a withdrawal benefit rider from national western life for agent use only
TRANSCRIPT
A Withdrawal Benefit Rider From National Western Life
For Agent Use Only
The “Outlook” is for “Income”
• Only 21% of Private Industry Workers Have Defined Benefit Plans
• 51% of Those 50 and Older Worry That They Will Outlive Their Savings
• 21% of Recent Retirees Were Forced Back To The Job Market!
The “Outlook” is for “Income”
Social Security Solvency Risk
Equities Market RiskWithdrawal Risk
Variable Annuitieswith Living Benefits
Market RiskFee Erosion
Fixed AnnuitiesWith Living Benefits
Guarantees & Safety!
What Do Clients Want?
Customers
Control
Flexibility
Customization
Choice
Certainty
Safety
What Do Clients NEED?
Customers NWL®’s Income Outlook
Control
Flexibility
Customization
Choice
Certainty
Safety
What Do Clients Want?
Annuity or Annuity
With Income Plan!
Income Outlook
A Guaranteed Withdrawal Benefit Rider that is…
A Guaranteed Income Plan!
Income Outlook
• Guaranteed Payments for Life
• No Annuitization Required
• 5% Interest Rate on the Accumulation Period Withdrawal Payment Base
• Rider Charge of 35 Basis Points…
• Only when the Account Value Increased!
Annuitization Versus Withdrawals
Annuitization Withdrawal
• Irrevocable • Flexible
• Limited Control
• Set Interest Rate
• More Control
• Potential for greater growth
Income Outlook
• Rider Charge
• Accumulation Phase
• Restart Option
• Withdrawal Phase
Income Outlook – Rider Charge
• 35 Basis Points - .35%
• Guaranteed For at least 5 Years
• Never Greater than 100 Basis Points – 1%
• Made Each Policy Anniversary
• Lesser of 35 Bps or Interest Credit
• No Interest Credit = No Charge!
Income Outlook – Accumulation
• Payment Base equals Premium Paid…Plus Bonus!
• Account Value equals Premium Paid…Plus Bonus!
• 5% interest on Accumulation Period Withdrawal Payment Base
• As Payment Base Grows, So Does potential Withdrawal Payments
Income Outlook - Restart
• Accumulation Period Can Restart…After 5th Policy YEAR
• Accumulation Period Withdrawal Payment Base will be Account Value… If Greater!
• Rider Charge May Change… But Never Greater than 1%
Income Outlook - Withdrawal
• Must Be Age 60 or Older
• Can Begin Year 2
• Guarantees a Withdrawal % and Value
• Will “Step Up” to Account Value each Policy Anniversary if Greater
• Rewards Waiting
• Can Stop and Start
Guaranteed Withdrawal Percentages The Guaranteed Withdrawal Percentage is based on your age on the policy anniversary that you
begin Withdrawal Payments.
SINGLE ANNUITANT
Age Percentage Age Percentage Age Percentage
60 5.0% 70 6.0% 80 7.0%
61 5.1% 71 6.1% 81 7.1%
62 5.2% 72 6.2% 82 7.2%
63 5.3% 73 6.3% 83 7.3%
64 5.4% 74 6.4% 84 7.4%
65 5.5% 75 6.5% 85 7.5%
66 5.6% 76 6.6% 86 7.6%
67 5.7% 77 6.7% 87 7.7%
68 5.8% 78 6.8% 88 7.8%
69 5.9% 79 6.9% 89 7.9%
90 8.0%
$100,000 PremiumGuaranteed Annual Lifetime Withdrawal Payments
Number of Full Years of Accumulation before Withdrawal Payments Begin
1 2 3 4 5 6 7 8 9 10
I
s
s
u
e
A
g
e
s
60 $5,355 $5,733 $6,135 $6,564 $7,020 $7,505 $8,020 $8,569 $9,153 $9,773
65 $5,880 $6,284 $6,714 $7,171 $7,658 $8,175 $8,724 $9,308 $9,929 $10,588
70 $6,405 $6,836 $7,293 $7,779 $8,296 $8,845 $9,428 $10,047 $10,704 $11,402
75 $6,930 $7,387 $7,872 $8,387 $8,934 $9,515 $10,131 $10,785 $11,480 $12,217
80 $7,455 $7,938 $8,451 $8,995 $9,572 $10,185 $10,835 $11,524 $12,255 $13,031
THE INVESTMENT WORLD
Numerous Studies have shown that the withdrawal rate that would survive any 30 year period is …4%.
Motley Fool 2006
Withdrawal %: Let’s Compare
AGE THEM NWL®
60 4% 5%
65 4% 5.5%
70 4% 6%
75 4% 6.5%
Income Outlook: Real Value
Age Deposit
Maximum Guaranteed Withdrawal Payment after 10 years assuming no Withdrawals have been taken
70 M $100,000 $9,773
70 F $100,000 $9,773
75 M $100,000 $10,558
75 F $100,000 $10,558
Building A Better Annuity
*Varies by State
Safety of
Savings
Tax Deferral
MinimumGuaranteed
Interest
Creditor Protection*
NoProbate*
Building A Better Annuity
Liquidity:10% Withdrawals and Riders
*Varies by State
Safety of
Savings
Tax Deferral
MinimumGuaranteed
Interest
Creditor Protection*
NoProbate*
Building A Better Annuity
*Varies by State
AccumulationGrowth
Liquidity:10% Withdrawals and Riders
Safety of
Savings
Tax Deferral
MinimumGuaranteed
Interest
Creditor Protection*
NoProbate*
Building A Better Annuity
*Varies by State
Safety of
Savings
Creditor Protection*
NoProbate*
Tax Deferral
MinimumGuaranteed
Interest
Accumulation
GrowthPayment Base Interest @ 5%
Liquidity:10% Withdrawals and Riders
Building A Better Annuity
*Varies by State
Accumulation
Growth
Surrender ValueDeath Benefit ValueAnnuitization Value
Annuitization terminates rider
Creditor Protection*
NoProbate*
Tax Deferral
Payment Base Interest @ 5%
Liquidity:10% Withdrawals and Riders
Safety of
Savings
MinimumGuaranteed
Interest
Building A Better Annuity
*Varies by State
Surrender Value
Death Benefit Value
Annuitization Value
Guaranteed Withdrawal Value!
Accumulation
Growth
Creditor Protection*
NoProbate*
Tax Deferral
Liquidity:10% Withdrawals and Riders
Safety of
Savings
MinimumGuaranteed
Interest
Payment Base Interest @ 5%
Income Outlook: Concepts
• Longevity Insurance
• Customized Income Plan
Income Outlook: Concepts
You Want Your Savings To Provide A Predictable, Guaranteed and Safe Income:
What would your CPA say?
What would your Banker say?
What would your Broker say?
You Have the Answer: Income Outlook
Income Outlook: Resources
• Income Calculator
• Life Expectancy Calculators
• Disclosure & Charts
Generating Income In a Low-Yield Era
For some investors, it’s all about the yield – especially with the stock market’s wobbly performance in recent days. With everything from long term Treasury bonds to dividend-paying stocks offering relatively low payouts, a growing number of people are pursuing aggressive new strategies to generate income.
Source: Wall Street Journal