Nationwide expands hybrid long-term care lineup with new annuity option

Nationwide is broadening its long-term care (LTC) portfolio with the launch of Nationwide CareMatters Annuity, a product designed to help retirees and pre-retirees protect their assets from the rising costs of extended care.

The new annuity, which blends guaranteed growth with long-term care coverage, arrives at a time when many Americans are struggling to find affordable ways to plan for future care needs. According to Nationwide’s own research, nearly six in ten consumers worry about how they’ll pay for LTC — and only a small fraction have a dedicated plan in place.

Responding to growing LTC demand

CareMatters Annuity builds on Nationwide’s existing CareMatters suite, which includes life-insurance-based hybrid policies. The new version uses a fixed annuity chassis to deliver long-term care benefits with simplified underwriting and flexible funding options, including 1035 exchanges from non-qualified annuities or life policies.

The company said it developed the product in response to feedback from distribution partners seeking more accessible, less underwriting-intensive options for clients who don’t qualify for traditional or life-based hybrid LTC coverage.

“Long-term care remains one of the biggest threats to retirement security,” said Holly Snyder, president of Nationwide’s life insurance and long-term care business. “We wanted to create an annuity that makes coverage attainable for more Americans while giving them control over how and where they receive care.”

How CareMatters annuity works

The annuity offers three core features aimed at simplifying long-term care planning:

• Leverage and simplicity: Policyholders can make a single premium payment or exchange an existing non-qualified annuity to receive double or triple their contract value in available long-term care benefits.
• Guaranteed growth: A 3% fixed crediting rate provides predictable accumulation and ensures LTC benefits rise over time. If the insured never needs care, any remaining contract value is passed on to beneficiaries as a death benefit.
• Flexible, cash-based benefits: Once qualified for care, clients receive monthly cash indemnity payments — meaning no receipts, billing, or reimbursement restrictions. Benefits can be used for home care, family caregiving, or even international care arrangements.

A new path for LTC protection

Unlike reimbursement-based policies, the cash indemnity structure gives clients full discretion over how benefits are used — an approach increasingly favored by advisors helping clients plan for in-home and informal care scenarios.

Snyder emphasized that this flexibility aligns with what consumers value most: “People want a straightforward promise — to know what they’re getting and have freedom to choose how to use it. This design delivers on simplicity, predictability, and control.”

Addressing the retirement risk gap

Nationwide said the CareMatters Annuity is aimed at clients looking to protect retirement savings from the high costs of long-term care without sacrificing liquidity or guarantees. An LTC event can quickly drain portfolio assets and create emotional and financial strain on families, Snyder noted.

Because qualified long-term care benefits are tax-free, clients can potentially withdraw their entire contract value without triggering ordinary income taxes if funds are used for covered care expenses.

Positioning in the LTC market

Nationwide continues to lead the hybrid long-term care segment through its CareMatters brand, but the new annuity marks its first foray into a totally annuity-based LTC solution.

For financial professionals, the addition of CareMatters Annuity gives advisors another tool to help clients reposition idle assets, create leverage for care costs, and integrate long-term care planning into broader retirement income strategies.

Ayo Mseka has more than 30 years of experience reporting on the financial services industry. She formerly served as editor-in-chief of NAIFA’s Advisor Today magazine. Contact her at [email protected].