Nationwide Peak is a single-purchase-payment deferred fixed indexed annuity with features that help protect your money as you accumulate retirement savings.
What is a fixed indexed annuity?
A fixed indexed annuity offers returns based on the changes in an underlying 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. It 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.
Nationwide Peak offers two different accounts: Fixed Account and Index Account.
With the Fixed Account, the annual interest rate is credited daily.
With the Index Account, your earnings are credited annually based on the performance of the underlying index or indices, up to a maximum amount referred to as a cap.*
- S&P 500
- MSCI EAFE Index
- Morgan Stanley 3D Index
- J.P. Morgan Mozaic IISM Index
The Nationwide Peak fixed indexed annuity product guide offers you more details about how Nationwide Peak works. Below you will see some common questions you may have regarding Nationwide Peak, along with answers to help you make educated decisions about your long-term goals.
What will it cost me?
There are no annual contract or administration fees.
What is the maximum issue age?
For the annuitant, 90 for single life and 85 for joint life. The owner may be any age.
What is the minimum initial purchase amount?
$25,000, qualified or nonqualified; single purchase payment.
What types of contracts are available?
Several are part of Nationwide Peak:
- Roth IRA
- SEP IRA
- Simple IRA
- Charitable remainder trust
What is the Contingent Deferred Sales Charge** (CDSC) schedule?
A 7-year CDSC applied to contract value: 9%, 8%, 7%, 6%, 5%, 4%, 3%, 0%.
What happens if the annuitant dies while the contract is still in effect?
If you are the sole owner and annuitant, when you pass away a death benefit will be paid to the beneficiaries named in your contract. The death benefit will be equal to the account value.
A Joint Option is also available if the contract owner names a spouse as a co-annuitant. This feature allows a death benefit to be paid to either surviving spouse, no matter who passes away first or who owns the contract. The surviving spouse also has the option to continue the annuity contract at the death benefit value.
Any remaining CDSC or MVA would no longer apply to the contract. The death benefit will be equal to the contract value.
* Without capital gains and dividends.
** Contingent deferred sales charges: A fee you may be charged if you take money from your contract before a specified time. In CA, a CDSC is called a “surrender charge.”
Annuities have limitations. They are long-term vehicles designed for retirement purposes. They are not intended to replace emergency funds, to be used as income for day-to-day expenses, or to fund short-term savings goals. Investing involves risk. 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. Guarantees are subject to the claims-paying ability of the issuing insurance company. 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.
The “S&P 500” is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by Nationwide Life and Annuity Insurance Company (“Nationwide”). Standard & Poor’s®, S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); DJIA®, The Dow®, Dow Jones® and Dow Jones Industrial Average are trademarks of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Nationwide. Nationwide Peak fixed indexed annuity is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500.
Morgan Stanley and its affiliates may, from time to time, engage in transactions involving the components of the Index which may negatively impact the level of the Index.
The Index has a limited performance history and past performance is no indication of future performance. The Index level may decrease due to a number of factors. Allocation signals may dampen the performance of the Index in rising markets. It is possible that the Index will be composed of a very small number of constituents at any time and may have concentration in particular market(s).
Nationwide Peak is not sponsored, endorsed, sold or promoted by Morgan Stanley or any of its affiliates. Neither Morgan Stanley nor any other party (including, without limitation, any calculation agents or data providers) makes any representation or warranty, express or implied, regarding the advisability of purchasing the Product.
The Morgan Stanley 3D Index (the “Index”) is the exclusive property of Morgan Stanley. Morgan Stanley is a service mark of Morgan Stanley and has been licensed for use for certain purposes by Nationwide Life and Annuity Insurance Company. Morgan Stanley will not have any obligation or liability to owners of the Product in connection with the administration or marketing of the Product, and neither Morgan Stanley nor any other party guarantees the accuracy and/ or the completeness of the Index or any data included therein. Morgan Stanley and its affiliates may engage in transactions involving components of the Index for their proprietary accounts and/ or for accounts of their clients, which may affect the value of such components and the level of the Index.
The J.P. Morgan Mozaic IISM Index (“Index”) has been licensed to Nationwide Life and Annuity Insurance Company (the “Licensee”) for the Licensee’s benefit. Neither the Licensee nor Nationwide Peak® Fixed Indexed Annuity (the “Product”) is sponsored, operated, endorsed, recommended, sold or promoted by J.P. Morgan Securities LLC (“JPMS”) or any of its affiliates (together and individually, “JPMorgan”). JPMorgan makes no representation and gives no warranty, express or implied, to contract owners taking exposure to the Product. Such persons should seek appropriate professional advice before making any investment. The Index has been designed and is compiled, calculated, maintained and sponsored by JPMS without regard to the Licensee, the Product or any contract owner. JPMorgan is under no obligation to continue compiling, calculating, maintaining or sponsoring the Index. JPMorgan may independently issue or sponsor other indices or products that are similar to and may compete with the Index and the Product. JPMorgan may also transact in assets referenced in the Index (or in financial instruments such as derivatives that reference those assets). These activities could have a positive or negative effect on the value of the Index and the Product.
The product referred to herein is not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such product or any index on which such product is based. The contract contains a more detailed description of the limited relationship MSCI has with Nationwide and any related funds.