How it works
Nationwide Summit Fixed Indexed Annuity: product description and policy
The Nationwide Summit is a Fixed Indexed Annuity (FIA) plan that offers annuitants (annuity investors) the opportunity to earn a portion of a market index-linked return without incurring the risk of market downside. This is a suitable plan for individuals seeking a simple fixed-indexed annuity that provides tax-deferred growth and downside protection, with a primary focus on accumulation.
Let’s have a look at the high-level fine print of the Nationwide Summit Fixed Indexed Annuity, and then we will discuss each point in detail.
How does the Nationwide Summit Fixed Indexed Annuity policy work?
An annuitant (maximum age at the time of policy issue: 90) can purchase the Nationwide Summit Fixed Indexed Annuity with a minimum initial purchase amount of $25,000, and in return, they will earn market index returns (calculated through a formula that we will discuss shortly), credited as per the chosen crediting period. Apart from the regular crediting period, various events may trigger earnings credit, including free withdrawals, long-term care events, terminal illness or injury events, or when a death benefit is payable.
For current rates, see Current Rates ↑.
The Nationwide Summit Fixed Indexed Annuity provides the annuitant with the option to select from one or more crediting strategies tied to two indices (the S&P 500 Index and the JP Morgan Mozaic II Index) to determine their earnings crediting. Both these indices offer a 1-year point-to-point strategy with a cap rate. Additionally, the plan includes a fixed-rate guaranteed interest strategy, culminating in a total of three strategy options. This annuity is among the most straightforward fixed indexed annuities available, as it offers only two index strategies, unlike other indexed annuities that provide a multitude of strategies, which can sometimes overwhelm the annuitant with choices. We will briefly discuss each available index:
1. S&P 500 Index
The S&P 500 index is one of the most popular and oldest indexes in the world. It tracks 500 large-cap publicly traded stocks listed in the United States. It is a reliable index that has often stood the test of time. It is very important to note that, similar to most other annuities, the Nationwide Summit Fixed Indexed Annuity offers the S&P 500 index with cap rates in place, meaning that your interest-earning capacity is capped. These rates are subject to frequent changes; I will discuss them in detail shortly.2. J.P. Morgan Mozaic II IndexThe J.P. Morgan Mozaic II Index employs an investment philosophy that seeks positive returns in both favorable and unfavorable market environments. It focuses on potentially generating consistent returns while managing volatility. It is a broadly diversified index that tracks multiple asset classes across equities, fixed income, and commodities. However, it's important to note that the J.P. Morgan Mozaic II Index is a volatility control index. While these volatility controls may lead to less fluctuation in returns compared to indices without such mechanisms, they also lower the potential overall rate of return in comparison to those other indices.
Note: In addition to allocating funds in the following indexes, the annuitant also has the option to allocate funds at a fixed interest rate. These Fixed Rates change from time to time. It is noteworthy that the fixed rates offered by Nationwide are slightly better than those of other annuities. You can view the latest rates of this annuity on the company's website.
Rates and costs
Rates, bonus, surrender charges, and costs
The Earnings Crediting Formula
The earnings crediting formula is one of the most important parts of this annuity discussion. It is essential to note that we don’t simply receive the index return credited to our annuity. The company has rate-limiting mechanisms (such as cap rate) in place that impact our earnings. These rates are subject to change over time, and the updated rates can be checked on the company’s website at any time.
The first thing to notice is that the plan offers an annuitant the ability to choose from crediting strategies tied to two indexes, which we have discussed briefly earlier in this article. Unlike many other plans that offer numerous indexing options to choose from (which can sometimes become confusing), the Nationwide Summit annuity offers a straightforward 1-year point-to-point option with cap rates as crediting options for both the indexes it offers.
Cap Rate
This refers to the rate at which your interest-earning capacity is capped. For example, if an index returns 12% but the contract’s cap rate is 6%, the annuitant will be eligible for an interest credit of 6% only. It doesn’t matter how much the index goes above the cap rate; the maximum interest that can be earned is the cap rate.
