Why you might need long-term care coverage
The longer we live, the higher the likelihood we will need some additional help with the activities of daily living such as bathing, dressing, eating and transferring (out of or into a chair or bed). Cognitive decline, such as dementia and Alzheimer’s disease, is another reason people might need long-term care and a way to pay for it.
Keep in mind:
Types of long-term care coverage
|Stand-along LTC insurance||LTC riders on life insurance policies||Linked-benefit LTC policies|
|Offers only LTC coverage||Life insurance is typically the primary need while LTC coverage is secondary||LTC coverage is typically the primary need, but these policies may also provide a death benefit|
|Premiums and LTC benefits can be changed by the insurer||Premiums can change based on the type of insurance; some policies may be guaranteed||Premiums and benefits are guaranteed|
|“Use it or lose it”: premiums must be paid even if LTC is never needed||If LTC isn’t used, a death benefit is paid to beneficiaries||If LTC isn’t used, a death benefit is paid to beneficiaries; a small death benefit may also be provided even if 100% of the LTC benefit is paid out|
|May offer the option to purchase more coverage in the future||The LTC benefits typically do not increase in the future||Optional inflation protection can grow the LTC benefit over time|
|Usually a lower-priced option because it covers only LTC; premiums typically never end||May have more flexible premiums based on the policy||Premiums can be paid all at once or over a fixed number of years|
Our long-term care solutions
Nationwide CareMatters® provides long-term care coverage for an individual with a premium and benefits that are guaranteed. It also pays a death benefit whether or not long-term care benefits are used.
The Long-Term Care Rider provides LTC coverage when added to one of our universal life insurance policies for an additional cost. It pays the entire death benefit income-tax free if long-term care is never needed.