Nationwide Hybrid Long-Term Care Insurance Review

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Nationwide Hybrid Long-Term Care Insurance Review

Company Details

Founded: 1926
Headquarters: Columbus, Ohio

Claim Information

Phone Number: 800-621-3724

Products Offered

  • Life Insurance
  • Annuities
  • Hybrid Long-Term Care
  • Retirement/401k Services

Insurer Highlights

Nationwide Financial has become one of the leading companies offering long-term care solutions. They provide a full, cash benefit, hybrid policy combining life insurance and long-term care.

There are variations between the policy language and benefits between the many companies that offer Long-Term Care Insurance; however, the primary features and benefit choices are comparable from company to company. Premiums and underwriting criteria vary dramatically between insurance companies. 

When comparing long-term care insurance, you should recognize the differences between Nationwide and other companies. 

True 'Hybrid' Policy Meeting Federal Guideline

The Nationwide 'Care Matters' policy is a "hybrid' policy that offers both a life insurance death benefit and long-term care benefits. The policyholder receives the full benefit in cash, no matter the actual cost of care. If you are looking for a hybrid, experts recommend you limit your review to those that meet the federal regulations for Long-Term Care Insurance.

All Long-Term Care Insurance contracts are regulated under IRS regulations §7702B(b)(1). Any insurance contract that meets the guidelines set by the Internal Revenue Service is considered long-term care. All insurance products that meet these federal guidelines contain consumer protections and regulated benefit triggers, in addition to tax advantages. 

The Nationwide policy meets the Section 7702(b) guidelines. Any insurance contract that falls under Section 101(g) cannot call itself 'Long-Term Care Insurance' and generally should be avoided as a long-term care solution. Federal law prohibits insurance companies from marketing these policies as "long-term care" policies.

Guaranteed Benefits 

With "hybrid" policies, you are guaranteed to receive benefits for long-term care, death, or both. You have access to your money as well in three ways:

  • You require long-term care services. You receive tax-free benefits to pay for all levels and types of long-term care, either at home or in a facility of your choice. The traditional trigger for benefits is the same as any traditional Long-Term Care Insurance policy. Because this is a true Long-Term Care policy, you do not need to have a 'permanent or "terminal" health condition to trigger the benefit, in addition to your need for extended care. 
  • You die. Like any life insurance policy, when you die, you get a tax-free death benefit.
  • You change your mind. If for any reason, you need money, you can receive the cash surrender value. While very few people will ever consider doing that, it gives many people additional peace-of-mind, knowing you have access to the money in the policy.

The Nationwide policy's premium can be paid with a single premium or guaranteed premium payments over a period of time that can NEVER increase.

Nationwide Care Matters Features and Benefits

  • You are guaranteed to receive 100% of your monthly cash benefit at the time of claim
  • Inflation options - 3% simple or 5% compound available
  • Care Guide Network
  • International benefits
  • There is no need to submit bills and receipts for your care - once you qualify for benefits since you receive the full available amount in cash
  • Since you receive cash, you can use it to pay for any type of care or any person to provide care as you wish. You have complete choice
  • Death benefit
  • 20% minimum death benefit – guaranteed even if you receive a long-term care benefit
  • Like any long-term care policy, long-term care benefits are tax-free. Death benefit also tax-free
  • Single pay premium or pay in 5 or 10 years – premium can never increase

Cash is King

Cash is king, and with this policy, Unlike most Long-Term Care Insurance plans, Nationwide gives you cash. 100% of benefits are paid in cash to you once you qualify for long-term care services. No bills are required. You receive the full cash benefit once you meet the benefit trigger. This gives you control and independence as you stay in complete control of how you receive care and use the money. Yes, you get cash, but the benefits remain tax-free.

Partnership 

Nationwide 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 and other state-specific information on long-term care by finding your state on the LTC NEWS Cost of Care Calculator.

Find State-Specific Information

You can learn more about the federal/state partnership program by going to the LTC NEWS Cost of Calculator. 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 -  Cost of Care Calculator - Choose Your State | LTC News.

UL Policy with Qualified LTC Rider and International Benefits

Nationwide also has universal life policies with a qualified 7702(b) long-term care rider. The policy will pay out the death benefit in the event of long-term care. However, the policy only accelerates the death benefit, and nothing more than the death benefit would be paid out with no inflation options or extension of benefits available.  

The policy does pay cash benefits, and international benefits are available as long as a doctor licensed in the United States qualifies you needing long-term care services.

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. Since most agents have little or no experience in this area, this assistance can be beneficial for the entire family - Filing a Long-Term Care Insurance Claim | LTC News

Shopping for Long-Term Care Insurance?

When shopping for Long-Term Care Insurance coverage, keep in mind, numerous state and federal regulations impact Long-Term Care Insurance. Each state's department of insurance regulates products and premiums. Because of regulation, an insurance agent, agency, or financial advisor cannot give a consumer a special discount that is not available otherwise. 

Be sure to use all the tools and resources available on LTC NEWS to help you in your research - Resources for Long-Term Care Planning | LTC News.

There are more similarities than differences when it comes to features and benefits. However, options and benefits vary from company to company, and premiums can vary between companies by over 100% when comparing equal benefits.

Underwriting

Long-Term Care Insurance is medically underwritten, and every company has its own underwriting rules which determine insurability and rate class. An experienced Long-Term Care Insurance specialist will understand these underwriting rules when helping you select the best company and policy options.

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 Specialist | LTC News.

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 you several questions about your health to provide you with accurate quotes and professional recommendations.

Please note: Since every company has different underwriting rules, you could be eligible for coverage with one company and not another.

Because Long-Term Care Insurance is custom-designed, you can design the plan to fit your specific needs, concerns, and budget. A specialist will help you develop your plan to address your concerns. Generally, you can design a plan to meet some or all of these common goals:

  • Safeguard income and savings
  • Protect the lifestyle of your spouse/partner
  • Provide options for quality care
  • Reduce the stress and burdens otherwise placed on family members
  • Give your adult children time to be family
  • Provide a legacy for loved ones

State variations may apply.

 

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Work With A Trusted Specialist

  • Has substantial experience in Long-Term Care Insurance
  • Strong understanding of underwriting, policy design, and claims experience
  • Represents all or most of all the leading insurance companies

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Get Accurate Quotes

Work With A Trusted Specialist

  • Has substantial experience in Long-Term Care Insurance
  • Strong understanding of underwriting, policy design, and claims experience
  • Represents all or most of all the leading insurance companies
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