NWL®’s Withdrawal Benefit Rider
01-3128-09
CLIENT SERVICES TOLL-FREE 800-922-9422 • FAX 512-339-8350
www.nationalwesternlife.com
CLIENT SERVICES TOLL-FREE 800-922-9422 • FAX 512-339-8350
www.nationalwesternlife.com
Still A Sure WIN to Provide Security For Your Withdrawal Income Needs!
Optional Benefit Available on Indexed Annuities
DM-1120.Rev.1.13
National Western Life Insurance Company® • 850 East Anderson Lane • Austin, Texas 78752
INCOME OUTLOOK PLUS 5
NWL®’s Next Generation Benefit Rider
Enjoy the benefits of guaranteed lifetime retirement income with
enhanced accumulations and control of your annuity!
National Western Life requires that the Agent review this entire brochure with you.
NWL®’s Income Outlook Plus 5 provides:
• Great growth potential for your lifetime Withdrawal Payments…
• Control of when your Withdrawal Payments begin…
• Guaranteed Withdrawal Percentages that increase at selected ages…
• Access to your money for Additional Withdrawals remains…
• Guaranteed Withdrawal Payments for life anytime after the age of 60!
Adding Income Outlook Plus 5 to your National Western Life indexed annuity at purchase will give you
all of these benefits. This withdrawal benefit rider works with all of your annuity’s traditional benefits
and enhances the benefits with guaranteed Withdrawal Payments you cannot outlive.
INCOME OUTLOOK PLUS 5 HIGHLIGHTS
Income Outlook Plus 5 guarantees during the Accumulation Period:
• 4% interest on the Accumulation Period Withdrawal Payment Base until lifetime Withdrawal
Payments begin
• 5% Rider Bonus on the premiums received in the first Policy Year subject to the Rider Bonus
Vesting Schedule
• The Guaranteed Withdrawal Percentages increase at every fifth age until age 90 or until the lifetime
Withdrawal Payments begin
• Access to the annuity’s Account Value remains
• The option to Restart the ten year Accumulation Period at the end of the fifth Policy Year
Income Outlook Plus 5 guarantees during the Withdrawal Period:
• Withdrawal Payments that can be paid for life
• The ability to stop and start Withdrawal Payments
• No withdrawal charges on Withdrawal Payments taken under this rider
• The Withdrawal Payment Base to Step-Up to the annuity’s Account Value* if larger, when the Withdrawal Period begins and each Policy Anniversary thereafter
• Access to the annuity’s Account Value remains
• Required Minimum Distribution friendly
Page 2
NATIONAL WESTERN LIFE
INSURANCE COMPANY®
Income Outlook Plus 5 - Withdrawal Benefit Rider
Thank you for choosing to add Income Outlook Plus 5 to your
National Western Life indexed annuity. If you have any questions, please contact your agent or call National Western’s
Customer Service Department at 1-800-922-9422.
Income Outlook Plus 5 - Withdrawal Benefit Rider
Thank you for choosing to add Income Outlook Plus 5 to your
National Western Life indexed annuity. If you have any questions, please contact your agent or call National Western’s
Customer Service Department at 1-800-922-9422.
We want to be sure that you read all 12 pages of this
brochure and are aware of the benefits and features explained herein. Please initial and sign where indicated with
an asterisk (*), acknowledging that you understand the
following:
We want to be sure that you read all 12 pages of this
brochure and are aware of the benefits and features explained herein. Please initial and sign where indicated with
an asterisk (*), acknowledging that you understand the
following:
• T
his is a withdrawal benefit rider that guarantees lifetime
Withdrawal Payments after age 60.
• T
his is a withdrawal benefit rider that guarantees lifetime
Withdrawal Payments after age 60.
• F
or purposes of this brochure, the assumption is that the
Annuitant and Owner are the same.
• Once the Withdrawal Payments begin, there is no further
Accumulation Period available.
• The full benefits of this rider are not obtained if the
Withdrawal Payments are never taken.
• The Account Value of the policy is reduced each year by the
Annual Rider Charge shown on page 1 of the rider, regardless
of whether Withdrawal Payments are taken.
• If at the end of Accumulation Period you have not yet
requested Withdrawal Payments or elected the Restart
option, the Annual Rider Charge will continue to be
deducted from the Account Value and the Accumulation
Period Withdrawal Payment Base will no longer accumulate
with interest.
• A ny election to start or stop Withdrawal Payments
must be received at National Western Life Insurance
Company at least 20 days prior to the Policy
Anniversary.
• F
or purposes of this brochure, the assumption is that the
Annuitant and Owner are the same.
• Once the Withdrawal Payments begin, there is no further
Accumulation Period available.
• The full benefits of this rider are not obtained if the
Withdrawal Payments are never taken.
• The Account Value of the policy is reduced each year by the
Annual Rider Charge shown on page 1 of the rider, regardless
of whether Withdrawal Payments are taken.
• If at the end of Accumulation Period you have not yet
requested Withdrawal Payments or elected the Restart
option, the Annual Rider Charge will continue to be
deducted from the Account Value and the Accumulation
Period Withdrawal Payment Base will no longer accumulate
with interest.
• A ny election to start or stop Withdrawal Payments
must be received at National Western Life Insurance
Company at least 20 days prior to the Policy
Anniversary.
______* The above-stated features have been fully explained
to me.
______* The above-stated features have been fully explained
to me.
I have received a copy of this brochure, and I have reviewed
it with my agent. I fully understand the brochure and the
specific points outlined above. The brochure is not a part
of the rider and does not modify it in any way. The rider
itself contains all terms, benefits, guarantees, limitations, restrictions, and exclusions.
I have received a copy of this brochure, and I have reviewed
it with my agent. I fully understand the brochure and the
specific points outlined above. The brochure is not a part
of the rider and does not modify it in any way. The rider
itself contains all terms, benefits, guarantees, limitations, restrictions, and exclusions.
