Why it earned this rating
Our assessment
Delivers a clean, simple accumulation FIA backed by one of the strongest carriers in the industry, but loses ground against competitors with broader index menus and optional income features.
The short version
If someone wants a principal-protected annuity for growth potential and values simplicity over a long list of index choices, Summit is a reasonable fit. What makes it worth considering is the clean design, strong carrier backing, and standard liquidity features. What holds it back is the lack of an income rider and the limited crediting menu, which means buyers who want more flexibility or income optionality will find better options elsewhere.
Key facts
The full review
Is Nationwide Summit a Good Annuity?
Yes, for the right buyer. This is a good annuity for someone who wants a simple accumulation FIA with principal protection and does not need a wide range of index choices or an income rider. It is less appealing for someone who wants more crediting flexibility or is shopping for a product with built-in lifetime income features.
Why Someone Would Buy This Annuity
The main reason to buy Nationwide Summit is straightforward accumulation with downside protection from a highly rated carrier. The secondary reason is simplicity. In real life, this is the type of annuity someone buys when they do not want to sort through a dozen index options and complex crediting strategies. They want a principal-protected contract, a couple of solid index choices, a fixed account, and the peace of mind that comes with a Fortune 100 mutual company standing behind it. It is not flashy, but it is clean.
Who This Annuity Is Best For
I think Nationwide Summit is best for someone who wants a conservative accumulation annuity, prefers a simple product design, and values carrier strength. It is also a reasonable fit for someone who is comfortable with a 7-year commitment and wants standard liquidity features like 10% annual free withdrawals and RMD-friendly access. It is less attractive for someone who wants a broader index menu, participation-rate strategies, or any form of income rider. Buyers who want more crediting options from Nationwide should look at the Peak lineup instead.
What You're Really Buying Here
You are not buying direct stock market participation. You are buying a principal-protected insurance contract that credits interest based in part on the performance of two selected indices while protecting your principal from market losses. The real value here is the simplicity of the design and the strength of the carrier, not raw upside potential or product innovation.
How the Core Feature Works
Nationwide Summit lets you allocate among a fixed account that credits daily interest and two indexed account options: the S&P 500 with an annual cap and the J.P. Morgan Mozaic II with an annual cap. Caps are tiered by premium amount, so larger deposits may receive higher cap rates. Interest is credited annually based on index performance up to the stated cap, with a floor of zero — meaning the indexed accounts cannot lose value due to market declines.
The practical takeaway is that this is a cap-only product. There are no participation-rate strategies, no performance triggers, and no spread-based options. For buyers who find those features confusing or unnecessary, that is a feature, not a bug. For buyers who want more ways to capture index-linked interest, it is a limitation.
Why the Secondary Feature Matters
The most meaningful secondary feature here is the combination of the long-term care/confinement waiver and the terminal illness/injury waiver. Both become available after the first contract year for annuitants issued at age 80 or younger. These waivers allow access to contract value without surrender charges or MVA in qualifying situations, which provides a meaningful safety net that not every competing product includes at no additional cost.
The fixed account option also matters as a secondary feature. It provides a guaranteed daily interest rate, which gives buyers a place to park a portion of their premium in a predictable, non-indexed allocation. For someone who wants a blend of guaranteed and index-linked interest, that flexibility is useful.
Liquidity and Surrender Schedule
This annuity allows free withdrawals of up to 10% of contract value annually on a noncumulative basis. Amounts above that are subject to the surrender schedule of **9% / 8% / 7% / 6% / 5% / 4% / 3% / 0%**. A market value adjustment also applies to withdrawals subject to surrender charges during the CDSC period.
The 9% first-year charge is on the higher side for a 7-year product, though it steps down steadily. RMDs are available free of both CDSC and MVA, which is important for IRA holders. The death benefit pays full contract value, and the Joint Option allows a spousal co-annuitant to continue the contract. Even with the free withdrawal provision and waivers, this should not be treated as a liquid account.
Fees and Tradeoffs
There are no annual fees, no rider fees, and no explicit charges beyond the surrender schedule and MVA. That is one of Summit's genuine strengths — what you see is what you get.
The less obvious tradeoffs are structural. Upside is limited by caps, and those caps will vary over time based on market conditions and Nationwide's declared rates. The index menu is narrow, which limits diversification across crediting strategies. The J.P. Morgan Mozaic II is a volatility-controlled index with embedded index costs that can affect how much interest is ultimately credited. And the MVA adds another layer of cost on early withdrawals above the free amount.
Product snapshot
| Feature | Details |
|---|---|
| Product type | Fixed indexed annuity |
| Product focus | 7-year accumulation |
| Issue ages | Annuitant 0–90 (single), 0–85 (joint); owner any age |
| Minimum premium | $25,000 single purchase payment |
| Income rider | Not available |
| Free withdrawals | 10% of contract value annually (noncumulative) |
| Surrender schedule | 9% / 8% / 7% / 6% / 5% / 4% / 3% / 0% |
| Market value adjustment | Yes, during CDSC period |
| Death benefit | Contract value; Joint Option available for spousal co-annuitant |
| Waivers | Long-term care/confinement and terminal illness/injury (after year 1, max issue 80) |
| RMD access | Free of CDSC and MVA |
| Crediting options | S&P 500 (annual cap), J.P. Morgan Mozaic II (annual cap), fixed account |
| Plan types | Nonqualified, IRA, Roth IRA, SEP IRA, SIMPLE IRA, CRT, 401(a) |
| Annual fees | None |
Carrier snapshot
Nationwide Summit is issued by Nationwide Life and Annuity Insurance Company or Nationwide Life Insurance Company, based in Columbus, Ohio. Nationwide is a Fortune 100 mutual company founded in 1926 with $322.3 billion in total assets. The company carries ratings of A+ from S&P, A+ from AM Best (second highest of 16 rating levels), and A1 from Moody's. Nationwide is one of the largest and most diversified insurance and financial services companies in the United States.
Final take
Nationwide Summit is a clean, simple accumulation FIA from a carrier with excellent financial strength. It does not try to be everything to everyone, and that is both its appeal and its limitation. For buyers who want a straightforward product with principal protection, a couple of solid index choices, and no fees, it delivers exactly that.
The main caution is that the index menu is narrower than most competing 7-year FIAs, and there is no income rider for buyers who might want that optionality later. For accumulation-focused buyers who value simplicity and carrier strength, Summit is a solid option. For buyers who want more crediting flexibility or built-in income features, Nationwide's Peak lineup or other competitors will be more appealing.