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SUPPLEMENT DATED JANUARY 2, 2001, TO
PROSPECTUS DATED MAY 1, 2000, FOR
MODIFIED SINGLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACTS
ISSUED BY
NATIONWIDE LIFE INSURANCE COMPANY
THROUGH ITS
NATIONWIDE VARIABLE ACCOUNT - 9
THIS SUPPLEMENT UPDATES CERTAIN INFORMATION CONTAINED IN YOUR PROSPECTUS. PLEASE
READ IT AND KEEP IT WITH YOUR PROSPECTUS FOR FUTURE REFERENCE.
1. THE "DEATH BENEFIT OPTION" PROVISION OF THE SECTION ENTITLED "ADDITIONAL
CONTRACT OPTIONS" IS DELETED AND REPLACED WITH THE FOLLOWING:
DEATH BENEFIT OPTION
For contracts issued on or after the later of January 2, 2001 or the date on
which state insurance authorities approve applicable contract modifications,
applicants may elect the Greater of One-Year or Optional 5% Enhanced Death
Benefit with Long Term Care/Nursing Home Waiver instead of the One-Year Step Up
Death Benefit that is standard to every contract.
Optional Greater of One Year or 5% Enhanced Death Benefit with Long Term
Care/Nursing Home Waiver...........................................0.15%
Total Variable Account Charges
(including death benefit option only)..........................1.35%
For contracts issued prior to January 2, 2001 or on a date prior to which state
insurance authorities approve the contract modifications listed above,
applicants may elect the following death benefit as a replacement for the
One-Year Step-Up Death Benefit that is standard to every contract.
Optional 5% Enhanced Death Benefit.................................0.05%
Total Variable Account Charges
(including death benefit option only)...........................1.25%
2. THE "SPOUSAL PROTECTION ANNUITY OPTION" PROVISION OF THE SECTION ENTITLED
"ADDITIONAL CONTRACT OPTIONS" IS AMENDED AS FOLLOWS:
SPOUSAL PROTECTION ANNUITY OPTION
An applicant for an Individual Retirement Annuity or a non-qualified contract
may elect the Spousal Protection Annuity Option at no additional cost (see
"Spousal Protection Annuity Option").
Spousal Protections Annuity Option.................................0.00%
Total Variable Account
(including Spousal Protection Annuity Option only)..............1.20%
LIKEWISE, THE "SPOUSAL PROTECTION ANNUITY OPTION" PROVISION OF THE "OPTIONAL
CONTRACT BENEFITS, CHARGES AND DEDUCTIONS" IS AMENDED TO ALLOW AN APPLICANT TO
ELECT THE SPOUSAL PROTECTION ANNUITY OPTION WITH EITHER THE STANDARD DEATH
BENEFIT OR THE OPTIONAL DEATH BENEFIT.
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3. THE THIRD PARAGRAPH OF THE "CHARGES AND EXPENSES" PROVISION IS DELETED AND
REPLACED WITH THE FOLLOWING:
An optional death benefit is available under the contract. For contracts issued
on or after the later of January 2, 2001 or the date on which state insurance
authorities approve applicable contract modifications, Nationwide will deduct an
additional charge at an annualized rate of 0.15% of the daily net assets of the
variable account if the Greater of One-Year or 5% Enhanced Death Benefit with
Long Term Care/Nursing Home Waiver is elected. For contracts issued prior to
January 2, 2001 or on a date prior to which state insurance authorities approve
the contract option listed above, Nationwide will deduct an annualized rate of
0.05% of the daily net assets of the variable account if the 5% Enhanced Death
Benefit is elected.
4. THE "DEATH BENEFIT OPTION" PROVISION OF THE SECTION ENTITLED "OPTIONAL
CONTRACT BENEFITS, CHARGES AND DEDUCTIONS" AND THE "5% ENHANCED DEATH
BENEFIT" PROVISION OF THE SECTION ENTITLED "DEATH BENEFIT PAYMENT" ARE
DELETED AND REPLACED WITH THE FOLLOWING:
The following death benefit option is available with the contracts. The death
benefit option may not be available in every state.
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THE FOLLOWING BENEFIT IS AVAILABLE FOR CONTRACTS ISSUED ON OR AFTER THE LATER OF
JANUARY 2, 2001 OR THE DATE ON WHICH STATE INSURANCE AUTHORITIES APPROVE THE
APPLICABLE CONTRACT MODIFICATION.