Cap Rate simulator
Shows how a cap limits the credited return when the index year is higher than the selected cap.
8%
Formula
min(10%, 8%) = 8%
This is a one-year teaching example only. Actual contract credits depend on the index, strategy term, allocation, renewal rates, state rules, and carrier contract language.
Each year, the higher of the index rate and the cap rate gets credited to your account value. Suppose your account value is $100,000 at the beginning of the contract and the cap rate is 6%, and after a year, if the index grows 8%, your contract value will increase by 6% of $100,000, i.e., by $6000. So, at the end of the first contract year, your contract value will become $106,000.
In addition to the indexing options, the plan also offers a fixed account rate option. If you opt for a fixed account rate, you will earn the fixed rate for a specified period, as determined by the company, before your policy begins. These rates usually tend to be equal to or even lower than those of other fixed avenues, such as CDs and MYGAs, so you should avoid fixed rates in a general scenario. It is essential to always check the latest rates before selecting your preferred index.
Among these indices, at this current juncture, I would allocate 60% of my premium to the S&P 500 Index and the remainder to the J.P. Morgan Mozaic II Index. This strategy allows me to capitalize on both growth and diversification benefits.
Accessing your Money
Should your needs change unexpectedly, and you need to take an excess withdrawal (a withdrawal that is above the free withdrawal amount available in a given contract year), you may be entitled to access additional monies, although certain charges and penalties may apply. Any amount withdrawn in excess of the remaining free withdrawal amount is subject to a Surrender Charge. Below is the Surrender Charge schedule for the Nationwide Summit Fixed Indexed Annuity.
Market Value Adjustments - In case you need to surrender your policy, a Market Value Adjustment (MVA) will be applied to the portion of the withdrawal or surrender that exceeds the free withdrawal amount during the withdrawal charge period. The surrender charge schedule is different for the different tenures of annuities and also changes for some states.
The surrender charge of the Nationwide Summit Fixed Indexed Annuity is in line with all the other annuity issuers.
Once the surrender charge period ends, you can typically access your full contract value without fees.
An annuitant can also convert the contract into a stream of guaranteed income, known as annuitization. They can choose from various payout options designed to meet different needs.
- Life Only – Provides income for as long as you live.
- Joint and Survivor Life – Continues payments over two lifetimes, often used by couples.
- Life with Period Certain (up to 30 years) – Pays income for life, but guarantees payments for a minimum period even if death occurs earlier.
- Period Certain (up to 30 years) – Provides guaranteed payments for a set number of years, regardless of lifespan.
- Single Life or Joint Life with Cash Refund – Ensures that if the annuitant(s) pass away before receiving payments equal to the original premium, the difference is refunded to beneficiaries.
- Single Life or Joint Life with Installment Refund – Similar to the cash refund, but any remaining balance is paid out over time in installments.
These options offer flexibility in balancing lifetime income needs with legacy goals, enabling you to tailor how and when funds are accessed during retirement.
Death Benefit
The Death Benefit is equal to the contract value.
Riders and waivers
Riders and waivers
Extended Care Waiver: After the first contract year, an annuitant can withdraw up to 100% of the contract’s accumulated value if he is confined to a Qualified nursing home for at least 90 consecutive days. No withdrawal charge or MVA applies if the owner qualifies for this benefit. Diagnosis must occur after the contract is issued, and written proof with supporting documentation is required from a qualified physician.
Terminal Illness Waiver: After the first contract year, an annuitant can withdraw up to 100% of the contract’s accumulated value if he is diagnosed with a terminal illness with a prognosis of 12 months or less. No withdrawal charge or MVA applies if the owner qualifies for this benefit. Diagnosis must occur after the contract is issued, and written proof with supporting documentation is required from a qualified physician.
