Nationwide Summit - Annuity Association

Nationwide Summit Review

The Nationwide Summit is a fixed annuity product that is often associated with a secure investment. It’s a 7-year annuity, and as a long-term investment, you might be wondering whether it is worth the wait.

As with any annuity out there, there are certain limitations and charges you should be aware of before committing, especially whether this product will maximize your savings.

Read our in-depth Nationwide Summit review, where we explore the annuity’s advantages and disadvantages, surrender charges, and beneficial features.

About Nationwide

Nationwide didn’t originally begin as an annuity provider. Founded in 1925 as Farm Bureau Mutual, the company focused on small auto insurance packages. As it grew, the company expanded into property insurance, and a decade later, after acquiring the Life Insurance Company of America, it began offering life policies to farmers and union members.

With its expanding services, Farm Bureau Mutual rebranded to Nationwide, becoming a trusted name in various insurance policies. Today, Nationwide holds about 1.41% of the U.S. market, establishing itself as a reliable annuity provider you can count on.

Nationwide Rating

Rating Company

Rating

Moody’s

A1 (High Quality, Low Risk)

S & P

A.M. Best Rating

A+ (Strong)

DBRS Morningstar

A (High)

Nationwide Summit Highlights

7-Year Fixed Index Annuity
The Nationwide Summit is a 7-year term annuity.
Protection from Market Risk
Nationwide guarantees that your initial investment or credited earnings will not be lost, even if the underlying index underperforms. However, if you choose to withdraw funds from your annuity, your principal may be reduced by contingent deferred sales charges (CDSC).
Spouse Protection
Nationwide Summit provides a joint option on the death benefit, meaning your partner can be added as a co-annuitant. If the unfortunate happens to either of you, the surviving spouse will be able to claim the death benefit.
Growth Potential with Guarantees
With Nationwide Summit, you could earn more than you would with traditional fixed investments. You have two options for where to put your money: fixed and indexed accounts. Fixed provides you with a guaranteed interest rate for the 1st year, while with an indexed account, you can invest in a stock market index.
10% Withdrawal Limit
Despite the surrender charges, you can choose to withdraw 10% of your savings. If you do that prior to the age of 59 ½, there may be a 10% early withdrawal federal tax penalty.
Crises Waivers
The Nationwide Summit annuity has a waiver in case the annuity holder is diagnosed with a terminal illness or injury. However, the waiver is valid only after the first year after signing the contract.

Nationwide Summit Overview

🔔 Important Information

Annuity Term

7 years

Type of Annuity

Fixed Index

Interest

2-6%, depending on market conditions and the chosen index options

Premium Type

Single Premium

Maximum Issue Age

85 years

Withdrawal Charge Schedule

9%, 8%, 7%, 6%, 5%, 4%, 3%

Minimum Premium

$25,000

Maximum Premium

$1,000,000

Nationwide Summit Historical Rate of Return

Fees and Charges

The Nationwide Summit annuity has no fees or charges unless you decide to withdraw your savings early on.

Index Options

Nationwide Summit comes with two available annuities: the S&P 500® Index and the J.P. Morgan Mozaic II℠ Index.

The S&P 500® Index is one of the most commonly followed equity indexes and the indicator of the American economy's performance. The index also consists of 500 large-cap, publicly traded companies.

The J.P. Morgan Mozaic II℠ Index is another index you can choose to diversify your portfolio. It reviews 15 global asset classes and selects the top 9 that offer the best returns over the last six months. The index later spreads investments across them to reduce volatility and aim for more stable returns.

Crediting Methods

The Nationwide Summit annuity is rather limited in its crediting methods and only offers fixed-indexed annuities from the S&P 500® Index and the J.P. Morgan Mozaic II℠ Index.

Nationwide Summit Surrender Schedule

Nationwide imposes a 7-year surrender charge period for the Summit annuity. This means that each year, the penalty percentage will decrease until it reaches 0%, at which point you can withdraw your savings.

*The interest rate may vary depending on the state.

Nationwide Summit Key Features

Nationwide Summit advantages go beyond waivers and protection from market risk. Here are the key features:

Market Value Adjustments (MVA)

If you take money out of your annuity before the CDSC (Contingent Deferred Sales Charge) period ends, a Market Value Adjustment (MVA) might apply. Here’s what that means:

If interest rates have increased, the MVA will reduce the amount of money you get from your withdrawal.
If interest rates have decreased, the MVA will increase the amount of money you get from your withdrawal.

Tax-Deferred Growth

As a tax-deferred fixed annuity, Nationwide Summit enables faster growth of your savings, as you earn interest not only on your initial investment but also on the interest and the amount typically lost to taxes.

Nationwide Summit Pros and Cons

Company Information