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Key Features

Guaranteed Account Safety

Nationwide® guarantees that your account balance will not decline due to a decline in the S&P 500, no matter which interest crediting option(s) you choose. Guarantees are subject to the claims-paying ability of the issuing insurance company.

Guaranteed Minimum Withdrawal Value

In the event you need to withdraw all of your assets from the contract, your account value is guaranteed to equal 100% of your deposits, plus 1.5% interest compounded each year minus any prior withdrawals, early withdrawal fees and applicable state premium taxes.

Choice of Three Interest Crediting Options

The ELM^sm Index Annuity provides you with three ways to receive credited interest to your account value. Nationwide® guarantees the applicable formulas and rates on each of these interest options and resets them yearly, in its discretion, based on economic factors. (See Interest Options for more information.)

Changing Your Choice of Interest Options

In the first year, you choose how to allocate your initial premium among the three account options. You may choose one option or a combination of all three. Your choice cannot be changed for the first contract year; but before the beginning of each subsequent contract year, you will have a 30 day window to inform Nationwide® of your new choices for allocating your account balance. This change will take effect on the index interest crediting date, which is the end of the calendar month immediately following your contract anniversary. If you do not inform Nationwide® of a change in your choices, the account balances will remain in their respective interest options until the next contract year.

Access to your Account Balance

You may withdraw your entire account value in whole or in part at any time; however, tax penalties may apply before age 59½ and, during the first seven years, early withdrawal fees may apply. Please note, withdrawals made may be subject to ordinary income tax. All withdrawals taken reduce the contract value, death benefit and may forfeit interest credits due. Please consult your tax professional to understand the tax effect of withdrawing money from your account.

Each year beginning with year two, you may withdraw up to 10% (non-cumulative) of the account balance without a fee.

Early withdrawal fees may not apply to amounts withdrawn if you are confined to a long term care facility or hospital or if you have been diagnosed by a physician to have a terminal illness. Read your contract for a detailed explanation.

Withdrawals or surrenders made prior to the expiration of an index period will result in no index participation for such amounts for that period.

Finally, you may also convert your account balance to lifetime income payments, a process called annuitization, without any withdrawal fees, after the second year (first year in Florida).

Payout Options

Subject to the early withdrawal fees explained above, you may withdraw all or part of your account balance in a lump sum at any time, opt for a stream of regular lifetime income payments, or keep your funds in the ELM Index Annuity earning interest for as long as you like.

Death Benefit

The amount paid to your beneficiary is the greater of the actual account value or the guaranteed minimum account value.

Minimum Initial Premium

You initial deposit must be at least $10,000.

Please note, the contract does not directly participate in any stock or equity investments; that withdrawals or surrenders prior to the expiration of an index period will result in no index participation for such amounts and that failure to maintain the contract to maturity may result in no participation in the equity index. It is also important to understand that actual returns may be less than the return of the linked index. And, possibly even negative if part, or all, of the contract is surrendered prior to the expiration of any applicable surrender period.

Federal tax laws are complex and subject to change. The information in this website is based on current interpretation of the law. Neither the company nor its representatives give legal or tax advice. Please consult your attorney or tax advisor for answers to your tax questions.

If you take your money out early, you may face early withdrawal fees. If you’re not yet 59½, you may also have to pay an additional 10% income tax penalty on top of ordinary income taxes. Naturally, if you do take an early withdrawal, your death benefit and cash value will be reduced.

» Continue to “Interest Options” Section