INCOME OUTLOOK by HC121001004713

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									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 Risk
                       Withdrawal Risk
Variable Annuities     Market Risk
with Living Benefits   Fee Erosion

Fixed Annuities        Guarantees & Safety!
With Living Benefits
     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     • More Control

• Set Interest Rate   • 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 Premium
Guaranteed Annual Lifetime Withdrawal Payments

         Number of Full Years of Accumulation before Withdrawal Payments Begin

           1      2      3      4        5        6        7         8         9         10

    60   $5,355 $5,733 $6,135 $6,564 $7,020     $7,505   $8,020    $8,569    $9,153    $9,773
I
s
s   65   $5,880 $6,284 $6,714 $7,171 $7,658     $8,175   $8,724    $9,308    $9,929    $10,588
u
e
    70   $6,405 $6,836 $7,293 $7,779 $8,296     $8,845   $9,428    $10,047   $10,704   $11,402



A 75     $6,930 $7,387 $7,872 $8,387   $8,934   $9,515   $10,131   $10,785   $11,480   $12,217
g
e
         $7,455 $7,938 $8,451 $8,995 $9,572 $10,185      $10,835   $11,524   $12,255   $13,031
s 80
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
                     Maximum Guaranteed Withdrawal
  Age     Deposit    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


                    Safety              Tax
                      of               Deferral
                   Savings

                          Creditor             No
          Minimum
         Guaranteed      Protection*         Probate*
          Interest


*Varies by State
             Building A Better Annuity



                           Liquidity:
                   10% Withdrawals and Riders


   Safety
                     Tax       Minimum      Creditor       No
     of                       Guaranteed                 Probate*
                   Deferral                Protection*
  Savings                      Interest

*Varies by State
             Building A Better Annuity

 Accumulation
   Growth


                           Liquidity:
                   10% Withdrawals and Riders


   Safety
                     Tax       Minimum      Creditor       No
     of                       Guaranteed                 Probate*
                   Deferral                Protection*
  Savings                      Interest

*Varies by State
           Building A Better Annuity

Accumulation                                            Payment Base
  Growth                                                Interest @ 5%


                          Liquidity:
                  10% Withdrawals and Riders


  Safety
                    Tax       Minimum      Creditor       No
    of                       Guaranteed                 Probate*
                  Deferral                Protection*
 Savings                      Interest
    *Varies by State
          Building A Better Annuity
                            Surrender Value
                          Death Benefit Value
Accumulation              Annuitization Value              Payment Base
  Growth                                                   Interest @ 5%
                      Annuitization terminates rider
                         Liquidity:
                 10% Withdrawals and Riders


 Safety
                   Tax          Minimum       Creditor       No
   of                          Guaranteed                  Probate*
                 Deferral                    Protection*
Savings                         Interest

   *Varies by State
          Building A Better Annuity
                      Guaranteed Withdrawal Value!
Accumulation
                           Surrender Value
                                                              Payment Base
  Growth                  Death Benefit Value                 Interest @ 5%
                          Annuitization Value
                               Liquidity:
                       10% Withdrawals and Riders


 Safety
                   Tax           Minimum         Creditor       No
   of                           Guaranteed                    Probate*
                 Deferral                       Protection*
Savings                          Interest

   *Varies by State
   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

								
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