Getting to Know AMERICA S MARKETFLEX VUL. America s marketflex VUL

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1 Getting to Know AMERICA S MARKETFLEX VUL America s marketflex VUL

2 I want to protect our future both my children s and mine. Now that our retirement plan and IRA contributions are maxed out, I also want access to active asset allocation strategies to diversify my total retirement portfolio. I need a way to do both: protect and plan for what matters to me most. America s marketflex VUL may be just what you need to help you reach your protection and financial goals. It can help you provide for retirement and your family s future, while giving you the protection only life insurance can provide. It does this by offering elements of traditional life insurance protection combined with the benefits of multi-manager investment options that you yourself will choose, allocating your premiums into them as you decide using whole percentages. These underlying investment options are only available in variable life insurance contracts. They are not offered directly to the general public. It also offers: Income tax-free death benefits to your beneficiaries which may also be excluded from your taxable estate if properly structured; neither Nationwide nor its representatives give legal or tax advice; please see your legal or tax advisor for answers to your specific questions Tax-deferred accumulation earnings, if any, can grow income tax free until you withdraw them, and thus may accumulate faster; investing involves market risk, including the possible loss of principal; withdrawals and loans will reduce both the immediate cash value within the policy and any death benefit payable Nontaxable transfers make transfers between multiple investment options at no additional charge and without tax consequences Tax-free access to cash respond to financial demands as needs arise by taking out tax-advantaged policy loans and making partial withdrawals without incurring income taxes Guarantees and protections are subject to the claims-paying ability of the issuing insurance company, and do not apply to the investment performance of any variable accounts You should always read the prospectus of a product before you buy it. This brochure is authorized for client use only when preceded or accompanied by a prospectus. Read America s marketflex VUL prospectus, which describes the investment objectives, risks, charges and expenses that may apply. The prospectus contains this and other important information about the investment company. To request a copy, contact your investment professional or write to Nationwide Life Insurance Company, P.O. Box , Columbus, OH Please read the product and underlying fund prospectuses carefully before investing. As your personal situations change (e.g., marriage, birth of a child or job promotion), so will your life insurance needs. Care should be taken to ensure these strategies and products are suitable for your long-term life insurance needs. You should weigh your objectives, time horizon and risk tolerance, as well as any associated costs before investing. Also, be aware that market volatility can lead to the possibility of the need for additional premium in your policy. Variable life insurance has fees and charges associated with it that include costs of insurance that vary with such characteristics of the insured as gender, health and age, underlying fund charges and expenses, and additional charges for riders that customize a policy to fit your individual needs. Not a deposit Not FDIC or NCUSIF insured Not guaranteed by the institution Not insured by any federal government agency May lose value

3 AMERICA S MARKETFLEX VUL America s marketflex VUL is a variable universal life insurance policy with active investment allocation strategies. It s designed to help you protect your family with insurance and give you access to professionally managed investment options to help you grow your policy s cash value at the same time. In addition, while the policy is in force, the death benefit will never be less than the specified amount (after deducting any outstanding loans or partial withdrawals). ACTIVE ASSET ALLOCATION Active investment allocation strategies can be pursued with a wide selection of investment options from Rydex Global Advisors. These options allow you and your investment professional to exercise a specific approach to determining when it s best to be active or inactive in the market, or what sections of the market to invest in at a given time. These strategies could include: Tactical asset allocation Strategic asset allocation Sector rotation Market trending As you consider these strategies, please remember that they do not guarantee returns or insulate you from potential losses. Investment strategies offering the potential for higher rates of return also involve a higher degree of risk to principal. To provide additional value-added diversification to our subaccount lineup, we have added traditional funds that can be used as long-term core portfolio holdings. These funds from nationally known money managers include large-, mid- and small-cap growth and value funds, as well as an investment grade bond fund and a money market fund. ACCESS TO CASH VALUE With America s marketflex VUL, you have access to your money when you need it through low interest rate loans and/or partial surrenders. Just remember that any loans and partial surrenders will reduce the death benefit payable to your beneficiaries, as well as the immediate cash value itself. You also may want to consider the optional Long- Term care rider. This rider helps provide you with supplemental coverage for long-term care expenses, if needed. This rider may not be available in every state, may have different names and involves an additional charge. INVESTMENT CHOICES America s marketflex VUL has both core and explore investment options that can be utilized to meet almost every type of active and traditional asset allocation strategy. The explore options from Rydex Investments allow you and your investment professional to utilize tactical asset allocation strategies, while the core options from American Century, Federated, Fidelity Investments and Nationwide Funds SM can support traditional (buy-andhold) asset allocation models. Before investing, weigh your objectives, time horizon and risk tolerance, as well as any associated costs. Market volatility may require payment of additional premiums, so be sure to ask your investment professional how this could impact you. In addition, strategies such as asset allocation and diversification do not guarantee a profit or ensure against loss in a declining market.

