ULTRA CLASSIC IRA DISCLOSURE STATEMENT

ULTRA CLASSIC IRA DISCLOSURE STATEMENT Policy Form No. 01-1135-04 and variations Regarding Individual Retirement Annuity (IRA) Plans Described in Section 408(b) of the Internal Revenue Code This Disclosure Statement ( Disclosure ) presents a general overview of the federal laws applicable to your traditional IRA. It does not describe the special rules that apply to Roth IRAs, Education IRAs (Coverdell Education Savings Accounts), or SIMPLE IRAs. Neither National Western Life Insurance Company ( NWL ) nor any of its employees or agents is authorized to provide legal or tax advice. If you have any questions regarding this Disclosure or the tax implications of your IRA, contact your tax or legal advisor. Please read this Disclosure carefully. File this Disclosure with the other documents pertaining to your IRA. RIGHT TO REVOKE You may revoke your IRA by mailing or delivering to NWL a written notice of revocation at any time during the seven-day period following (1) the establishment of your IRA or (2) the date you receive an amendment that materially changes the information in this Disclosure or in your IRA contract if such amendment is effective within the seven-day period following the establishment of your IRA. If your written notice is mailed, it will be considered mailed on the date of the postmark (or, if sent by certified or registered mail, on the date of certification or registration), but only if: (1) It was enclosed in an envelope or other appropriate wrapper; (3) It was deposited in the United States mail; and (2) It was sent with first class postage prepaid; (4) It was addressed to: Policy Owner Services National Western Life Insurance Company 10801 N Mopac Expy, Bldg 3, Austin, TX 78759-5415 Upon NWL s receipt of timely notice of revocation, you are entitled to a full refund of the contribution made to your IRA. The amount returned to you will not be adjusted for any expenses, commissions, fluctuations in market value, or other charges. You may call NWL s Policy Owner Services at (800) 922-9422 if you have any questions regarding revocation of your IRA. ELIGIBILITY You may contribute to an IRA for any taxable year during which you receive earned income. For any taxable year during which your spouse does not receive earned income, you (if you have earned income) may also contribute to a separate "spousal" IRA established for your spouse s benefit. IRA REQUIREMENTS The annuity contract used to fund your IRA meets the following requirements specified in the contract and/or Section 408(b) of the Internal Revenue Code: (1) The contract cannot be transferable by you (except to a former spouse under a divorce decree); (2) The contract cannot be used as security for a loan; (3) The premiums are not fixed; (4) The annual premium paid under the contract cannot exceed the maximum contribution amounts detailed below; (5) Any refund of premiums will be applied before the close of the next calendar year toward the payment of future premiums or the purchase of additional benefits; (6) Your entire interest must be non-forfeitable; (7) Your benefit must be distributed in accordance with Section 401(a) (9) of the Internal Revenue Code. During your lifetime, distribution of your entire interest must begin no later than April 1 of the calendar year following the year in which you attain age 70½. Each year after such date you must receive at least the IRS required minimum distribution amount (if you have more than one IRA, the minimum distribution must be calculated separately for each IRA, but the total minimum distribution for all IRAs may be taken from any one or more of the IRAs). The distribution may be made in any of the following forms (to the extent permitted by your IRA contract): (a) Single payment; (b) Series of equal or substantially equal periodic (e.g., monthly) payments over a period not extending beyond your life expectancy or the joint and last survivor expectancy of you and your designated beneficiary; or (c) Series of equal or substantially equal payments over your lifetime, with or without payments continuing to your designated beneficiary over his or her lifetime. If you die after distributions have begun in accordance with the above rules, distributions must be made to your beneficiary at least as rapidly as under the method used as of the date of your death. If you die before distributions have begun in accordance with the above rules, then distribution of your entire benefit must be completed by the end of the calendar year containing the fifth anniversary of your death unless distribution of your benefit is made over the life expectancy of your beneficiary and begins by the end of the calendar year following the calendar year of your death (or, if later and if your designated beneficiary is your spouse, by the end of the calendar year in which you would have attained age 70½). SA-9940.Rev.4.18 Page 1 of 9

