This assumes that the contract qualifies as life insurance under section 7702 of the Internal Revenue Code (IRC) and is not a modified endowment contract (MEC) under section 7702A. Most distributions are taxed on a first-in/first-out basis as long as the contract meets non-MEC definitions under section 7702A. Loans and partial withdrawals from a MEC generally are taxable and, if taken prior to age 59½, may be subject to a 10% tax penalty.
 This assumes there is sufficient cash value to cover monthly policy charges. Keep in mind that variable universal life insurance has market volatility so it’s possible that you may need to pay an additional premium on your policy.
Variable products are sold by prospectus. Carefully consider the investment objectives, risks, charges and expenses. The product and underlying fund prospectuses contain this and other important information. Investors should read them carefully before investing. To request a copy, go to nationwide.com/prospectus or call 1-800-848-6331.
Keep in mind that investing involves market risk, including the possible loss of principal. Also, know that underlying investment options are available only in variable annuity and variable life insurance contracts. They are not offered directly to the public.
Keep in mind that taking money from your policy immediately reduces both the cash value and the death benefit payable and can cause the need for more premiums to be paid into the policy in the future. You should always take care to ensure that your life insurance needs continue to be met over time subsequent to taking cash from your policy.
Guarantees and protections are subject to Nationwide’s claims-paying ability. They do not apply to the investment performance or safety of the underlying investment options.