LIBERTY ANNUITY. Champion. Consumer Summary and Disclosure. WL Liberty Champion Annuity A ew Equity Indexed Annuity for Long Term Accumulation

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1 Consumer Summary and Disclosure LIBERTY Champion ANNUITY WL Liberty Champion Annuity A ew Equity Indexed Annuity for Long Term Accumulation Group Policy Form and State Variations Thereof Group Certificate Form C-02 and State Variations Thereof National Western Life Insurance Company 850 East Anderson Lane Austin, TX SA-9567.Rev Page 1 of 12

2 ...a flexible, competitive, and intelligent way to care for your family's retirement security. You are purchasing an equity indexed annuity certificate that provides minimum guaranteed values. You should understand how the minimum guaranteed value is determined and the method used to determine the equity indexed interest. Values based on an equity indexed interest rate may exceed the minimum guaranteed values. Following is a summary explanation of the determination of the minimum guaranteed value and the principal features of the certificate relating to the equity indexed interest. Your agent will assist you in understanding the determination of the minimum guaranteed value and the equity indexed interest. While the values of the annuity certificate may be affected by an external index, the annuity certificate does not directly participate in any stock or equity investments. This Consumer Summary and Disclosure Form is not part of the policy or certificate and does not modify the policy or certificate in any way. Page 2 of 12

3 LIBERTY Champion ANNUITY This brochure is intended to provide a brief description of the features and limitations of the NWL Liberty Champion Annuity. Please read your certificate carefully. Instructions Thank you for choosing the NWL Liberty Champion Annuity from National Western Life (NWL ). We want to be sure that you understand the features and limitations of this annuity. We require that you and your agent review and sign this Consumer Summary and Disclosure. Please ask any questions that you may have so that you re satisfied that you understand the NWL Liberty Champion Annuity. Our Representative is to review this Summary and Disclosure with you. Both of you need to sign and date both portions of the Summary and Disclosure signature page and return one portion with your application. A Flexible Premium Equity Indexed Annuity Designed for Long Term Accumulation The NWL Liberty Champion Annuity is a fixed annuity which combines the safety, benefits, and features of a traditional fixed interest deferred annuity with the opportunity to have some or all of the interest accumulation based on a formula linked in part to the S&P 500 Composite Stock Index (which excludes dividends). Tax Advantages The NWL Liberty Champion Annuity is a tax-deferred fixed annuity, and under current federal income tax law, any growth within the certificate will not be taxable until such time as funds are withdrawn or paid. The following graph is intended only to illustrate the advantages of tax-deferred growth. Compared are values paying income taxes annually, deferring all income taxes, and paying taxes one time at the end of the period illustrated. The values represented are not guaranteed. The interest rate credited to your annuity may be higher or lower and is subject to change by NWL. Actual results may be more or less. Non qualified funds withdrawn are taxed as interest out first. Withdrawals before the certificate owner is may be subject to a 10% income tax penalty. Income tax deferral is already provided by any tax-qualified retirement plan. In such plans, the tax-deferred accrual feature of an annuity is redundant. Page 3 of 12

4 An Illustration of Tax- Deferred Growth The graph below is an illustration of the advantages of tax-deferred growth. It assumes a one-time $10,000 premium contribution compounding at 6.0% into any instrument which is currently taxable at 28% versus any instrument such as an annuity on which taxes are currently deferred. 