______________________________________
______________________________________
*Applicant’s Signature *Applicant’s Signature • The Maximum Guaranteed Annual Withdrawal Payment increases each time there is a Step-Up in
the Withdrawal Payment Base
NATIONAL WESTERN LIFE
INSURANCE COMPANY®
*If the base annuity policy has a premium bonus that is not included in the Account Value, then for purposes of Restart, Step-Up, and Withdrawal Payment Base, the Account Value will be increased by any applicable base annuity Vested Bonus Value.
Date
Date
I certify that I reviewed this brochure with the applicant
I certify that I reviewed this brochure with the applicant
______________________________________
______________________________________
Agent’s Signature & Agent No.
Agent’s Signature & Agent No.
Date
Submit with Application
Applicant to Retain
DM-1120-SIG.Rev.1.13
Date
DM-1120-SIG.Rev.1.13
Page 11
Page 11
Cancellation
You may cancel this rider at anytime. The rider
will terminate when the annuity terminates for
any reason or when the Maximum Guaranteed
Annual Withdrawal Payment is less than $100.
CONCLUSION
Income Outlook Plus 5 from National
Western Life provides the security of a
guaranteed income stream you can not
outlive in retirement. This rider also offers the
opportunity for larger income benefits when
indexed interest credits increase your annuity’s
Account Value. It also gives you control of your
annuity as your needs change and access to your
money if needed.
About the Company
National Western Life Insurance Company® is a
Colorado corporation with executive offices in
Austin, Texas. The Company offers a full line
of life insurance and annuity products (both
on an individual and group basis), through
independent agency offices in 49 states and the
District of Columbia, and accepts applications
from residents of several foreign countries. Visit
our website at www.nationalwesternlife.com for
all current financial information.
Since its start in 1956, National Western has
emphasized financial strength for the protection
of its policyholders. As a legal reserve insurance
company, National Western must set aside a
portion of its assets equal to reserves required
by law. Annually, a financial statement is filed
with each state’s insurance department. These
departments have authority to verify that the
appropriate reserves are maintained.
Page 10
INCOME OUTLOOK PLUS 5
DETAILS
Income Outlook Plus 5 is available to add as
a rider to your National Western Life indexed
annuity only at the time of purchase.
The Withdrawal Payment is the amount you
choose to receive each year. The Maximum
Guaranteed Annual Withdrawal Payment is
guaranteed to be paid for your lifetime if no
Additional Withdrawals are taken. Your age
must be at least 60 before Withdrawal Payments
may begin. You may begin taking Withdrawal
Payments as early as the first Policy Anniversary
or any Policy Anniversary you choose after that.
The Withdrawal Payments taken under this
rider are deducted from the annuity’s Account
Value and will not incur any withdrawal
charges.
There is an Annual Rider Charge for this benefit
on each Policy Anniversary, beginning with
the first. The Annual Rider Charge Rate is
determined on the Policy Date and is shown
on page 1 of the rider. This rate is guaranteed
not to change while this rider is in force unless
Restart (as described below) is elected and will
never exceed the maximum rate of 1.5%.
There is a Rider Bonus added to the
Accumulation Period Withdrawal Payment
Base. The Rider Bonus is the Rider Bonus Rate
shown on Page 1 of the rider multiplied by the
premium received during the first Policy Year.
The Rider Bonus is credited with interest at the
same rate as the Account Value of the Policy.
The Rider Bonus is available on a pro-rata basis
based on the Rider Bonus Vesting Schedule
shown on Page 1 of the rider and described
on page 6 of this disclosure for Additional
Withdrawals, full surrender, or annuitization
of the Policy. This means the Rider Bonus will
not be available in all Policy Years, as described
more fully on page 6 of this disclosure. The
Rider Bonus is fully included in the Account
Value for purposes of the Death Benefit.
Page 3
The Income Outlook Plus 5 rider has two periods,
the Accumulation Period and the Withdrawal
Period. Each period is described as follows.
During the Accumulation Period
The Accumulation Period Withdrawal Payment
Base has a 4% interest rate that is guaranteed each
year during the Accumulation Period.
The Accumulation Period Withdrawal Payment
Base initially equals the premium paid, plus any
applicable premium bonus. Additional premiums
paid and premium bonuses, if applicable, will be
added to the Accumulation Period Withdrawal
Payment Base when they are received. Withdrawals
made from the Account Value will reduce the
Accumulation Period Withdrawal Payment Base.
As the Payment Base grows, so do your guaranteed
Withdrawal Payments for life.
Restart
During the Accumulation Period, you may Restart
the 4% guaranteed interest rate anytime after
the fifth Policy Year. At the time you Restart the
Accumulation Period, the following will happen:
• The 4% guaranteed interest rate on the
Accumulation Period Withdrawal Payment Base
will be guaranteed from Restart;
• The Accumulation Period Withdrawal Payment
Base will be increased to the annuity’s Account
Value*, if larger; and
• The Annual Rider Charge Rate may change, but will
not be higher than the maximum guaranteed charge
of 1.5%. You must wait five years after each
Restart before beginning a new Accumulation
Period.
*If the base annuity policy has a premium bonus that is not included
in the Account Value, then for purposes of Restart, Step-Up, and
Withdrawal Payment Base, the Account Value will be increased by any
applicable base annuity Vested Bonus Value.
