OHIO | 6311 | 31-4156830 |
(State or other jurisdiction of incorporation or organization) | (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer Identification Number) |
MSCI EAFE | Nasdaq-100 Index® | Russell 2000 Index® | S&P 400® Index | S&P 500® Index |
For information on how to contact Nationwide, see Contacting the Service Center. |
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Annuitant - The person upon whose life any life-contingent annuity payments depend and the person whose death triggers payment of the Death Benefit. The Annuitant is also the person to whom annuity payments are made during Annuitization. |
Annuitization - The period during which annuity payments are received by the Annuitant. |
Annuitization Date - The date on which annuity payments begin. |
Annuity Commencement Date - The date on which annuity payments are scheduled to begin. |
Beneficiary - A person designated by the Contract Owner who may receive certain benefits under the Contract, including the Death Benefit. |
Buffer - the maximum percentage of loss that Nationwide will absorb when calculating the is referred to as the Term End Index Strategy Earnings Percentage. Negative Index Performance beyond the Buffer Strategy. The full protection of the Buffer only applies to amounts held until the end of the Strategy |
Business Day - Each day the New York Stock Exchange is open for regular trading. A Business Day ends at the same time that regular trading on the New York Stock Exchange closes (typically 4:00 p.m. Eastern Time). |
Cap Rate – for Index Strategies with Cap Rates, the maximum positive gain or loss on the Strategy Term End Date is referred to as the Term End Index Strategy Earnings Percentage. An Index Strategy’s Cap Rate is declared prior to each Strategy Term and may be different each Strategy Term. |
Cap+ Rate – for Index Strategies with Cap+ Rates, the declared percentage of Index Performance that determines when a Participation Rate Strategy Term End End Index Strategy Earnings Percentage. Cap+ Rate is applied, and then any Index Performance in excess of the Cap+ Rate is applied based upon a Participation Rate, which may be greater or less than, or equal to, 100%. Both the Cap+ Rate and Participation Rate are declared prior to each Strategy Term and may be different each Strategy Term. |
Charitable Remainder Trust - A trust meeting the requirements of Section 664 of the Code. |
Co-Annuitants – The persons designated by the Contract Owner to receive the benefit associated with the Spousal Protection Feature. If there is a Co-Annuitant, references to Co-Annuitants will apply to both the Annuitant and Co- Annuitant, and references to a Co-Annuitant will apply to either of them, unless the context requires otherwise. |
Code - The Internal Revenue Code of 1986, as amended. |
Contingent Annuitant - The person who becomes the Annuitant if the Annuitant dies before the Annuitization Date. |
Contingent Beneficiary - The person or entity designated by the Contract Owner to receive any benefits accorded the Beneficiary if the Beneficiary is not living when the Annuitant dies. |
Contingent Deferred Sales Charge (CDSC) - A charge that may be assessed if a partial withdrawal or full surrender is taken during the first six Contract Years. |
Contract - The Nationwide Defender Annuity Contract, the individual single purchase payment deferred annuity contract with index-linked strategies described in this prospectus. |
Contract Anniversary - Beginning with the Date of Issue, each recurring twelve month anniversary of the Date of Issue while the Contract remains in force. |
Contract Owner - The person who owns all rights under the Contract prior to the Annuitization Date, along with any Joint Owner. As the context requires, "you" refers to a potential or existing Contract Owner. |
Contract Value - The sum of the Fixed Strategy Value and Index Strategy Values for each of the Index Strategies. |
Contract Year - The twelve month period starting on the Date of Issue and each Contract Anniversary. |
Crediting Factors – The different values that are used to calculate the gain or loss for the Strategies. For the Fixed Strategy, the Crediting Factors are the Fixed Strategy Rate and Strategy Term. For Index Strategies with Cap Rates, with Cap+ Rates, the Crediting Factors are the Index, Strategy Term, Buffer, Participation Rate, and Cap+ Rate. See "Crediting Factors" for a description of each Crediting Factor. |
