Nationwide has been a popular choice for annuity shoppers for many years. The company offers a variety of annuity products to fit differing needs. If you are considering buying an annuity from this company, consider these important issues first.
Since 1955, Nationwide has been accredited with the Better Business Bureau. The company is located in Columbus, Ohio, and it has been in business for 90 years. There have been alerts and government actions against Nationwide. Overall, the company maintains a good reputation for its general insurance products as well as annuities.
Nationwide Customer Service
The company’s customer service receives about average scores from different sites across the web. Most people report being able to solve any issues in a timely and satisfactory manner. However, some people complained about being disconnected or experiencing longer hold times. Some customers voiced disgust about the company’s policies. However, it is fair to note that these same policies are outlined in the terms. This means that many of these problems are avoidable by paying close attention to the terms and fully understanding them.
Pros Of Nationwide Annuities
Nationwide’s most popular product group is the fixed annuity, and there are several choices. Fixed annuities from Nationwide feature the following benefits:
One product that received good reviews was the New Heights annuity. Many people liked that the New Heights fixed annuity featured optional riders such as lifetime legacy planning and a guaranteed future income for an extra cost. They also liked the protection from market risk. Several people liked that interest withdrawals did not come with penalties, and others liked the daily interest lock-in investment options.
Another popular product is the Destination B variable annuity from Nationwide. With money invested in multiple funds, many buyers felt that their investment was more secure. Also, they liked the optional riders for death benefits and guaranteed lifetime income.
Cons Of Nationwide Annuities
Although many people like that Nationwide offers early withdrawals, those who withdraw before reaching age 60 will face a 10 percent tax penalty, which is compounded on regular tax income. Also, there may be a contingent deferred sales charge. Some people felt that the cost of the rider for a guaranteed future income was high. In comparison with other providers, it is about average or slightly more expensive. This was also true of the variable annuities and their optional rider costs.
Complaints About Nationwide Annuities
In addition to the customer service complaints outlined above, many other complaints result from people not understanding the annuity’s terms. For example, several people complained about not receiving a fair payout for a joint annuity with a lifetime income rider. This is because the benefit is calculated on the younger person’s age, which creates a problem for people who have a large age gap and do not understand the terms. Experts recommend basing the advertisements of higher income promises on a realistic figure of 3.1 percent instead. One common complaint was the fees for Nationwide’s variable and fixed annuities. There are at least 20 possible fees depending on the product chosen.
Is A Nationwide Annuity The Right Choice?
For value shoppers, this may not be the right annuity. There are cheaper products with similar terms and payouts. However, Nationwide offers some perks that not all other competitors offer. Also, there are better options for long-term growth. Always compare at least five different companies before deciding.