The Nationwide High Point® 365 Lifetime Income Benefit (LIB) Rider is available at contract issue for contract owners age 40-80. This rider is not available in conjunction with the Enhanced Death Benefit rider. Paid benefits depend on the age at contract issue, and the number of completed contact years when lifetime income is elected to begin. For example, in 15 years the benefit is 8.62% for a single 65 year old and 15.35% for a 85 year old. As part of LIB, client can purchase additional 3% bonus at contract issue. If the lifetime income benefit is not initiated and the contract is surrendered, the client can receive back 100% of the rider purchase payment (plus purchase payment bonus if elected).
Nationwide High Point® Enhanced Death Benefit Rider(EDB) guarantees minimum death benefit of purchase payment with compounded annual interest of 4%, up to a 200% cap of purchase payment, or until the contract anniversary after the older annuitant reaches age 80, whichever occurs first. As part of EDB, client can also purchase an additional 3% bonus at contract issue.
Pros:
- This annuity accepts traditional IRA, Roth IRA, Non-Qualified, and Charitable Remainder Trusts (CRT)
- Surrender charges waiver for long-term care event, terminal illness is included
- Excellent Lifetime Income Benefit and Enhanced Death Benefit rider options
- Lifetime Income Benefit has single and joined options
- MVA doesn’t apply to long-term care event, terminal illness and death
- Under Return of Purchase Payment Guarantee, the rider payments are returned if contract is surrendered and the rider payments were not initiated
- Penalty free surrender for long-term care event, terminal illness and death is in effect only in one year after the contract is signed
- Penalty-free withdrawal percentage is relatively low, 7% of contract value for years 2-9, comparing to 10% offered by other leading fixed annuity products, however the surrender charges significantly reduce over the years (year 5 - 6%, year 9 - 2%)
- Balanced Allocation Strategy (BAS) options are difficult to for prospective customers to understand and follow
- Annual rider charge(0.95%-1.25% for LIB and 0.50%-0.80% for EDB) reduces the contract value