NationWide CareMatters II
What separates Nation Wide Care Matters II from other hybrid long term care policies?
Cash Indemnity: Provides a significant policy edge over conventional Long Term Care Policies.
A majority of Long Term Care policies are what we call “reimbursement policies”, which means when you qualify for care, you send your monthly bills to the insurance company to be reimbursed for the cost of care.
However with a Nationwide CareMatters IIs Cash Indemnity plan, the company writes you a predetermined check at the beginning of the month. This money can be used as you see fit: Such as paying a neighbor, friend, or relative to provide care, building a ramp into your home, or even saved for future use.
Liquidity: The Policy is a liquid asset in the form of the cash surrender value.
Death Benefit: The Death benefit preservers this asset for the beneficiaries to the extent that LTC is not needed and typically returns at least the premium paid or more if LTC benefits have never been paid.
What are Some General Details about NationWide CareMatters II?
- Nationwide CareMatters II Guaranteed Premiums.
- Guaranteed LTC Benefits.
- Nationwide CareMatters II Cash Indemnity.
- Inflation Riders.
- Flexible Payment Schedules.
- Different Return Of Premium (ROP) Options.
- Nationwide CareMatters Guide Network.
Issue Age: One of the advantages of the New Nationwide CareMatters II plan is that they have lowered the issue ages all the way down to age 30. Which leads to the question. Why would someone in their 30’s be interested in a Long Term Care Policy? Well If you have been following us, a common concern we talk about is the rising cost of Long Term Care. The earlier a person prepares for the future, the lower the premium it allows young professionals and estates to plan and prepare for the future.
NationWide CareMatters II Guaranteed Premiums: NationWide CareMatters II offers guaranteed premiums. Some of the biggest complaints about traditional long term care policies have always been having price increases over time and clients having to lower the benefit to offset the price increase.
Clients would pay on their policies for years, only to have the company raise their premium above their ability to pay. They would then have to reduce the benefit ammount to be able to afford. When the time came that they needed it, the benefit had been going decreasing, while the cost of care had been increasing.
If at some point they could no longer pay the premium, they would have to let the coverage lapse without receiving their benfits or money in return.
Nationwide CareMatters II is not like this, the premiums are guaranteed up front and not subject to change.
NationWide CareMatters II Guaranteed Long Term Care Benefits: Nationwide CareMatters II has guaranteed benefits for the amounts you choose and for the benefit period you choose. For example, if you start off with a $200 per day benefit, with a 5 year benefit period and a 3% compound inflation protection, you will know exactly how much in benefit you would receive if you were to need coverage at any point later on.
NationWide CareMatters II Cash Indemnity: As we touched upon in the first paragraph. Once you qualify for long term care and satisfy a 90 day elimination period, you are granted the full monthly benefits paid in cash. There is no need to submit bills or receipts once the claim is approved.
You can use the monthly benefit as you see fit. You can elect to receive 100% of you available benefit and any unused benefit can be saved for future use. As we mentioned earlier, with most preferring to receive care in their home this feature allows you so much freedom on how you receive coverage and who provides you that coverage, including any family members.
With a Reimbursement plan you must submit bills and receipts every month and some of the services might not be covered which means it is an out of pocket expense.
NationWide CareMatters II Inflation Riders: With the new product we now have several different options we can use to protect against the rising cost of care. There is a 3% Simple option that means that the based benefit increases by 3% of the original face amount each year. So for example, if you start with a $6,000 monthly benefit amount, each year the monthly benefit would increase by $180 per month.
With the 3% Compound option the increase each year is on the previous years increase added to the base benefit which means that the benefit amount is more every year after the first year as compared to the 3% Simple plan. As an example, assuming we start with the $6,000 monthly benefit, with the 3% Simple plan the monthly benefit has climbed to $9,420.00 in year 20, with the 3% Compounding plan the monthly benefit has climbed to $10,521.00. We are looking at an increase of $1,100 in monthly benefits.
The 5% Compounding method is the same as the 3% Compounding method but with an added 2% benefit.
The new option they offer is the US Medical Care Inflation Option. Under this option the maximum monthly benefit increase is the greater of a 2% roll up or the Medical Care Component of the CPI 9subject to a floor of 0% and a maximum of 6%). While not on claim the benefit is adjusted every 3 years once you go on claim then it adjusts every year.
Each one of these different options have different pricing.
Flexible Payment Schedules: Like most carriers Nationwide offers many different payment options on the CareMatters II policy. You have the option to make a one time single payment, which would be the only payment ever required for the duration of the policy. You can also make annual or monthly payments for a 5 year period and a 10 year period. Then there is also a monthly or annual payment plan to age 65 for clients with an issue age of 30 – 54. And for those that want to lowest payment available while maintaining the premium guarantees, you may also do a payment plan to age 100 for those with an issue age of 30 – 65.
Different Return Of Premium (ROP) Options: Nationwide CareMatters II provides three return of premium options which provide liquidity when needed.
- 100% vested return of premium
- One Time Step Up
- Maximum LTC Benefit
Nationwide Care Matters II Guide Network: Nationwide Care Matters policies provides a guide network resource, tailored to your specific geographic area. This gives the Policy owner access to a wide range of referrals options such as Home care and Housing options, Assisted Living or nursing homes, Adult day care, Memory and Alzheimer’s care, End-OF-Life care, Meal and nutrition services, Safety and adaptive equipment, and Transportation.
Comparing Long Term Care Policies: Cash Indemnity
Single Premium: $100,000
Compound Inflation: 3%
LTC Benefit Period: 6 Years
Age 60 Age 80 Return Premium (65)
Nationwide Care Matters II- Vested $4,112 $8,699 $100,000
Nationwide Care Matters II- LTC Maximum $4,817 $8,699 $51,427
Securian SecureCare $6,587 $6,587 $100,000
Nationwide Care Matters II- Vested Total Benefits Year 80: $576,405
Nationwide Care Matters II- LTC Maximum Benefits Age 80: $675,253
Securian SecureCare- Maximum LTC Benefits Age 80: $683,524
How does the Nationwide Care Matters II Premium Breakdown?
The Premium Payment Period for this proposal is a single pay. As long as the premium obligation is met and no loans or partial surrenders are taken, the quoted benefits are guaranteed. For any scheduled premium after the first, there will be a 61 day grace period after the date we mail the grace period notice in which to make the premium payment.The Scheduled Premium breaks down as follows:
- Life Insurance Premium – $49,067.18
- LTC Rider Premium- $4,775.95
- LTC Extension of Benefits Premium – $11,428.48
- LTC Inflation Protection Rider Premium – $34,728.39
How does Nationwide Care Matters II Premium surrender work?
Refund of Premium on Surrender -Which ensures that if the total premium paid multiplied by the Premium Refund Percentage (less any partial withdrawals) exceeds the policy Cash Surrender Value, then the excess will be refunded upon surrender. You have elected the Vested Refund of Premium on Surrender Option. The Premium Refund Percentages are as follows.
Premium Refund Percentage Year 1 = 85% Year 2 = 88% Year 3 = 91% Year 4 = 94% Year 5 = 97% Years 6 + = 100%.
Total Long-Term Care (LTC) Benefits – $296,031 is the total maximum amount of LTC benefits available to you from your Nationwide CareMatters II policy. This amount does not include the Inflation Protection Option you may have elected.
If you would like to talk more about Nationwide Care Matters II, or get a personalized quote. Contact Us Here.
If you would like to learn more about your long term care options here are the other products such as MassMutual CareChoice One, One America Asset Care, Mutual of Omaha, American General Quality of Life.