Daily Index Strategy Earnings Percentage (Daily ISE Percentage) – a percentage used to calculate Index Strategy Earnings on any day during a Strategy Term other than the Strategy Term End Date. The Daily ISE Percentage does not apply to the Fixed Strategy. |
Date of Issue - The date the Purchase Payment is applied to the Contract. |
Death Benefit - The benefit payable upon the death of the Annuitant (or Co-Annuitant, if applicable) provided such death occurs before the Annuitization Date while the Contract is in force and there is no Contingent Annuitant. |
Fixed Strategy - An investment option under the Contract offering guaranteed interest rates funded by the General Account of Nationwide. |
Fixed Strategy Rate - The annualized interest rate credited daily to amounts allocated to the Fixed Strategy during a Strategy Term. |
Fixed Strategy Value - The value of the Fixed Strategy calculated at the end of each Business Day. The Fixed |
Free Withdrawal - Any portion of the Free Withdrawal Amount that is withdrawn from the |
Free Withdrawal Amount - While the CDSC and MVA are in effect, the amount that the Contract Owner can withdraw from the Contract each Contract Year without incurring a CDSC or an MVA. It is described in the "Waiver or Reduction of the CDSC or MVA" section. |
General Account - All assets of Nationwide other than those of the Separate Account or in other separate accounts of Nationwide. |
Home Office - Nationwide's main office located in Columbus, Ohio. |
Index - The third party market index associated with an Index Strategy. |
Index Performance - The change in an Index Value, expressed as a percentage, between the first day of a Strategy Term (or another date for a substitute Index) and a specific future day during that Strategy Term. The Index Performance may be positive, negative, or equal to zero. |
Index Value - On a Business Day, the closing value of the Index as provided to Nationwide by the Index provider. If for any reason, the closing value of an Index on a Business Day is not provided to Nationwide by the Index provider, the Index Value on that Business Day will be the most recent closing value provided to Nationwide by the Index provider on a previous Business Day. On a day other than a Business Day, the Index Value for an Index will be the closing value of the Index for the previous Business Day. |
Index Strategy - An investment option under the Contract that is linked to the performance of an index. |
Index Strategy Basis – first day of a Strategy Term, the Index Strategy Basis equals the amount allocated to the Index Strategy. During a Strategy Term the Index Strategy Basis is adjusted for withdrawals (including applicable CDSC and MVA), applicable premium taxes, fees, transfers out due to a Performance Lock, and the application of any applicable Term End ISE Percentage. |
Index Strategy Earnings – Strategy Value. Index Strategy Earnings are represented as a dollar amount and can be positive, negative, or equal to zero. On the Strategy Term End Date, the Index Strategy Earnings are equal to the Term End ISE Percentage multiplied by the Index Strategy Basis. On any other day during a Strategy Term, Index Strategy Earnings are equal to the Daily ISE Percentage multiplied by the Index Strategy Basis. |
Index Strategy Value – Strategy Value is equal to the Index positive, negative, or equal to zero). The Index Strategy Value is the amount used when processing a withdrawal or full surrender, a Death Benefit payment, a transfer among Strategies, the calculation of any applicable charge or fee, or an annuitization request. |
Individual Retirement Account - An account that qualifies for favorable tax treatment under Section 408(a) of the Code but does not include Roth IRAs. |
Individual Retirement Annuity (IRA) - An annuity which qualifies for favorable tax treatment under Section 408(b) of the Code but does not include Roth IRAs or Simple IRAs. |
Investment-Only Contract - A Contract purchased by a qualified pension, profit-sharing, or stock bonus plan as defined by Section 401(a) of the Code. |
