Annuities are a long-term contract you purchase from an insurance company to help you accumulate assets for retirement. They offer several ways to generate income, including systematic withdrawal and annuitization; annuitization is offered at no additional cost. If you take withdrawals before you're age 59½, you may have to pay a 10% early withdrawal federal tax penalty in addition to ordinary income taxes. Withdrawals may trigger early surrender charges.
Guarantees and protections are subject to the claims-paying ability of Nationwide Life and Annuity Insurance Company.
A fixed indexed annuity offers returns based on the changes in a securities index, such as the S&P 500® Composite Stock Price Index. Indexed annuity contracts also offer a specified minimum which the contract value will not fall below, regardless of index performance. After a period of time, the insurance company will make payments to you under the terms of your contract. A fixed indexed annuity is not a stock market investment and does not directly participate in any stock or equity investment. It may be appropriate for individuals who want guaranteed interest rates and the potential for lifetime income. Lifetime income may be provided through annuitization at no additional cost.
Nationwide Clear Horizon Index Annuity is for clients who desire a measure of protection for their money without losing the ability to benefit from gains in the market.
Two account options are available - an interest account and an index account. Money can be allocated into one or both accounts, but the total allocation must equal 100%.
- Interest account - money receives annual interest based on a stated interest rate.
- Index cap option - money can receive additional annual interest credits based on the performance of the S&P 500 Composite Stock Index* (excluding dividends and capital gains) up to a maximum amount (for example, 7%), referred to as a cap.
- Interest credited annually based on the performance of the S&P 500 Composite Stock Index, without capital gains and dividends, up to the cap; interest rates “locked in” at the end of the index period. Please understand that the contract doesn’t directly participate in any stock or equity investments. If you make any withdrawals or surrender any part of your contract before the end of an index period, those amounts will not receive any index participation. Also, failure to maintain the contract to maturity may result in no participation in the equity index. It’s also important to know that actual returns may be less than the return of the linked index, and possibly even negative if part, or all, of the contract is surrendered before the end of any applicable surrender period.
- Optional return of purchase payment rider (Note: Election of this rider results in a deduction that applies to all declared interest rates and index caps.)
- Tax-deferred growth potential
Restrictions and limitations apply.