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.
- It can receive earnings when the underlying index goes up
- Its principal and earnings are also protected when the underlying index goes down
Fixed indexed annuities also offer a specified minimum that the contract value will not fall below, regardless of index performance. A fixed indexed annuity isn’t a stock market investment, nor does it directly participate in any stock or equity investment.
Guaranteed lifetime income choices
With Nationwide Peak 10, you can receive guaranteed lifetime withdrawals that will never decrease, even if your contract value drops to zero. You have two choices to consider:
Guaranteed Income Solution
This is a built-in feature of your annuity and included at no additional cost. It offers a 4% simple interest roll-up on the income benefit base (your premium) for 10 years or until the first withdrawal, whichever comes first.
Bonus Income+ Rider
This is available at an additional cost (1.00% — single life; 1.30% — joint life). It adds a 10% credit to the income benefit base (your premium) and offers a 7% simple interest roll-up from there for 10 years or until the first lifetime withdrawal, whichever comes first. Plus, you’re allowed one nonlifetime withdrawal that will neither stop the roll-up nor lock in the lifetime withdrawal percentage.
The Income Benefit Base is a numerical value used to determine how much your lifetime withdrawals will be. It’s the higher of your contract value or the simple interest roll-up for the option you choose. It isn’t a cash value.
Index options available to you
Nationwide Peak 10 offers growth potential based on the performance of underlying indexes. Choose one of the options below, or allocate among them and further diversify your contract.
AB Growth and Value Balanced IndexSM
This index is designed to offer more consistent returns with dynamic equity exposure that rotates between growth and value, duration-managed bonds to help navigate interest rate changes, and diversification and target volatility to help stabilize results.
J.P. Morgan Cycle IndexSM
This index is designed to passively outperform the market with equity style rotation to align with the business cycle, bond allocation rebalancing based on current market conditions and domestic-focused, “smart beta” asset allocation.
S&P 500® Index
Widely recognized as the leading indicator of the performance of the American economy and one of the most commonly followed equity indexes, the S&P 500 has nearly 60 years of history and consists of 500 large-cap, publicly traded companies.
S&P 500® Daily Risk Control Index
This index is designed to provide access to the S&P 500® Index while limiting risk exposure to 5%, regardless of market conditions. When S&P 500 volatility exceeds 5%, this index allocates enough assets to cash to maintain the 5% volatility target. When S&P 500 volatility is at or below 5%, this index allocates assets fully into the S&P 500.