Joint Owner - The person designated as a second person (in addition to the Contract Owner) to possess an undivided interest in the Contract. If there is a Joint Owner, references to Contract Owner and Joint Owner will apply to both of them, or either of them, unless the context requires otherwise. |
Market Value Adjustment (MVA) – an adjustment that may be applied if a partial withdrawal or full surrender is taken during the first six Contract Years. |
Nationwide - Nationwide Life Insurance Company. As the context requires, "we" and "our" refers to Nationwide. |
Non-Qualified Contract - A Contract which does not qualify for favorable tax treatment as a Qualified Plan, IRA, Roth IRAs, SEP IRA, or Simple IRA. |
Participation Rate - a percentage that represents the proportion of the Index Performance used in the calculation of the Term End ISE Percentage. An Index Strategy’s Participation Rate is declared prior to each Strategy Term and may be different each Strategy Term. Participation Rates only apply when the Index Performance is positive. |
Performance Lock – a feature that allows the Contract Owner to transfer Index Strategy Value to the Fixed Strategy on a date other than a Strategy Term End Date. Nationwide assesses a Performance Lock Fee for Performance Locks. |
Purchase Payment - Money paid into the Contract by the Contract Owner. |
Qualified Plan - A retirement plan that receives favorable tax treatment under Section 401 of the Code, including Investment-Only Contracts. In this prospectus, all provisions applicable to Qualified Plans also apply to Investment- Only Contracts unless specifically stated otherwise. |
Quarterversary – Beginning with the Date of Issue, each recurring quarterly date during which the Contract remains in force. |
Remaining Free Withdrawal Amount - the amount that the Contract Owner can withdraw from the Contract during the remainder of that Contract Year without incurring a CDSC or an MVA, based on the Free Withdrawals already taken that Contract Year. |
Roth IRA - An annuity contract which qualifies for favorable tax treatment under Section 408A of the Code. |
Separate Account – the Index-Linked Annuity Separate Account. |
Service Center - The department of Nationwide responsible for receiving all service and transaction requests relating to the Contract. For service and transaction requests submitted other than by telephone (including fax requests), the Service Center is Nationwide’s mail and document processing facility. For service and transaction requests communicated by telephone, the Service Center is Nationwide’s operations processing facility. Information on how to contact the Service Center may be found under Contacting the Service Center. |
Simple IRA - An annuity contract which qualifies for favorable tax treatment under Section 408(p) of the Code. |
Simplified Employee Pension IRA (SEP IRA) - An annuity contract which qualifies for favorable tax treatment under Section 408(k) of the Code. |
Strategies - Investment options under the Contract. Unless otherwise specified, the term Strategies refers to the Fixed Strategy and Index Strategies collectively. |
Strategy Term – For the Fixed Strategy, the initial Strategy Term begins on the Date of Issue and ends on the first Contract Anniversary, and each subsequent Strategy Term begins on each Contract Anniversary and ends on the following Contract Anniversary. For an Index Strategy, the Strategy Term is the total maturity time of the Index Strategy, expressed in years. |
Strategy Term End Date – The last day of a Strategy Term. A Strategy Term End Date is the same calendar day as the Date of Issue. |
Surrender Value - The amount available upon full surrender of the Contract. It is equal to the Contract Value less any applicable CDSC and premium taxes, plus any applicable MVA. |
Term End Index Strategy Earnings Percentage (Term End ISE Percentage) – a percentage used to calculate Index Strategy Earnings on the Strategy Term End Date. How the Term End ISE Percentage is calculated depends on whether the Index Strategy is an Index Strategy with Cap Rate or an Index Strategy with Cap+ Rate. See, "Term End Index Strategy Earnings Percentage" for a description of how the Term End ISE Percentage is calculated for each type of Index Strategy. |
Total of all Index Strategy Values on a Quarterversary | X | [….]% |
