Intro
Introduced in 2025, Nationwide CareMatters Annuity is the only annuity hybrid (I'll explain this term in a bit) that pays long-term care benefits entirely as cash. That structure gives policyholders far more flexibility in how they use their benefits when it matters most.
In these policy reviews, I compare each to a pop-culture character. The other two CareMatters policies were matched with the Star Trek characters, Kirk and Spock, known for their bold, first-into-the-unknown leadership. So CareMatters Annuity feels like Jean-Luc Picard from Star Trek, who often lives in the shadow of these two stars, but he’s thoughtful, steady, and quietly effective. In certain situations, he’s exactly the right person to guide the ship.
Post jargon
annuity hybrid: a policy that combines an annuity with LTC benefits
benefit: the amount LTCi pays for covered care expenses
benefit period: the maximum time LTCi pays for care after criteria are met
benefit pool: total amount available in LTCi for care expenses
cash indemnity: pays the full benefit, regardless of the actual care costs
death benefit: a payout to a beneficiary from a hybrid policy after the insured passes away
elimination period: the waiting period after criteria are met before benefits start
inflation protection: LTCi benefit that adjusts for rising costs
life hybrid: a policy that combines life insurance with LTC benefits
premium: the payment to maintain insurance
underwriting: insurer’s review process to decide coverage and cost
➡️ Explore all the LTC jargon
What is an annuity hybrid?
Most of our hybrid policy reviews focus on policies that combine life insurance with LTC benefits. We'll call these life hybrids for simplicity.
This policy is different. It combines an annuity with LTC benefits. We'll call this an annuity hybrid.
So why would you want an annuity hybrid?
- Health - You may not qualify for a life hybrid, but you can qualify for this one. Annuity hybrids typically have more flexible underwriting with no health interview, which can make coverage available to people who are otherwise shut out of other options.
- Existing annuity - If you own an annuity with taxable gains, you can complete a 1035 exchange by "repositioning" these funds into an annuity hybrid without triggering taxes on your gains. If the funds are later used for long-term care or paid to beneficiaries at death, those gains can generally come out tax-free.
- Higher refunds - Compared to life hybrids, annuity hybrids generally offer more guaranteed cash value and a stronger refund to heirs, but lower total long-term care benefits. If leaving money to family is a high priority, this structure can make sense.
- Older applicants - Compared to life hybirds, the annuity benefits can be very attractive for older applicants, especially for women.
How CareMatters Annuity works
You make a single up-front payment (for example, $100k). You do not make monthly or annual premium payments, and there is no option to spread the cost over time.
That amount grows at 3% or 5% per year, tax-free. If you ever need long-term care, your premium (account value) is doubled or tripled based on your age and class.
| Class | Issue ages | LTC benefits | LTC benefit period |
|---|---|---|---|
| Preferred | 40–74 | 3× | 6 years |
| Standard | 40–74 | 2× | 4 years |
| Select | 75–80 | 2× | 6 years |
Your LTC benefits are paid out tax-free over a set number of years. If you never need care, your heirs generally receive the remaining value tax-free.
Standard benefits
CareMatters Annuity comes with many standard benefits of a hybrid policy:
- Guaranteed benefits: Your payouts always match your policy terms.
- Benefit triggers: Coverage starts when you need help with two ADLs or cognitive decline.
- Broad coverage: Includes informal care (e.g., family), home health care, adult day care, assisted living, nursing homes, memory care, CCRCs, care coordination, respite care, and hospice.
- Inflation protection: Keeps your benefits aligned with rising costs.
- Death benefit: If you never use your benefits, your family receives a payout upon your death.
- Money-back option: Cancel your policy anytime and get money back.
What's special about CareMatters Annuity?
In a competitive market, policies often include standout features to set themselves apart. Let’s take a closer look at what makes CareMatters Annuity special.
Cash indemnity
This policy offers cash indemnity payouts, providing higher payouts and greater flexibility compared to traditional reimbursement-based policies.
- No need to submit receipts – less paperwork, less hassle.
- Full, maximum benefit – paid each month, regardless of actual care costs.
- Freedom to spend on any type of care – including payments to family caregivers, with fewer exclusions and no approvals required.
Easier to qualify
You answer just six questions. There’s no health interview, exam, or medical records review, though prescription history is checked.
The hardest question asks whether, in the past 2 years, you have been diagnosed, treated, or prescribed medication for any of the following: aneurysm, heart disease, head injury, peripheral vascular disease, peripheral neuropathy, diabetes, stroke or transient ischemic attack (TIA), multiple falls or a fall resulting in a fracture, balance disorder, tremors, blood clotting disorder, organ transplant (excluding cornea), rheumatoid arthritis with joint replacement or deformity, arthritis requiring narcotic pain medication, or bipolar disorder, schizophrenia, or psychosis. Even if you answer yes to one, you may still be eligible.
High refunds (death benefit)
Compared to CareMatters II, the life hybrid version of this policy, refunds are higher, as shown in the table above.
Generous elimination period
An elimination period, or waiting period, is the time after qualifying for benefits when you cover costs out of pocket before the policy kicks in. For this policy, after 90 days, you’re retroactively reimbursed for those expenses.
Joint policy option
Choose to get a joint policy to cover two people who share one pool of long-term care benefits. The total benefit pool is the same as an individual policy, but it is spread over more years (9 years vs 6 years), which lowers the annual benefit.
The details
If this policy piques your interest, we’ll scour the galaxy for the key details and deliver only what truly matters.
We rate each policy’s benefits, premiums, underwriting, and company on a three-star scale, with three stars being the best.
Benefits
Benefits are what the policy pays for covered care expenses.
CareMatters Annuity combines key hybrid policy benefits: cash indemnity, minimal exclusions, a death benefit, plus a strong benefit pool.
Premium
Premiums are the payments made to maintain insurance coverage.
Underwriting
Underwriting is how an insurance company evaluates your health and history to determine coverage and pricing.
CareMatters is widely available with a streamlined underwriting process, providing quick decisions.
Company
Choose a top-rated insurer for reliable LTC coverage, even decades from now. We only offer policies from financially strong companies to give you peace of mind.
Nationwide's experience and ratings are average compared to the policies we offer.
Comparisons
How does this policy stack up against others? Focus on what matters most to you to find the best fit.
In this table, you can compare the benefits of all the LTCi policies we offer. You can:
- Search for any detail.
- Tap any column title to sort.
- Scroll right to view more columns. ➡️
Next steps
If this policy seems like a good fit, click the button below and include 'CareMatters Annuity' in the notes section at the final step.
Wrap up
In the universe of long-term care insurance, CareMatters Annuity is the Jean-Luc Picard of the lineup. It is not the flagship option like CareMatters or CareMatters Together, but it is still confident, flexible, and quietly effective. In the right situation, it can be the better choice.
This policy is ideal if you’re looking for:
- Flexibility – thanks to cash indemnity benefits
- Tax benefits - when moving funds from an annuity
- High refunds – from a prioritization of your cash growth
- Peace of mind – from a trusted name in insurance
If it sounds like a good fit for you, we’re here to help you explore the details.