60,000 50,000 40,000 30,000 20,000 10,000 Growth Taxable Annually Deferred Accumulation Pre Tax Deferred Accumulation After Tax 10 Years 20 Years 30 Years This is only intended to illustrate the advantages of tax-deferred growth. Compared are values paying income taxes annually, deferring all income taxes, and paying taxes one time at the end of the period illustrated. The values represented are not guaranteed. The interest rate credited to your annuity may be higher or lower and is subject to change by NWL. Actual results may be more or less. Nonqualified funds withdrawn are taxed as interest out first. Income tax deferral is already provided by any tax-qualified retirement plans. In such plans, the tax-deferred accrual feature of an annuity is redundant. Flexible Premium Payments The NWL Liberty Champion Annuity is a flexible premium annuity. The Initial Premium includes payments up to 20 days from issue. Additional premium payments may be made at any time and will earn a non-indexed fixed interest rate until the next Certificate Anniversary (Options A, B, and D) when those premiums and interest thereon will be added to the Account Value(defined below) for crediting under the Interest Credit Option selected for the next Certificate Term. The minimum initial premium is $5,000 non-qualified and $2,000 qualified. Additional premiums must be at least $ % of Premium Credited 100% of the premium deposits (plus any premium bonuses, if applicable) are credited to the Account Value (defined below). If applicable, each premium or Settlement Option value will be reduced by the amount of premium taxes, fees, or legal assessments imposed by the state or government jurisdiction in which you purchase this annuity. Substantial charges apply for early withdrawals. 5% First-Year Premium Bonus Each premium payment in the first Certificate Year receives a premium bonus of 5%. In the Certificate, this premium bonus is expressed as a Percentage of Premiums, i.e. 105% times each premium payment. Account Value & Cash Surrender Value The Account Value is equal to the premiums received, increased by any bonus which may apply in the first year, less any withdrawals and applicable charges, accumulated with interest if any, and applicable Federal, State, or Municipal taxes, or any fees or assessments related to the Certificate, payment of which is required or authorized by law. The Cash Surrender Value is the Account Value less the withdrawal charge, if applicable, or the Minimum Guaranteed Certificate Value, whichever is greater. Minimum Guaranteed Certificate Value Regardless of the Interest Credit Option you select or the S&P Index performance, the minimum value you are guaranteed to receive under this annuity will never be less than 100% of premiums received, less withdrawals and any withdrawal charges, loans and other charges, accumulated at the minimum guaranteed interest rate stated in the certificate, compounded annually, less a withdrawal charge. This means, for example, that on a single premium paid at the beginning of the certificate with a 1.50% minimum guaranteed interest rate, % of the single premium will be the minimum amount that the certificate owner can expect to receive at the end of the 15th Certificate Year assuming no withdrawals, loans, or other charges. The Minimum Guaranteed Certificate Value is an alternative method to determine the value of your certificate and applies only when its total value exceeds the total value achieved under the Interest Credit Option(s) chosen. This 1.50% interest rate applies only to the calculation of the Page 4 of 12

5 Minimum Guaranteed Certificate Value and is not a minimum annual return under the Indexed Interest Credit Options. This minimum value is checked whenever a full withdrawal, death claim, or settlement option applies. Interest Credit Strategies The NWL Liberty Champion may offer the owner a choice of three different methods or strategies by which to earn interest. Option A is not available in all states. Please ask your agent about availability. These strategies are Interest Credit Options A, B, and D and may be available at issue. If Option A or B is desired at issue, note Option A or Option B on the application. If nothing is indicated, Option D will be presumed. Any current Interest Credit Option is effective for the full Certificate Year for Option A, B, and D. These interest option strategies are as follows: Option A Annual Reset With Monthly Averaging Equity Indexed Interest Rate: Interest on the Account Value is determined each Certificate Year by a formula described on Page 5 which is linked in part to the S&P 500 Index, subject to an annual asset fee rate. The S&P 500 Index is a stock price index and does not include dividends that may be paid on the actual stocks making up the Index. Option A Indexed Interest is not earned or credited until the Policy Anniversary. Until the Policy Year is over and the necessary 12 monthly Index Values are available, the Option A formula cannot be calculated. This option may not be available for all renewal years. Option B Annual Fixed Interest Rate: The Account Value earns a rate of interest declared in advance by NWL and guaranteed for the Certificate Year; this rate is located on page three of the certificate. Such interest rate is not less than the Minimum Guaranteed Interest Rate, which is 1.50%. After the first