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Total of all Index Strategy Values on a Quarterversary | X | [….]% |
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Locked-in Index Strategy Value | X | [...]% | X | Number of years remaining in the Strategy Term (partial years are rounded up to the next full year) |
Number of Completed Contract Years | CDSC Percentage |
0 | 8% |
1 | 8% |
2 | 7% |
3 | 6% |
4 | 5% |
5 | 4% |
6+ | 0% |
1 Year Strategy Term Options |
Cap Rate |
Russell 2000 Index® 1 Year with Cap Rate & 10% Buffer |
Nasdaq-100 Index® 1 Year with Cap Rate & 10% Buffer |
MSCI EAFE Index 1 Year with Cap Rate & 10% Buffer |
S&P 400® Index 1 Year with Cap Rate & 10% Buffer |
S&P 500® Index 1 Year with Cap Rate & 10% Buffer |
S&P 500® Index 1 Year with Cap Rate & 20% Buffer |
Cap+ Rate |
Russell 2000 Index® 1 Year with Cap+ Rate & 10% Buffer |
S&P 500® Index 1 Year with Cap+ Rate & 10% Buffer |
S&P 500® Index 1 Year with Cap+ Rate & 20% Buffer |
3 Year Strategy Term Options |
Cap Rate |
Russell 2000 Index® 3 Year with Cap Rate & 10% Buffer |
S&P 500® Index 3 Year with Cap Rate & 10% Buffer |
S&P 500® Index 3 Year with Cap Rate & 20% Buffer |
6 Year Strategy Term Options |
Cap Rate |
Russell 2000 Index® 6 Year with Cap Rate & 10% Buffer |
S&P 500® Index 6 Year with Cap Rate & 10% Buffer |
S&P 500® Index 6 Year with Cap Rate & 20% Buffer |
Total of all Index Strategy Values on a Quarterversary | [...]% | |
X | ||
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Number of Completed Contract Years | CDSC Percentage |
0 | 8% |
1 | 8% |
2 | 7% |
3 | 6% |
4 | 5% |
5 | 4% |
6+ | 0% |
Index Strategy Value subject to Performance Lock Request | X | [...]% | X | Number of years remaining in the Strategy Term (partial years are rounded up to the next full year) |
Total of all Index Strategy Values on a Quarterversary | [...]% | |
X | ||
4 | ||
Index Strategy Value subject to Performance Lock Request | X | [...]% | X | Number of years remaining in the Strategy Term (partial years are rounded up to the next full year) |
Total partial withdrawal, fee, and/or premium tax deducted from Index Strategy Value on a specific date | X | Index Strategy Basis on the date of the transaction |
Index Strategy Value on the date of the transaction |
1-Year Cap | 1-Year Cap+ | 3-Year Cap (uncapped) | 6-Year Cap (uncapped) | |
Strategy Term Start Date | ||||
Strategy Term | 1 | 1 | 3 | 6 |
Participation Rate | 100% | 60% | 115% | 130% |
Cap/Cap+ Rate | 23% | 15% | N/A | N/A |
Buffer | 10% | 10% | 10% | 20% |
Index Performance | 0% | 0% | 0% | 0% |
Risk-free Rate | 3.0% | 3.0% | 3.5% | 3.5% |
Dividend Yield | 1.5% | 1.5% | 1.5% | 1.5% |
Volatility - AMC | 23% | 23% | 20% | 20% |
Volatility - OMC | 17% | 20% | N/A | N/A |
Volatility - OMP | 26% | 26% | 22% | 25% |
Strategy Basisi | $1,000 | $1,000 | $1,000 | $1,000 |
Strategy Value | $1,000 | $1,000 | $1,000 | $1,000 |
AMC | 9.690% | 9.690% | 15.675% | 22.236% |
OMC | 1.186% | 3.385% | 0% | 0% |
OMP | 5.042% | 5.042% | 7.328% | 8.352% |
Proxy Fair Valueii (B) | 3.462% | 3.294% | 10.698% | 20.555% |
All Examples Use the Following Time Input | ||||
Years Elapsed since Strategy Term start (t) | 0.5 | 0.5 | 0.5 | 0.5 |
Years Remaining in Strategy Term | 0.5 | 0.5 | 2.5 | 5.5 |
Index Performance of -25%, other inputs unchanged | ||||
Index Performance | -25% | -25% | -25% | -25% |
AMC | 0.240% | 0.240% | 3.322% | 8.256% |
OMC | 0.000% | 0.005% | 0% | 0% |
1-Year Cap | 1-Year Cap+ | 3-Year Cap (uncapped) | 6-Year Cap (uncapped) | |
OMP | 15.595% | 15.595% | 16.621% | 14.194% |
Proxy Fair Value (A) | -15.356% | -15.358% | -12.801% | -3.461% |
Daily ISE Percentageiii (A – B + t/T x B) | -17.087% | -17.005% | -21.716% | -22.303% |
Index Strategy Earnings | -$170.87 | -$170.05 | -$217.16 | -$223.03 |
Strategy Value | $829.13 | $829.95 | $782.84 | $776.97 |
Index Performance of -5%, other inputs unchanged | ||||
Index Performance | -5% | -5% | -5% | -5% |
AMC | 4.356% | 4.356% | 11.399% | 18.283% |
OMC | 0.086% | 0.666% | 0% | 0% |
OMP | 4.262% | 4.262% | 8.063% | 8.966% |
Proxy Fair Value | 0.008% | -0.172% | 5.045% | 14.802% |
Daily ISE Percentage | -1.723% | -1.819% | -3.870% | -4.041% |
Index Strategy Earnings | -$17.23 | -$18.19 | -$38.70 | -$40.41 |