$100,000 Premium – Maximum Guaranteed Annual Withdrawal Payments - Single Annuitant
Number of Full Years of Accumulation before Withdrawal Payments Begin
Issue
Age
1
2
3
4
5
6
7
8
9
10
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
5,460
5,460
5,460
5,460
6,006
6,006
6,006
6,006
6,006
6,552
6,552
6,552
6,552
6,552
7,098
7,098
7,098
7,098
7,098
7,644
7,644
7,644
7,644
7,644
8,190
8,190
5,678
5,678
5,678
6,246
6,246
6,246
6,246
6,246
6,814
6,814
6,814
6,814
6,814
7,382
7,382
7,382
7,382
7,382
7,950
7,950
7,950
7,950
7,950
8,518
8,518
8,518
5,906
5,906
6,496
6,496
6,496
6,496
6,496
7,087
7,087
7,087
7,087
7,087
7,677
7,677
7,677
7,677
7,677
8,268
8,268
8,268
8,268
8,268
8,858
8,858
8,858
8,858
6,142
6,756
6,756
6,756
6,756
6,756
7,370
7,370
7,370
7,370
7,370
7,984
7,984
7,984
7,984
7,984
8,598
8,598
8,598
8,598
8,598
9,213
9,213
9,213
9,213
9,213
7,026
7,026
7,026
7,026
7,026
7,665
7,665
7,665
7,665
7,665
8,304
8,304
8,304
8,304
8,304
8,942
8,942
8,942
8,942
8,942
9,581
9,581
9,581
9,581
9,581
10,220
7,307
7,307
7,307
7,307
7,972
7,972
7,972
7,972
7,972
8,636
8,636
8,636
8,636
8,636
9,300
9,300
9,300
9,300
9,300
9,964
9,964
9,964
9,964
9,964
10,629
10,629
7,600
7,600
7,600
8,290
8,290
8,290
8,290
8,290
8,981
8,981
8,981
8,981
8,981
9,672
9,672
9,672
9,672
9,672
10,363
10,363
10,363
10,363
10,363
11,054
11,054
11,054
7,903
7,903
8,622
8,622
8,622
8,622
8,622
9,340
9,340
9,340
9,340
9,340
10,059
10,059
10,059
10,059
10,059
10,777
10,777
10,777
10,777
10,777
11,496
11,496
11,496
11,496
8,220
8,967
8,967
8,967
8,967
8,967
9,714
9,714
9,714
9,714
9,714
10,461
10,461
10,461
10,461
10,461
11,209
11,209
11,209
11,209
11,209
11,956
11,956
11,956
11,956
11,956
9,326
9,326
9,326
9,326
9,326
10,103
10,103
10,103
10,103
10,103
10,880
10,880
10,880
10,880
10,880
11,657
11,657
11,657
11,657
11,657
12,434
12,434
12,434
12,434
12,434
12,434
This is a hypothetical example that illustrates values for a single annuitant. This example does not demonstrate
an actual crediting scenario and is not a projection of the future results.
Withdrawals
Withdrawals may be made at anytime as provided
by the annuity. Withdrawals from your annuity
will reduce the Accumulation Period Withdrawal
Payment Base by the same percentage reduction
made to the annuity’s Account Value.
Page 4
Page 9
ADDITIONAL DETAILS
Example: A $20,000 withdrawal is made. The Account Value is $250,000 before the withdrawal. After
the withdrawal the Account Value is $230,000, or 92% of the Account Value before the withdrawal. The
Accumulation Period Withdrawal Payment Base is $240,000 before the withdrawal. It is multiplied by
92% and equals $220,800 after the Withdrawal.
Issue Ages
Income Outlook Plus 5 may be added to the
annuity only at the time of purchase, regardless
of age.
Account Value
Premium Allocation
Premiums may be allocated to any Interest
Credit Options and in any combination that
is allowed by the annuity. All premiums paid
during the Accumulation Period are guaranteed
to be included in the Accumulation Period
Withdrawal Payment Base and will receive the
4% guaranteed interest rate.
$250,000
- 20,000
$230,000
Age
60-64
65-69
70-74
75-79
80-84
85-89
90+
Page 8
Percentage
5.00%
5.50%
6.00%
6.50%
7.00%
7.50%
8.00%
$240,000
x
.92
$220,800
During the Withdrawal Period
The Withdrawal Payment amount you choose to receive is guaranteed to be paid for your lifetime if it
does not exceed the Maximum Guaranteed Annual Withdrawal Payment. The Maximum Guaranteed
Annual Withdrawal Payment will remain level unless there is a Step-Up in the Withdrawal Payment
Base, or you take an Additional Withdrawal.
Two annuitants are allowed on this rider only.
The Withdrawal Payment is guaranteed to
be paid until the death of the last surviving
annuitant. The Guaranteed Withdrawal
Percentage is based on the age of the younger
annuitant.
The table below has the Guaranteed Withdrawal
Percentages for a single annuitant.
230,000 ÷ 250,000 = 92%
The Accumulation Period ends when you begin taking Withdrawal Payments. At that time, the
Withdrawal Period begins.
Annuitants
The Annuitant and Joint Annuitant, if any,
cannot be changed after the annuity is issued.
Guaranteed Withdrawal Percentages
The Guaranteed Withdrawal Percentage is based
on your age on the Policy Anniversary that you
begin Withdrawal Payments.
Accumulation Period Withdrawal
Payment Base
You may receive your Withdrawal Payment annually, semi-annually, quarterly, or monthly. Each
payment must be at least $100. Any election to start or stop Withdrawal Payments must be received at
National Western Life Insurance Company® at least 20 days prior to the Policy Anniversary.
When the Withdrawal Period begins:
The table below has the Guaranteed
Withdrawal Percentages when there are joint
annuitants. The percentage is based on the
age of the younger annuitant on the Policy
Anniversary that you begin Withdrawal
Payments.
Age
Percentage
60-64
65-69
70-74
75-79
80-84
85-89
90+
4.00%
4.50%
5.00%
5.50%
6.00%
6.50%
7.00%
•
•
•
•
•
The Guaranteed Withdrawal Percentage is determined;
The Withdrawal Payment Base is increased to the annuity’s Account Value* if it is larger;
The Maximum Guaranteed Annual Withdrawal Payment is calculated;
Any outstanding loan must be repaid;
No more loans or Systematic Withdrawals of Interest from the Account Value of the Policy may
be taken; and
• Any applicable penalty-free withdrawal amount that is available each Policy Year under the base annuity policy will be reduced by the Withdrawal Payment.
