How Defined Protection works


The Protection Level represents the amount of downside protection per Strategy Term. Strategy performance below the Protection Level will not impact the investment. For example, the maximum loss at the end of a Strategy Term with a 95% Protection Level is 5%. Non-Preferred Withdrawals may result in losses below the Protection Level. See the Access and Withdrawals section below for more information on Non-Preferred Withdrawals.

  • All three Protection Levels may be available with 1-Year and 3-Year Strategy Terms. Not all Strategies may be available at all times or in all states.
  • Protection Levels may be adjusted each new Strategy Term if needs change

Note: Protection Levels only apply for the duration of the Strategy Term. Losses over the term of the contract may be greater than the selected Protection Level.

Defined Protection in Action
See how each Protection Level would have stopped losses at a defined level.


Hypothetical Example based on a 100% Participation Rate in the S&P 500® Price Index from 10/1/07 – 9/30/08. Past performance is not a guarantee of future results. This analysis shows how a Protection Level would be impacted, given the application of the selected scenario, based on historical performance of the S&P 500® Price Index. The hypothetical performance returns are shown for illustrative purposes only and are not intended to be representative of the actual performance returns of any Strategy.


Defined Protection Annuity offers a variety of traditional and dynamic indices selected to provide diversified growth opportunities. Each Defined Protection Strategy offers a unique combination of Index and Participation Rate.

Participation Rate
The proportion of index growth reflected when calculating any interest earnings. The proportion of Index performance that is
reflected in the Strategy Earnings calculation.

Adjust the crediting factor
The Participation Rate may increase by selecting a different Strategy Term, lower Protection Level or by selecting a Strategy with a Strategy Spread. A greater Participation Rate increases the impact of Index performance, up or down, not to exceed the Protection Level. The table below shows how selecting a Strategy with a Spread may provide a higher Participation Rate, all other factors being equal:

Hypothetical example provided for informational purposes only. The Strategy Spread cannot move performance below the Protection Level. Past performance is not an indication of future results. Strategies with each crediting factor may not be available. For more information, please consult the Rate Flyer.

Strategy Earnings
The performance of the Index selected, positive or negative, is multiplied by the Participation Rate minus the Strategy Spread when determining earnings at the end of the Strategy Term.

Negative Index Performance
Negative Index performance (or the Strategy Spread) will never cause earnings to be less than the Protection Level selected at the beginning of the Strategy Term.

Index Lock-in Feature
Once each Strategy Term, the Index value may be locked in on any business day before the end of the Strategy Term. The locked-in Index value is then used when calculating earnings any time between the lock-in date and the end of the Strategy Term. The charts below shows an example of how this works in a variety of market environments.

Unfavorable Lock-in

Favorable Lock-in

Hypothetical Example based on a 100% Protection Level and hypothetical Index Performance. Past performance is not an indication of future results.

Contract Basics

Contract Accumulation Value Death Benefit: If either the Annuitant or Co-Annuitant (if applicable) are age 76 or older on the application sign date, the Death Benefit is equal to the CAV.

Return of Premium Death Benefit: If the Annuitant and Co-Annuitant (if applicable) are both age 75 or younger on the application sign date, the Return of Premium (ROP) Death Benefit is automatically added to the contract. Under the Return of Premium Death Benefit, the Death Benefit is equal to the greater of the CAV, or the purchase payment amount adjusted proportionately for any withdrawals.

Spousal Protection Feature: This feature protects both spouses, even on qualified contracts. After the first spouse’s death, the surviving spouse may continue the contract and name new beneficiaries. From that point on, any withdrawals will be treated as Preferred Withdrawals. If the contract contains the Return of Premium Death Benefit, upon the first spouse’s death, the CAV will be set equal to the purchase payment amount (adjusted for withdrawals), if greater. Upon the surviving spouse’s death, the Death Benefit (including the ROP if applicable) will be paid to the beneficiaries.

Access and Withdrawals

Preferred Withdrawals may be taken – up to 10% per year (contract years 1-5) and 10% per year (contract years 6+) thereafter – at any time without incurring any Contingent Deferred Sales Charge (CDSC), Market Value Adjustment (MVA) or Non-Preferred Withdrawal adjustment.

If more than the Preferred Withdrawal amount is withdrawn before the sixth contract year, a Contingent Deferred Sales Charge (CDSC) may apply.

Completed Years 0 1 2 3 4 5 6+
CDSC Percentage 8% 8% 7% 6% 5% 4% 0%

Preferred Withdrawal amount is non-cumulative and is determined as the greater of:

  • Defined Protection Required Minimum Distribution (RMD), or
  • Contract Value on the first day of the contract year times the Preferred Withdrawal Percentage

Preferred Withdrawals receive full earnings-to-date. After the sixth anniversary, CDSC and MVA charges do not apply to any withdrawals, though the Non-Preferred Withdrawal Adjustment may apply.

Non-Preferred Withdrawal: Withdrawals above the Preferred Withdrawal amount may be assessed a CDSC charge and Market Value Adjustment (MVA) and may also include partial gains or full losses to-date. Positive Strategy performance during the Strategy Term will be credited based on the percentage of the Strategy Term that has been completed when the withdrawal is made. Non-Preferred Withdrawals may also be subject to a Non-Preferred Withdrawal adjustment, which may result in losses greater than the Protection Level.

Refer to the prospectus for more information on Preferred and Non-Preferred Withdrawals.

Not a deposit – Not FDIC or NCUSIF insured – Not guaranteed by the institution – Not insured by any federal government agency – May lose value

This material must be preceded or accompanied by the prospectus. Carefully consider the investment objectives, risks, charges and expenses. The product prospectus contains this and other important information. Investors should read it carefully before investing. To request a copy, go to or call 1-800-848-6331.

When evaluating the purchase of an annuity, your clients should be aware that 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. Please read the prospectus for complete details. Withdrawals are subject to income tax, and withdrawals before age 59½ may be subject to a 10% early withdrawal federal tax penalty.

Nationwide Defined Protection 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, the contract does not directly participate in any stock or equity investments.

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

Nationwide, the Nationwide N and Eagle, Nationwide is on your side, and Nationwide Defined Protection are service marks of Nationwide Mutual Insurance Company.

© 2022 Nationwide

AAM-0670M1.2 (06/23)