will be paid.

Spousal Continuation Benefit:

If the surviving spouse is the named Beneficiary and the Owner dies, the surviving spouse may become the Owner and continue the annuity and the income tax-deferral.


“Free Look” Period

Your satisfaction is important to us!

If you change your mind about whether this annuity fits your needs after you receive your Policy, or if you are dissatisfied for any reason, you have at least twenty days after receipt of the Policy during which you can return it without incurring charges (referred to as a “free look” period).



Minimum Premium

Maximum Premium

Enhanced Benefits


Contract Length

Maximum Issue Age

Premium Bonus (Up to)

Insurance Company

Company Rating (A.M. Best)

Premium Type

Annuitization Required

Annual Penalty-Free Withdrawals

Death Benefit


Surrender Charge Waivers


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Cancellation Policy

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Lifetime Income

Retire in 1 Year, Retire in 2 Years, Retire in 3 Years, Retire in 4 Years, Retire in 5 Years, Retire in 6 Years, Retire in 7 Years, Retire in 8 Years

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