Ultra Future by National Western Life with Income Outlook Plus 5 Rider by National Western Life

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Ultra Future is a fixed indexed annuity with 10 year surrender period, available to single persons and couples ages 0-80, it focuses is on producing maximum growth of income base of the future deferred annual income. Contract minimum is $5,000 for nonqualified and for $2,000 qualified funds. Annuitization is available after the end of the 5th contract year. Interest crediting options include indexed and fixed interest rates. There is an initial premium bonus of 9% (most states) applied at the beginning of the contract and also annual bonus of 4.75% for the years 2-5. This annuity offers unique features, such as accidental death benefit and policy loans of up to 60% of the premium. Income Outlook Plus 5 is an optional rider available at the time of contract purchase that guarantees higher stream of income for life, beginning at age 60. It guarantees minimum interest rate of 4% during accumulation period (before payments begin). With this rider the annual withdrawal payments can begin in the 2d year of the contract or later. The annual income percentage is based on the attained age of the annuitant at the time payments start. Income rider offers premium bonus of 5% subject to a 10-year vesting schedule. The current annual rider charge rate is 0.75% annually, it is guaranteed that the rider charge will not exceed 1.5%

Pros:

  • Premium bonuses of 9.00% First Year and 4.75% Years 2-5 with 100% day 1 vesting is credited to the account value and payment base value

  • Currently offers 2.4% interest on fixed interest account

  • 62% first year yield on the fixed interest account including 1st day bonus

  • Minimum guaranteed interest rate is set at the contract signing, usually 1-3%

  • Annuitization is available after the 5th year(after 1st year with income rider)

  • Policy loan of up to 60% of the Contract Value earning fixed rate ONLY is available 30 days after contract issue, current interest rate on the loan is around 7%

  • Accidental Death Benefit – accumulation value in addition to policy death benefit

  • With the Income Outlook Plus 5 Rider income payments can begin in the 2d year of the contract

  • Withdrawal Payments are available: monthly, quarterly, semi-annually, or annually and can be stopped or resumed on contract anniversary

  • Additional withdrawals can be taken while lifetime income payments are being paid. Additional withdrawals will reduce income base

  • Before income payments begin, the client may elect to “restart” a new 10-year period every 5 years, this allows further growth of the income base

Cons:

  • Relatively high early withdrawal charge comparing to average applies to all withdrawals above minimum allowed (10% of principle annually starting 2d year)

  • Life income rider benefits are available only after age of 60

  • Death benefit before annuitization is equal original contract value

  • Rider Bonus is not available for distribution by surrender

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