Episode 93: Nationwide Care Matters Annuity Review

When people think about retirement, they usually picture steady income and a comfortable plan. But many forget about the one risk that can break even the strongest plan: long-term care. It is a real threat, and it affects more Americans than most people realize. When you mix in questions about how fed rate cuts affect annuities, the picture becomes even more important to understand.

Many retirees want safe money strategies. They want protection from market problems and want to know how they will fund care later in life. Long-term care needs can increase fast, and costs rise year after year. That is why planning early matters.

In this post, I explain how long-term care works, why so many people end up needing it, and how a long-term care annuity can help. I’ll also explain why relying on self-funding can be risky, especially when fed rate cuts affect annuities, growth, and income plans.

Why Long-Term Care Matters for Retirement

Most people are surprised to learn how common long-term care really is. A large number of adults over age 65 will need help with daily tasks at some point. This help can be expensive, and without a plan, the burden can fall on family or your savings.

Studies show:

• • About 70% of Americans over 65 will need some type of long-term care

• • About 40% will enter a nursing home

• • About 20% will stay there for at least five years

These numbers show how long care can last and how the cost can add up. Women are especially affected because they usually live longer and often act as caregivers earlier in life.

Even the price of a semi-private room in a nursing home can shock most people. Many rooms cost around $72,000 per year, and private rooms can reach $100,000 or more. If you live in a high-cost state, the numbers can go even higher.

Why You Should Not Count on Medicare or Medicaid

Many people think Medicare or regular health insurance will help with long-term care. But that is not how the system works. Medicare may pay for up to 100 days in a rehab or skilled nursing facility, but only under certain conditions. After day 100, the costs fall back on you.

Medicaid is a last resort for many, but it comes with serious drawbacks. You must spend down almost all your assets before Medicaid helps with long-term care. In many cases, you can only keep about two thousand dollars in assets.

Another problem is the quality of care. Facilities that depend on Medicaid funding often struggle. As a firefighter/paramedic, I have seen these places myself. Many have poor conditions, strong smells, and very low staffing. You never want your care or your family’s care to come down to that level.

The Three Main Types of Long-Term Care Policies

Long-term care policies come in three categories. Each works differently, and each has its own pros and cons. 

1. Traditional Standalone Policies

These are the old-style plans where you pay monthly premiums. Over time, many companies realized they were paying out more in claims than expected. This caused premiums to rise.

Many people end up canceling these plans right when they are most likely to need them. And if you never use the policy, you get nothing back. It is a pure transfer of risk, like car or home insurance.

2. Life Insurance Policies With a Long-Term Care Rider

These policies allow you to accelerate the death benefit while you are still alive. If you need care, the company pays part of your death benefit to help cover costs.

The downside is that qualifying can be difficult later in life. These policies have very strict underwriting because the insurer knows it will pay out the death benefit eventually.

3. Asset-Based or Linked-Benefit Policies

These are built on an annuity chassis. They are easier to qualify for and are not a “use-it-or-lose-it” option. If you never need care, the money can still pass to your beneficiaries.

Within this group, there are two types:

• • Reimbursement policies

• • Cash indemnity policies

Reimbursement gives you back only what you spend on qualified care provided by a licensed professional, up to a limit. Cash indemnity gives you the full benefit amount every month, and you decide how to use it.

How the Nationwide Long-Term Care Annuity Works

The Nationwide Care Matters long-term care annuity is an asset-based policy with clear rules and benefits. Nationwide is a strong A+ company with nearly 100 years of stability. Their new product offers simple qualification, strong benefits, and guaranteed growth.

When you put money into this annuity, your benefit doubles or triples on day one. The exact amount depends on your health class. After that, the base benefit increases every year at a guaranteed rate.

Here is an example:

Item	Amount
Premium	$50,000
Day-one benefit (tripled)	$150,000
First-year total benefit	$153,606
Monthly benefit	$2,133
Benefit period	72 months

By age 85, that same benefit grows to over $250,000, or about $3,500 per month for six years.

Why Some People Try to Self-Fund Care

Some people say they have enough money saved to handle long-term care on their own. But when you look at the math, it often doesn’t work out. To turn $50,000 into $250,000 in 22 years, you would need a steady return of about 7.65% every year, with no down years.

That does not include advisor fees or taxes. And when fed rate cuts affect annuities and lower interest rates across the economy, hitting those numbers becomes even harder. Rate cuts usually mean lower yields and more pressure on savings.

This makes long-term care annuities even more important. They guarantee growth for long-term care needs, even when interest rates drop.

What It Takes to Qualify for Benefits

To receive benefits, you must meet one of two conditions:

• • Severe cognitive impairment, such as Alzheimer’s or dementia

• • Inability to perform two of six activities of daily living

Activities of daily living include bathing, dressing, eating, continence, and moving yourself from one place to another. These limits are common for people in their mid-eighties.

A licensed physician must confirm the need for care. Some policies also have a 90-day elimination period. The Nationwide product pays this period retroactively, which means you get reimbursed even for the first three months once the benefit begins.

Other Important Features of This Long-Term Care Annuity

This annuity includes several features that make it easier to use and understand. Many are not found in other long-term care products.

Key features include:

• • One-time premium

• • Up to 10% penalty-free annual withdrawals

• • Inflation protection option

• • Guaranteed benefit growth

• • International benefit availability

• • Death benefit if unused

• • Ability to fund with a 1035 exchange from another annuity

The international benefit is especially rare. Many other policies do not allow benefits to follow you outside the United States.

Long-Term Care Planning and Why It Matters

When you plan for long-term care, you protect yourself, your income, and your family. Many people think they will never need help, but the numbers show otherwise. Planning gives you options, better facilities, and more control over your care.

A long-term care annuity like the Nationwide Care Matters can be a strong fit for many people. It grows the benefit, protects your premium, and still passes value to your family if unused. And during times when fed rate cuts affect annuities, guaranteed growth becomes even more valuable.

Good planning gives you peace of mind and keeps you out of the facilities you want to avoid. It also prevents your family from carrying the burden alone.

Final Thoughts and Next Steps

Long-term care is one of the biggest gaps in most retirement plans. If you want to learn more about long-term care planning or see whether this type of annuity fits your situation, the next step is simple.

Visit AtlasAnnuity.com to watch more educational videos and schedule a short call. I can walk you through your options and show you how long-term care fits into a safe, reliable retirement plan.

Episode 93: Nationwide Care Matters Annuity Review

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