*If the base annuity policy has a premium bonus that is not included in the Account Value, then for purposes of Restart, Step-Up, and
Withdrawal Payment Base, the Account Value will be increased by any applicable base annuity Vested Bonus Value.
The Guaranteed Withdrawal Percentage is based on your age at the beginning of the Withdrawal Period.
This percentage will not change during the Withdrawal Period.
The Maximum Guaranteed Annual Withdrawal Payment equals the Withdrawal Payment Base
multiplied by the Guaranteed Withdrawal Percentage.
Example: Five years ago, you purchased an annuity with Income Outlook Plus 5 with $100,000 and
have now decided to begin Withdrawal Payments. The Withdrawal Payment Base is now $121,665
after five years of 4% interest and your Guaranteed Withdrawal Percentage is 6.5%. At this time, your
Maximum Guaranteed Annual Withdrawal Payment is $7,908 and your annuity’s Account Value
is $131,317. Therefore, the Withdrawal Payment Base is increased to the Account Value and your
Maximum Guaranteed Annual Withdrawal Payment is $8,536.
Page 5
Step-Up
On each Policy Anniversary during the Withdrawal Period, the Withdrawal Payment Base will be
compared to the annuity’s Account Value*. If the Account Value* is larger than the Withdrawal Payment
Base, the Withdrawal Payment Base will Step-Up to the Account Value*.
Following the Step-Up, the Maximum Guaranteed Annual Withdrawal Payment is recalculated and
increased, based on this higher Withdrawal Payment Base. These payments are guaranteed for your
lifetime.
Example: At the end of two years of Withdrawal Payments, your annuity’s Account Value has grown
to $132,725. Your Withdrawal Payment Base of $131,317 will Step-Up to $132,725. The Maximum
Guaranteed Annual Withdrawal Payment will be increased to $8,627, which equals the Withdrawal
Payment Base of $132,725 multiplied by the Guaranteed Withdrawal Percentage of 6.5%.
*If the base annuity policy has a premium bonus that is not included in the Account Value, then for purposes of Restart, Step-Up, and
Withdrawal Payment Base, the Account Value will be increased by any applicable base annuity Vested Bonus Value.
Additional Withdrawals
An Additional Withdrawal is any withdrawal that is not a Withdrawal Payment and may be made at
anytime during the Withdrawal Period. Additional Withdrawals reduce the Withdrawal Payment Base
and Withdrawal Payments using the pro-rata adjustment factor. The pro-rata adjustment factor is based
on the change in Account Value due to the Additional Withdrawal.
The Maximum Guaranteed Annual Withdrawal Payment will change to equal the Guaranteed
Withdrawal Percentage multiplied by the Withdrawal Payment Base after the Additional Withdrawal.
The new Maximum Guaranteed Annual Withdrawal Payment will become effective on the Policy
Anniversary following the Additional Withdrawal.
Rider Bonus Vesting Schedule
For purposes of Additional Withdrawals, full surrenders, or annuitization, the Rider Bonus is available
on a pro-rata basis based on the Rider Bonus Vesting Schedule shown on Page 1 of the Rider and detailed
below:
Rider Bonus Vesting Schedule
Policy Years 1 - 7
Policy Year 8
Policy Year 9
Policy Year 10 and later
[0%]
[25%]
[50%]
[100%]
Therefore, in accordance with the Rider Bonus Vesting Schedule above, if you take any Additional
Withdrawals, fully surrender, or annuitize pursuant to the terms of the Policy/Contract to which this
rider is attached, no portion of the Rider Bonus will be available to you in years 1-7, and only a limited
portion will be available in years 8 and 9.
Beginning in Policy Year 10, the full Rider Bonus will be available.
Required Minimum Distributions (RMDs)
If the RMD payment is greater than the Maximum Guaranteed Annual Withdrawal Payment, the
additional amount withdrawn to meet the RMD payment will not be considered an Additional
Withdrawal.
Page 6
How Is The Maximum Guaranteed Annual Withdrawal Payment (MGAWP) Calculated?
Policy Annuitants
Years
Age
Scenario 1
Scenario 2
Scenario 3
Age 65 - 1 Year Accumulation
Age 65 - 5 Year Accumulation
Age 65 - 10 Year Accumulation
Withdrawal
Payment
Base
Guaranteed
Withdrawal
Percentage
MGAWP
Withdrawal
Payment
Base
Guaranteed
Withdrawal
Percentage
MGAWP
Withdrawal
Payment
Base
0
65
105,000
105,000
105,000
1
66
109,200
5.50%
6,006
109,200
109,200
2
67
109,200
5.50%
6,006
113,568
113,568
3
68
109,200
5.50%
6,006
118,111
118,111
4
69
109,200
5.50%
6,006
122,835
122,835
5
70
109,200
5.50%
6,006
127,749
6.00%
7,665
127,749
6
71
109,200
5.50%
6,006
127,749
6.00%
7,665
132,858
7
72
109,200
5.50%
6,006
127,749
6.00%
7,665
138,173
8
73
109,200
5.50%
6,006
127,749
6.00%
7,665
143,700
Guaranteed
Withdrawal
Percentage
MGAWP
9
74
109,200
5.50%
6,006
127,749
6.00%
7,665
149,448
10
75
109,200
5.50%
6,006
127,749
6.00%
7,665
155,426
6.50%
10,103
11
76
109,200
5.50%
6,006
127,749
6.00%
7,665
155,426
6.50%
10,103
12
77
109,200
5.50%
6,006
127,749
6.00%
7,665
155,426
6.50%
10,103
13
78
109,200
5.50%
6,006
127,749
6.00%
7,665
155,426
6.50%
10,103
14
79
109,200
5.50%
6,006
127,749
6.00%
7,665
155,426
6.50%
10,103
15
80
109,200
5.50%
6,006
127,749
6.00%
7,665
155,426
6.50%
10,103
This is a hypothetical example that illustrates values for a single annuitant. This example does not demonstrate
an actual crediting scenario and is not a projection of the future results.
