The Nationwide Destination Freedom annuity is a low-cost investment focused variable annuity (IFVA) that comes with various benefits. These include quality investment choices, tax deferral and enhanced protection. Destination freedom is an accumulation based product aimed at annuitants up to the age of 85 years looking for future benefits of diversification.
Nationwide Destination Freedom Facts
Mortality, maintenance, and administrative charges
The annuitant will be charged a 0.85% mortality charge and a 0.15% administrative charge. The administrative charge is waived for contact values of $1,000,000 and above. A $50 amount will be charged annually as maintenance charge but will be waived once the contract value reaches $50,000.
Issue age
The issue age is 0-85 years for annuitants. Owners may be of any age.
Minimum initial investment
- Minimum qualified payment- $10,000
- Minimum non-qualified payment- $10,000
Rider availability
There are four riders available with the annuity. The one year enhanced death benefit costs 0.3% while the return of premium enhanced death benefit that will cost the annuitant 0.2% of the contract value. There is also a spousal protection death benefit rider and an Enhance surrender value for terminal illness rider.
Surrender charges
Also known as CDSC charge, this will be a declining charge for each subsequent year for withdrawals exceeding the free withdrawal amount. The charge is a percentage charged on withdrawals above the free value amount. This starts at 7% for the first year then 7%, 6%, 5%, and eventually 3%, The exact amount charged will be the percentage multiplied by the amount above the free withdrawal figure.
Free withdrawals
Annuitants can withdraw up to 10% of their contract value each year on a non-accumulative basis.
Death benefit
The death benefit will be the return of contract value with no additional costs. However, the annuitant can purchase the spousal protection death benefit rider.
Waivers
The annuity provides waivers for withdrawals made in case an annuitant encounters a long-term care or is diagnosed with a terminal condition from which they are not expected to recover. For the waivers to apply, the annuitant has to have the enhanced death benefit rider.
Potential benefits
- Low cost
- Tax deferral presents growth opportunities
- Access to over 130 high quality investments