Besides the Extended Care Waiver and the Terminal Illness Waiver, the company also offers a Guaranteed Minimum Surrender Value (GMSV) provision.
Let's understand it with a simplified example.
Suppose you invest an initial premium of $100,000 in an annuity product that offers a GMSV feature. Over the course of 5 years, you make withdrawals totaling $20,000.
Initial Premium: $100,000Total Withdrawals: $20,000Withdrawal (in %): 20%
The GMSV feature guarantees that your account value will be at least 87.5% of the initial premium, less any withdrawals, at the 5th anniversary.
GMSV Calculation:87.5% of Initial Premium = 0.875 * $100,000 = $87,500Adjusted for Withdrawals: $87,500 - 20% = $70,000
Therefore, at the end of the 5-year period, the GMSV ensures that your account value will not be less than $70,000, grown at 2.85% annually, regardless of market conditions or investment performance.
Contract/Administrative Charge
The Nationwide Summit Fixed Indexed Annuity levies no annual contract or administrative fees.
Carrier
Company details
You must always keep in mind that, unlike CDs, annuities are not guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other federal insurance agency. An annuity's "guarantee" is only as strong as the insurance company that issues the annuity, so it is always important to assess the issuing company before buying an annuity.
Nationwide Mutual Insurance Company
Nationwide Life Insurance Company is a leading U.S. life insurer and a wholly owned subsidiary of Nationwide Mutual Insurance Company. The company offers a broad range of retirement and protection solutions, including fixed and indexed annuities, life insurance, and long-term care products. It is one of the oldest life insurance companies, having been in the business for over nine decades. It is a Fortune 100 and 500 company, ranked #72 as of 2025.
It is rated as follows by the rating agencies:
| Rating Agency | Rating |
|---|---|
| AM Best | A+ (2nd of 13 ratings) |
| Moody’s | A1 (5th of 21 ratings) |
| S&P | A+ (5th of 21 ratings) |
Nationwide has managed to maintain strong ratings for many years. Nationwide is considered to be strong and stable financially. In 2024, the company paid out over $20.7 billion in benefits and claims. As of year-end 2024, some of the other financial highlights for Nationwide Life Insurance Company include its:
- $68.5 billion in gross sales
- $28.3 billion of total adjusted capital
- $150 billion of a total investment portfolio
- $3.2 billion in net operating income
- $322.3 billion in total assets
Thus, going by the operating history and financial numbers, we can safely gauge that you can trust your savings with Nationwide.
Pros
The plan offers the S&P Index with decent cap rates.
Free Joint Option for Death Benefit
Allows for a spouse to be named as the co-annuitant and the death benefit to be payable upon the death of either spouse; the surviving spouse has the option to take the lump-sum death benefit or continue the contract at the death benefit value.
Free GMSV Provision
Free Confinement and Terminal Illness Waiver Benefit
This no-fee rider is automatically included for owners under age 65 and includes both an Extended Care and Terminal Illness Benefit.
Multiple Payout Options
Lump sum or Annuitization option with Life Only, Life with Period Certain, Joint and Survivor Life, etc.
Confirm before buying
High Initial Premium Requirement
$25,000 vs. $10,000 offered by most competitors
Conclusion
Conclusion
With the advancements in healthcare and technology, the average American today lives longer than ever. So, it’s very important to have a stream of income that can grow safely and steadily and have the ability to provide a guaranteed income during retirement years. This not only helps you mitigate the risk of outliving your income but also ensures that you continue to live a decent life even in your retirement.
The Nationwide Summit helps you grow your savings with much less risk. Through its decent cap rates, it offers faster growth with principal protection. The product’s plain vanilla nature (with no optional paid riders) might also appeal to people who don’t like to deep-dive into the complex methodologies often associated with the riders. If you are considering a Fixed Indexed Annuity that works best for accumulation, the Nationwide Summit FIA may be a suitable option to consider.