Nationwide Indexed Principal ProtectionSM
Nationwide Indexed Principal ProtectionSM (NW-IPP) is a long-term savings option that protects your Plan participants’ principal. That means no matter what the market does, the account is protected and it retains the opportunity for upside potential.
What is NW-IPP?
NW-IPP is a group fixed indexed annuity for retirement plans that tracks the performance of the S&P 500® Daily Risk Control 5% Excess Return Index (“the Index”). Money is not directly invested in the Index, but its performance is used to credit the account with interest earnings, subject to a specific limit called a cap rate.
- If the Index goes up, the account will be credited with interest earnings up to the cap rate. For example, if the Index gains 8% at the end of the Index Term and the cap rate is 7%, contributions to this account will be credited with 7% interest earnings.
- If the Index goes down, the account loses nothing because the principal is protected.
Hypothetical assumptions: A $100,000 one-time contribution is allocated to Nationwide Indexed Principal Protection℠ with a 5-year book value payout term. This chart demonstrates historical performance of S&P 500® Daily Risk Control 5% Excess Return Index assuming a 7% cap and a 0% floor. This example assumes that the initial deposit on 10/1/2010 remains invested in NW-IPP for 10 years, and the cap remains the same over the illustrated 10 years. The cap and interest rate may be changed for each term. This illustration is not a projection or prediction of future performance. The performance could be significantly different than the investment performance shown and shouldn’t be considered a representation of performance or investor experience of the index(es) in the future. Withdrawals will reduce the contract value; this illustration does not demonstrate the impact of withdrawals.