Product Information
Target Market
- For clients who:
- Want principal protection
- Are accumulation-focused
- Are conservative but need upside potential
- Are up to age 85
- Have at least $25,000 to invest
Key Features
- Protection from market risk
- Growth potential with guarantees
- Guaranteed retirement income
- Protection for a spouse
- Tax deferral
Rate Sheets
Refer to the state-specific rate sheets below for the most current crediting factors available.
- Review the current rates, caps and participation rates for the Nationwide Peak 10 Fixed Indexed Annuity in AK, CT, IA, MN, MS, MO, NH, NJ, NV, OH, OK, PA, RI, SC, TX, UT, WA, WY.
- Review the current rates, caps and participation rates for the Nationwide Peak 10 Fixed Indexed Annuity in AL, AZ, AR, CO, DC, FL, GA, HI, IL, IN, KS, KY, LA, MA, MD, ME, MI, MT, NC, NE, ND, NM, SD, TN, VA, VT, WV, WI.
Past performance is no guarantee of future results. Rate guarantees are subject to the claims-paying ability of the issuing company. Guarantees do not apply to the performance of the index. Fixed rates are subject to change.
Product Details
Product Type: Individual, single-purchase-payment deferred fixed indexed annuity
Maximum Issue Age
Annuitant: 85 for the single and joint options
Owner: Any age
Minimum Initial Purchase Amount
$25,000 - qualified or nonqualified single purchase payment
Plan Types
- Nonqualified
- IRA
- Roth IRA
- Sep IRA
- SIMPLE IRA
- Charitable remainder trust
- 401(a) (investment only)
Contract Value Tiers
- $0 - $99,000
- $100,000 or more
Death Benefit
The death benefit will be equal to the contract value.
Joint Option for Death Benefit
Allows for a spouse to be named as the co-annuitant; the death benefit is payable upon the first death.
Annuity Commencement Date
Available after two years (one year in Florida) or the date the annuitant reaches age 100, unless another date is chosen by the contract owner.
Lifetime Income Options
The contract includes two options. For both options, the income benefit base is equal to the higher of the contract value or the roll-up amount. Guaranteed lifetime withdrawals won’t decrease even if the contract value drops to zero and there is no waiting period — they can begin at any time.
Guaranteed Income Solution
Cost: It’s built in — no additional cost
Roll-up Rate: 4% simple interest on the income benefit base for 10 years or until the first withdrawal, whichever is first
Bonus Income+ Rider
Cost: single life - 1.00%; joint life - 1.30%
Bonus: 20% credit to the income benefit base on the first day - no vesting
Roll-up Rate: 8% simple interest on the income benefit base for 10 years or until the first lifetime withdrawal, whichever is first
One nonlifetime withdrawal that will neither stop the roll-up nor lock in the lifetime withdrawal percentage; available after the first contract year.
Required minimum distribution (RMD) friendly.
Crediting Options and Calculations
Your client's contract value may be allocated to a maximum of five account options at any given time (whole-number percentages only); an account option is either a) the fixed account or b) the combination of an index account plus a crediting option.
Index Cap
A limit placed on the maximum interest rate that can be credited to your contract. It is not guaranteed and may vary for each subsequent term.
Participation Rate
The proportion of index performance that is reflected in the strategy earnings calculation.
Strategy Spread
An annual percentage rate that is deducted when calculating strategy earnings.
Strategy Term
The 1- or 2-year period for which index performance is tracked and used to calculate earnings at the end of each strategy term.
1-Year Terms
Available for fixed and index cap crediting options:
- The fixed account earns interest daily.
- Index cap terms begin when your contract is issued and last until the first contract anniversary; each subsequent term lasts from contract anniversary to contract anniversary.
- Index cap earnings are determined by multiplying the contract value allocated to the index on the last day of a one-year term by the percent change in the index value from the beginning of the index period until the end of the index period, subject to the cap; earnings are applied at the end of a one-year index period.