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If the contract owner elects the optional death benefit, Nationwide will deduct
a charge equal to an annualized rate of 0.15% of the daily net assets of the
variable account for the Greater of One-Year or 5% Enhanced Death Benefit with
Long Term Care/Nursing Home Waiver.
Greater of One-Year or 5% Enhanced Death Benefit
If the annuitant dies before the annuitization date, the death benefit will be
the greatest of:
(1) the contract value;
(2) the total of all purchase payments, less an adjustment for amounts
surrendered;
(3) the highest contract value on any contract anniversary before the
annuitant's 86th birthday, less an adjustment for amounts subsequently
surrendered, plus purchase payments received after that contract
anniversary; or
(4) the 5% interest anniversary value.
The adjustment for amounts surrendered will reduce items (2) and (3) above in
the same proportion that the contract value was reduced on the date of the
partial surrender.
The 5% interest anniversary value is equal to purchase payments minus amounts
surrendered, accumulated at 5% compound interest until the last contract
anniversary prior to the annuitant's 86th birthday. Such total accumulated
amount shall not exceed 200% of the net of purchase payments and amounts
surrendered. The adjustment for amounts subsequently surrendered after the most
recent contract anniversary will reduce the 5% interest anniversary value in the
same proportion that the contract value was reduced on the date of the partial
surrender.
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THE FOLLOWING BENEFIT IS AVAILABLE FOR CONTRACTS ISSUED PRIOR TO JANUARY 2, 2001
OR ON A DATE PRIOR TO WHICH STATE INSURANCE AUTHORITIES APPROVE THE CONTRACT
MODIFICATION LISTED ABOVE.
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If the contract owner elects the 5% Enhanced Death Benefit, Nationwide will
deduct an additional charge equal to an annual rate of 0.05% of the daily net
assets of the variable account.
5% Enhanced Death Benefit
If the annuitant dies before the annuitization date, the death benefit will be
the greater of:
(1) the contract value; or
(2) the total of all purchase payments, less any amounts surrendered,
accumulated at 5% simple interest from the date of each purchase
payment or surrender to the most recent contract anniversary prior to
the annuitant's 86th birthday, less an adjustment for amounts
subsequently surrendered, plus purchase payments received since that
contract anniversary.
The total accumulated amount will not exceed 200% of the net of purchase
payments and amounts surrendered. The adjustment for amounts subsequently
surrendered after the most recent contract anniversary will reduce the 5%
interest anniversary value in the same proportion that the contract value was
reduced on the date(s) of the partial surrender(s).
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IN ADDITION, ALL DEATH BENEFIT OPTIONS HAVE A LONG TERM CARE FACILITY AND
TERMINAL ILLNESS BENEFIT AVAILABLE AT NO ADDITIONAL CHARGE PROVIDED THE
CONDITIONS DESCRIBED BELOW ARE SATISFIED.
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No CDSC will be charged if:
(1) the third contract anniversary has passed; and
(2) the contract owner has been confined to a long-term care facility or
hospital for a continuous 90-day period that began after the contract issue
date; or
(3) the contract owner has been diagnosed by a physician to have a terminal
illness; and
(4) Nationwide receives and records such a letter from that physician
indicating such diagnosis.
Written notice and proof of terminal illness or confinement for 90 days in a
hospital or long term care facility must be received in a form satisfactory to
Nationwide and recorded at Nationwide's home office prior to waiver of the CDSC.
In the case of joint ownership, the waivers will apply if either joint owner
meets the qualifications listed above. For those contracts that have a
non-natural person as contract owner as an agent for a natural person, the
annuitant may exercise the right of the contract owner for purposes described in
this provision. If the non-natural contract owner does not own the contract as
an agent for a natural person (.e.g., the contract owner is a corporation or a
trust for the benefit of an entity), the annuitant may not exercise the rights
described in this provision.
5. EFFECTIVE JANUARY 8, 2001, WADDELL & REED INVESTMENT MANAGEMENT COMPANY
WILL BECOME ONE OF THE SUBADVISERS OF THE NATIONWIDE SEPARATE ACCOUNT TRUST
- NATIONWIDE SMALL COMPANY FUND. THERE IS NO CHANGE IN THE FUND'S OBJECTIVE
AS IS STATED IN THE PROSPECTUS DATED MAY 1, 2000.
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