Nationwide YourLife CareMatters is long-term care coverage linked to a fixed premium universal life policy.
Nationwide YourLife CareMattersSM
CareMatters can be sold to clients ages 40 – 75. However, this product is targeted towards affluent and high-net-worth clients, ages 50 – 70, looking primarily for long-term care (LTC) coverage with the financial protection of life insurance and flexibility of benefit use. Because it’s built on life insurance, there’s a death benefit to leave to heirs and the assurance that you will always get back the premium that you put in.
Indemnity-style LTC benefits – Once your client qualifies for long-term care, the entire monthly benefit amount is sent to the policyowner every month, excess benefits not needed for health care can be used as they see fit.
Benefit banking – If your client doesn’t need the full monthly benefit, the extra money can be reserved for future LTC needs or other uses.
Guaranteed cash value – The policy’s cash value will never be lower than the premiums paid, and has the opportunity for growth.
High residual death benefit – Even if every dollar that’s earmarked for LTC is used, beneficiaries will still receive a death benefit that’s 20% of the specified amount, currently the highest benefit in the industry.
- Guaranteed return of premium: The cash surrender value is guaranteed to be at least equal to premiums paid, and could include any growth in valued, if applicable; all premiums due must be paid in full for guaranteed return of premium to be in effect
- Minimum specified amount: $60,000 for 2-, 4- and 6-year benefit periods, $90,000 for 3-, 5- and 7-year benefit periods
- Maximum specified amount: $500,000 for 2-, 4- and 6-year benefit periods, $750,000 for 3-, 5- and 7-year benefit periods
- LTC specified benefit periods: 2-year, 3-year, 4-year, 5-year, 6-year, 7-year
- Premium payment options: Single premium, 5-pay or 10-pay annually (Single premium option is available for ages 40-69)
- Surrender charges: 11-year declining
- Elimination period: 90 calendar days
Once the insured person qualifies for benefits and satisfies the elimination period, the long-term care benefits will help the policyowner cover the costs of qualified care, such as:
- Any state-qualified long-term care service existing today or in the future
- Home health care - includes adult day care and home health care to assist with activities of daily living or cognitive impairment
- Assisted living - for the purpose of assisting with activities of daily living or cognitive impairment
- Qualified long-term care facilities - includes 24-hour-a-day care and medical services to support the needs of patients
- Nursing home care - includes 24-hour-a-day skilled, intermediate or custodial care under the supervision of a physician
- Adult day care
If the insured lives out of the country during the benefit period, the policy will pay 50% of the maximum monthly benefit amount of the LTC acceleration rider and 50% of any LTC inflation protection rider. No international benefits are available under the LTC Extended Benefit rider.
- The maximum lifetime benefit is not reduced, but it will extend the period that the maximum lifetime benefit is paid out.
- If the insured returns to the U.S., the amount available each month will return to 100% of the maximum monthly benefit.
- Extension of benefits availability will resume if the insured returns to the U.S. and the maximum lifetime benefit amount is not exhausted.
CareMatters does not pay benefits for qualified long-term care services that result from:
- Suicide, intentionally self-inflicted injuries or attempts at suicide (either while sane or insane)
- Committing or attempting to commit a felony
- Alcoholism or drug addiction, unless addiction results from administration of drugs for treatment prescribed by a physician
- Active duty in the armed forces of any nation or international government authority or units auxiliary thereto, or the National Guard
- War or any act of war, whether declared or undeclared
Monthly administrative charge:
- Current: $0 per month
- Guaranteed: $20 per month
Per-thousand of specified amount charge: The per-thousand charge applies to the initial specified amount and is deducted monthly. If the specified amount is reduced due to partial surrenders during the charge period, then the charge continues to be calculated based on the initial specified amount.
Premium expense charge:
- Current: 0% of each premium
- Guaranteed: 5% of each premium
Cost of insurance charge (COI)
- The base life insurance policy has a COI charge rate, which applies to each $1,000 of the net amount at risk and is deducted monthly
- The guaranteed COIs applicable for a particular policy can be found in the policy specifications pages
Long-term care charges
- There will be a separate charge for each long-term care rider included in the policy
- Long-term care riders on this product:
- LTC rider (e.g., acceleration rider) – provides for acceleration of the base policy specified amount.
- LTC extension of benefits rider – provides for LTC benefits once the total amount of benefits available under the LTC rider have been exhausted.
Monthly charges for each long-term care rider apply to each $1,000 of the specified amount
For more information or to make a case, contact your Nationwide® wholesaler at 1-800-321-6064.