Nationwide launches updated registered index-linked annuity

Columbus, OH – Amid concerns about the U.S. economy and inflation, investors have turned to annuities for protection against market downturns, with many leaning in to registered indexed-linked annuities (RILAs) for both growth and limited risk exposure. To better meet the needs of these investors, Nationwide has announced the launch of Nationwide Defined Protection^® Annuity 2.0 (DPA 2.0), bringing to market key features of the original DPA RILA product with more flexibility and customization to enhance the client and advisor experience.

Created with product development partner Annexus, the premier independent designer of indexed retirement solutions, and annuity innovation company Genesis Development Group, Nationwide DPA 2.0 will feature daily protection and floor levels, ten index strategies and free withdrawals. The product’s updated combination of features make it uniquely positioned to succeed with financial professionals and their clients in today’s challenging economic environment.

“With economic stressors continuing to weigh on investors, advisors are focused on offering products to their clients that can help them achieve security in retirement,” said Mike Morrone, vice president of Nationwide Annuity business development. “According to a recent Nationwide Retirement Institute survey, 67% of investors said inflation and signs of a recession have made them rethink if and when they can retire. With DPA 2.0’s updated features, we can help by offering customization that allows investors to pursue investment growth, protect against downside risk and provide for their loved ones.”

Nationwide DPA 2.0 provides three defined protection levels – now applied daily – which limit negative performance. This allows clients to select how much of their investment—90%, 95% or 100%—will be protected from potential losses. DPA also features a fixed strategy and a variety of index strategies that can offer upside potential and fit a broad range of investment objectives. While previously only offering five index strategies, DPA 2.0 will now allow investors to select up to ten strategies at any given time, providing diversification and customization among different indexes, term lengths and protection levels. If clients are happy with their gains during any point before the end of a strategy term, DPA 2.0 features an enhanced Performance Lock Feature that allows clients to lock in their gains to date and prevents them from going back down before the end of the strategy term.

“One of the upsides of rising interest rates is that they allow us to produce better consumer value on almost all types of annuities,” said Aaron Murphy, associate vice president of Nationwide Annuity product management. “The updates to DPA 2.0 make it an innovative, yet simple solution that can help investors with conservative to moderate risk tolerance accumulate assets, while also offering customizable protection from market losses.”

DPA 2.0 will also make accessing money easier, offering free withdrawals of up to 10% of the contract value during the first six years of owning the annuity. Free withdrawals are also available for long-term care or a terminal illness. ¹

“The long-standing partnership between Nationwide and Annexus continues both of our companies’ traditions of designing protection-focused products with the goal of delivering better client outcomes,” said Annexus co-founder Ron Shurts. “Through our collaborative efforts, the enhancements being made to DPA will meet a broader range of investors’ unique needs for protection, growth and flexibility.”

Financial professionals interested in Nationwide DPA 2.0 should contact their Nationwide wholesaler or call the National Sales Desk at 1-800-321-6064. Individual investors interested in learning more about the benefits of DPA 2.0 should contact their financial professional or visit www.definedprotection.com.

¹ May not be available in all states. Long-term care may be referred to as confinement.

About Advisor Authority: Methodology
The research was conducted online within the U.S. by The Harris Poll on behalf of Nationwide from January 8-23, 2024, among 518 advisors and financial professionals and 2,346 investors ages 18+ with investable assets (IA) of $10K+. Advisors and financial professionals included 257 RIAs, 178 broker-dealers, 130 wirehouse and 42 other financial professionals. 

About Nationwide
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the United States. Nationwide is rated A+ by Standard & Poor’s. An industry leader in driving customer-focused innovation, Nationwide provides a full range of insurance and financial services products including auto, business, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; excess & surplus, specialty and surety; and pet, motorcycle and boat insurance.

About Annexus
Annexus designs solutions to help Americans grow and protect their retirement savings. For nearly two decades, Annexus has developed market-leading fixed indexed annuities and indexed universal life insurance products. Annexus has forged relationships with many of the industry’s leading insurance carriers and the world’s largest investment banks.

About Genesis
Genesis Development Group’s mission is to create innovative and profitable financial products for their carrier partners to help Americans achieve their retirement goals. In 1995, Genesis developed the first fixed indexed annuity in the United States. Since then, Genesis has been granted 17 patents, and their carrier partners have sold more than $40 billion of products developed with Genesis.  

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.

Variable products are sold by prospectus. Carefully consider the investment objectives, risks, charges and expenses. The product and underlying fund prospectuses contain this and other important information. Investors should read them carefully before investing. To request a copy, go to nationwide.com/prospectus or call 1-800-848-6331.

Index-linked annuity contracts are complicated investments. Prospective purchasers should consult with a financial professional about the Contract’s features, benefits, risks, and fees and whether the contract is appropriate based upon his or her financial situation and objectives. 

Annuities have limitations. They are long-term vehicles designed for retirement purposes. They are not intended to replace emergency funds, to be used as income for day-to-day expenses or to fund short-term savings goals. Withdrawals are subject to income tax, and withdrawals before age 59½ may be subject to a 10% early withdrawal federal tax penalty. Please read the contract for complete details. 

Nationwide Defined Protection^® Annuity 2.0 is an individual single purchase payment deferred annuity with index-linked strategies issued by Nationwide Life Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation, Member FINRA. Please note that the Defined Protection Annuity does not directly invest in an index. The product includes index strategies which follow market performance; however, they are not actual investments in the stock market. 

Guarantees and protections referenced within are subject to the claims-paying ability of Nationwide Life Insurance Company, Columbus, Ohio. 

For more information, visit www.nationwide.com.

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VAM-3974AO
05/2024