The NWL Ultra Future 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 Ultra Future Annuity provides the important benefits of many tax-deferred annuities:
- interest accumulation
You will receive all benefits as set forth in the Contract.
Premium Payment & Issue Ages
A minimum initial premium payment of at least $2,000 (qualified) or $5,000 (non-qualified) is required.
Additional premium payments of at least $100 can be made.
Any premiums received more than 20 calendar days after the issue date, or after any subsequent Policy Anniversary, will earn the non-indexed fixed interest rate until the next Policy Anniversary.
Each premium payment in the first Policy Year receives a premium bonus of 9% (7.75% in Puerto Rico), and each premium payment in Policy Years 2-5 receives a premium bonus of 4.75%.
In the Policy, this premium bonus is expressed as a Percentage of Premium, e.g., 109% or 107.75% times each premium payment in the first Policy Year.
The Company does have the right to limit premium payments in any renewal year to the amount of premiums made in the preceding year.
Premium payments in excess of $500,000 may require prior Company approval.
If applicable, Federal, State, and Municipal taxes, and any fees or assessments related to the Policy, payment of which is required or authorized by law, will be deducted from the benefits under the Policy as required or authorized by law.
National Western Life will not issue this annuity if the age of the Annuitant or Owner exceeds the maximum Issue Age, which is published from time to time.
The Account Value is equal to 109% (107.75% in Puerto Rico) of premium payments made during the first Policy Year, 104.75% of premium payments made in the 2nd–5th Policy Year, and 100% of premium payments made in Policy Years 6 and after, less partial withdrawals and applicable Withdrawal Charges, and less any applicable rider and/or endorsement charges and benefits*, accumulated with interest.
Interest is based on the Interest Credit Option(s) that you have selected.
Cash Surrender Value
The Cash Surrender Value is the Account Value less a Withdrawal Charge, if any, or the Minimum Guaranteed Contract Value, whichever is greater.
Minimum Guaranteed Contract Value
The Minimum Guaranteed Contract Value will never be less than 87.5% of premiums received, less partial withdrawals, accumulated at the Minimum Guaranteed Interest Rate.
The Minimum Guaranteed Interest Rate is set for new policies each calendar quarter.
It is never less than 1.00%, has a maximum of 3.00%, and is guaranteed for the Contract Term.
At the end of the Contract Term, the Minimum Guaranteed Interest Rate will be re-determined.
It is the average of the 5 Year Constant Maturity Treasury Rate minus 1.25% for the 6 month period ending 1 month prior to the beginning of the current calendar quarter.
The Contract Value is the greater of the Account Value or the Minimum Guaranteed Contract Value.
This is a long-term accumulation annuity.
A Withdrawal Charge will apply during the first 15 Policy Years if you surrender your Policy.
In addition, if you take a partial withdrawal, you will incur a Withdrawal Charge 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 shown on the following schedule.
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.
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.
Optional Withdrawal Benefit Riders
There are optional Withdrawal Benefit Riders that can be added to the NWL Ultra Value annuity at issue.
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.
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.
You may elect to receive the Contract Value as a series of payments, referred to as Settlement Options, beginning on the Annuity Date.
You may choose an Annuity Date that occurs as early as the end of the 5th Policy Anniversary (1st Policy Anniversary in Florida).
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 (minimum 5 years)
- Annual Income for a Fixed Period (minimum 5 years)
- 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.
At the death of the Annuitant before the Annuity Date, the Beneficiary may choose to receive the Contract Value (Cash Surrender Value in Louisiana) as a single sum or the Contract Value 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
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).