This is a fixed indexed annuity (FIA) with a 14 year surrender charge period. Ultra Benefit is a flexible premium tax deferred index annuity. The annuity provides clients with all the benefits of conventional fixed interest annuities while giving clients the option to link their interest to the S&P Composite Stock Index but excluding dividends. After 14 years, the annuitant can withdraw the entire or part of the account value without incurring withdrawal charges.
NWL Ultra Benefit Features
Premium bonus
Each premium payment the client makes in the first year receives a 5.00% bonus. It is however not immediately accessible to the client. From the second year to the fifth, premium payments earn a 4.00% bonus.
Issue age
The issue age restrictions stand at 0-85 years for qualified and non-qualified owners and 0-85 years for annuitants. The annuitization age is restricted to 95 years. There a slight differences for FL TX CA and OH.
Premiums
- Minimum for non-qualified payments – $5,000.
- Minimum for qualified payments – $2,000
- Maximum for qualified and non-qualified payments – $1,500,000.
- Flexible premiums are permitted within the entire life of this annuity.
- Minimum added premium- $100 for qualified and non-qualified payments.
Rider availability
There are two available riders; The Income Outlook rider and the Income Outlook Plus 5 Rider. They are not available in a few select states.
Free withdrawals
You can withdraw up to 10% of your contract value once on each contract year. The withdrawal will be based on accumulation. Withdrawals above the free 10% will attract early withdrawal charges that gradually reduce from the first to the last year from 16.00% in the first year to 2.00% in the fourteenth year. Annuitants can also withdrawal the accumulated interest only but only after 1 year.
Terminal illness waiver
If an annuitant is diagnosed with an illness from which they are not expected to recover and are expected to die within one year, the company will waive all withdrawal charges for full or partial withdrawals. However, the company must receive satisfactory evidence of the illness and reserves the right to seek a second medical opinion.
Death benefit
If the annuitant dies before the annuity date, the beneficiary receives the bonus value and the account value as a lump sum if they do not elect another payment option. If the annuitant dies on or after the annuity date, the beneficiary is paid all guaranteed amounts. An accidental death benefit is paid in addition to the regular benefit. Its added if the annuitant dies from accidental body injury. The maximum amount for this is $250,000.
Annuitization
Clients can annuitize the policies from as early as five years. Payments can be received under one of three available elections as the annuitant elects. A guaranteed rate of 1.25% will be used to calculate the annuity payments. The options include income for a specific number of years, income for as long as you and the joint annuitant live and income for as long as you live.
Systematic withdrawals
These are available on a monthly, quarterly, semi-annual or annual basis. The minimum amount one can withdraw from their account is $100. The minimum account value is $2,000.
