Please note: All withdrawals may be subject to federal income tax. Withdrawals prior to age 59 1 ⁄2 may be subject to an additional 10% federal income tax penalty, and if a trust is named as the Owner, such withdrawals may be subject to this additional 10% federal income tax penalty regardless of age. Interest Credit Options In addition to the option to earn a fixed rate of interest, you also have Indexed Interest Credit Options. All Indexed Interest Credit Options available at issue may not be available on renewal. Once selected, any current Interest Credit Option is effective for the full Policy Year. You may elect to allocate the premium to more than one Interest Credit Option. The Interest Credit Allocation Percentages for available Interest Credit Options can be any whole number percentages, in any combination, whose total is 100%. You may change to any available Interest Credit Option for the following Policy Year by submitting a completed Interest Allocation Election Notice at least 5 business days prior to the Policy Anniversary. Fixed Interest Option Option B - This option provides for a fixed rate set by National Western Life as described in the Policy. The Interest Rate on the portion of the Account Value allocated to Interest Credit Option B is declared in advance by NWL and is guaranteed for the first Policy Year. This Interest Rate is located on page three of the Policy. The interest rate in the first Policy Year will likely be higher than the interest rate in subsequent Policy Years. After the first Policy Year, these interest rates will be declared from time to time, are not guaranteed, and are subject to change. Indexed Interest Options All Indexed Interest is credited annually and locked-in. Indexed Interest earned, if any, is based on a formula linked in part to the underlying index(es) of the available Indexed Interest Options. Fixed indexed annuities are not stock market investments and do not directly participate in any stock or equity investments. The indexes may not include any dividends paid on the underlying stocks. When you purchase the NWL Impact, you are not directly investing in a stock market index. Indexed Interest is not earned or credited until the Policy Anniversary. Until the Policy Year is over and the necessary Index Values are available, the Indexed Interest formula cannot be calculated. If publication of an Index is discontinued, or the calculation is substantially changed, or an Index is not available to us, we will substitute a suitable alternative index, subject to the approval of the Commissioner of Insurance of the state where the Policy was issued, and notify you in writing. The Participation Rates and Asset Fee Rates are declared at issue and guaranteed for the first Policy Year only. For subsequent years, these rates are declared by NWL on each Policy Anniversary, are not guaranteed, and are subject to change. In subsequent Policy Years, the Participation Rates will likely be lower, and the Asset Fee Rates will likely be higher, than in the first Policy Year.
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