CONFIDENCE FLEX 85. Confidence is Liquidity Liquidity is Confidence

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1 CONFIDENCE FLEX 85 Confidence is Liquidity Liquidity is Confidence THE CONFIDENCE SERIES A GROUP FLEXIBLE PREMIUM DEFERRED ANNUITY WITH PREMIUM BONUS GROUP POLICY FORM CERTIFICATE FORM CA-98 CONSUMER BROCHURE SA-8820.Rev.1.03 NATIONAL WESTERN LIFE INSURANCE COMPANY page 1 of 5

2 The CONFIDENCE FLEX 85, a group flexible premium tax-deferred annuity, is an intelligent way to care for your family's retirement security. Because Americans are living longer today and want more satisfying lifestyles during retirement, safe retirement planning is more important today than ever before. It is likely that Social Security and most company pensions won't be enough. As a result, you'll have to meet part of the challenge with your own savings and money management efforts. As an owner of a CONFIDENCE FLEX 85 annuity, you'll have an excellent financial accumulation and distribution program, a product designed to help you meet your own retirement security and lifestyle needs. PREMIUM BONUSES JUMP-START YOUR RETIREMENT ACCUMULATION Each premium dollar you pay into a CONFIDENCE FLEX 85 during the first Certificate Year will be increased by 8% and every premium dollar paid in years 2 through 5 will be increased by 5%. The premium bonuses will be credited immediately and earn interest from the date a premium is received. Nothing else is required in order to accelerate your retirement savings program. COMPETITIVE INTEREST RATES INCREASE YOUR ACCUMULATION Premiums and premium bonuses earn the current interest rate. Renewal rates are subject to change but are guaranteed to never be less than 3% (2.5% in Texas). FINANCIAL SAFETY FROM NATIONAL WESTERN LIFE The CONFIDENCE FLEX 85 is issued and backed by National Western Life Insurance Company, Austin, Texas. National Western Life is a legal reserve life insurance company which is regulated by law. National Western Life reserves a portion of its assets sufficient to meet or exceed the guarantees it makes to certificate owners. page 2 of 5

3 TAX ADVANTAGES FURTHER BUILD ACCUMULATION Because income taxes are deferred until funds are withdrawn, interest is earned on dollars that might otherwise be paid in taxes. This results in greater financial growth than might be possible in a taxable savings instrument. In addition to deferring income taxes, you may exercise some control over the ultimate timing of income taxation. Taxes are imposed when funds are withdrawn or paid as a regular income. You can select the time of funds withdrawal and when you are taxed. More importantly perhaps, you can select an income settlement option and spread the taxes payable over a number of years. 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. CHOOSE PENALTY-FREE WITHDRAWALS OR INTEREST INCOME After the first policy anniversary, you may withdraw annually up to 10% of the Accumulation Account, without early withdrawal penalty. In the alternative, you can receive your interest income monthly, giving you the flexibility to meet unexpected financial needs. We treat any penalty-free withdrawals you take within the prior 12 months from the date of a request for full withdrawal of Cash Value as having been made in anticipation of the full withdrawal of Cash Value. Therefore, a full withdrawal charge is made on that amount at the time of the full withdrawal of Cash Value. CASH LOAN PRIVILEGE PROVIDES GREATER ACCESS You may obtain a loan or loans from National Western Life with Cash Loan Endorsement (Form L-98). The loan is secured by the annuity in an amount outstanding not to exceed 60% of the Accumulation Account. Loans are available for non-qualified and qualified funds (if other than traditional IRAs and Roth IRAs). The loan must be for at least $500 and may be obtained 30 days after issue. Interest on the loan may be paid annually at 7.4% in advance (8% in arrears) or added to the loan amount outstanding. Funds borrowed are guaranteed to earn at least the 3% minimum interest rate. Consult your tax advisor for the income tax effects of using an annuity policy loan. This unique option gives you greater flexibility to meet any unseen future financial challenges. page 3 of 5

4 ELECT AN INCOME SETTLEMENT OPTION An income settlement option may be elected by the owner any time after the 5th Certificate Year. A great variety of income settlement options are available to you. The income settlement option allows you to spread the deferred income taxes over a number of years; thus, possibly reducing those same income taxes. BENEFITS AT THE DEATH OF THE ANNUITANT At the death of the Annuitant before the Annuity Date, the beneficiary will receive an income settlement option based on the full Accumulation Account. This allows the annuity owner to plan estate distribution effectively and privately. While many individuals hire legal and tax counsel to create and manage family trusts, an income settlement option provides a guaranteed regular income to beneficiaries without the concerns and the costs more sophisticated estate planning methods require. Should the beneficiary elect to receive a death benefit in a single sum, the benefit will be based on the Cash Surrender Value. At the death of the Annuitant on or after the Annuity Date, the beneficiary will receive any unpaid guaranteed amounts as provided by the Settlement Option in force on the date of death. GREAT ANNUITY PURCHASE FLEXIBILITY The CONFIDENCE FLEX 85 takes only $5,000 to start. Additional premiums of at least $50 can be made at any time, including monthly automatic bank draft. What better way to build a substantial retirement asset than by regular ongoing contributions? Time, compound interest, and tax deferral work for you with the CONFIDENCE FLEX 85. Age 85 is maximum issue age (as of last birthday) for non-qualified funds; maximum age 70 for qualified funds. CHARGES FOR EARLY WITHDRAWAL The CONFIDENCE FLEX 85 is suitable for those people who want a long-term accumulation and distribution program, not a short-term commitment. The Cash Value on surrender of this policy is equal to the Accumulation Account, plus or minus a market value adjustment if applicable, less a withdrawal charge. NO SALES CHARGES OR FEES Premiums and premium bonuses earn interest from the date received. If applicable, values will be reduced by any federal, state, or municipal taxes, or any fees, or assessments required or authorized by law. page 4 of 5

5 YOU CAN BENEFIT! ANYONE CAN BENEFIT! The CONFIDENCE FLEX 85 Group Annuity can help with... Tax-deferred alternative to CDs and other taxable plans IRA rollovers Both Traditional & Roth IRAs Non-performing renewal rates on existing annuities Qualified Plan Rollovers & Tax- Sheltered Annuity rollovers Creating an effective income distribution plan Reducing income taxes on Social Security benefits for certain income levels. LIMITATIONS Certain limitations, exclusions and restrictions apply. Please ask your agent for details, and if you purchase the CONFIDENCE FLEX 85, be sure to read your certificate and to read and sign the CONFIDENCE FLEX 85 Consumer Information Summary and Disclosure (Form SA-8819). CLIENT SERVICES WATS FAX page 5 of 5