Certificate Year, these rates of interest will be declared from time to time and are subject to change, but are guaranteed to never be less than the Minimum Guaranteed Interest Rate. There is no Monthly Index Cap Rate for fixed interest credited under Option B. Option D Annual Equity Indexed Interest Rate: Interest on the Account Value is determined each Certificate Year by a formula described on Page 5 which is linked in part to the S&P 500 Index, subject to a Monthly Index Cap Rate. The S&P 500 Index is a stock price index and does not include dividends that may be paid on the actual stocks making up the Index. Option D Indexed Interest is not earned or credited until the Policy Anniversary. Until the Policy Year is over and the necessary 12 monthly Index Values are available, the Option D formula cannot be calculated. This option may not be available for all renewal years. Interest Credit Allocation The Annuity Owner may allocate the Account Value among the available Interest Credit methods: 1. The Interest Credit Allocation Percentages for Options A and B can be any whole numbers whose total is 100% and may be changed annually, or 2. The Interest Credit Allocation Percentages for Options B and D can be any whole numbers whose total is 100% and may be changed annually. The Interest Credit Allocation Percentages will remain in effect until you change them, or the provisions of the certificate and endorsements automatically change them. Any change made by the Annuity owner in Interest Credit Allocation Percentage must be made by written notice and received by National Western Life prior to 20 days before the beginning of the Certificate Year for which the change is requested. Direct such notice to: National Western Life Ins. Co., Attn: POS Dept. Indexed Annuity, 850 East Anderson Lane, Austin, TX The Equity Indexing Methods Described The NWL Liberty Champion Annuity offers the following equity indexing methods: OPTION A offers an Annual Reset feature, Monthly Averaging, and First Year and Renewal Participation Rates with First Year and Renewal Asset Fee Rates. Your annual interest earnings are based on a formula linked to monthly S&P 500 Index Values and averaged annually, with the percent increase (see the formula on page 5) then multiplied by a Participation Rate, less an Asset Fee Rate. Monthly Averaging: National Western Life averages the S&P 500 Index Values corresponding Page 5 of 12

6 to the 12 Index Dates each Certificate Year. The Index Date in each month is the same date in the month as the date immediately before the Certificate Date. For example, if the Certificate Date is August 10th, NWL will average the Index Value for the 9th date of each month beginning with September 9th and concluding for that year with the next August 9th. Monthly Averaging reduces the impact of sudden large changes in the Index Values. Averaging will also reduce the amount of potential indexed interest earnings if the Index increases steadily throughout the year. Annual Reset: The indexed interest earned, if any, is calculated from the beginning Index Value for each Certificate Year, whether higher or lower than the previous year. All indexed interest is credited annually on the Certificate Anniversary, compounded annually, and lockedin. Future decreases in the Index will never reduce your principal and previously credited interest. Asset Fee Rate: A First Year Asset Fee Rate is declared at issue. A Renewal Asset Fee Rate is declared each year on the Certificate Anniversary and is expected to be higher than the First Year Asset Fee Rate. The Renewal Asset Fee Rate will fluctuate from year to year as it is influenced by a number of factors including but not limited to, dividend yields, stock market volatility, and new money interest rate levels. The Asset Fee Rate will never exceed 8.0%. The Asset Fee Rate will only be deducted in the calculation of equity indexed interest. Where the formula result is zero or less, the interest credited on the Option A protion of your Account Value will be zero. Ask your agent for the current First Year Asset Fee Rate and the current Renewal Asset Fee Rate. The current Renewal Asset Fee Rate is not guaranteed and is subject to change at NWL 's discretion. Participation Rate: This is a factor in the equity indexing formula described on page 5. Application of this percentage determines in part the ultimate value to be credited to the Certificate. The Participation Rate at issue is guaranteed for the first Certificate Year only, as declared by National Western. The Renewal Participation Rate is declared on each Certificate Anniversary for the following Certificate Year. The current Renewal Participation Rate is lower than the current