Your clients think they don’t need long-term care insurance? They should think again.
Your clients would never consider going without homeowners or auto insurance — but only 10% of people over the age of 65 own a long-term care policy.2
Learn how Nationwide® life insurance with a long-term care rider can help your clients address these potentially devastating expenses.
| Private health insurance | Only pays for skilled care, where the patient shows signs of improvement. |
| Medicare | Covers the costs of long-term care temporarily, up to 100 days in a skilled nursing facility after a hospitalization of three days or more, after a three consecutive day stay under treatment in a hospital. After 20 days, the patient incurs a $148.00 co-pay (2013). |
| Medicaid | Requires a person to spend down or have countable assets of $2,000 or less (depending on the state), to receive long-term care.3 |
| Social Security | Does not provide any sort of special funding. |
Nationwide life insurance with a long-term care rider helps your clients safeguard against the financial burden of long-term care.
It also helps them maintain some control by:
Additionally, it can help protect their family:
The rider provides an acceleration of the death benefit to help pay for costs involved with long-term care. Excess benefits may be used for other expenses, not just those directly related to long-term care costs.
Two things have to happen in order for your clients to qualify for and begin receiving monthly long-term care benefits.
While receiving benefits, your clients must also receive a planned program of observation and treatment. This program must (a) be under the care of a licensed health care practitioner other than the owner or an employee of the long-term care facility; and (b) be continued in accordance within generally accepted standards of medical practice for the injury or sickness.
Once your clients meet the requirements and elimination period, the rider benefits will help them cover the costs of qualified care, such as:
This rider does not cover any expense that results from:
The benefit amount will be the lesser of:
2% of the long-term care specified amount OR Daily amount allowed by HIPAA in the given year of claim, multiplied by the number of days in the month
The maximum cumulative benefit for long-term care is the greater of actual costs incurred, or the per diem rate in the given year of a claim established by The Health Insurance Portability and Accountability Act (HIPAA), which is currently $320 per day (2013).
Your clients will continue to receive monthly benefits until the total amount paid is the lesser of:
No. If your clients are collecting long-term care rider benefits and there isn’t enough cash value to cover the monthly costs associated with the policy, the costs will be waived and your clients will continue to receive their remaining long-term care benefits.
However, this special protection only applies as long as your clients are on claim with Nationwide and are receiving long-term care benefits. Should they recover, or for any other reason cease collecting long-term care benefits, your client may need to pay additional premiums to reinstate the policy or restore their no-lapse guarantee if the policy was not kept in good standing while on claim.
Resolving long-term care needs can be time-consuming and expensive, as well as emotionally and physically draining. Nationwide Care Guide Network® is a free telephone consultation service for clients who have purchased the LTC rider.6 It offers comprehensive assessment, resource, referral and consultation services on long-term care issues.
Here’s how it works:
Financial