Page 7
Step-Up
On each Policy Anniversary during the Withdrawal Period, the Withdrawal Payment Base will be
compared to the annuity’s Account Value*. If the Account Value* is larger than the Withdrawal Payment
Base, the Withdrawal Payment Base will Step-Up to the Account Value*.
Following the Step-Up, the Maximum Guaranteed Annual Withdrawal Payment is recalculated and
increased, based on this higher Withdrawal Payment Base. These payments are guaranteed for your
lifetime.
Example: At the end of two years of Withdrawal Payments, your annuity’s Account Value has grown
to $132,725. Your Withdrawal Payment Base of $131,317 will Step-Up to $132,725. The Maximum
Guaranteed Annual Withdrawal Payment will be increased to $8,627, which equals the Withdrawal
Payment Base of $132,725 multiplied by the Guaranteed Withdrawal Percentage of 6.5%.
*If the base annuity policy has a premium bonus that is not included in the Account Value, then for purposes of Restart, Step-Up, and
Withdrawal Payment Base, the Account Value will be increased by any applicable base annuity Vested Bonus Value.
Additional Withdrawals
An Additional Withdrawal is any withdrawal that is not a Withdrawal Payment and may be made at
anytime during the Withdrawal Period. Additional Withdrawals reduce the Withdrawal Payment Base
and Withdrawal Payments using the pro-rata adjustment factor. The pro-rata adjustment factor is based
on the change in Account Value due to the Additional Withdrawal.
The Maximum Guaranteed Annual Withdrawal Payment will change to equal the Guaranteed
Withdrawal Percentage multiplied by the Withdrawal Payment Base after the Additional Withdrawal.
The new Maximum Guaranteed Annual Withdrawal Payment will become effective on the Policy
Anniversary following the Additional Withdrawal.
Rider Bonus Vesting Schedule
For purposes of Additional Withdrawals, full surrenders, or annuitization, the Rider Bonus is available
on a pro-rata basis based on the Rider Bonus Vesting Schedule shown on Page 1 of the Rider and detailed
below:
Rider Bonus Vesting Schedule
Policy Years 1 - 7
Policy Year 8
Policy Year 9
Policy Year 10 and later
[0%]
[25%]
[50%]
[100%]
Therefore, in accordance with the Rider Bonus Vesting Schedule above, if you take any Additional
Withdrawals, fully surrender, or annuitize pursuant to the terms of the Policy/Contract to which this
rider is attached, no portion of the Rider Bonus will be available to you in years 1-7, and only a limited
portion will be available in years 8 and 9.
Beginning in Policy Year 10, the full Rider Bonus will be available.
Required Minimum Distributions (RMDs)
If the RMD payment is greater than the Maximum Guaranteed Annual Withdrawal Payment, the
additional amount withdrawn to meet the RMD payment will not be considered an Additional
Withdrawal.
Page 6
How Is The Maximum Guaranteed Annual Withdrawal Payment (MGAWP) Calculated?
Policy Annuitants
Years
Age
Scenario 1
Scenario 2
Scenario 3
Age 65 - 1 Year Accumulation
Age 65 - 5 Year Accumulation
Age 65 - 10 Year Accumulation
Withdrawal
Payment
Base
Guaranteed
Withdrawal
Percentage
MGAWP
Withdrawal
Payment
Base
Guaranteed
Withdrawal
Percentage
MGAWP
Withdrawal
Payment
Base
0
65
105,000
105,000
105,000
1
66
109,200
5.50%
6,006
109,200
109,200
2
67
109,200
5.50%
6,006
113,568
113,568
3
68
109,200
5.50%
6,006
118,111
118,111
4
69
109,200
5.50%
6,006
122,835
122,835
5
70
109,200
5.50%
6,006
127,749
6.00%
7,665
127,749
6
71
109,200
5.50%
6,006
127,749
6.00%
7,665
132,858
7
72
109,200
5.50%
6,006
127,749
6.00%
7,665
138,173
8
73
109,200
5.50%
6,006
127,749
6.00%
7,665
143,700
Guaranteed
Withdrawal
Percentage
MGAWP
9
74
109,200
5.50%
6,006
127,749
6.00%
7,665
149,448
10
75
109,200
5.50%
6,006
127,749
6.00%
7,665
155,426
6.50%
10,103
11
76
109,200
5.50%
6,006
127,749
6.00%
7,665
155,426
6.50%
10,103
12
77
109,200
5.50%
6,006
127,749
6.00%
7,665
155,426
6.50%
10,103
13
78
109,200
5.50%
6,006
127,749
6.00%
7,665
155,426
6.50%
10,103
14
79
109,200
5.50%
6,006
127,749
6.00%
7,665
155,426
6.50%
10,103
15
80
109,200
5.50%
6,006
127,749
6.00%
7,665
155,426
6.50%
10,103
This is a hypothetical example that illustrates values for a single annuitant. This example does not demonstrate
an actual crediting scenario and is not a projection of the future results.
Page 7
ADDITIONAL DETAILS
Example: A $20,000 withdrawal is made. The Account Value is $250,000 before the withdrawal. After
the withdrawal the Account Value is $230,000, or 92% of the Account Value before the withdrawal. The
Accumulation Period Withdrawal Payment Base is $240,000 before the withdrawal. It is multiplied by
92% and equals $220,800 after the Withdrawal.
Issue Ages
Income Outlook Plus 5 may be added to the
annuity only at the time of purchase, regardless
of age.
Account Value
Premium Allocation
Premiums may be allocated to any Interest
Credit Options and in any combination that
is allowed by the annuity. All premiums paid
during the Accumulation Period are guaranteed
to be included in the Accumulation Period
Withdrawal Payment Base and will receive the
4% guaranteed interest rate.
