Nationwide CareMatters Annuity: LTC Benefits and Funding Review

Start with the care-planning purpose

Nationwide CareMatters Annuity links long-term care coverage to a deferred fixed annuity. The decision is whether that combination fits a potential care need, the money you can commit and the access you must retain. It should not be evaluated only by an advertised benefit multiplier.

Nationwide’s consumer product page describes the annuity-based design. This is separate from choosing a contract primarily to create a retirement paycheck. Our existing Nationwide annuity comparison and Peak 10 guide retain those broader and income-focused discussions.

Make sure you are comparing the same CareMatters product

Similar names can refer to different insurance arrangements. Nationwide’s long-term care overview distinguishes life-insurance-based CareMatters coverage, CareMatters Together and CareMatters Annuity. Ask for the exact product name, insurer, current state-approved contract and coverage documents.

Identify whether the purpose is care protection for one person or a couple, a death benefit, retirement income or several competing needs. A comparison should show which objective each proposed contract serves and what tradeoffs remain. Do not assume a feature described for one CareMatters product applies to another.

Keep the LTC benefit separate from money you can withdraw

The CareMatters Annuity client guide explains that the amount available for qualifying long-term care can exceed contract value. The additional LTC benefit is not added to cash value or the death benefit. Underwriting class affects the care benefit; a larger care figure is not an investment return.

Request separate figures for contract value, cash surrender value, monthly LTC benefit, total care benefits and the amount remaining for beneficiaries. Ask how each figure changes after withdrawals or care payments. This makes it easier to compare what the contract could do during care, during an emergency and at death.

Review claim conditions alongside caregiver flexibility

Nationwide describes cash indemnity benefits: monthly bills and receipts are not required once a claim has been approved. That does not mean benefits begin merely because you want help at home. Certification, the care plan and the contract’s waiting requirements still matter.

The product page also conditions informal caregiver use on an appropriate plan of care. If help from a family member matters to you, ask how that person’s role would fit the requirements. Review the benefit-start process, monthly limit and recertification obligations before deciding. No insurance arrangement is a promise to cover every future care expense.

Check funding, liquidity and the consequences of changing course

The client guide describes a single payment and potential exchanges from existing nonqualified annuities or life insurance. An IRA rollover is a different transaction; do not assume the funding paths are interchangeable. If considering an exchange, compare old benefits and surrender costs with the new restrictions before authorizing movement.

Ask what happens if you later surrender, take withdrawals or annuitize. Nationwide warns that withdrawals reduce available LTC benefits and that annuitization can end the coverage or substantially reduce it under an elected nonforfeiture feature. Review optional rider costs and keep near-term spending needs in view.

IRS Publication 575 discusses annuity taxation. A regular withdrawal, a contract exchange and a qualifying care benefit should not be treated as the same tax event. Have your tax professional review the proposed handling; this guide does not promise tax-free funding or benefits.

Bring the questions that determine the comparison

Bring your state, who needs care protection, the proposed funding source and the amount you need to keep accessible. Request the current illustration and coverage documents. Compare underwriting, benefit timing, care duration, inflation choices, rider costs, surrender value and the beneficiary outcome. Our general long-term care annuity guide explains the broader category.

First Freedom Life is an independent insurance brokerage, not Nationwide’s claims or account-service department. We can discuss insurance options; this page does not establish appointment, product access or eligibility. State availability, underwriting and suitability must be confirmed. Guarantees depend on the issuing insurer’s claims-paying ability. This is not a bank deposit or FDIC-insured product, and it is not tax, legal or investment advice.