Nationwide Financial has emerged as a leading provider of long-term care solutions. The company offers several full cash-benefit hybrid policies that combine life insurance with long-term care benefits. In addition, Nationwide now offers an annuity with a qualified long-term care rider that features broader underwriting flexibility. All of these products meet federal requirements to qualify as Long-Term Care Insurance policies.

Nationwide is considered a financially strong insurer, earning A+ financial strength ratings from both A.M. Best and Standard & Poor’s.

True 'Hybrid' Policy Meeting Federal Guideline

Several types of long-term care solutions are available to consumers.

Types Of Long-Term Care Insurance Policies - Which is Best For You?

Care Matters

Nationwide’s Care Matters is a hybrid policy that combines a life insurance death benefit with qualified long-term care benefits. Policyholders receive benefits in cash, regardless of the actual cost of care.

If you are considering a hybrid policy, experts recommend focusing only on products that meet federal requirements for Long-Term Care Insurance. Care Matters meets those federal guidelines.

Guaranteed Benefits

With hybrid policies, you are guaranteed to receive benefits for long-term care, a death benefit, or both. You also maintain access to your money in three primary ways:

• You need long-term care services.

You receive tax-free benefits to pay for all levels and types of long-term care, whether at home or in a facility of your choice. Benefits are triggered using the same criteria as traditional Long-Term Care Insurance, the need for assistance with activities of daily living or cognitive impairment. You do not need to have a permanent or terminal condition to qualify.

• You die.

Like any life insurance policy, the policy pays a tax-free death benefit to your beneficiaries. There is also a residue death benefit in the event you exhaust all the long-term care benefits, thus exhausting the full death benefit.

• You change your mind.

If your needs change and you require access to funds, you can access the policy’s cash surrender value. While most policyholders never use this option, it provides added flexibility and peace of mind, knowing the money remains accessible. You could also take a loan from the policy.

The Nationwide policy can be funded with either a single premium or guaranteed premium payments over a set period, and those premiums can never increase.

Nationwide Care Matters Features and Benefits

Offered by Nationwide Financial, the Care Matters policy includes the following features:

• Guaranteed monthly cash benefit.

You are guaranteed to receive 100% of your available monthly benefit in cash once you qualify for care.

• Multiple inflation protection options.

Four inflation choices are available:

• 3% simple
• 3% compound
• 5% compound
• Medical Care Component of the Consumer Price Index for All Urban Consumers (CPI-U), unadjusted, subject to a 0% floor and a 6% cap
• Care Guide Network.

Policyholders have access to care coordination and support services to help navigate long-term care decisions.

• International benefits.

Benefits can be used outside the United States, subject to policy terms.

• No receipts required.

Once you qualify for benefits, there is no requirement to submit bills or receipts. You receive the full monthly benefit in cash.

• Complete flexibility in care.

Because benefits are paid in cash, you may use them for any type of long-term care and choose who provides that care, whether at home or in a facility.

• Life insurance death benefit.

The policy includes a death benefit payable to beneficiaries.

• Guaranteed minimum death benefit.

A minimum of 20% of the original death benefit is guaranteed, even if all the long-term care benefits have been paid.

• Tax advantages.

Qualified long-term care benefits are generally tax-free, and death benefits are also paid income tax-free under current federal law.

• Flexible premium payment options.

The policy can be funded with a single premium or guaranteed payments over 5 or 10 years, until age 65, or until age 100. Premiums are guaranteed and will never increase.

CareMatters Together

While Nationwide CareMatters is designed for individuals, Nationwide CareMatters Together is specifically structured for couples who want to plan for long-term care as a team. The most significant difference is how benefits are shared and paid.

CareMatters Together provides one shared pool of long-term care benefits that can be used by either insured person, in any combination. When the policy is issued, the couple selects a total number of full monthly benefit payments—48, 72, or 96—which make up the shared benefit pool. Each spouse has their own monthly benefit, which may be used in full or divided over time, depending on care needs.

By contrast, CareMatters issues separate benefit pools per insured, with each person having their own defined monthly and lifetime long-term care benefits.

Another key distinction is the death benefit structure. With CareMatters Together, the life insurance death benefit is paid upon the death of the second insured. Even if the entire long-term care benefit pool is exhausted, the policy guarantees a minimum death benefit, currently set at 10% of the policy’s specified amount, payable to beneficiaries

Cash is King

Cash matters when you need long-term care. Unlike most Long-Term Care Insurance policies that reimburse expenses, Nationwide pays 100% of your benefit in cash once you qualify for care. No bills or receipts are required.

Once the benefit trigger is met, you receive the full monthly cash benefit and decide how the money is used. That flexibility gives you control and independence over where you receive care, who provides it, and how services are arranged.

Plus, while benefits are paid in cash, they remain tax-free under current federal law. There is a per diem benefit cap: The maximum tax-free daily amount from an indemnity or cash style LTC policy is now $430 per day in 2026.

UL Policy With Qualified LTC Rider and International Benefits

Nationwide also offers universal life policies with a qualified 7702(b) long-term care rider. Under this structure, long-term care benefits are paid by accelerating the policy’s death benefit. The rider does not provide benefits beyond the original death benefit, and there are no inflation options or benefit extensions available.

Benefits are paid in cash. International benefits are available, provided the policyholder is certified as needing long-term care services by a physician licensed in the United States, in accordance with policy terms.

Annuity-Based Linked Benefit with Qualified LTC Benefits

Nationwide CareMatters® Annuity is an annuity-based linked-benefit solution designed to provide long-term care protection while preserving retirement assets. Unlike life insurance–based hybrids, this product uses a non-qualified annuity as the funding vehicle and provides qualified long-term care benefits under the Pension Protection Act.