First Year Participation Rate on newly issued Certificates. Ask your agent for the current First Year Participation Rate and the current Renewal Participation Rate. The current Renewal Participation Rate is not guaranteed and subject to change at NWL 's discretion. The Guaranteed Minimum Participation Rate is 20% in all available states. OPTION D offers an Annual Reset feature, a Monthly Index Change Rate, and a Monthly Index Cap Rate. Your interest earnings are based on a formula linked to monthly S&P 500 Index Values (dividends excluded) and are calculated annually. The Annual Index Change Rate is the sum of the Monthly Index Change Rates for the Annual (Option D) period. The Monthly Index Value is subject to the Monthly Index Cap Rate. The Annual Index Change Rate will never be less than zero percent (0%). (See the formula on page 8.) Monthly Index Change Rate: National Western Life begins by calculating the percentage change, either positive or negative, in the Index Value of the S&P 500 Index. The calculation is monthly from Index Date to Index Date. The Index Date is the last day of each monthly period beginning on the Certificate Date and the same day of each month thereafter. Monthly Index Cap Rate: The Monthly Index Cap Rate is declared in advance annually (Option D). The interest rate is credited at the end of the term to the Account Value at the beginning of the term. The interest rate will be the sum of monthly percentage increases and decreases in the index, but such interest rate credited will not be less than zero (0%). Any single monthly increase will be limited to no greater than the Monthly Index Cap Rate, declared in advance annually. The Monthly Index Cap Rate is expected to be higher in the first Certificate Year than in subsequent Certificate Years. Examples of how the indexed interest formula works are shown below. These examples are only demonstrations of how the formula works and should not be considered representations of future or past performance. Past Performance of the S&P 500 Index should not be considered representative of future performance. Annual Reset: The indexed interest earned, if any, is calculated from the beginning Index Value for each Page 6 of 12

7 Interest Credit Option A Calculation Examples at the END of the FIRST Certificate Year Examples on a Certificate ANNIVERSARY after the First Example 1 Example 2 Example 3 Example 4 Initial Premium $50,000 $50,000 (includes any premiums plus bonus 0 1,500 received on or before the 20th 50,000 51,500 calendar day following the Certificate Date) (E) Index Value on Certificate Date (B) Index Average (Sum /12 from below) Index Average minus Index Value (A) 42.5 (32.5) Divide Difference (A) by Index Value (B) (0.065) First Year Participation Rate (C) 100% 100% (1.0 as decimal) (1.0 as decimal) Multiply by Participation Rate (C) (0.065) First Year Asset Fee Rate (D) 2% 4% (.02 as decimal) (.04 as decimal) Less Asset Fee Rate Above (0.105) Multiply by Premiums (E) $3,250 (5,407.50) Interest Credited under Option A $3,250 $0 Annual Percentage Rate Credited 6.5% 0% Account Value (E) $50,000 $50,000 Index Value on Prior Certificate Date (B) Index Average (Sum /12 below) Index Average minus Index Value (A) Divide Difference (A) by Index Value (B) Renewal Year Participation Rate (C) 70% 70% (0.7 as decimal) (0.7 as decimal) Multiply by Participation Rate (C) Renewal Year Asset Fee Rate (D) 3% 3% (0.03 as decimal) (0.03 as decimal) Less Asset Fee Rate Above Multiply by Acct. Value (E) $775 $2,350 Interest Credited under Option A $775 $2,350 Annual Percentage Rate Credited 1.55% 4.7% Example 1 Example 2 Certificate Date: February 5 Certificate Date: May 12 Index Date Index Value Index Date Index Value 3/ / / / / / / / / / / / / / / / / / / / / / / / Sum of Values 6,510 Sum of Values 5,610 Average Average Example 3 Example 4 Certificate Date: October 10 Certificate Date: November 4 Index Date Index Value Index Date Index Value 11/ / / / / / / / / / / / / / / / / / / / / / / /3 640 Sum of Values 6,390 Sum of Values 6,660 Average Average 555 Page 7 of 12