4 AMERICA S MARKETFLEX VUL An overview VARIABLE UNIVERSAL LIFE INSURANCE (Tell me again, what am I buying?) SPECIFIED AMOUNT (How much insurance do I need?) THE COST (How much does it cost?) Variable universal life (VUL) insurance offers you a way to help protect your family or business along with the potential for cash accumulation and access to cash value. You should have enough life insurance coverage to take care of those you may leave behind. Remember, your needs will likely change over time, and your insurance policy may need to be updated to maintain the right level of protection and affordability for you and your family. Changing coverage will change cost. Your representative can provide you with an illustration that can help project your insurance costs based on your characteristics, needs and goals. The projected premium will cover these costs and generate cash value within the policy, which will thereafter vary with the performance of any underlying investment options you ve chosen. Insurance companies deduct some industry-standard fees that cover the cost of insurance, taxes and other expenses. CUSTOMIZATION (Can I customize my coverage?) Some variable universal life policies offer features that further enhance your policy. The features can be automatically added to your policy, or may be something you add when the policy is issued. YOUR MONEY (Can I access the money in my policy?) You do have the ability to access your money through loans and withdrawals from your policy. There may be certain restrictions and charges. This assumes the contract qualifies as life insurance under section 7702 of the Internal Revenue Code (IRC) and is not a modified endowment contract (MEC) under section 7702A. As long as the contract meets non-mec definitions under section 7702A, most distributions are taxed on a first-in/first-out basis. Loans and partial surrenders from a MEC will generally be taxable and, if taken prior to age 59½, may be subject to a 10% tax penalty.

5 AMERICA S MARKETFLEX VUL The details VARIABLE UNIVERSAL LIFE INSURANCE (Tell me again, what am I buying?) SPECIFIED AMOUNT (How much insurance do I need?) THE COST (How much does it cost?) America s marketflex VUL is a life insurance policy with investment features. It s designed to help you protect your family and potentially grow the cash value of your policy through access to professionally managed investment choices. Your representative will help you decide on the right amount for your situation. The minimum specified amount for marketflex VUL is $100,000 for all underwriting classes. You can increase or decrease your coverage amount once per year, if you wish. Increases will be subject to additional underwriting. The fees for marketflex VUL include: Premium charge including the sales charge, this is taken directly from the premium at a current rate of 4% and is guaranteed not to go higher than 6% Administrative charge deducted monthly from the cash value; first year: $10 per month (current and guaranteed); renewal years 2+: $5 per month (current); $7.50 per month (guaranteed) Mortality and expense risk charge to offset the risk of insuring you, this annual charge on variable account assets is assessed monthly using the scale below: Years 1 15 Years % for first $25,000 of cash value, plus 0.30% for next $225,000 of cash value, plus 0.20% of cash value > $250, % for first $25,000 of cash value, plus 0.20% of cash value >$25,000 Cost of insurance deducted monthly and based on your individual characteristics Fund management fees based on the funds you select within your policy and cover the management of those funds Surrender charges The initial surrender charge varies by specified amount, issue age, gender, risk classification and first year premium paid: Year % of Initial 100% 100% 90% 80% 70% 60% 50% 40% 30% 0% Surrender Charge CUSTOMIZATION (Can I customize my coverage?) YOUR MONEY (Can I access the money in my policy?) You can further enhance your marketflex VUL policy with: Accidental Death Benefit rider Maturity Extension provision Additional Protection Rider Policy Guard rider Adjusted Sales Load rider Premium Waiver rider Change of Insured rider Spouse rider Children s rider Waiver of Monthly Deductions rider Long-term Care rider With an America s marketflex VUL life insurance policy, you have access to your policy assets when you need it through low interest rate loans and/or partial surrenders. Loans are permitted in all years; see prospectus for interest rates and limits. Partial surrenders can be preferred or non-preferred; see prospectus for limits on available amount Non-preferred partial surrenders are available after the first year and are subject to minimum specified amount Preferred partial surrenders are available in all years and do not reduce the policy specified amount Please remember that loans and partial surrenders will reduce the cash value within your policy and the death benefit payable to your beneficiaries. And, if your contract were to lapse with a loan outstanding, the loan amount would be treated as a distribution and may be subject to income tax.

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7 WHAT HAPPENS NEXT? If you have made the decision that America s marketflex VUL is right for you, the underwriting process begins. This simply means we begin the paperwork on your policy. Your Nationwide representative will have some forms for you to sign and may need to ask you a few medical questions. Depending on the amount of insurance you apply for, a medical professional may contact you to schedule a quick checkup, including your height, weight and other basic medical information. This checkup is often done in your own home. You will receive your policy after your application is approved. You might want to file it with your other important documents and notify your beneficiaries. Then, by paying your premiums, you can be sure that you have protected what matters most to you.

8 All individuals selling this product must be licensed insurance agents and registered representatives. America s marketflex VUL is underwritten by Nationwide Life Insurance Company, Columbus, Ohio, a member of Nationwide Financial. The general distributor is Nationwide Investment Services Corporation, member NASD. In New York only: Nationwide Life Insurance Company. In Michigan only: Nationwide Investment Svcs. Corporation. Nationwide Life Insurance Company is a subsidiary of Nationwide Financial Services, Inc., a publicly traded holding company. Nationwide, Nationwide Financial, the Nationwide framemark and On Your Side are federally registered service marks of Nationwide Mutual Insurance Company. Nationwide Funds is a service mark of Nationwide Mutual Insurance Company. America s marketflex is a federally registered service mark of Nationwide Life Insurance Company. Contract/Certificate: VLO-0721, VLO , VLO Oklahoma Contract/Certificate: VLO Riders/Endorsements: VLO-359, VLO-360, VLO-361, VLO-362, VLO-508, VLO-526, VLO-0700-A, VLO , VLO-0640, VLO-512, VLO-500, VLO-0717, VLO-528-B Oklahoma Riders/Endorsements: VLO-359, VLO-360, VLO-361, VLO-362, VLO-508, VLO , VLO-0717, VLO-398-A, VLO-512, VLO-500, VLO B 2007, Nationwide Financial Services, Inc. All rights reserved. NFM-0125AO.3 (08/07)