Nationwide has introduced the CareMatters Annuity, aiming to provide financial solutions for those concerned about long-term care expenses. With growing demand for such products, this new offering targets consumers looking for alternatives to traditional long-term care insurance.
What is the CareMatters Annuity?
The CareMatters Annuity combines the features of an annuity with a long-term care benefit. Customers can access funds for qualifying long-term care expenses while also benefiting from tax-deferred growth on their investment.
Why Long-Term Care Planning is Essential
As people age, the likelihood of needing long-term care increases significantly. According to the U.S. Department of Health and Human Services, roughly 70% of individuals over 65 will require some form of long-term care in their lifetime. This statistic underscores the importance of planning ahead to manage these potential costs.
How Does it Compare to Other Annuities?
The CareMatters Annuity differs from traditional options like fixed or variable annuities by specifically addressing long-term care needs. Investors may find it advantageous in light of rising long-term care costs, which can exceed $100,000 per year depending on the level of care needed.
What This Means for Annuity Buyers
For those aged 55 to 70 looking at their investment options, the CareMatters Annuity presents a unique opportunity. It can serve as a strategic part of your retirement plan, offering both growth potential and liquidity for future healthcare needs. Ensure you evaluate current annuity rates when considering this product.
