Nationwide High Point Enhanced Death Benefit rider (High Point EDB) is an optional rider for Nationwide New Heights fixed indexed annuity available for an additional cost at contract issue and provides two powerful ways for your savings to grow:
High Point EDB is only available at contract issue.
New Heights provides a joint option that can help provide protection for both spouses. With New Heights and the joint option selected, the death benefit will be paid to the surviving spouse, regardless of who passes away first. If you have an IRA or 401(k), please note that while IRAs by their nature have a single owner, New Heights death benefit helps you give protection to both spouses and can provide a lump sum death benefit to you and your spouse. This table describes how the joint option with Nationwide High Point EDB works.
|You die first…||Your spouse may receive a lump sum death benefit or choose to continue the base contract stepped up to the enhanced death benefit value with all charges removed.|
|Your spouse dies first…||You may receive a lump sum death benefit outside of the restrictions for IRA withdrawals or choose to continue the base contract stepped up to the enhanced death benefit value with all charges removed.|
If the surviving spouse elects to continue the contract, the contract value will be stepped up to the enhanced death benefit value. After a death benefit is payable, the rider and rider charge will be removed from the contract. The surviving spouse can continue the contract with the base contract death benefit to be paid on their death.
If the surviving spouse elects to take the lump sum death benefit value, then the contract would terminate.
The High Point EDB rider offers an enhanced death benefit that offers a guaranteed minimum increase in value with the opportunity for even greater increases based on positive index performance. No matter what happens, your death benefit will never be reduced due to negative index performance.
The enhanced death benefit is the greater of your purchase payment plus daily increases at a 4% compounding annual rate or the highest BAV of your New Heights strategy. The hypothetical graph below shows how the high point can offer even greater legacy growth.
Hypothetical Assumptions – The results shown represent hypothetical performance and shouldn’t be considered a representation of future performance. It assumes no withdrawals are taken and that strategy options and rates are hypothetical. The Minimum EDB value would be the Enhanced Death Benefit if 0% net interest were credited to your contract. The hypothetical returns (BAV, High Point EDB & Highest BAV) are provided to demonstrate how the High Point EDB components work together and do not represent any promise of future results.
1 The rider charge is an annual fee, assessed quarterly and reduces the contract value.
With the High Point EDB rider, you or your beneficiaries will receive the greater of your base contract death benefit or the High Point EDB value.
For more information about High Point EDB and the New Heights death benefit, please ask your financial professional.
You should consult your tax or legal counsel before you make any decisions. Federal income tax laws are complex and subject to change. The information here is based on current interpretations of the law but not guaranteed. Nationwide does not provide legal or tax advice.