&NWL Secure Term. NWL Term CONSUMER INFORMATION. Term Life Policy - Issued by National Western Life Insurance Company

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1 NWL Term &NWL Secure Term CONSUMER INFORMATION Term Life Policy - Issued by National Western Life Insurance Company National Western Life Insurance Company 850 East Anderson Lane Austin, TX DM-1157.Rev Policy Form ICC and state variations

2 NWL Term &NWL Secure Term Do you have a temporary need for insurance protection? Are you looking for affordable death benefit protection? Do you have the need for temporary protection with the potential to convert to long-term protection in the future? NWL Term or NWL Secure Term can provide the answer to your insurance coverage needs. NWL Term and NWL Secure Term are term life insurance policies with level premiums guaranteed for 10, 15, 20, or 30 years. You choose the term of years that most closely fit the insurance protection to fit your and your family s needs. The level death benefit will never be less than the face amount at the time your policy is issued. The death benefit in the event of death will be paid directly to your beneficiary. You elect the conversion provision that will best provide for your and your family s future protection and financial needs. Guaranteed Premium Payments Affordable protection for you and your family in the event of death. Your premium payment will be guaranteed for the selected term period. After the end of the selected term period, you can elect to continue coverage up to age 95. Premiums will increase annually based on your classification at the time your policy was issued. However, no change in premiums will occur because of deterioration of health or a change in occupation. Premium payment changes will not be made more than once a year, and you will be notified at least 30 days in advance of any premium payment change. Premiums may be paid annually, semi-annually, quarterly, or monthly. Monthly payments must be made by credit card or pre-authorized check. Page 1

3 Today Americans are living longer and more and more money is required to maintain your lifestyle. Living Benefit Protection Today Americans are living longer and more and more money is required to maintain your lifestyle. And one major factor to enjoying an active retirement is having the money available to afford proper health care. In addition to the level premium and death benefit provided by the policy, your policy may also provide you with access to Accelerated Death Benefits in the event of terminal, chronic, or critical illness. This means that your family is not only protected with the policy death benefit, but also by living benefits! These Accelerated Death Benefits*, discussed below provide the living benefit protection for these types of life altering events. The following Accelerated Death Benefit Riders are automatically included in your policy at no extra charge. Accelerated Death Benefit for Terminal Illness Form ICC (1)(2) A terminal illness is an illness from which you are not expected to recover and are expected to live less than twenty-four (24) months after the date a written request of payment of the accelerated benefit is received. Upon approval of a Terminal Illness claim, an Accelerated Benefit will be determined that is equal to the Elected Face Amount less: 1. the actuarial discount, determined by us, and 2. an administrative fee not to exceed $500. The Elected Face Amount: 1. must be less than 90% of the Face Amount; and 2. must be greater than $5,000; and 3. must be $500,000 or less; and 4. must leave a remaining Face Amount of not less than $12,500; and 5. must be no greater than the difference between the full benefit and the Elected Face Amount in any prior accelerated benefit rider election, if any. (1) Accelerated Benefits may not be available under this rider if you elect accelerated benefits under another rider. For complete details, including terms and conditions of each rider and the exact coverage provided, please refer to your policy. (2) Benefits paid under these riders may be taxable. If they are, then some or all of your actual expenses may be deductible. You may wish to consult a tax advisor. *Policy and Riders may not be available in all states. Certain limitations, restrictions, and exclusions apply. Policy form numbers may vary by state. Page 2

4 One major factor to enjoying an active retirement is having the money available to afford proper health care. Accelerated Death Benefit for Chronic Illness - Form ICC (1)(2) A chronic illness is a condition resulting in you permanently being unable to perform at least 2 of the 6 activities of daily living meaning bathing, continence, dressing, eating, toileting, and transferring without assistance from another person, or being severely cognitively impaired. Upon approval of a Chronic Illness claim, an Accelerated Benefit will be determined that is equal to the Elected Face Amount less: 1. the actuarial discount, determined by us, and 2. an administrative fee not to exceed $500. The Elected Face Amount: 1. must be less than 90% of the Face Amount; and 2. must be greater than $5,000; and 3. must be $500,000 or less; and 4. must leave a remaining Face Amount of not less than $12,500. Accelerated Death Benefit for Critical Illness Form ICC (1)(2) A critical illness is a condition resulting from a heart attack, stroke, life threatening cancer, kidney failure, major organ transplant, ALS (Lou Gehrig s disease), paralysis, major multi-system trauma, AIDS, severe central nervous system disease, loss of limbs, Alzheimer s, Dementia, or heart surgery. Upon approval of a Critical Illness claim, an Accelerated Benefit will be determined that is equal to the Elected Face Amount less: 1. the actuarial discount, determined by us, and 2. an administrative fee not to exceed $500. The Elected Face Amount: 1. must be less than 90% of the Face Amount; and 2. must be greater than $5,000; and 3. must be $500,000 or less; and 4. must leave a remaining Face Amount of not less than $12,500. (1) Accelerated Benefits may not be available under this rider if you elect accelerated benefits under another rider. For complete details, including terms and conditions of each rider and the exact coverage provided, please refer to your policy. (2) Benefits paid under these riders may be taxable. If they are, then some or all of your actual expenses may be deductible. You may wish to consult a tax advisor. Page 3