8 Interest Credit Option D Calculation Certificate Date: January 7 The Option D Annual Index Change Rate is: 5.17% Option D Monthly Index Index Index Change Date Value Rates 1/ / % 3/ % 4/ % 5/ % 6/ % 7/ % 8/ % 9/ % 10/ % 11/ % 12/ % 1/ % Example of Interest Credit Option D (Annual Index Change Rate) Account Value...$50,000 Index Value on Certificate Date Monthly Index Cap Rate % Sum of Monthly Change..5.17% Rates (Sum from example above) Multiply by Account Value..$2,585 Interest Rate Credited % New Account Value...$52,585 Annual Term Period, whether higher or lower than the previous Term Period. All indexed interest is credited and locked-in on the Certificate Anniversary which ends the Annual Term Period. Future decreases in the Index will never reduce your principal and previously credited interest. Future interest calculations will include previously credited interest. Indexed Interest Rate Formulas Examples of how the indexed interest formulas work are shown below. These examples are only demonstrations of how the formula works and should not be considered representations of future or past performance. Past Performance of the S&P 500 Index should not be considered representative of future performance. OPTION A: The Option A Indexed Interest Formula is as follows: ([( A / B ) x C ] - D) x E, where A - is the Index Average for the current Certificate Year minus the Index Value on the Prior Anniversary or Certificate Date (if Certificate is in the first year). B - is the Index Value on the prior Certificate Anniversary or Certificate Date (if Certificate is in the first year). C - the Participation Rate for the Certificate Year expressed as a decimal number (100% is 1.0). D - is the Asset Fee Rate for the Certificate Year expressed as decimal number (2% is.02). E - in the first Certificate Year, the initial premium plus premiums received on or before the 20th calendar day following the Certificate Date plus any applicable premium bonuses; in Certificate Years after the first, the Account Value on the prior Certificate Anniversary. OPTION D: The Monthly Index Change Rate for any Index Date equals (A) divided by (B) the result not greater than (C), where A - is the Index Value on such Index Date less the Index Value on the immediately preceding Index Date (Certificate Date for the first month) B - is the Index Value on such immediately preceding Index Date (Certificate Date for the first month) C - is the Option D (Annual) Monthly Index Cap Rate for the current Certificate Year. Interest Crediting Examples The following are examples of how the NWL Liberty Champion Interest Credit Options work. These are examples only and are not intended to depict past or future results. Past performance of the S&P 500 Index should not be considered representative of future performance. OPTION A: Suppose that you purchased a Liberty Champion, Option A certificate with the certificate dates or certificate anniversaries shown on the examples on page 6 and the information and values shown on the examples on page 6 applied. Those examples are strictly hypothetical and Page 8 of 12

9 intended only to demonstrate the Option A formula. Those examples assume the First Year Participation Rate to be 100% and the Renewal Participation Rate to be 70%. The several parts of the actual formula described above are shown by matching letter. Those examples assume that no withdrawals were made. Option A Indexed Interest is not earned or credited until the certificate anniversary. Until the Certificate Year is over and the necessary 12 monthly Index Values are available, the Option A formula cannot be calculated. Index Value for any date is the closing value of the Index on that date. The 12 Index Dates which are averaged in any Certificate Year are the last days of each monthly period beginning on the Certificate Date and are the same day of each month thereafter. Where the date does not exist (e.g. 31st of month) or there is no closing value (weekend or holiday), the Index Value will be the closing value of the Index on the first day preceding. Example: If the Certificate Date is January 1, 2004, the first Index Date is January 31, 2004, and the last day of each following month. OPTION D: Suppose that you purchased an NWL Liberty Champion Annuity certificate with the certificate dates and certificate anniversaries shown on the example on page 7 and the information and values shown on the example on page 7 applied. (For the first Option D term period, the Account Values shown include any premiums plus 5% bonuses received on or before the 20th calendar day following the Certificate Date). This example assumes an Option D (Annual) Monthly Index Cap Rate of 2.00%. This example is strictly hypothetical and intended only to demonstrate the option D formula. This example assumes that no withdrawals were made. Option D Indexed Interest is not earned or credited until the certificate anniversary ending the Annual term period. Until the term period is over and the necessary 12 monthly Index Change Rates are available, the Option D formula cannot be calculated. The Index Value for any date is the closing value of the Index on that date. The 12 Index Dates for any Certificate Year are the last days of each monthly period beginning on the Certificate Date and are the same day of each month thereafter. Where