Strategy Value | $982.77 | $981.81 | $961.30 | $959.59 |
Index Performance of +25%, other inputs unchanged | ||||
Index Performance | 25% | 25% | 25% | 25% |
AMC | 26.173% | 26.173% | 32.238% | 38.803% |
OMC | 7.428% | 13.399% | 0% | 0% |
OMP | 0.256% | 0.256% | 2.430% | 4.613% |
Proxy Fair Value (A) | 18.489% | 20.557% | 34.644% | 45.831% |
Daily ISE Percentage (A – B + t/T x B) | 16.758% | 18.910% | 25.729% | 26.988% |
Index Strategy Earnings | $167.58 | $189.10 | $257.29 | $269.88 |
Strategy Value | $1,167.58 | $1,189.10 | $1,257.29 | $1,269.88 |
Index Performance of -5%, Risk-free Rate down 0.50%, other inputs unchanged | ||||
Index Performance | -5% | -5% | -5% | -5% |
Risk-free Rate | 2.50% | 2.50% | 3.00% | 3.00% |
AMC | 4.270% | 4.270% | 10.922% | 17.293% |
OMC | 0.081% | 0.642% | 0% | 0% |
OMP | 4.350% | 4.350% | 8.524% | 9.746% |
Proxy Fair Value (A) | -0.161% | -0.337% | 4.036% | 12.735% |
Daily ISE Percentage (A – B + t/T x B) | -1.892% | -1.984% | -4.879% | -6.107% |
Index Strategy Earnings | -$18.92 | -$19.84 | -$48.79 | -$61.07 |
1-Year Cap | 1-Year Cap+ | 3-Year Cap (uncapped) | 6-Year Cap (uncapped) | |
Strategy Value | $981.08 | $980.16 | $951.21 | $938.93 |
Index Performance of 0%, dividend up 2%, volatility down 4%, other inputs unchanged | ||||
Index Performance | 0% | 0% | 0% | 0% |
Dividend Yield | 3.5% | 3.5% | 3.5% | 3.5% |
Volatility - AMC | 19% | 19% | 16% | 16% |
Volatility - OMC | 13% | 16% | N/A | N/A |
Volatility - OMP | 22% | 22% | 18% | 21% |
AMC | 5.153% | 5.153% | 9.236% | 12.317% |
OMC | 0.039% | 0.595% | 0% | 0% |
OMP | 2.209% | 2.209% | 5.939% | 7.637% |
Proxy Fair Value (A) | 2.904% | 2.705% | 4.682% | 8.374% |
Daily ISE Percentage (A – B + t/T x B) | 1.173% | 1.058% | -4.233% | -10.468% |
Index Strategy Earnings | $11.73 | $10.58 | -$42.33 | -$104.68 |
Strategy Value | $1,011.73 | $1,010.58 | $957.67 | $895.32 |
(1) | Not applicable | |
(2) | ||
(3) | (a) | |
(3) | (b) | |
(4) | (a) | Individual Annuity Contract- To be filed by subsequent Pre-Effective Amendment. |
(4) | (b) | Contract Specification Page - To be filed by subsequent Pre-Effective Amendment. |
(4) | (c) | Application - To be filed by subsequent Pre-Effective Amendment. |
(4) | (d) | Increase in Remaining Free Withdrawal Amount After A Long-Term Care or Terminal Illness or Injury Event Endorsement - To be filed by subsequent Pre-Effective Amendment. |
(4) | (e) | Cap Index Strategy Endorsement - To be filed by subsequent Pre-Effective Amendment. |
(4) | (f) | Cap+ Index Strategy Endorsement - To be filed by subsequent Pre-Effective Amendment. |
(4) | (g) | Market Value Adjustment (MVA) Endorsement - To be filed by subsequent Pre-Effective Amendment. |
(4) | (h) | Return of Premium Death Benefit Endorsement – To be filed by subsequent Pre-Effective Amendment. |
(5) | ||
(6) | Not applicable | |
(7) | Not applicable | |
(8) | None | |
(9) | Not applicable | |
(10a) | ||
(10b) | ||
(11) | Not applicable | |
(12) | Not applicable | |
(13) | Not applicable | |
(14) | Not applicable | |
(15) | Not applicable | |
(16) | Not applicable | |
(17) | Not applicable | |
(18) | Not applicable | |
(19) | Not applicable | |
(20) | Not applicable | |
(21) | ||
(22) | Not applicable | |
(23) | (i) | Consent of Independent Registered Public Accounting Firm – To be filed by subsequent Pre-Effective Amendment. |
(23) | (ii) | |
(24) | ||
(25) | Not applicable | |
(26) | Not applicable | |
(27) | Not applicable | |
(101.INS) | Not applicable | |
(101.SCH) | Not applicable | |
(101.CAL) | Not applicable | |
(101.DEF) | Not applicable | |
(101.LAB) | Not applicable | |
(101.PRE) | Not applicable | |
(107) |
NATIONWIDE LIFE INSURANCE COMPANY |
(Registrant) |
By: /s/ |
Jamie Ruff Casto Attorney-in-Fact |
JOHN L. CARTER | |
John L. Carter, President and Chief Operating Officer and Director | |
TIMOTHY G. FROMMEYER | |
Timothy G. Frommeyer, Executive Vice President and Director | |
ERIC S. HENDERSON | |
Eric S. Henderson, Senior Vice President-Nationwide Annuity and Director | |
STEVEN A. GINNAN | |
Steven A. Ginnan, Senior Vice President-Chief Financial Officer-Nationwide Financial and Director | |
HOLLY R. SNYDER | |
Holly R. Snyder, Senior Vice President-Nationwide Life and Director | |
KIRT A. WALKER | |
Director | |
Jamie Ruff Casto Attorney-in-Fact |