DEDUCTION OF IRA CONTRIBUTIONS Maximum Contributions: The total amount you may contribute to all of your IRAs (or all spousal IRAs, as applicable) for any tax year cannot exceed the lesser of (1) 100 percent of your earned income or (2) $5,500. The $5,500 limit applies for the 2017 and 2018 tax years. In future years, that limit may be increased for cost-of-living adjustments. If you also contribute to a Roth IRA, the maximum contribution to your Roth IRA is reduced by the total contributions to your traditional IRAs. Catch-up Contributions: If you are age 50 or older at the end of the taxable year, you may make additional deductible contributions to your IRA of $1,000. Limits on Deductible Contributions: Generally the total amount you contribute to your IRA is deductible. However, no amount of your contribution is deductible for the tax year in which you reach age 70½ or for any subsequent tax year. In addition, the deductible amount of your contribution may be limited as described below if you or your spouse actively participates in an employer-maintained retirement plan. Participation in an Employer-Maintained Retirement Plan: The amount of your IRA contribution that may be deducted may be limited if you or your spouse is an active participant in an employer-maintained retirement plan. If you are an active participant, the deductibility of your contribution will depend on your modified adjusted gross income ( MAGI ) for the tax year in which your IRA contribution was made. MAGI is determined on your tax return for the applicable tax year. If you are unsure whether or not you are an active participant in an employer-maintained retirement plan check with your employer, tax or legal advisor. If you are an active participant, are married, file a separate tax return, lived with your spouse at any time during the year, and have MAGI of $10,000 or more, then none of your IRA contribution is deductible. Similarly, if you are an active participant and your MAGI equals or exceeds the highest number in the applicable Phase-Out Range in the table below, then none of your IRA contribution is deductible. If your MAGI is equal to or less than the lowest number in the applicable Phase-Out Range in the table below, then the entire amount of your IRA contribution is deductible. If your MAGI is within the applicable Phase-Out Range in the table below then the amount of your total IRA contribution that may be deducted for a given tax year is determined according to the following procedure: (1) Take the highest number in the Phase-Out Range for the applicable year in the table below and subtract your MAGI; (2) Divide this amount by $20,000 for joint filers and $10,000 for all other cases; and (3) Multiply this amount by the maximum allowable contribution for the applicable year, including Catch-up Contributions if applicable. The result of this calculation, rounded down to the next lowest multiple of $10, is the maximum amount of your IRA contribution that may be deducted (except that if the result is less than $200, then the deductible amount may be rounded up to $200). For this purpose, a head of household filer and a married filing separate filer who did not live with his or her spouse at any time during the year are considered single filers, and a qualifying widower filer is considered a joint filer. Year Joint Filers Phase-Out Range Year Single Filers Phase-Out Range 2017 $99,000 to $119,000 2017 $62,000 to $72,000 2018 $101,000 to $121,000 2018 $63,000 to $73,000 If you are not an active participant in an employer-maintained retirement plan, but your spouse is an active participant, does not live apart from you, and you file a joint tax return, the amount of your IRA contribution that may be deducted for a given tax year may be reduced as follows. If your MAGI equals or $196,000 for 2017 or $199,000 for 2018 then none of your IRA contribution is deductible. If your MAGI is equal to or less than $186,000 for 2017 or $189,000 for 2018 then the entire amount of your IRA contribution is deductible. If your MAGI is between this phase-out range for a year, then the amount of your total IRA contribution that may be deducted for a given tax year is determined according to the following procedure: (1) Subtract your MAGI from highest dollar amount in the range ($196,000 for 2017 or $199,000 for 2018); (2) Divide this amount by $10,000; and (3) Multiply this amount by the maximum allowable contribution for the applicable year, including Catch-up Contributions if applicable. The result of this calculation, rounded down to the next lowest multiple of $10, is the maximum amount of your IRA contribution that may be deducted (except that if the result is less than $200, then the deductible amount may be rounded up to $200). After 2018, the MAGI dollar limits described above may be adjusted in $1,000 increments for changes in the cost of living. Tax Credit for Contributions: You may be eligible to receive a tax credit on your IRA contributions. This credit will be in addition to any tax deductions that may apply to your contributions, but may not exceed $1,000 per year. Please consult your tax or legal advisor to determine your eligibility for this tax credit. SA-9940.Rev.4.18 Page 2 of 9