$250,000
- 20,000
$230,000
Age
60-64
65-69
70-74
75-79
80-84
85-89
90+
Page 8
Percentage
5.00%
5.50%
6.00%
6.50%
7.00%
7.50%
8.00%
$240,000
x
.92
$220,800
During the Withdrawal Period
The Withdrawal Payment amount you choose to receive is guaranteed to be paid for your lifetime if it
does not exceed the Maximum Guaranteed Annual Withdrawal Payment. The Maximum Guaranteed
Annual Withdrawal Payment will remain level unless there is a Step-Up in the Withdrawal Payment
Base, or you take an Additional Withdrawal.
Two annuitants are allowed on this rider only.
The Withdrawal Payment is guaranteed to
be paid until the death of the last surviving
annuitant. The Guaranteed Withdrawal
Percentage is based on the age of the younger
annuitant.
The table below has the Guaranteed Withdrawal
Percentages for a single annuitant.
230,000 ÷ 250,000 = 92%
The Accumulation Period ends when you begin taking Withdrawal Payments. At that time, the
Withdrawal Period begins.
Annuitants
The Annuitant and Joint Annuitant, if any,
cannot be changed after the annuity is issued.
Guaranteed Withdrawal Percentages
The Guaranteed Withdrawal Percentage is based
on your age on the Policy Anniversary that you
begin Withdrawal Payments.
Accumulation Period Withdrawal
Payment Base
You may receive your Withdrawal Payment annually, semi-annually, quarterly, or monthly. Each
payment must be at least $100. Any election to start or stop Withdrawal Payments must be received at
National Western Life Insurance Company® at least 20 days prior to the Policy Anniversary.
When the Withdrawal Period begins:
The table below has the Guaranteed
Withdrawal Percentages when there are joint
annuitants. The percentage is based on the
age of the younger annuitant on the Policy
Anniversary that you begin Withdrawal
Payments.
Age
Percentage
60-64
65-69
70-74
75-79
80-84
85-89
90+
4.00%
4.50%
5.00%
5.50%
6.00%
6.50%
7.00%
•
•
•
•
•
The Guaranteed Withdrawal Percentage is determined;
The Withdrawal Payment Base is increased to the annuity’s Account Value* if it is larger;
The Maximum Guaranteed Annual Withdrawal Payment is calculated;
Any outstanding loan must be repaid;
No more loans or Systematic Withdrawals of Interest from the Account Value of the Policy may
be taken; and
• Any applicable penalty-free withdrawal amount that is available each Policy Year under the base annuity policy will be reduced by the Withdrawal Payment.
*If the base annuity policy has a premium bonus that is not included in the Account Value, then for purposes of Restart, Step-Up, and
Withdrawal Payment Base, the Account Value will be increased by any applicable base annuity Vested Bonus Value.
The Guaranteed Withdrawal Percentage is based on your age at the beginning of the Withdrawal Period.
This percentage will not change during the Withdrawal Period.
The Maximum Guaranteed Annual Withdrawal Payment equals the Withdrawal Payment Base
multiplied by the Guaranteed Withdrawal Percentage.
Example: Five years ago, you purchased an annuity with Income Outlook Plus 5 with $100,000 and
have now decided to begin Withdrawal Payments. The Withdrawal Payment Base is now $121,665
after five years of 4% interest and your Guaranteed Withdrawal Percentage is 6.5%. At this time, your
Maximum Guaranteed Annual Withdrawal Payment is $7,908 and your annuity’s Account Value
is $131,317. Therefore, the Withdrawal Payment Base is increased to the Account Value and your
Maximum Guaranteed Annual Withdrawal Payment is $8,536.
Page 5
The Income Outlook Plus 5 rider has two periods,
the Accumulation Period and the Withdrawal
Period. Each period is described as follows.
During the Accumulation Period
The Accumulation Period Withdrawal Payment
Base has a 4% interest rate that is guaranteed each
year during the Accumulation Period.
The Accumulation Period Withdrawal Payment
Base initially equals the premium paid, plus any
applicable premium bonus. Additional premiums
paid and premium bonuses, if applicable, will be
added to the Accumulation Period Withdrawal
Payment Base when they are received. Withdrawals
made from the Account Value will reduce the
Accumulation Period Withdrawal Payment Base.
As the Payment Base grows, so do your guaranteed
Withdrawal Payments for life.
Restart
During the Accumulation Period, you may Restart
the 4% guaranteed interest rate anytime after
the fifth Policy Year. At the time you Restart the
Accumulation Period, the following will happen:
• The 4% guaranteed interest rate on the
Accumulation Period Withdrawal Payment Base
will be guaranteed from Restart;
• The Accumulation Period Withdrawal Payment
Base will be increased to the annuity’s Account
Value*, if larger; and
• The Annual Rider Charge Rate may change, but will
not be higher than the maximum guaranteed charge
of 1.5%. You must wait five years after each
Restart before beginning a new Accumulation
Period.
*If the base annuity policy has a premium bonus that is not included
in the Account Value, then for purposes of Restart, Step-Up, and
Withdrawal Payment Base, the Account Value will be increased by any
applicable base annuity Vested Bonus Value.