5 Optional Coverages and Benefits Waiver of Premium Disability Benefit Rider* (Form ICC ) This optional benefit rider will waive all of your monthly premiums if you become disabled including optional benefit riders. Upon qualification for benefits, the policy will continue during disability as if you were not disabled. Accidental Death Benefit Rider* (Form ICC ) This optional benefit rider provides for an additional death benefit in the event of your accidental death. The accidental death benefit will be paid to the beneficiary when due proof that the Insured died from accidental bodily injury is received by the Company. The maximum death benefit is the lesser of two times the face amount or $500,000. Children s Term Life Insurance Rider* (Form ICC ) If you are between the ages of at the time of policy issue, this optional benefit rider provides $5,000 - $20,000 of level term life insurance for each of your children. Each child, born or legally adopted, between the age of 15 days and not yet 18 years at the time of the date of application or added after the date of application is eligible for coverage. Coverage is provided to age 25 of the child or age 65 of the insured. While this rider is in force, the insurance on each Child may be converted into a new individual life policy at age 25 of the Child. Other Insured Term Rider* (Form ICC ) This optional benefit rider provides term life insurance coverage in the event of the death of the Other Insured. The insurance amount must be a minimum of $100,000 and may not exceed the Face Amount of the base policy. The death benefit payment will be paid to the Insured, if living; otherwise, the estate of the Other Insured. The number of Other Insured Term Riders that can be added to your policy is limited to one. *Policy and Riders may not be available in all states. Certain limitations, restrictions, and exclusions apply. Policy form numbers may vary by state. Page 4

6 Grace Period A grace period of 31 days is allowed after the premium due date. During this grace period the policy will not terminate. If you should die during the grace period the premium due will be deducted from the Death Benefit. If the premium is not paid at the end of the grace period, your policy will terminate. NWL Term Conversion Before the end of your level term period, or age 65, whichever is earlier, you can convert your NWL Term policy to a permanent life insurance policy that the Company makes available for conversions. Evidence of insurability will be required only if the new policy is to include new riders providing additional benefits than what was provided in your NWL Term policy. NWL Secure Term Conversion Endorsement (Form ICC ) Before the end of your level term period, or age 65, whichever is earlier, you can convert your NWL Secure Term policy to any permanent life insurance policy being issued by the Company on the date of conversion. For the first five policy years, a conversion credit will be applied to the premium due on the new policy. The election of this conversion provision will become a part of the policy at a higher premium. Evidence of insurability will be required only if the new policy is to include new riders providing additional benefits than what was provided in your NWL Secure Term policy. Page 5

7 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 through independent agents, brokers and national marketing organizations (NMOs) in 49 states, the District of Columbia, Puerto Rico, Guam, the Virgin Islands and accepts applications from residents of several foreign countries. Visit the Company website for all current financial information. National Western Life has consistently ranked in the top 100 companies in the industry by total admitted assets and 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 the authority to verify, through reviews and audits, that the appropriate reserves are maintained. Excellent Ratings Rating agencies continue to recognize the strengths of National Western and the positive steps we are taking to make this a company that is responsive to both our policyholders and stockholders. Standard and Poor s has rated National Western A (Strong), while A.M. Best Company s rating is A (Excellent). A.M. Best s ratings evaluates company factors in order to provide an opinion of the company s financial strength, operating performance and ability to meet its obligations to policyholders. Ratings range from A++ (superior) to F (in liquidation). A Standard & Poor s rating is an opinion of a company s financial security with respect to its ability to pay on its insurance policies and contracts in accordance with their terms. Ratings range from AAA (extremely strong) to CC (extremely weak) and R (regulatory supervision). Page 6