5% Premium Bonus Each premium payment in the first Policy Year receives a premium Bonus Percentage of 5%, but this bonus is not immediately available to you for partial withdrawal or full surrender. The full Bonus Value is immediately available to you for the purpose of your death benefit, beginning in the first Policy Year. If you take a partial withdrawal or fully surrender your policy, the Bonus Value is only available based on the 10 year Bonus Vesting Schedule described in more detail to the right. Your Bonus Value is vested 5% at the end of year 1, 10% at the end of year 2, and further as described in the Bonus Vesting Schedule chart to the right. At the end of Policy Year 10, the full Bonus Value will be available. Note that all vesting occurs at the end of the Policy Year. Withdrawal Charges This is a long-term accumulation annuity. If you surrender your Policy during the first 8 Policy Years, you will incur a Withdrawal Charge. In addition, if you take a partial withdrawal, you will incur a Withdrawal Charge unless you exercise one of the available options to avoid Withdrawal Charges, which are described later in this brochure.
Withdrawal Charge Rates
Policy Year
1
2
3
4
5
6
7
8
9+
Rate
8.00% 7.75% 6.50% 5.25% 4.25% 3.25% 2.00% 1.00% 0%
National Western Life reserves the right to defer payment for up to 6 months after we receive your withdrawal request. Interest is charged on any withdrawal from the processing date to the next Option Term End Date. If you surrender your policy, Withdrawal Charges are calculated by multiplying the Account Value, less any unexercised amounts available to you without a Withdrawal Charge, by the Withdrawal Charge Rate shown on the schedule below. If you take a partial withdrawal, Withdrawal Charges are calculated by multiplying the partial withdrawal amount, less any unexercised amounts available to you without a Withdrawal Charge, by the applicable Withdrawal Charge Rate shown on the schedule below. Available Options to Avoid Withdrawal Charges You may exercise one of the following options to access your Policy’s Account Value without Withdrawal Charges. • One withdrawal of up to 10% of the Account Value plus any Vested Bonus Value may be withdrawn without a Withdrawal Charge each Policy Year after the first.* Remember that partial vesting does not begin until the end of Policy Year 1. • Systematic interest withdrawals of interest earnings can be taken without a Withdrawal Charge each Policy Year after the first* as long as each payment is at least $100 and does not invade the principal. The systematic payments may be paid monthly, quarterly, semi-annually, or annually. • IRA Required Minimum Distribution (if applicable) in all Policy Years.* • Policy Loan (100% Fixed Interest – Option B) * Only one of these options may be elected in the same Policy Year. At the end of the 10-year Contract Term, you may withdraw the full Contract Value or take a partial withdrawal without any Withdrawal Charges or Bonus Vesting requirements. You do have the right to keep the Contract Value with National Western Life for the rest of your life where it will continue to earn interest at a rate not less than the Minimum Guaranteed Interest Rate that has been re-determined at the end of your Contract Term.
5 of 14
HERE TODAY. HERE TOMORROW.
NATIONALWESTERNLIFE.COM
Made with FlippingBook - Share PDF online