Premium Payment & Issue Ages A minimum initial premium payment of at least $2,000 (qualified) or $5,000 (non-qualified) is required. Additional premium payments of at least $100 can be made. Any premiums received more than 20 calendar days after the issue date, or after any subsequent Policy Anniversary, will earn the non-indexed fixed interest rate until the next Policy Anniversary. The Company does have the right to limit premium payments in any renewal year to the amount of premiums made in the preceding year. Premium payments in excess of $500,000 may require prior Company approval. If applicable, Federal, State, and Municipal taxes, and any fees or assessments related to the Policy, payment of which is required or authorized by law, will be deducted from the benefits under the Policy as required or authorized by law. National Western Life will not issue this annuity if the age of the Annuitant or Owner exceeds the maximum Issue Age, which is published from time to time. Policy Values The Account Value is equal to 100% of premiums, less partial withdrawals and applicable Withdrawal Charges, and less any applicable rider and/or endorsement charges and benefits*, accumulated with interest. Interest is based on the Interest Credit Option(s) that you have selected. The Bonus Value is equal to the premiums received in the first Policy Year multiplied by the Bonus Percentage of 5%, accumulated with interest, if any, at the same rate as the Account Value, less any withdrawals (and applicable withdrawal charges) in excess of withdrawals taken without a Withdrawal Charge, multiplied by the Bonus Percentage of 5% and interest on such amount. The Bonus Value is subject to vesting as indicated in the Bonus Vesting Schedule. The Vested Bonus Value is the Bonus Value times the Vesting Percentage as indicated in the Bonus Vesting Schedule.
The Cash Surrender Value is the Account Value less a Withdrawal Charge, if any, plus any Vested Bonus Value, or the Minimum Guaranteed Contract Value, whichever is greater. The Minimum Guaranteed Contract Value will never be less than 87.5% of premiums received, less partial withdrawals, accumulated at the Minimum Guaranteed Interest Rate. The Minimum Guaranteed Interest Rate is set for new policies each calendar quarter. It is never less than 1.00%, has a maximum of 3.00%, and is guaranteed for the Contract Term. At the end of the Contract Term, the Minimum Guaranteed Interest Rate will be re-determined. It is the average of the 5 Year Constant Maturity Treasury Rate minus 1.25% for the 6 month period ending 1 month prior to the beginning of the current calendar quarter. The Contract Value is the greater of the Account Value plus any Vested Bonus Value, or the Minimum Guaranteed Contract Value.
*See description of Withdrawal Charges and available Withdrawal Benefit Riders for more information regarding rider charges and benefits.
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