NONDEDUCTIBLE CONTRIBUTIONS Regular Nondeductible Contributions: You may make nondeductible contributions to your IRA to the extent that you are ineligible to make deductible contributions. The sum of your deductible and nondeductible contributions to your IRA cannot exceed your maximum contribution amount for that year. Each year that you make a nondeductible contribution to your IRA, you must file IRS Form 8606. Qualified Reservist Repayment Contribution: You may contribute to your IRA an amount equal to any Qualified Reservist Distribution you previously received. The repayment must be completed within two years after the end of your active-duty period. A Qualified Reservist Distribution is a distribution received after September 11, 2001 from your IRA or of amounts attributable to your 401(k) or 403(b) contributions. To take a Qualified Reservist Distribution you must be a reservist who is called or ordered to active duty on or after September 11, 2001 for an indefinite period or a period in excess of 179 days. Other Repayment Contributions: You may contribute to your IRA other amounts specifically authorized by statute, such as repayments of certain qualified plan distributions made on account of a federally declared disaster and certain amounts received in connection with the Exxon Valdez litigation. Any repayment contributions must be made within the time specified by federal law. INTEREST EARNED The interest earnings credited to your IRA are not subject to federal income tax until distributions are made or are deemed to be made. TIMING OF CONTRIBUTIONS You may make contributions to your IRA for a given year at any time up to the due date of your federal tax return for such year (without regard to any extensions). In the case of a new IRA, it is not necessary that the plan be established prior to the end of the year for which the initial contribution is made. It is necessary only that the plan is established and the initial contribution is made on or before the due date of your federal tax return for the year. ROLLOVER CONTRIBUTIONS, DISTRIBUTIONS, DIRECT TRANSFERS, AND CONVERSIONS You may roll over all or a portion of an eligible distribution from another eligible retirement plan to your IRA (a rollover contribution) if all of the applicable rollover rules are followed. You may also roll over all or a portion of an eligible distribution from your IRA to another eligible retirement plan (a rollover distribution) if all of the applicable rollover rules are followed. A rollover is a tax-free movement of an eligible distribution from one eligible retirement plan to another. An eligible retirement plan generally includes an individual retirement account or individual retirement annuity or your employer s Qualified Retirement Plan, Tax Sheltered (403(b)) Annuity (TSA), eligible 457(b) governmental deferred compensation plan, or SIMPLE IRA (but not during the first two years of your participation in your employer s SIMPLE IRA plan). An eligible distribution does not include a distribution required by Section 401(a)(9) of the Internal Revenue Code (a required minimum distribution), a hardship distribution, or a distribution that is part of a series of substantially equal periodic payments for life, life expectancy, or a period of at least ten years. Some non-taxable distributions are also not eligible distributions. At the time you elect to make a rollover contribution to your IRA you must designate in writing your intent to treat the contribution as a rollover. This election is irrevocable. Below is a brief description of the types of rollovers permitted. Rollover transactions are generally complex and technical. Please consult with your tax or legal advisor with any questions you may have regarding a rollover. (1) IRA to IRA: Distributions from another of your IRAs may be rolled over to your IRA if all the requirements of Section 408(d)(3) of the Internal Revenue Code are met. The rollover amount generally must be received no later than sixty days after the distribution from your other IRA, and you may not have completed another IRA to IRA (including Roth and SIMPLE IRAs) rollover (excluding an IRA to Roth IRA conversion) in the previous 12 months. The same funds may only be rolled over once every 12 months. However, certain direct transfers of IRA funds from insurance company to insurance company (also called trustee-to-trustee transfers) are not subject to this 12-month limitation because such transfers do not constitute distributions. (2) Employer-Sponsored Retirement Plan to IRA: You may roll over an eligible rollover distribution from a Qualified Retirement Plan, TSA, or eligible governmental 457(b) plan to your IRA. If you receive your eligible distribution prior to placing it in your IRA (an indirect rollover) 20 percent of your distribution will generally be withheld as prepayment of income taxes. If you conduct an indirect rollover, the distribution generally must be placed in your IRA no later than 60 days after you receive it. (3) IRA to Employer-Sponsored Retirement Plan: You may roll over any eligible rollover distribution, if any, from your IRA to an employer s Qualified Retirement Plan, TSA, or eligible 457(b) governmental deferred compensation plan. (4) IRA to Roth IRA Conversion: You may convert all or a portion of your existing IRA into a Roth IRA. The amount converted from your IRA to your Roth IRA will be included in your gross income and treated as a distribution for income tax purposes (excluding non-deductible contributions). The 10 percent early distribution penalty does not apply to IRA to Roth IRA conversions. EXCESS CONTRIBUTIONS An excise tax of 6 percent is imposed on any excess contributions to your IRA. This tax will apply each year an excess contribution remains in your IRA. An excess contribution is one that exceeds your maximum contribution limit (excluding rollover and direct transfer amounts). Prior sections of this Disclosure discuss how to calculate your maximum contribution limit for a given year. SA-9940.Rev.4.18 Page 3 of 9