$100,000 Premium – Maximum Guaranteed Annual Withdrawal Payments - Single Annuitant
Number of Full Years of Accumulation before Withdrawal Payments Begin
Issue
Age
1
2
3
4
5
6
7
8
9
10
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
5,460
5,460
5,460
5,460
6,006
6,006
6,006
6,006
6,006
6,552
6,552
6,552
6,552
6,552
7,098
7,098
7,098
7,098
7,098
7,644
7,644
7,644
7,644
7,644
8,190
8,190
5,678
5,678
5,678
6,246
6,246
6,246
6,246
6,246
6,814
6,814
6,814
6,814
6,814
7,382
7,382
7,382
7,382
7,382
7,950
7,950
7,950
7,950
7,950
8,518
8,518
8,518
5,906
5,906
6,496
6,496
6,496
6,496
6,496
7,087
7,087
7,087
7,087
7,087
7,677
7,677
7,677
7,677
7,677
8,268
8,268
8,268
8,268
8,268
8,858
8,858
8,858
8,858
6,142
6,756
6,756
6,756
6,756
6,756
7,370
7,370
7,370
7,370
7,370
7,984
7,984
7,984
7,984
7,984
8,598
8,598
8,598
8,598
8,598
9,213
9,213
9,213
9,213
9,213
7,026
7,026
7,026
7,026
7,026
7,665
7,665
7,665
7,665
7,665
8,304
8,304
8,304
8,304
8,304
8,942
8,942
8,942
8,942
8,942
9,581
9,581
9,581
9,581
9,581
10,220
7,307
7,307
7,307
7,307
7,972
7,972
7,972
7,972
7,972
8,636
8,636
8,636
8,636
8,636
9,300
9,300
9,300
9,300
9,300
9,964
9,964
9,964
9,964
9,964
10,629
10,629
7,600
7,600
7,600
8,290
8,290
8,290
8,290
8,290
8,981
8,981
8,981
8,981
8,981
9,672
9,672
9,672
9,672
9,672
10,363
10,363
10,363
10,363
10,363
11,054
11,054
11,054
7,903
7,903
8,622
8,622
8,622
8,622
8,622
9,340
9,340
9,340
9,340
9,340
10,059
10,059
10,059
10,059
10,059
10,777
10,777
10,777
10,777
10,777
11,496
11,496
11,496
11,496
8,220
8,967
8,967
8,967
8,967
8,967
9,714
9,714
9,714
9,714
9,714
10,461
10,461
10,461
10,461
10,461
11,209
11,209
11,209
11,209
11,209
11,956
11,956
11,956
11,956
11,956
9,326
9,326
9,326
9,326
9,326
10,103
10,103
10,103
10,103
10,103
10,880
10,880
10,880
10,880
10,880
11,657
11,657
11,657
11,657
11,657
12,434
12,434
12,434
12,434
12,434
12,434
This is a hypothetical example that illustrates values for a single annuitant. This example does not demonstrate
an actual crediting scenario and is not a projection of the future results.
Withdrawals
Withdrawals may be made at anytime as provided
by the annuity. Withdrawals from your annuity
will reduce the Accumulation Period Withdrawal
Payment Base by the same percentage reduction
made to the annuity’s Account Value.
Page 4
Page 9
Cancellation
You may cancel this rider at anytime. The rider
will terminate when the annuity terminates for
any reason or when the Maximum Guaranteed
Annual Withdrawal Payment is less than $100.
CONCLUSION
Income Outlook Plus 5 from National
Western Life provides the security of a
guaranteed income stream you can not
outlive in retirement. This rider also offers the
opportunity for larger income benefits when
indexed interest credits increase your annuity’s
Account Value. It also gives you control of your
annuity as your needs change and access to your
money if needed.
About the Company
National Western Life Insurance Company® is a
Colorado corporation with executive offices in
Austin, Texas. The Company offers a full line
of life insurance and annuity products (both
on an individual and group basis), through
independent agency offices in 49 states and the
District of Columbia, and accepts applications
from residents of several foreign countries. Visit
our website at www.nationalwesternlife.com for
all current financial information.
Since its start in 1956, National Western has
emphasized financial strength for the protection
of its policyholders. As a legal reserve insurance
company, National Western must set aside a
portion of its assets equal to reserves required
by law. Annually, a financial statement is filed
with each state’s insurance department. These
departments have authority to verify that the
appropriate reserves are maintained.
Page 10
INCOME OUTLOOK PLUS 5
DETAILS
Income Outlook Plus 5 is available to add as
a rider to your National Western Life indexed
annuity only at the time of purchase.
The Withdrawal Payment is the amount you
choose to receive each year. The Maximum
Guaranteed Annual Withdrawal Payment is
guaranteed to be paid for your lifetime if no
Additional Withdrawals are taken. Your age
must be at least 60 before Withdrawal Payments
may begin. You may begin taking Withdrawal
Payments as early as the first Policy Anniversary
or any Policy Anniversary you choose after that.
The Withdrawal Payments taken under this
rider are deducted from the annuity’s Account
Value and will not incur any withdrawal
charges.
There is an Annual Rider Charge for this benefit
on each Policy Anniversary, beginning with
the first. The Annual Rider Charge Rate is
determined on the Policy Date and is shown
on page 1 of the rider. This rate is guaranteed
not to change while this rider is in force unless
Restart (as described below) is elected and will
never exceed the maximum rate of 1.5%.
There is a Rider Bonus added to the
Accumulation Period Withdrawal Payment
Base. The Rider Bonus is the Rider Bonus Rate
shown on Page 1 of the rider multiplied by the
premium received during the first Policy Year.
The Rider Bonus is credited with interest at the
same rate as the Account Value of the Policy.
The Rider Bonus is available on a pro-rata basis
based on the Rider Bonus Vesting Schedule
shown on Page 1 of the rider and described
on page 6 of this disclosure for Additional
Withdrawals, full surrender, or annuitization
of the Policy. This means the Rider Bonus will
not be available in all Policy Years, as described
more fully on page 6 of this disclosure. The
Rider Bonus is fully included in the Account
Value for purposes of the Death Benefit.
Page 3
INCOME OUTLOOK PLUS 5
NWL®’s Next Generation Benefit Rider
Enjoy the benefits of guaranteed lifetime retirement income with
enhanced accumulations and control of your annuity!
National Western Life requires that the Agent review this entire brochure with you.
NWL®’s Income Outlook Plus 5 provides:
• Great growth potential for your lifetime Withdrawal Payments…
• Control of when your Withdrawal Payments begin…
• Guaranteed Withdrawal Percentages that increase at selected ages…
• Access to your money for Additional Withdrawals remains…
• Guaranteed Withdrawal Payments for life anytime after the age of 60!
Adding Income Outlook Plus 5 to your National Western Life indexed annuity at purchase will give you
all of these benefits. This withdrawal benefit rider works with all of your annuity’s traditional benefits
and enhances the benefits with guaranteed Withdrawal Payments you cannot outlive.
