New Heights® Strategy Options

Provide growth potential through multiple strategy options

Each index currently has two strategy options. The strategy options provide earnings based on the growth of the underlying index while eliminating the risk of losing principal due to negative index performance.

Each strategy option has several components to help provide growth opportunities. All strategies have an index allocation that contributes to earnings based on the performance of the index. Strategies that include a declared rate allocation greater than 0% will provide earnings at a fixed rate of interest (the declared rate). The strategy spread is deducted from potential earnings at the end of the strategy term but will never cause earnings to be less than zero.

Each index currently offers two strategies to provide growth opportunities in a variety of market environments

Strategy Option Growth Opportunity
Strategy A May provide higher returns when the index grows substantially during a strategy term due to higher index allocations.
Strategy B May provide higher returns when the index experiences a lower return during a strategy term due to lower or no strategy spread.
Strategy Options

This is a hypothetical example and for illustrative purposes only.

Track potential earnings throughout the strategy term

The Balanced Allocation Value (BAV) tracks changes to your potential earnings every day, and earnings will be credited at the end of each strategy term. Earnings to-date will be captured during a strategy term on withdrawals, when you choose to take income or if a death benefit is payable. At the beginning of each strategy term, your contract value is guaranteed and will not decrease due to negative market performance. This hypothetical graph shows how BAV is tracked during a strategy term.

Optional one-time lock-in

If you’re satisfied with the amount of index growth before the end of a strategy term, you may elect to lock in the index value once every strategy term. This innovative feature insures that while you won’t realize additional index earnings, you won’t lose earnings based on negative index performance through the remainder of the strategy term.

Key terms

  • Balanced Allocation Value (BAV) – The Balanced Allocation Value monitors the daily fluctuations in the strategy option and is the greater of (1) the contract value plus any unrealized strategy earnings that have not yet been credited to the contract or (2) the Return of Purchase Payment Guarantee amount
  • Index allocation – A percentage that represents the proportion of the strategy option that is multiplied by the performance of the index
  • Declared rate – Annual interest rate established by Nationwide
  • Declared rate allocation – A percentage that represents the proportion of the strategy option that is multiplied by the declared rate
  • Strategy spread – An annual percentage rate that is deducted when calculating strategy earnings
  • Strategy term – A specific period of time, expressed in years, that is used to measure strategy earnings, if any, under the elected strategy option. The initial strategy term is set at contract issue and is subject to change. Only one strategy option may be selected for each strategy term

Index allocation, declared rate allocation, declared rate and strategy spread are guaranteed for the first strategy term and subject to change at the beginning of each new strategy term.

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. Please read the contract, product brochure, and Disclosure Summary for complete details.

Nationwide New Heights, an individual, single purchase payment, deferred fixed index annuity is issued by Nationwide Life and Annuity Insurance Company, Columbus, Ohio. Please note, the contract does not directly participate in any stock or equity investments. Withdrawals are subject to income tax, and withdrawals before age 59½ may be subject to a 10% early withdrawal federal tax penalty. Nationwide Life and Annuity Insurance Company, Columbus, Ohio 43215.

Nationwide, the Nationwide N and Eagle, Nationwide is on your side, Nationwide New Heights and New Heights are service marks of Nationwide Mutual Insurance Company. © 2020 Nationwide

FAM-1237AO (11/20)