In general, if an excess contribution is distributed to you after the date prescribed for filing your tax return, the 6% excise tax described above will apply and the distribution may be taxable. If you have not attained age 59½ or satisfied another exception, the distribution will be subject to the additional 10% excise tax applicable to premature distributions. The excess contribution can be eliminated in a later year simply by limiting the amount of your annual contribution to the maximum amount you may otherwise contribute less all prior, uncorrected excess contributions. DISTRIBUTIONS The taxation of your IRA distributions depends on whether or not you made nondeductible contributions to your IRA. If you did not make any nondeductible contributions, any distribution for your IRA will be included in your income unless it is an eligible distribution that is rolled over to another eligible retirement plan as described above. If you did make nondeductible contributions to your IRA, the amount of your IRA distribution excluded from your income equals the aggregate nondeductible contributions multiplied by the amount withdrawn, divided by the aggregate IRA balance. Aggregate nondeductible contributions include all nondeductible contributions made through the end of the year in which the distribution is taken. Aggregate IRA balance is the total balance of all your IRAs through the end of the year in which the distribution is taken. The special lump sum distribution rules under former Section 402(d) of the Internal Revenue Code (applicable only on a grandfathered basis) do not apply to IRAs. If you die after distributions begin, the remaining portion, if any, will be distributed in accordance with the settlement option in effect at the time of your death. If you die before distributions begin, your entire interest must be distributed in accordance with the provisions outlined in the IRA Endorsement Form of your annuity contract. Any distribution from your IRA prior to your attaining age 59½ may be subject to a 10% excise tax, unless (1) the distribution is made on account of your death or disability, (2) the entire amount distributed is applied as a rollover contribution, (3) the withdrawals are for medical expenses in excess of 7.5% of your AGI, (4) the distribution is used to help defray qualifying expenses incurred in purchasing your first home, (5) the distribution is used to defray qualified higher education expenses, (6) the distribution is used to pay certain health care insurance premiums if unemployed, (7) the distribution is distributed as a series of substantially equal periodic payments made over your life expectancy or the joint life expectancy of you and your designated beneficiary, or (8) the distribution is a Qualified Reservist Distribution. From time to time, distributions related to federally-declared disasters may be exempt from this 10% excise tax. REQUIRED MINIMUM AND INSUFFICIENT DISTRIBUTIONS To assure that your IRA is used primarily for retirement purposes, the Internal Revenue Code requires minimum distributions that you must take from your IRA each year once you attain age 70½, or that your beneficiary must take in the event of your death. A 50 percent excise (penalty) tax is imposed on the amount of the required minimum distribution which you do not take. For example, if the minimum payout for a taxable year should have been $1,000, but you request and receive a distribution of only $600, then, in addition to the federal income tax due, you would be required to pay an excise tax of $200 (i.e., 50% of the $400 under-distribution). The minimum required distribution rules are described in more detail above. PROHIBITED TRANSACTIONS If you should engage in any transaction prohibited under Section 4975(c) of the Internal Revenue Code or borrow money from or pledge your IRA as security for a loan, then your IRA may be disqualified as an IRA retroactively to the first day of the taxable year in which the loan or pledge occurred. If your IRA is disqualified you must include in your gross income for that year the fair market value of the contract as of the first day of your tax year. Furthermore, if by the date of the prohibited transaction, loan, or pledge you had not yet attained age 59½ or become disabled, the 10% excise tax applicable to premature distributions will be imposed. In addition, if another disqualified person engages in any transaction with respect to your IRA that is prohibited under Section 4975(c) of the Internal Revenue Code, a 15% excise tax will be imposed on that person. INTERNAL REVENUE SERVICE APPROVAL The contract used to fund your IRA has not yet been approved for use as an individual retirement annuity contract by the Internal Revenue Service. The Internal Revenue Service approval is a determination only as to the form of the contract, and does not represent a determination of the merits of such contract. RETURN FOR EXCISE TAXES If you owe an excise tax for a year due to an excess contribution, premature distribution, or failure to take a required minimum distribution, you must file IRS Form 5329 with the IRS for that year. ADDITIONAL INFORMATION AVAILABLE Additional information regarding IRAs can be obtained from any district office of the Internal Revenue Service. See also IRS Publications 590-A, Contributions to Individual Retirement Arrangements (IRAs), and 590-B, Distributions from Individual Retirement Arrangements (IRAs), available from the IRS by calling 1-800-829-3676, or on the Internet at http://www.irs.gov/. SA-9940.Rev.4.18 Page 4 of 9