the date does not exist (e.g. 31st of month) or there is no closing value (weekend or holiday) the Index Value will be the closing value of the Index on the first day preceding. Example: If the Certificate Date is January 1, 2004, the first Index Date is January 31, 2004, and the last day of each following month. Withdrawal Charge A withdrawal charge will apply during the first fifteen (15) Certificate Years, except as provided in the free withdrawal option section. The amount withdrawn must be at least $ or the Cash Surrender Value, if less. You may not take a partial withdrawal, unless the Certificate Value, after the withdrawal, is at least equal to the $5,000 Minimum Value as shown on Page 3 of the certificate. Withdrawal charges as a percentage of the Account Value are as follows: Certificate Year Percent 1 through % Thereafter 0.00 Under any interest option, interest is credited to the Account Value before any adjustment for partial withdrawals that may have been made during the Certificate Year (Option A, B or D). The amounts withdrawn and any applicable charges are included in the interest calculation. The Account Value on any Certificate Anniversary (Option A or D) following a period during which withdrawals were made is reduced by the amount of such withdrawals and any applicable charges, plus interest as NWL declares from the date withdrawn to such Certificate Anniversary. Thus, partial withdrawals made between such anniversary dates are credited interest, if any, under the applicable Option A or D interest credit methods and are charged interest by NWL during that part of the term when those funds were no longer in the annuity. Free Withdrawal Option After the first Certificate Anniversary, an amount up to 10% of the Account Value may be withdrawn once each Certificate Year free of a withdrawal charge. All Page 9 of 12

10 withdrawals are subject to federal income tax. Withdrawals prior to age may be subject to a 10% income tax penalty. Federal tax laws may place additional limitations upon availability of funds. Some or all of a non-qualified withdrawal or loan will be reported as taxable income, depending on the amount of the withdrawal or loan and the amount of interest earned in the certificate. This is so because current tax law presumes interest on non-qualified certificates to be withdrawn first. A Free Withdrawal will incur withdrawal charges in the event a full withdrawal of the Cash Surrender Value is taken within the 12 months following the Free Withdrawal. Interest is charged on any withdrawal from the processing date to the next option term end date, if under Option A or D. Qualified Plan Withdrawal Disclosure Plan the distribution of tax-qualified retirement funds carefully. The distribution of IRAs and other qualified funds usually must begin by age No withdrawal charge free withdrawals are allowed within the first Certificate Year. In addition, National Western Life will not waive any early withdrawal charge for any distribution to the extent it exceeds the 10% withdrawal charge free annual withdrawal amount in subsequent years. If this is a concern, taking the distribution from other sources of qualified funds may be the solution. Cash Loan Privilege (Cash Loan Endorsement Form P-02 and state variations thereof) Cash loans are not available for IRAs or Roth IRAs or for some other tax qualified plans. Other owners may obtain a loan or loans from National Western Life secured by the annuity in an amount outstanding not to exceed 60% of the Certificate Value (the greater of the Account Value or the Minimum Guaranteed Certificate Value) only if 100% Interest Credit Option B is in effect. No loan may be taken if Interest Credit Option A or D is in effect. Any loan would have to be repaid before Option A or D could again be elected. The loan may not be made for less than $ and may not be obtained within 30 days of issue. Interest on the loan must be paid annually at 7.4% in advance or it will be added to the amount of the loan. The interest rate credited to the portion of the Certificate Value which is equal to the loan amount may differ from the interest rate credited on the remainder of the Certificate Value but will not be less than the Minimum Guaranteed Interest Rate. All or part of a loan may be repaid at any time before the Annuity Date, but each payment must be at least $25. Continuation after 15 Years At the end of the 15-year certificate term, you may withdraw the full Certificate Value, take a partial withdrawal, elect an income settlement option, or leave the Certificate Value with National Western Life where it will continue to earn interest declared in advance for periods of not less than one year. The Minimum Guaranteed Interest Rate is stated in the certificate. After 15 years, Interest Credit Options A, B, and D and withdrawal charges would no longer apply. Income Settlement Options at Annuity Date You may elect to receive the Certificate Value under an Income Settlement Option on the Annuity Date. You may not choose an Annuity Date that occurs before the 5th Certificate Anniversary. Any Settlement Option or Annuity Date chosen may be changed prior to the Annuity Date. Your Settlement Options include, among others: Income for a specific number of years, Income for as long as you live, and Income for as long as you and your joint annuitant live. Page 10 of 12

