What's Happening?
Nationwide has introduced the Nationwide CareMatters Annuity, a new product aimed at enhancing long-term care (LTC) options for retirees and pre-retirees. This annuity combines guaranteed growth with LTC coverage,
addressing the financial challenges many Americans face in planning for future care needs. Nationwide's research indicates that nearly 60% of consumers are concerned about funding LTC, yet few have a dedicated plan. The CareMatters Annuity offers simplified underwriting and flexible funding options, including exchanges from non-qualified annuities or life policies. It provides leverage and simplicity, allowing policyholders to receive double or triple their contract value in LTC benefits, with a 3% fixed crediting rate ensuring predictable growth. If LTC is not needed, remaining contract value is passed to beneficiaries as a death benefit.
Why It's Important?
The introduction of the CareMatters Annuity is significant as it addresses a major threat to retirement security: the high cost of long-term care. By offering a product that simplifies LTC planning and provides tax-free benefits, Nationwide is helping retirees protect their savings from being depleted by care expenses. This annuity allows clients to maintain liquidity and guarantees while planning for potential LTC needs, reducing emotional and financial strain on families. The cash indemnity structure offers flexibility, enabling clients to use benefits for various care scenarios, including home care and international arrangements. This aligns with consumer preferences for straightforward, predictable, and controllable LTC solutions.