PROJECTED FINANCIAL RESULTS The table on this page illustrates the accumulation of cash values in an IRA funded with an annuity contract under specified assumptions with respect to the amount of contributions, timing of contributions, and the rates at which interest is to be credited. The accumulated value of your IRA at any time may exceed or fall short of the value shown in the appropriate table if there is any deviation from these assumptions. Due to the volatility of current interest rates, any projection of the growth values of this annuity based on non-guaranteed interest rates cannot reasonably be made. Therefore, no projection based on current non-guaranteed rates is provided in this disclosure. TRADITIONAL INDIVIDUAL RETIREMENT ANNUITY (IRA) Policy Form 01-1135-04 and variations thereof Accumulation of Values Based on initial premium of $1,000 Based on annual premium of $1,000 Minimum Minimum Minimum End of Minimum End of End of End of Guaranteed Guaranteed Guaranteed Year Guaranteed Year Contract Value 1 Contract Value 1 Year Contract Value 1 Year Contract Value 1 1 884 36 1,252 1 884 36 38,069 2 893 37 1,264 2 1,776 37 39,334 3 902 38 1,277 3 2,678 38 40,611 4 911 39 1,290 4 3,588 39 41,901 5 920 40 1,303 5 4,508 40 43,203 6 929 41 1,316 6 5,437 41 44,519 7 938 42 1,329 7 6,375 42 45,848 8 947 43 1,342 8 7,322 43 47,190 9 957 44 1,356 9 8,279 44 48,546 10 967 45 1,369 10 9,246 45 49,915 11 976 46 1,383 11 10,222 46 51,298 12 986 47 1,397 12 11,208 47 52,695 13 996 48 1,411 13 12,204 48 54,105 14 1,006 49 1,425 14 13,210 49 55,530 15 1,016 50 1,439 15 14,226 50 56,969 16 1,026 51 1,453 16 15,252 51 58,423 17 1,036 52 1,468 17 16,288 52 59,891 18 1,047 53 1,483 18 17,335 53 61,373 19 1,057 54 1,497 19 18,392 54 62,871 20 1,068 55 1,512 20 19,459 55 64,383 21 1,078 56 1,528 21 20,538 56 65,911 22 1,089 57 1,543 22 21,627 57 67,454 23 1,100 58 1,558 23 22,727 58 69,012 24 1,111 59 1,574 24 23,838 59 70,586 25 1,122 60 1,590 25 24,960 60 72,176 26 1,133 61 1,606 26 26,093 61 73,781 27 1,145 62 1,622 27 27,238 62 75,403 28 1,156 63 1,638 28 28,394 63 77,040 29 1,168 64 1,654 29 29,562 64 78,695 30 1,179 65 1,671 30 30,741 65 80,365 31 1,191 66 1,687 31 31,932 66 82,053 32 1,203 67 1,704 32 33,135 67 83,757 33 1,215 68 1,721 33 34,350 68 85,478 34 1,227 69 1,739 34 35,578 69 87,217 35 1,240 70 1,756 35 36,817 70 88,973 1 This annuity policy provides a Minimum Guaranteed Contract Value equal to 87.5% of the premiums received, less withdrawals, all accumulated at an effective rate of at least 1.00%, but no greater than 3.00% interest. The Minimum Guaranteed Contract Values in the above table are accumulated at an effective rate of 1.00%. The Account Value is a percentage of premiums received as set out in the policy, less any Federal, State, or Municipal taxes, or any fees or assessments related to the policy, payment of which is required or authorized by law, which have not otherwise been deducted or offset, with interest to the date of withdrawal. The Account Value is reduced by any withdrawals and applicable withdrawal charges. SA-9940.Rev.4.18 Page 5 of 9

There are 4 interest credit options described below. The Owner may choose on the Policy Date the allocation of interest credits among Interest Credit Options A, B, J, or U and such allocations may be changed periodically as set forth in the Policy and Endorsements. The Company reserves the right to discontinue the availability of Interest Credit Options A, J, and U as set forth in the Policy and Endorsements. Option A Interest Credit Option. Interest credited under Option A is added to your Account Value on the first Policy Anniversary and each Policy Anniversary thereafter while under this option. Interest credited under Option A is based on a formula linked in part to the average of the 12 monthly index values of the S&P 500 Composite Stock Price Index. This excludes any dividends paid on the stocks included in this index. The interest credited could be as low as 0.00%. Before explaining the Option A formula, there are components that you must understand: Option A Asset Fee Rate. The Option A Asset Fee Rate is used in the calculation of the Interest Credit under Option A. The Option A Asset Fee Rate is determined at the beginning of each Policy Year. The Option A Asset Fee Rate will never exceed 6.00%. Option A Participation Rate. The Option A Participation Rate is used in the calculation of the Interest Credit under Option A. The Option A Participation Rate is determined at the beginning of each Policy Year. The Option A Participation Rate will never be less than 50%. Index. The Index is the Standard & Poor s 500 Composite Stock Price Index, which excludes dividends. If publication of the Index is discontinued, or the calculation is substantially changed, or the Index is not available to us, we will substitute a suitable alternative index, subject to the approval of the Commissioner of Insurance of the state where the Policy was issued, and notify you in writing. Index Date. The Index Date is the last