11 The minimum guaranteed interest rate on Income Settlement Options is 1.5%. See the Certificate for details. Benefit at Death of Annuitant The beneficiary will receive the Certificate Value as a single sum, or have it paid under one of the income settlement options. There are no surrender charges upon the death of the annuitant. If the Annuitant dies on or after the Annuity Date, the beneficiary will receive any unpaid guaranteed amounts as provided by the Income Settlement Option in force on the date of death. Free Look Period Your Satisfaction is important to us! If you change your mind about whether this annuity fits your needs after you receive your annuity certificate or if you are dissatisfied for any reason, you have at least twenty days* after the receipt of the annuity certificate during which you can return it without incurring charges (referred to as a free look period). *This time period may be longer, so please see your certificate for details. Annual Report Each Certificate Year you will receive an Annual Report. This detailed statement will show: Premiums received during the Certificate Year Withdrawals during the Certificate Year Interest Credited during the Certificate Year Account Value Certificate Value Cash Surrender Value Legal and Tax Advice National Western Life does not authorize its agents or employees to give legal or tax advice. Representations made in this brochure are based on our understanding of current tax law relative to the NWL Liberty Champion Annuity. For an explanation of how those laws apply to you, we suggest you consult with your attorney, accountant, or other tax advisor. The NWL Liberty Champion Annuity with its guaranteed minimums is a fixed annuity product and is regulated by State Insurance Departments. It is not a security nor has it been registered with or approved by the Securities and Exchange Commission. NWL Liberty Champion Group Annuity Policy Form and Group Policyholder The NWL Liberty Champion Annuity is underwritten by National Western Life Insurance Company, Austin, Texas. In some states, Group Policy Form has been issued to the policyholder, Consumers Nationwide Trust, as Group Policy No. F0636- Non-qualified; Group Policy No. F0637-IRA; Group Policy No. F0638-Roth IRA; Group Policy No. F0639-Other Qualified. NWL Liberty Champion is not available in all states. Certain other limitations and exclusions may apply. Standard & Poor s Standard & Poor s, S&P, S&P 500, Standard & Poor s 500, and 500 are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by National Western Life Insurance Company. The NWL Liberty Champion Annuity is not sponsored, endorsed, sold, or promoted by Standard & Poor s, and Standard & Poor s makes no representation regarding the advisability of purchasing this product. About the Company National Western Life Insurance Company is a Colorado corporation with executive offices in Austin, Texas. The Company offers a full line of life insurance and annuity products (both on an individual and group basis), through general agency offices in 49 states, the District of Columbia, and accepts applications from residents of several foreign countries. As of December 31, 2008, the Company had $18.8 billion of insurance in force, $6.1 billion in assets, $5.4 billion in liabilities, and $708 million in statutory capital and surplus. Since its start in 1956, National Western has emphasized financial strength for the protection of its policyholders. As a legal reserve insurance company, National Western must set aside a portion of its assets equal to reserves required by law. Annually, a financial statement is filed with each state's insurance department. These departments have authority to verify that the appropriate reserves are maintained. Page 11 of 12

