NATIONWIDE NEW HEIGHTS FIXED INDEXED ANNUITY
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Nationwide New HeightsSM Fixed Indexed Annuity

Overview

With uncapped earning potential, daily tracking of earnings, a return of principal guarantee, an optional lifetime income rider and an optional enhanced death benefit rider (both available for an additional cost), New Heights is where reliability meets opportunity. It offers the ability to help protect assets while also positioning investors investors for growth opportunities on a daily basis.

Annuities are a contract you purchase from an insurance company to help you accumulate assets for retirement. They offer several ways to generate income, including systematic withdrawal, lifetime income payments through a guaranteed lifetime withdrawal benefit (GLWB), available for an additional cost, and annuitization; annuitization is offered at no additional cost.

What is a fixed indexed annuity?

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.

Product literature/support materials

Current rates

View current strategy options and rates for AK, CT, DE, MN, MO, NV, OR, PA, UT and WA

View current strategy options and rates for NJ, OH, SC and TX

View current strategy options and rates for all other states

Target market

Nationwide New Heights is for investors who are wary of market volatility yet still seek growth potential to help account for inflation and increased expenses as they age.

Key features

  • Return of Principal Guarantee (restrictions and limitations apply)
  • Daily opportunities to take advantage of positive index performance
  • Uncapped index strategy earnings
  • Opportunity to lock in the index value one time, at any point, during each strategy term
  • Optional riders for an additional cost (restrictions and limitations apply):
    • High Point 365SM - lifetime income benefit rider
    • High PointSM - enhanced death benefit rider
  • Tax-deferred growth potential

Product details

  • Issue age: Annuitant up to age 80; owner may be any age
  • Minimum initial investment: $25,000 single purchase payment
  • Balanced Allocation Strategies (BAS): Also known as strategy options, BAS is the formula used to determine the amount of earnings that will be credited to the contract value; has a declared rate component, an equity indexed component and a strategy spread component all used to determine earnings
  • Strategy term: A specific period of time, expressed in years, that is used to measure strategy earnings, if any, under the elected strategy option; the initial strategy term is set at two years and is subject to change after the end of the CDSC schedule
  • Index: S&P 500® Composite Stock Price Index
  • Plan types: Nonqualified, IRA, Roth IRA and Charitable Remainder Trusts (CRT)
  • Balanced Allocation Value (BAV): The BAV monitors the daily fluctuations in the strategy option and is the greater of (1) the contract value, plus any unrealized strategy earnings (strategy earnings that have not yet been credited to the contract), or (2) the Return of Purchase Payment Guarantee amount
  • Standard death benefit: The greater of the balanced allocation value (BAV) or surrender value, whichever is greater; joint option also available
  • Contingent Deferred Sales Charge (CDSC)1: 10-year declining charge; during the CDSC period (the first 10 years), a CDSC is applied at the time of the surrender and is calculated by multiplying the applicable percentage (10, 10, 9, 8, 7, 6, 5, 4, 3, 2, 0) by the amounts withdrawn in a given contract year in excess of the free withdrawal amount
  • Free withdrawals: Not available in year 1, years 2 - 10 withdrawals equal to or less than 7% of contract value will receive full earnings; after year 10, withdrawals equal to or less than 10% of the contract value will receive full earnings
  • CDSC Waivers: Long-term care event or terminal illness or event2
  • Optional riders for an additional cost, only one rider may be purchased
    • High Point 365SM - lifetime income benefit rider (0.95% on the high point income benefit base)
      • Joint/spousal option available
      • Payout percentages based on issue age and contract years completed when lifetime income begins; if the joint option is elected, payout percentages are based on the age of the younger spouse and will be lower
      • 3% purchase payment bonus available for an additional (0.30% on the high point income benefit base); if elected, a 3% bonus, credited at contract issue and based upon the purchase payment, will be added to the contract value, the high point income benefit base and the return of purchase payment guarantee amount
      • The lifetime income amount will be calculated as a percentage of the high point income benefit base
        • The high point income benefit base (during the accumulation phase and on the first day of the income phase) is the greater of:
          • Minimum Income Benefit Value: The Minimum Income Benefit Value is your purchase payment accumulated at a roll-up rate of 2% compounded annually from the date of issue until the earlier of the 10th contract anniversary or the date the lifetime income payments begin
          • Highest Balanced Allocation Value (BAV): The highest BAV is calculated daily, adjusted for withdrawals and reflects the performance of the underlying index
    • High PointSM - enhanced death benefit rider (0.50% on the high point guarantee death benefit value)
      • Joint/Spousal option available; this guarantees a death benefit will be paid to the beneficiary upon the first death of the annuitant or co-annuitant if the joint option is elected
      • 3% purchase payment bonus available for an additional (0.30% on the high point income benefit base); if elected, a 3% bonus, credited at contract issue and based upon the purchase payment, will be added to the contract value, the high point income benefit base and the return of purchase payment guarantee amount
      • The death benefit will be the greater of the base contract death benefit or the high point enhanced death benefit value; high point enhanced death benefit value is equal to the greater of:
        • The purchase payment compounded at 4% per year up to a 200% cap of purchase payment, or until the contract anniversary after the older annuitant reaches age 80, whichever occurs first; accumulated purchase payment and cap are adjusted for withdrawals
        • The highest Balanced Allocation Value (BAV), which is calculated daily, is adjusted for withdrawals and reflects the performance of the underlying index; highest BAV increases until the contract anniversary after the older annuitant reaches age 80

[1] In CA, CDSC is called a surrender charge. CDSC schedules may vary by state.
[2] May not be available in all states. Long-term care may also be referred to as confinement.

Get started

For more information or to run an illustration, contact the National Sales Desk at 1-800-321-6064.

Read this important information

  • Lifetime income may be provided through the purchase of an optional rider for an additional cost or through annuitization 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, reduce your death benefit and contract value.
  • It's important to remember, when discussing annuities, that all guarantees and protections are subject to the claims-paying ability of the issuing company.