November 11, 2014
Nationwide Offers Unique Option On New Variable Annuity Contracts
Terminally ill customers now have flexibility to access full death benefit value
Columbus, Ohio - A terminal illness diagnosis is a crushing blow. Imagine the immediate impact: lives turn upside down, emotions overwhelm every aspect of life and everyday priorities change.
As a member-driven company focused on protecting what matters most, Nationwide now offers terminally ill owner-annuitants access to their full death benefit value prior to passing away1 through the Enhanced Surrender Value for Terminal Illness (ESVTI) feature. The patent-pending feature is included in new contracts for most Nationwide variable annuity products at no additional cost. Nationwide is the only provider to offer this type of feature on a variable annuity.2
“Obviously, a terminal illness diagnosis is a devastating event, and it carries with it a host of implications,” said Eric Henderson, senior vice president of life insurance and annuities for Nationwide. “Offering our customers the flexibility to use their funds how they wish while they’re living is simply the right thing to do.”
The ESVTI feature pays the owner-annuitant an amount equal to their full death benefit value upon notification by a medical doctor of terminal illness (defined as anticipated death within 12 months3). The feature is available after the first contract year, and the owner-annuitant must surrender the contract in order to take advantage of this feature. If a client purchased an enhanced death benefit, then Nationwide will pay the higher death benefit value amount. Upon payment, there are no restrictions on how the money is used.
In addition, the ESVTI feature works with Nationwide’s unique Spousal Protection Feature. If either co-annuitant is declared terminally ill, the owner has the option of exercising the ESVTI feature and receiving the death benefit value.
“Financial planning is a sensitive matter for some clients – preparing for the possibility of an unexpected death compounds it further. Yet, an advisor is there to help clients consider all possibilities and prepare contingency plans,” said Henderson. “Variable annuities continue to be an important tool from our product portfolio where we can help provide innovation and positive outcomes for both advisors and clients.”
For more information about the Enhanced Surrender Value for Terminal Illness feature, call 1-800-321-6064.
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A+ by both A.M. Best and Standard & Poor’s. The company provides a full range of insurance and financial services, including auto, commercial, homeowners and life insurance; public and private sector retirement plans, annuities and mutual funds; banking and mortgages; specialty health; pet, motorcycle, boat and farm insurance. For more information, visit www.nationwide.com.