The policy is funded with a single premium, which can be paid in cash or through a tax-free 1035 exchange from an existing non-qualified annuity or life insurance policy. Based on the underwriting class, the policy provides two to three times the contract value for long-term care benefits.

The relaxed underwriting requirements are a key feature of this product, and the company expects to be able to offer coverage to a majority of applicants. Working with a qualified Long-Term Care Insurance specialist can help determine eligibility based on your age and health.

The long-term care benefits are paid as cash indemnity, meaning once you qualify for care and satisfy the 90-day elimination period, you receive the full monthly benefit in cash without submitting bills or receipts.

You retain complete control over how the money is used, including paying for home care, assisted living, nursing home care, or informal care provided by family members.

The annuity includes principal protection, a guaranteed fixed crediting rate, and a death benefit payable to beneficiaries if long-term care benefits are not fully used.

Optional riders are available, including 5% compound inflation protection and a long-term care nonforfeiture benefit, subject to policy terms.

International benefits are available. One hundred percent of long-term care benefits remain payable if you reside outside the United States, provided qualification and plan-of-care requirements are met, and a U.S.-licensed health care practitioner makes certification.

Partnership 

Since Nationwide's 'CareMatters' is a hybrid policy and not a traditional long-term care policy, it will not qualify as a partnership policy under state and federal law.

You can learn more about the federal/state partnership program - What is a Long-Term Care Partnership Policy?

Find State-Specific Information

Each state has a state-specific page that includes the current and future cost of long-term care services, available tax incentives, information on care providers, and other important information. Find the current cost of long-term care services where you live- LTC News Cost of Care Calculator.

Claims

If you own a Nationwide policy and seek help submitting a claim, LTC News offers free, no-obligation assistance - including help finding quality caregivers and facilities. 

LTC News partners with Amada Senior Care to provide free claim support with no cost or obligation. Trained experts can walk you through the entire process and help you access benefits quickly and correctly - Filing a Long-Term Care Insurance Claim.

Shopping for Long-Term Care Insurance?

When shopping for Long-Term Care Insurance, it’s important to understand that both state and federal regulations shape how these policies are designed, priced, and sold. Each state’s department of insurance regulates Long-Term Care Insurance products and approves premium rates.

Because of these regulations, insurance agents, agencies, and financial advisors cannot offer special discounts or negotiate premiums outside of what is approved and available to all consumers.

Use all the tools and resources available on LTC News to help you in your research - Resources for Long-Term Care Planning.

There are more similarities than differences when it comes to core features and benefits. However, options and policy design vary by company, and premiums can differ by more than 100% when comparing equivalent benefits.

Compare Long-Term Care Insurance Companies and Products.

Underwriting

Long-Term Care Insurance is medically underwritten, and each insurance company applies its own underwriting guidelines to determine eligibility and rate class. An experienced Long-Term Care Insurance specialist understands these differences and can help match you with the insurer and policy options best aligned with your age, health, and goals.

What is Underwriting? How Does Current Health Impact Ability to Obtain Long-Term Care Insurance?

Nationwide underwriting for their life hybrid long-term care products is considered more "conservative" compared to other insurance companies. The company's hybrid annuity product has broader underwriting. However, if you have several pre-existing health conditions, discuss them in detail before applying. 

Federal Regulation and Consumer Protections

Nationwide CareMatters is a hybrid policy that pays 100% of approved long-term care benefits in cash. The policy provides both tax-free long-term care benefits and a tax-free life insurance death benefit, subject to current federal tax law. When evaluating hybrid policies, experts generally recommend limiting your review to products that meet federal Long-Term Care Insurance regulations.

Under federal law, qualified Long-Term Care Insurance is governed by Internal Revenue Code (IRC) Section 7702(b). Any insurance contract that meets the requirements of Section 7702(b) is legally recognized as Long-Term Care Insurance.

Policies that qualify under Section 7702(b) include important consumer protections, such as regulated benefit triggers, standardized definitions of long-term care, and favorable tax treatment for qualified benefits.

These Nationwide hybrid policies meet the requirements of IRC Section 7702(b). By contrast, insurance policies issued under IRC Section 101(g) only accelerate a life insurance death benefit and are not considered Long-Term Care Insurance.

Federal law prohibits insurers from marketing Section 101(g) policies as long-term care coverage, and they generally lack the consumer protections and structure required of true Long-Term Care Insurance policies.

All insurance products that meet these federal guidelines contain consumer protections and regulated benefit triggers, in addition to tax advantages. 

Comparing LTC Insurance Products

Be sure to seek the assistance of a qualified Long-Term Care Specialist to compare the features, benefits, and costs of each policy. You can find a trusted and qualified specialist representing the major insurance companies that offer these products - Work With a Long-Term Care Insurance Specialist.

Since your health is a primary consideration in determining your eligibility for coverage, it is always best to start planning before retirement, when health is usually better. An experienced Long-Term Care Insurance specialist will ask several questions about your health to provide accurate quotes and professional recommendations.

Please note that because each insurance company applies its own underwriting guidelines, you may qualify for coverage with one insurer but not another. When comparing Long-Term Care Insurance options, it’s important to understand how Nationwide differs from other companies.

While policy language and specific benefits can vary among insurers, the core features and benefit choices are generally comparable. That said, premiums and underwriting criteria can vary significantly—sometimes dramatically—from one company to another, even when benefits appear similar.

State variations may apply.