Preparing for life and tax-efficient retirement
New Heights® IUL ll can provide a source of tax-efficient supplemental retirement income
Grow and protect your retirement savings
Traditional sources of retirement income like withdrawals from an IRA, 401(k) or pension are all taxable and could potentially bump you into a higher tax bracket in retirement. What you may not realize is that your Social Security benefits can also be taxable.¹ New Heights® IUL II provides tax-free income via loans or withdrawals from the cash value. Keep in mind that this strategy is designed to complement your traditional retirement plans, rather than replace them. In certain situations, this option may be beneficial for you as supplemental retirement planning or savings. Generally, this strategy could be used when you have already fully utilized tax-advantaged plans available to you (401(k), IRA, 529 plans, etc.). It is important to understand that loans and partial surrenders taken from the cash value may affect the death benefit and may require the need for additional premiums to be paid. Surrender charges may apply for early surrenders and partial surrenders. Surrenders may be subject to income tax.
Take income efficiently
New Heights IUL II offers an exclusive Automated Income Monitor service that can help you take income efficiently based on when and how you want to take it.⁵
- Income amount – select an income amount, and Income Monitor will calculate how long you can take income for
- Income length – decide how long you want to take income, and Income Monitor will calculate the amount you can take
You can also specify if you want to receive your income monthly, quarterly or annually based on your needs. A Review Package will be received on the policy anniversary to help you review your goals for the policy. This packet will include an Illustration to show you how the policy is performing.
¹ For more information, visit www.ssa.gov/planners/taxes.html.
² Nationwide and its affiliates do not provide tax, legal or accounting advice. This material is offered for informational purposes only, is not intended to highlight all the features and benefits of each product and/or type of plan, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your tax, legal and accounting advisors before taking any action.
³ Retirement Plan annual contribution limits do not apply to life insurance. Premium may be limited to maintain qualification of the policy as life insurance or to prevent the policy from becoming a modified endowment contract (MEC). Distributions from a MEC may be taxable.
⁴ If you pay too much premium, your policy could become a modified endowment contract (MEC). Distributions from an MEC may be taxable
⁵ With Automated Income Monitor, selecting the dollar amount of withdrawals will influence their duration (how long they last). Likewise, selecting a duration will influence the amount of the withdrawal. Either way, we will provide you the details and send you an annual update to keep you informed. Taking income out of your policy will reduce its cash value and may increase the chance it will lapse. If you plan to rely on your policy for income, ask your financial professional about using the Overloan Lapse Protection Rider to help keep your policy from lapsing.
All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. They are not backed by the broker/dealer and/or insurance agency selling the policy, nor by any of their affiliates, and none of them make any representations or guarantees regarding the claims-paying ability of the issuing insurance company.
This material is not a recommendation to buy or sell a financial product or to adopt an investment strategy. Investors should discuss their specific situation with their financial professional.
This policy allows for flexible premium payments, but it’s important to adequately fund it to keep it in force and to help meet your needs and those of your beneficiaries.
Be sure to choose a product that meets long-term life insurance needs, especially if personal situations change — for example, marriage, birth of a child or job promotion. Weigh the costs of the policy, and understand that life insurance has fees and charges that vary with sex, health, age and tobacco use. Riders that customize a policy to fit individual needs usually carry an additional charge.
Nationwide and its representatives do not give legal or tax advice. An attorney or tax advisor should be consulted for answers to specific questions.
Indexed universal life insurance policies are not stock market investments, do not directly participate in any stock or equity investments, and do not receive dividends or participate in capital gains. Past index performance is no indication of future crediting rates. Also, be aware that interest crediting fluctuations can lead to the need for payment of additional premiums.
Products are issued by Nationwide Life and Annuity Insurance Company, Columbus, Ohio.
Nationwide, the Nationwide N and Eagle and Nationwide is on your side are service marks of Nationwide Mutual Insurance Company. Third-party marks that appear in this document are the property of their respective owners.
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Policy Form #: ICC26-NWLA-695
Nationwide New Heights IUL II
FLW-0185AO-IM (8/26)