12 NATIONAL WESTERN LIFE INSURANCE COMPANY NWL LIBERTY CHAMPION ANNUITY Consumer Disclosure Signature Thank you for choosing to purchase the NWL Liberty Champion Flexible Premium Deferred Equity Indexed Annuity. If you have any questions after you receive your annuity Certificate, please contact your agent or call National Western s Customer Service Department at We want to be sure that you read all 12 pages of this Disclosure and are aware of the benefits and features explained herein. Please initial and sign where indicated with an asterisk (*), acknowledging that you understand the following: This is a deferred annuity, and it is a long-term savings vehicle. This annuity has a free look period, during which you can surrender the annuity Certificate after receiving it without incurring surrender charges (described more fully in your annuity Certificate). Any results shown, other than guaranteed minimum values, are not guarantees, promises, or warranties. Withdrawal charges may be deducted from your Account Value. Any premium bonus will be credited once on each premium as deposited only during the first year. For any certificate issued as a tax-qualified plan, you may have to make withdrawals to meet minimum distribution requirements, and those withdrawals may incur withdrawal charges. Renewal Participation Rates may be as low as 20% (0% in California) and Renewal Asset Fee Rates may be as high as 8%. Monthly Cap Rates may be as low as 1.00%. You can allocate 100% to Options A, B, or D. You can allocate between Options A & B (must be whole numbers whose sum is 100%). You can allocate between Options B & D (must be whole numbers whose sum is 100%). Option A not available in all states. State your allocation percentage here. % Option A ( Annual Indexed Interest Rate ) % Option B (Fixed Rate Interest) % Option D (Annual Indexed Credit) Option A and D may not be available on renewal. (*Initial) The above-stated features have been fully explained to me. I have received a copy of this Disclosure, and I have reviewed it with my agent. I fully understand the Disclosure and the specific points outlined above. The Disclosure is not a part of the annuity Certificate and does not modify it in any way. The annuity Certificate itself contains all terms, benefits, guarantees, limitations, restrictions, and exclusions. NATIONAL WESTERN LIFE INSURANCE COMPANY NWL LIBERTY CHAMPION ANNUITY Consumer Disclosure Signature Thank you for choosing to purchase the NWL Liberty Champion Flexible Premium Deferred Equity Indexed Annuity. If you have any questions after you receive your annuity Certificate, please contact your agent or call National Western s Customer Service Department at We want to be sure that you read all 12 pages of this Disclosure and are aware of the benefits and features explained herein. Please initial and sign where indicated with an asterisk (*), acknowledging that you understand the following: This is a deferred annuity, and it is a long-term savings vehicle. This annuity has a free look period, during which you can surrender the annuity Certificate after receiving it without incurring surrender charges (described more fully in your annuity Certificate). Any results shown, other than guaranteed minimum values, are not guarantees, promises, or warranties. Withdrawal charges may be deducted from your Account Value. Any premium bonus will be credited once on each premium as deposited only during the first year. For any certificate issued as a tax-qualified plan, you may have to make withdrawals to meet minimum distribution requirements, and those withdrawals may incur withdrawal charges. Renewal Participation Rates may be as low as 20% (0% in California) and Renewal Asset Fee Rates may be as high as 8%. Monthly Cap Rates may be as low as 1.00%. You can allocate 100% to Options A, B, or D. You can allocate between Options A & B (must be whole numbers whose sum is 100%). You can allocate between Options B & D (must be whole numbers whose sum is 100%). Option A not available in all states. State your allocation percentage here. % Option A ( Annual Indexed Interest Rate ) % Option B (Fixed Rate Interest) % Option D (Annual Indexed Credit) Option A and D may not be available on renewal. (*Initial) The above-stated features have been fully explained to me. I have received a copy of this Disclosure, and I have reviewed it with my agent. I fully understand the Disclosure and the specific points outlined above. The Disclosure is not a part of the annuity Certificate and does not modify it in any way. The annuity Certificate itself contains all terms, benefits, guarantees, limitations, restrictions, and exclusions. *Applicant s Signature Date *Applicant s Signature Date I certify that I reviewed this Disclosure with the applicant. I certify that I reviewed this Disclosure with the applicant. Agent s Signature & Agent No. Date Agent s Signature & Agent No. Date Applicant to retain Applicant to retain SA-9567.Rev10.09 SA-9567.Rev Page 12 of 12