day of each monthly period beginning on the Policy Date and the same day of each month thereafter. For example, if the Policy Date is January 7, 2003, the Index Dates are February 6, 2003, and the sixth day of each following month. If the same day does not exist in a month, such as the 31st, we use the preceding day. Example: If the Policy Date is January 1, 2003, the first Index Date is January 31, 2003 and the last day of each following month. Index Value. The Index Value is the closing value of the Index on a scheduled trading day. The Index Value on the Policy Date is the Index Value on the day immediately preceding the Policy Date for which the Index Value is available. Subsequent Index Values are determined on each Index Date. If the Index Value is not available for any Index Date, except for reasons stated in the Index section of the Endorsement, we will use the Index Value on the immediately preceding day for which the Index Value is available. Correction of Error in Index Value. If a correction of the Index Value is published within 30 days of the original publication, the Index Value used in this Policy will be the corrected Index Value. However, if a correction of the Index Value is published more than 30 days past the original publication, the Index Value used in this Policy will be the Index Value as originally published. Option A Index Average. The Option A Index Average is the average of the Index Values on the 12 Index Dates during each Policy Year. As a hypothetical example: Assume the Policy Date is January 7, and the Index Dates and Index Values are as follows: Index Date Index Value Index Date Index Value 2/6 850 8/6 980 3/6 840 9/6 1000 4/6 860 10/6 1020 5/6 920 11/6 1050 6/6 960 12/6 1070 7/6 980 1/6 1110 The sum of the Index Values equals 11,640. The Option A Index Average for this specific Index equals 970 (11,640 divided by 12). Interest Credit Option A. Interest Credits under Interest Credit Option A are determined as follows: 1. On the first Option Term End Date for Interest Credit Option A the Interest Credit under Option A equals (a) divided by (b), the result multiplied by (e), less (c), the result multiplied by (d), the result multiplied by (f), where: (a) (b) (c) (d) is the Option A Index Average for the first Policy Year, minus the Index Value on the Policy Date. is the Index Value on the Policy Date. is the Option A Asset Fee Rate for the first Policy Year expressed as a decimal number. the Percentage of Premiums for the first Policy Year as shown on Page 3 of the Policy times the sum of the Initial Premium and premiums received after the Policy Date and on or before the 20th calendar day following the Policy Date. (e) is the Option A Participation Rate for the first Policy Year shown on Page 3. (f) is the Interest Credit Allocation Percentage for the first Policy Year for Interest Credit Option A. 2. On Option Term End Dates for Interest Credit Option A after the first Option Term End Date, the Interest Credit under Option A equals (a) divided by (b), the result multiplied by (e), less (c), the result multiplied by (d), the result multiplied by (f), where: SA-9940.Rev.4.18 Page 6 of 9

(a) is the Option A Index Average for the current Policy Year, minus the Index Value on the prior Policy Anniversary. (b) is the Index Value on the prior Policy Anniversary. (c) is the Option A Asset Fee Rate for the current Policy Year expressed as a decimal number. (d) is your Account Value on the prior Policy Anniversary. (e) is the Option A Participation Rate for the current Policy Year. (Such rate will never be less than the Minimum Option A Participation Rate shown on Page 3.) (f) is the Interest Credit Allocation Percentage for the current Policy Year for Interest Credit Option A. The Interest Credit under Option A will never be less than zero (0). Option J Interest Credit Option. Interest credited under Option J is added to your Account Value on the first Policy Anniversary and each Policy Anniversary thereafter while under this option. Interest credited under Option J is based on a formula linked in part to the annual change of the index values of the S&P 500 Composite Stock Price Index (which excludes dividends) for the Policy Year and could be as low as 0.0%. There is an Annual Charge for this option. Before explaining the Option J formula, there are components that you must understand: Option J Annual Index Cap Rate. The Option J Annual Index Cap Rate is used in the calculation of the Interest Credit under Option J. The Option J Annual Index Cap Rate is determined at the beginning of each Policy Year. The Option J Annual Index Cap Rate will never be less than 1.00%. Option J Annual Charge Rate. The Option J Annual Charge Rate is used in the calculation of the Option J Annual Charge, which is deducted from the Account Value at the beginning of each Policy Year. The Option J Annual Charge Rate is determined at the beginning of each Policy Year. The Option J Annual Charge Rate will never be greater than 2.00%. Option J Annual Charge. On the Policy Date and each Policy Anniversary thereafter, if the current Interest Credit Allocation Percentage for Interest Credit Option J is greater than 0.00%, an Annual Charge will be deducted from the Account Value of the Policy. The Option J Annual Charge is equal to (a) x (b) x (c) where: (a) The Option J Annual Charge Rate. (b) The