Beneficiary Protector II is available for an additional cost on most Nationwide® variable annuities. This optional rider was designed to help the client's beneficiaries with the expenses they'll face when they inherit the annuity. When the annuitant dies, we will add a percentage of the contract earnings to the contract value.
This percentage is age-based, as shown in the following table:
| Annuitant's age at contract issue | Amount added at annuitant's death |
|---|---|
| Up to 70 years old | 40% of adjusted contract earnings |
| 71-75 years old | 25% of adjusted contract earnings |
The amount of earnings payable is capped at 200% of all purchase payments greater than 12 months old. The annuitant age limit varies depending on the contract.1 Please see the prospectus for details.
Issued through age 75
Cost: 0.35%
Keep in mind that in addition to deducting the cost from variable portions of the account, allocations made to the Guaranteed Term Option will be assessed the cost of Beneficiary Protector II.2
Mary is 65 and bought a Nationwide variable annuity for $100,000. With this annuity, she purchased Beneficiary Protector II. She names her husband, Edward, as the primary beneficiary. Over the years, her contract value fluctuates. When Mary passes away six years later, her contract value has grown to $130,000.
Because Mary purchased Beneficiary Protector II with her variable annuity, Edward will receive a death benefit of her contract value plus the additional $12,000. In total, the death benefit value will be $142,000.
This example is hypothetical. It does not reflect the performance of any investment. If the owner takes a withdrawal, the death benefit and cash value will be reduced.
1 If there are no contract earnings used to calculate the death benefit, there will be no additional payment benefit. Please see the prospectus for details.
2 Guaranteed Term Options may not be available in all states.
Beneficiary Protector is a service mark of Nationwide Life Insurance Company.