2-Year Terms
Available for index participation rate crediting options:
- Participation index terms begin when your contract is issued, and they last until the second contract anniversary with subsequent 2-year terms (subject to change).
- (INDEX CHANGE x PARTICIPATION RATE) - (SPREAD RATE² x # YEARS) Participation rate crediting option earnings are calculated using the index performance as a proportion of the index change.
- Earnings are applied at the end of a 2-year index period; your account will not result in a loss due to an index's negative performance or performance equaling 0% at the end of the index term.
Access to Money and Withdrawals
Withdrawals at any time may be subject to ordinary income taxes. If a withdrawal is made before the client is age 59½, it may be subject to a 10% early withdrawal federal tax penalty.
Surrender Charge Schedule
10%, 10%, 9%, 8%, 7%, 6%, 5%, 4%, 3%, 0% for AL, AZ, AR, CO, DC, FL, GA, HI, IL, IN, KS, KY, LA, ME, MD, MA, MI, MT, NC, NE, NM, ND, SD, TN, VA, VT, WV, WI.
9.2%, 8.9%, 7.9%, 7%, 6%, 5%, 4%, 3%, 2%, 1%, 0% for AK, CT, IA, ID, MN, MO, MS, NH, NJ, NV, OH, OK, OR, PA, RI, SC, TX, UT, WA, WY.
Free Withdrawals
10% annually of the contract value at the beginning of the term (noncumulative). Withdrawals will not receive any index account earnings.
Market Value Adjustment (MVA)
Applies during the surrender charge period to withdrawals in excess of the contract’s free withdrawal amount. Does not apply to withdrawals under a long-term care/confinement waiver, terminal illness/terminal injury waiver or required minimum distributions.
Required Minimum Distribution (RMD)
Available free of surrender charges or MVAs.
Long-Term Care/Confinement Waiver
Available after the first completed contract year. 100% of the contract value may be withdrawn penalty free if the contract owner is confined to a nursing home for a continuous 90-day period; confinement must begin after the contract is issued. May not be available in some states. Maximum issue age of 80.
Terminal Illness or Injury Waiver
Available after the first completed contract year. 100% of the contract value may be withdrawn penalty free if terminal illness or injury is diagnosed after the contract is issued. May not be available in some states. Maximum issue age of 80.
Index Options
Five indexes to choose from:
- AB Growth and Value Balanced Index℠
Dynamic equity exposure rotates between growth and value. Duration-managed bonds help balance interest rate changes. Diversification and target volatility help stabilize results. - BNPP Global H-Factor® Index
Measures the “H-Factor” — human behavior risk — that may cause stocks to be mispriced. Removes equities that have a higher probability of losing value based on quantifiable data. Helps keep volatility low to provide more stable and consistent returns. - J.P. Morgan Cycle℠ Index
Equity style rotation to align with the business cycle. Bond allocation rebalancing based on current market conditions. Domestic-focused, “smart beta” asset allocation. - S&P 500® Price Index
Widely regarded as the best single gauge of large-cap U.S. equities. Includes 500 leading companies. Covers approximately 80% of available market capitalization. - S&P 500 Daily Risk Control™ Index
Relies on S&P 500 methodology and overlays mathematical algorithms to maintain specific volatility targets. Index exposure dynamically rebalanced based on observed S&P 500 historic volatility to maintain a 5% volatility target.
Nationwide Financial Ratings
If you are thinking of buying an annuity it is important to consider the financial strength of the issuing insurance company all guarantees are subject to the claims-paying ability of the insurer.
Nationwide has an A+ A.M. Best Rating and Standard and Poor’s Rating, an A1 rating from Moody’s, and a 90 Comdex Score. In addition to its strong financial ratings, Nationwide has been serving clients since 1925 and is a Fortune 100 Company.
