Nationwide New Heights 12 fixed indexed annuity is a single-purchase-payment deferred annuity with features that help you accumulate retirement savings and protect your money.
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.
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.
An introduction to Nationwide New Heights 12
With enhanced earning potential through a patented crediting methodology, a return of purchase payment guarantee and optional riders available for an additional cost, Nationwide New Heights 12 offers daily opportunities to take advantage of index performance without putting your principal at risk.
Nationwide New Heights 12 offers:
Enhanced growth potential - New Heights 12 tracks your potential strategy earnings, also known as earnings, daily, and does not limit the amount of index performance used to calculate your earnings. There’s potential for higher long-term accumulation based on the performance of the underlying index1 and declared rate component, subject to the limitations of the other crediting factors such as the indexed allocation and the strategy spread.2 These limitations may reduce future earnings for your contract.
Protection from market risk - With New Heights 12, we guarantee that you will never lose any of your initial investment or credited earnings due to performance of the underlying index. Additionally, the return of purchase payment guarantee provides assurance that should you surrender your contract after the end of the 12th contract anniversary, or if a death benefit is payable or a surrender is triggered due to an event qualifying under the Long-Term Care,3 Terminal Illness or Injury Event provisions, you will receive 100% of your purchase payment minus any gross withdrawals. Please note that the return of purchase payment guarantee may be modified if an optional rider is purchased.
If you withdraw assets within the first 12 years of your contract, your principal may be reduced by fees known as contingent deferred sales charges (CDSC).4
Optional riders - New Heights 12 has optional riders, which must be elected at the time of issue. These riders are available for an additional cost, and they offer:
Guaranteed lifetime income for you, or for you and your spouse or