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Summary of Western National Power Index Annuity


Interest earnings. Your interest rate is linked to the return of the Standard & Poor’s (S&P 500®) Composite Stock Price Index (the Index).1 Note that stock dividends are not included in the index value. The annuity credits interest using an annual reset approach, which means interest is determined each year by comparing the current S&P 500 index value at the end of the contract year with the index value at the start of the contract year.

  • If the S&P index has increased over the previous anniversary, then your annuity will be credited with interest equal to 100% of the gain, up to the amount of the interest rate cap.2

  • If the S&P index has declined from the previous anniversary, your annuity will not lose value or drop below a guaranteed minimum rate. However, no interest will be credited to the annuity for that year.

  • Since the interest earned is “locked in” annually, and the index value is reset at the end of each year, future decreases in the index will not affect the interest you have already earned.

Note on interest rate cap. The interest rate cap places a maximum limit on the interest rate used to credit interest to the contract each year, regardless of the performance of the index. The cap is guaranteed for the first year in the term and is then declared annually. Note that Western National Life Insurance Company guarantees the cap will never be set lower than the minimum cap rates stated in your contract.2


Safety for your principal—minimum guaranteed withdrawal value and optional return-of-premium guarantee rider.2

  • If you decide to cancel your contract at any time, Western National Life Insurance Company guarantees that your minimum withdrawal value (the minimum amount available during the term for withdrawals) will never be less than 90% of your single premium accumulated at an annual rate of 3%, less any withdrawals (not including withdrawal charge fees).

  • If you want more protection, you have the option to select a return-of-premium guarantee rider when you purchase the annuity. The optional rider allows you to return the annuity at any time for an amount equal to the single premium paid, less any prior withdrawals, or the withdrawal value (annuity value less any early withdrawal charges), whichever value is greater. Just remember, adding this feature will result in a slightly lower interest rate cap than a contract without the feature would receive.

 
Tax-deferral advantage.3 You can postpone taxes on your interest earnings until you are ready to make withdrawals. Meanwhile, your principal and earnings earn interest. Even the money that otherwise would have gone toward paying federal income taxes stays in the account, earning interest. That means you can accumulate more money over a shorter period of time, which ultimately can provide you with greater income.


Penalty-free random withdrawal privilege.3 After you’ve had the contract for one year, you may take one withdrawal each year—penalty free, up to 10% of the annuity value as of the previous anniversary. 

  • You can access more than the permitted free withdrawal amount at any time. Remember, if you withdraw more than the permitted free amount, you will have to pay contractual early withdrawal charge fees.

  • Withdrawal charge fees can reduce the value of your annuity.

  • Withdrawal charge fees decrease to zero as the annuity nears the end of the withdrawal charge period.  


Choice of a seven-year or nine-year early withdrawal charge schedule.3 When you purchase the annuity, you can select either a seven- or nine-year withdrawal charge period. Note that the nine-year period offers you a higher interest rate cap than the seven-year period. That could translate to greater interest-earning potential.

  • With the seven-year withdrawal charge schedule, withdrawals that exceed the permitted free amount are subject to a declining withdrawal charge for seven years of 9%, 8%, 7%, 6%, 5%, 4%, 3%, 0%.

  • With the nine-year withdrawal charge schedule, withdrawals that exceed the permitted free amount are subject to a declining withdrawal charge for nine years of 9%, 8%, 7%, 6%, 5%, 4%, 3%, 2%, 1%, 0%.


Early withdrawal charge waivers.4 Multiple early withdrawal charge waivers are available and can be used if you: need to stay in a nursing home, are unable to perform certain activities, or discover you have a terminal illness. Please review the Western National Power Index Annuity Product Brochure or the Western National Power Index Annuity Product Overview for more details.


Estate-planning advantage (guaranteed death benefit).2 You can designate a beneficiary of your choice. Generally, fixed annuity proceeds avoid the probate process (court-supervised process that establishes the validity of a will). If an income plan has not begun, the higher of either the annuity value or the minimum guaranteed value will be paid to the beneficiary upon the death of the owner—without delays and privacy issues. Note that any interest credited will include interest linked to the index only up to the date of death; thereafter, a declared rate of interest will be credited daily to the death benefit until the death benefit is paid.


Multiple income payout options. When you are ready to start taking income, you can choose an income option that guarantees income for life or for a specified period.2 Please review the Western National Power Index Annuity Product Brochure for more details.


No initial sales charges or administrative fees. That means your money can start working for you right away. 


For more information:

Clients: Call Client Care Center at 1-800-424-4990.

Selling Agents: Call Internal Wholesaling at 1-888-237-4210.



1 “Standard & Poor’s®,” “S&P 500®,” “Standard & Poor’s 500” and “500” are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Western National Life Insurance Company. The Western National Power Index Annuity is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of purchasing the product.

2 All guarantees mentioned are subject to the claims-paying ability of Western National Life Insurance Company.

3 Remember, withdrawals of taxable amounts are taxed as ordinary income and, if taken prior to age 59½, your withdrawal may be subject to a 10% federal early withdrawal penalty. Contractual withdrawal charge fees (surrender charges) may also apply.

4 May not be available in some states and contract provisions may vary from state to state.

Tax-qualified contracts such as IRAs, 401(k)s, etc., are tax deferred regardless of whether or not they are funded with an annuity. If you are considering funding a tax-qualified retirement plan with an annuity, you should know that an annuity does not provide any additional tax-deferred treatment of earnings beyond the treatment by the tax-qualified retirement plan itself. However, annuities do provide other features and benefits such as income options.

Neither Western National Life Insurance Company nor its agents or representatives are authorized to give legal, tax or accounting advice. Please consult your attorney, accountant, or tax advisor.

The Western National series of annuities is issued and underwritten in New York by The United States Life Insurance Company in the City of New York and in all other states by Western National Life Insurance Company.