Account Value. (c) The current Interest Credit Allocation Percentage for Interest Credit Option J. Option J Annual Index Change Rate. The Option J Annual Index Change Rate for any Index Date is equal to (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; (b) is the Index Value on such immediately preceding Index Date; and (c) is the Option J Annual Index Cap Rate for the current Policy Year. Interest credited under Option J is added to your Account Value on the first Policy Anniversary and each Policy Anniversary thereafter while under this option. Interest credited under Option J can be as little as 0%. Interest is not credited during the Policy Year. 1. On the first Policy Anniversary the Interest Credit under Option J equals (a) multiplied by (b) multiplied by (c) where: (a) is the Option J Annual Index Change Rate for the first Policy Year. (b) is the Percentage of Premiums for the first Policy Year, as shown on Page 3 of the policy, times the sum of the Initial Premium and premiums received after the Policy Date and on or before the 20th calendar day following the Policy Date. (c) is the Interest Credit Allocation Percentage for the first Policy Year for Interest Credit Option J. 2. On Policy Anniversaries after the first, the Interest Credit under Option J equals (a) multiplied by (b) multiplied by (c) where: (a) is the Option J Annual Index Change Rate for the current Policy Year. (b) is the Account Value on the prior Policy Anniversary. (c) is the Interest Credit Allocation Percentage for the current Policy Year for Interest Credit Option J. Option U Interest Credit Option. Interest credited under Option U is added to your Account Value on the first Policy Anniversary and each Policy Anniversary thereafter while under this option. Interest credited under Option U is based on a formula linked in part to the annual change of the index values of the S&P 500 Low Volatility Daily Risk Control 5% Excess Return Index. This includes any dividends paid on the stocks included in that index. The interest credited could be as low as 0.00%. Before explaining the Option U formula, there are components that you must understand: Option U Asset Fee Rate. The Option U Asset Fee Rate is used in the calculation of the Interest Credit under Option U. The Option U Asset Fee Rate is determined at the beginning of each Policy Year. The Option U Asset Fee Rate will never exceed 6.00%. SA-9940.Rev.4.18 Page 7 of 9

Option U Participation Rate. The Option U Participation Rate is used in the calculation of the Interest Credit under Option U. The Option U Participation Rate is determined at the beginning of each Policy Year. The Option U Participation Rate will never be less than 20.00%. Index. The index is the Standard & Poor s 500 Low Volatility Daily Risk Control 5% Excess Return Index, which includes the portion of returns generated by the underlying index that come from dividend reinvestment and is funded at LIBOR or such other rate as may be set by S&P. If publication of the Index is discontinued, or the calculation is substantially changed, or the Index is not available to us, we will substitute a suitable alternative index, subject to the approval of the Commissioner of Insurance of the state where the Policy was issued, and notify you in writing. Index Date. The Index Date is the last day of each annual period beginning on the Policy Date and the same day of each year thereafter. For example, if the Policy Date is June 15, 2017, the Index Dates are June 14, 2018 and June 14 of each following year. Index Value. The Index Value is the closing value of the Index on a scheduled trading day. The Index Value on the Policy Date is the Index Value on the day immediately preceding the Policy Date for which the Index Value is available. The Index Value on any Policy Anniversary is the Index Value on the day immediately preceding the Policy Anniversary for which the Index Value is available. If the Index Value is not available for any Index Date, except for reasons stated in the Index section of the Option U Endorsement, we will use the Index Value on the immediately preceding scheduled trading day. Correction of Error in Index Value. If Standard & Poor s publishes a correction of the Index Value within 30 days of the original publication, the Index Value used in this Policy will be the corrected Index Value. However, if a correction of the Index Value is published more than 30 days past the original publication, the Index Value used in this Policy will be the Index Value as originally published. Option U Annual Index Change Rate. The Option U Annual Index Change Rate for the first Index Date following the Policy Date equals (a) divided by (b), the result multiplied by (c), the result reduced by (d), where: (a) (b) (c) (d) is the Index Value on the Index Date less the Index Value for the Policy Date; is the Index Value on the Policy Date; is the Option U Participation Rate; and is the Option U Asset Fee. The Option U Annual Index Change Rate for any other Index Date equals (a) divided by (b), the result multiplied by (c), the result reduced by (d), where: (a) (b) (c) (d) is the Index Value on such Index Date less the Index Value on the prior Policy Anniversary; is the Index Value on the prior Policy Anniversary; is the Option U Participation Rate; and is the Option U Asset Fee. Interest Credit Option