INCOME OUTLOOK PLUS 5 HIGHLIGHTS
Income Outlook Plus 5 guarantees during the Accumulation Period:
• 4% interest on the Accumulation Period Withdrawal Payment Base until lifetime Withdrawal
Payments begin
• 5% Rider Bonus on the premiums received in the first Policy Year subject to the Rider Bonus
Vesting Schedule
• The Guaranteed Withdrawal Percentages increase at every fifth age until age 90 or until the lifetime
Withdrawal Payments begin
• Access to the annuity’s Account Value remains
• The option to Restart the ten year Accumulation Period at the end of the fifth Policy Year
Income Outlook Plus 5 guarantees during the Withdrawal Period:
• Withdrawal Payments that can be paid for life
• The ability to stop and start Withdrawal Payments
• No withdrawal charges on Withdrawal Payments taken under this rider
• The Withdrawal Payment Base to Step-Up to the annuity’s Account Value* if larger, when the Withdrawal Period begins and each Policy Anniversary thereafter
• Access to the annuity’s Account Value remains
• Required Minimum Distribution friendly
Page 2
NATIONAL WESTERN LIFE
INSURANCE COMPANY®
Income Outlook Plus 5 - Withdrawal Benefit Rider
Thank you for choosing to add Income Outlook Plus 5 to your
National Western Life indexed annuity. If you have any questions, please contact your agent or call National Western’s
Customer Service Department at 1-800-922-9422.
Income Outlook Plus 5 - Withdrawal Benefit Rider
Thank you for choosing to add Income Outlook Plus 5 to your
National Western Life indexed annuity. If you have any questions, please contact your agent or call National Western’s
Customer Service Department at 1-800-922-9422.
We want to be sure that you read all 12 pages of this
brochure and are aware of the benefits and features explained herein. Please initial and sign where indicated with
an asterisk (*), acknowledging that you understand the
following:
We want to be sure that you read all 12 pages of this
brochure and are aware of the benefits and features explained herein. Please initial and sign where indicated with
an asterisk (*), acknowledging that you understand the
following:
• T
his is a withdrawal benefit rider that guarantees lifetime
Withdrawal Payments after age 60.
• T
his is a withdrawal benefit rider that guarantees lifetime
Withdrawal Payments after age 60.
• F
or purposes of this brochure, the assumption is that the
Annuitant and Owner are the same.
• Once the Withdrawal Payments begin, there is no further
Accumulation Period available.
• The full benefits of this rider are not obtained if the
Withdrawal Payments are never taken.
• The Account Value of the policy is reduced each year by the
Annual Rider Charge shown on page 1 of the rider, regardless
of whether Withdrawal Payments are taken.
• If at the end of Accumulation Period you have not yet
requested Withdrawal Payments or elected the Restart
option, the Annual Rider Charge will continue to be
deducted from the Account Value and the Accumulation
Period Withdrawal Payment Base will no longer accumulate
with interest.
• A ny election to start or stop Withdrawal Payments
must be received at National Western Life Insurance
Company at least 20 days prior to the Policy
Anniversary.
• F
or purposes of this brochure, the assumption is that the
Annuitant and Owner are the same.
• Once the Withdrawal Payments begin, there is no further
Accumulation Period available.
• The full benefits of this rider are not obtained if the
Withdrawal Payments are never taken.
• The Account Value of the policy is reduced each year by the
Annual Rider Charge shown on page 1 of the rider, regardless
of whether Withdrawal Payments are taken.
• If at the end of Accumulation Period you have not yet
requested Withdrawal Payments or elected the Restart
option, the Annual Rider Charge will continue to be
deducted from the Account Value and the Accumulation
Period Withdrawal Payment Base will no longer accumulate
with interest.
• A ny election to start or stop Withdrawal Payments
must be received at National Western Life Insurance
Company at least 20 days prior to the Policy
Anniversary.
______* The above-stated features have been fully explained
to me.
______* The above-stated features have been fully explained
to me.
I have received a copy of this brochure, and I have reviewed
it with my agent. I fully understand the brochure and the
specific points outlined above. The brochure is not a part
of the rider and does not modify it in any way. The rider
itself contains all terms, benefits, guarantees, limitations, restrictions, and exclusions.
I have received a copy of this brochure, and I have reviewed
it with my agent. I fully understand the brochure and the
specific points outlined above. The brochure is not a part
of the rider and does not modify it in any way. The rider
itself contains all terms, benefits, guarantees, limitations, restrictions, and exclusions.
______________________________________
______________________________________
*Applicant’s Signature *Applicant’s Signature • The Maximum Guaranteed Annual Withdrawal Payment increases each time there is a Step-Up in
the Withdrawal Payment Base
NATIONAL WESTERN LIFE
INSURANCE COMPANY®
*If the base annuity policy has a premium bonus that is not included in the Account Value, then for purposes of Restart, Step-Up, and Withdrawal Payment Base, the Account Value will be increased by any applicable base annuity Vested Bonus Value.
Date
Date
I certify that I reviewed this brochure with the applicant
I certify that I reviewed this brochure with the applicant
______________________________________
______________________________________
Agent’s Signature & Agent No.
Agent’s Signature & Agent No.
Date
Submit with Application
Applicant to Retain
DM-1120-SIG.Rev.1.13
Date
DM-1120-SIG.Rev.1.13
Page 11
Page 11
NWL®’s Withdrawal Benefit Rider
01-3128-09
CLIENT SERVICES TOLL-FREE 800-922-9422 • FAX 512-339-8350
www.nationalwesternlife.com
CLIENT SERVICES TOLL-FREE 800-922-9422 • FAX 512-339-8350
www.nationalwesternlife.com
Still A Sure WIN to Provide Security For Your Withdrawal Income Needs!
Optional Benefit Available on Indexed Annuities
DM-1120.Rev.1.13
National Western Life Insurance Company® • 850 East Anderson Lane • Austin, Texas 78752