These ratings are certainly extraordinarily strong; the 90 Comdex score indicates they are in the top 90th percentile of all rated insurance companies.
| Nationwide Life & Annuity Company | Rating |
|---|---|
| One Nationwide Plaza, Columbus, OH 43215 | |
| A.M. Best Rating (15 possible ratings) | A+ (2) |
| Moody's (21 possible ratings) | A1 (5) |
| Standard & Poor's (Financial Strength, 20 Ratings) | A+ (5) |
| Comdex (percentile of all rating companies) | 90 |
Fixed Index Annuities
The Nationwide Peak 10 is a fixed index annuity. Indexed Annuities offer returns based on the changes in an underlying index, such as the S&P 500® Composite Stock Price Index, and
- Receive earnings when the underlying index goes up.
- Credit zero percent interest when the underlying index goes down.
Fixed-indexed annuities also offer a specified minimum that the contract value will not fall below, regardless of index performance. A fixed-indexed annuity is not a stock market investment, nor does it directly participate in any stock or equity investment.
Nationwide Peak 10 and Retirement Risks
As life expectancies increase and the responsibility of funding retirement shifts to the individual, a product that offers both growth potential and principal protection is more important than ever. That’s where a fixed-indexed annuity may help.
Guaranteed Lifetime Withdrawal Benefits
The Nationwide Peak 10 Annuity comes offers two-lifetime income rider options available; the Guaranteed Income Solution is included at no cost and the Bonus Income+ Rider can be added for a fee.
- Lifetime withdrawals can begin at any time — there is no waiting period
- Each calendar year, the Income Benefit Base becomes greater than the contract value or the roll-up value.
- Income Benefit Base: The numerical value used to determine how much your lifetime withdrawals will be; it is the higher your contract value or the guaranteed simple interest roll-up. It is not a cash value.
Free Guaranteed Income Solution
This is a built-in feature of your annuity and is included at no additional cost. It offers a 4% simple interest roll-up on the income benefit base (your premium) for 10 years or until the first withdrawal, whichever comes first.
Lifetime Withdrawal Percentages:
Bonus Income+ Rider
Cost: Single life: 1.00%; joint life: 1.30%. An annual fee is charged quarterly on the contract value.
- 10% bonus credited at contract issue and based on the purchase payment/initial premium will be included in the original Income Benefit Base; no vesting schedule
- Guaranteed 7.0% simple interest roll-up of the Income Benefit Base3 for 10 years or until the first-lifetime withdrawal, whichever is first
- Not available with beneficially owned contracts
- A joint life income option is available
- If withdrawals taken for the purpose of RMDs exceed the lifetime withdrawal amount, the Income Benefit Base will not be reduced
- One non-lifetime withdrawal may occur without stopping the simple interest roll-up or locking in the lifetime withdrawal percentage; it can be exercised only once and is available only after the first rider year; once lifetime withdrawals have started, the non-lifetime withdrawal feature is no longer available
Nationwide Peak 10 Hypothetical Historical Performance
The table below lists the hypothetical historical performance of each index crediting option available in the Peak 10 Annuity.
Pros
- They have unique indexes in the Alliance and Bernstein Growth Value and JP Morgan Cycle index.
- Care Concierge is a value-added feature to the product that lets the policyholder and immediate family members have access to telehealth and additional health-related resources.
- Can issue out to age 85.
- Nationwide is an ANNUITANT-driven company.
- Nationwide is the ONLY company to allow such a feature in Qualified Dollars (IRAs, SEP, Roth IRAs)
- Nationwide allows a Co-Annuitant to be named to the contract.
Cons
- A 10-year surrender charge schedule is a long time if you do not intend to use these funds for a lifetime income.
- Brand new index so not a lot of history on how it will perform.
Downloadables:
Get a Nationwide Annuity Quote
Complete the form below and we’ll email you an annuity quote within four business hours. If your request is urgent please contact us at 855-583-1104. Or you can use one of our annuity calculators here.