U. Interest Credits under Interest Credit Option U are determined as follows: 1. On the first Option Term End Date for Interest Credit Option U, the Interest Credit under Option U equals (a) multiplied by (b), multiplied by (c), where: (a) is the Option U Annual Index Change Rate for the first Policy Year; (b) is the Percentage of Premiums for the first Policy Year, which is 100%, times the sum of the Initial Premium and premiums received after the Policy Date and on or before the 20th calendar day following the Policy Date; and (c) is the Interest Credit Allocation Percentage for the first Policy Year for Interest Credit Option U. 2. On Option Term End Dates for Interest Credit Option U after the first Option Term End Date, the Interest Credit under Option U equals (a) multiplied by (b), multiplied by (c), where: (a) is the Option U Annual Index Change Rate for the current Policy Year; (b) is the Account Value on the prior Policy Anniversary; and (c) is the Interest Credit Allocation Percentage for the current Policy Year for Interest Credit Option U. The Interest Credit under Option U will never be less than zero (0). Option B Interest Credit Option. Interest Credit Option B provides for a fixed rate set by National Western Life Insurance Company as described in the Policy. The rate declared as of the Policy Anniversary will be the rate that you will earn the following Policy Year. Interest is credited daily under this option. SALES COMMISSIONS The Agent s commission will not be deducted from any contributions made to this contract. SA-9940.Rev.4.18 Page 8 of 9

WITHDRAWAL CHARGES One free withdrawal of up to 10% of the Account Value may be made each Policy Year after the first. The amount withdrawn must be at least $500 or the Cash Surrender Value, if less than $500. You may accumulate unused Free Withdrawal amounts in 10% increments only. This means that any unused Free Withdrawals of up to 10% may not be accumulated. The maximum accumulated Free Withdrawal expressed as a percentage of the Account Value may not exceed the Maximum Accumulated Free Withdrawal Percentage of 50%. Free withdrawals within 12 months of a full surrender will be treated as having been made in anticipation of surrender, and together with the full surrender, will be subject to the applicable withdrawal charge. Except for any free withdrawals, described herein, withdrawals will be subject to the Withdrawal Charge Rate in the schedule below. Withdrawal charges as a percentage of the Account Value are as follows: WITHDRAWAL CHARGES RATES Policy Year Rate 1 15.00% 2 14.75% 3 14.00% 4 13.00% 5 12.25% 6 11.25% 7 10.50% 8 9.75% 9 8.75% 10 8.00% 11 6.00% 12 4.00% 13 2.00% Thereafter 0.00% If the withdrawal is a full surrender, the withdrawal will be subject to a withdrawal charge equal to a percentage of the amount withdrawn as described above, plus a percent of the amount of any free partial withdrawal(s) taken in the 12 months prior to full surrender as described above. The S&P 500 Composite Stock Price Index and the S&P Low Volatility Daily Risk Control 5% Excess Return Index" (collectively, the S&P 500 Indices ) are a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI") and has been licensed for use by NWL. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC ("S&P") and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). The trademarks have been licensed to SPDJI and have been sublicensed for use for certain purposes by NWL. NWL Ultra Classic is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, "S&P Dow Jones Indices"). S&P Dow Jones Indices does not make any representation or warranty, express or implied, to the owners of the NWL Ultra Classic or any member of the public regarding the advisability of investing in securities generally or in NWL Ultra Classic particularly or the ability of the S&P 500 Indices to track general market performance. S&P Dow Jones Indices only relationship to NWL with respect to the S&P 500 Indices is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The S&P 500 Indices are determined, composed and calculated by S&P Dow Jones Indices without regard to NWL or the NWL Ultra Classic. S&P Dow Jones Indices has no obligation to take the needs of NWL or the owners of NWL Ultra Classic into consideration in determining, composing or calculating the S&P 500 Indices. S&P Dow Jones Indices is not responsible for and has not participated in the determination of the prices, and amount of NWL Ultra Classic or the timing of the issuance or sale of NWL Ultra Classic or in the determination or calculation of the equation by which NWL Ultra Classic is to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices has no obligation or liability in connection with the administration, marketing or trading of NWL Ultra Classic. There is no assurance that investment products based on the S&P 500 Indices will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment advisor. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice. S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE S&P 500 INDICES OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY NWL, OWNERS OF THE NWL ULTRA CLASSIC, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P 500 INDICES OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND NWL, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES. SA-9940.Rev.4.18 Page 9 of 9