Long-Term Care + Life Insurance
What If You Could Prepare for Long-Term Care Without Giving Up Life Insurance Protection?
Many people think about retirement. Far fewer think about what could happen if they eventually need help taking care of themselves. Long-term care can include help at home, assisted living, adult day care, nursing-home care, hospice, or even qualifying care provided by someone you already know and trust. Nationwide CareMatters® II combines long-term care coverage with a universal life insurance policy, providing benefits whether you ultimately need LTC or not.
In This Section You'll Learn:
✓ How Life Insurance + LTC can work together
✓ What can qualify you for LTC benefits
✓ Where you can receive care
✓ How the monthly cash benefit works
✓ How family or friends may provide care
✓ What happens if you never need LTC
✓ How your beneficiaries may still receive a death benefit
✓ How inflation protection can help prepare for increasing care costs
Why Think About Long-Term Care?
Where Would You Want to Receive Care?
For many people, the answer isn't a nursing home.
It's: Home.
Nationwide's 2024 Long-Term Care Consumer Survey found that 84% of respondents said they would prefer home-based care. Preparing ahead can give you more choices about:
Where you receive care
Who provides your care
How your care is paid for
How your family's finances may be affected
Don't Other Types of Insurance Pay for Long-Term Care?
Health Insurance
Generally isn't designed to cover long-term care expenses.
Medicare
Medicare generally covers temporary skilled care rather than ongoing personal or custodial long-term care, subject to its requirements and limitations.
Medicaid
Medicaid is generally intended for people who satisfy applicable financial and other eligibility requirements.
Long-Term Disability Insurance
Disability insurance generally replaces a portion of income when a working person cannot work because of disability. It isn't the same thing as insurance designed to pay LTC benefits.
That's why someone concerned about future care may want to consider dedicated long-term care protection.
What Is Nationwide CareMatters II?
CareMatters II is a linked-benefit insurance policy.
That means it combines:
❤️ Long-Term Care Benefits
Money that may be available when you meet the policy requirements for qualifying long-term care.
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🛡️ Life Insurance Death Benefit
If LTC benefits aren't completely used during your lifetime, a death benefit can remain for your beneficiaries, subject to policy provisions.
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💵 Cash Surrender Value
The policy can also maintain liquidity through its cash surrender value, subject to the applicable vesting schedule and benefit options.
One Policy. Multiple Outcomes.
Need Long-Term Care?
The policy may provide LTC benefits.
Never Need Long-Term Care?
Your heirs may receive a death benefit.
Decide to Cancel the Policy?
The policy includes a guaranteed money-back feature, subject to policy provisions.
How Do You Qualify for LTC Benefits?
You don't qualify simply because you've been diagnosed with an illness.
A U.S.-licensed health care practitioner must certify that you either:
Need substantial supervision because of severe cognitive impairment
Are unable to perform at least 2 of the 6 Activities of Daily Living because of a loss of functional capacity.
Those six activities are:
Bathing
Eating
Continence
Toileting
Dressing
Transferring
The condition must be expected to require care for at least 90 days, subject to the policy requirements.
What About the 90-Day Elimination Period?
CareMatters II has a:
90-Calendar-Day Elimination Period But here's the important part. Once the insured completes that period, Nationwide states that benefits for the first 90 days are paid retroactively along with the benefit for month four.
In Simple Terms
You qualify.
You complete the required 90-day elimination period.
The first 90 days aren't simply lost.
Upon satisfying the elimination period, applicable benefits for those first 90 days are paid retroactively along with month four, according to the policy. And once the elimination period has been satisfied, Nationwide says it is satisfied for the life of the policy, even if you later have another LTC claim. The claim must still be periodically recertified.
Get a Monthly Cash Benefit
This Isn't a Traditional Reimbursement Structure
Some LTC insurance works through reimbursement.
You incur an eligible expense.
Submit bills and receipts.
The insurer determines what qualifies.
You're reimbursed for qualifying expenses up to the policy limit.
CareMatters II Works Differently.
CareMatters II is a: Cash Indemnity Policy
Once your claim is approved and you've satisfied the 90-day elimination period, the full available monthly LTC benefit can be accessed. Nationwide doesn't require you to submit monthly bills and receipts after the claim has been approved. 100% of the Available Monthly LTC Cash Benefit. 100% of the monthly LTC cash benefit is available once you qualify, subject to the policy terms.
Where Can You Receive Care?
You Have Options. CareMatters II is designed to provide flexibility regarding how you receive qualifying care. Benefits can potentially support:
🏡 Home Care
Receive qualifying care where many people are most comfortable—their own home.
🏠 Assisted Living
Help with qualifying care in an assisted-living environment.
☀️ Adult Day Care
Receive appropriate care and assistance during the day.
❤️ Hospice
Care during qualifying end-of-life circumstances.
🏥 Nursing Home Care
Professional care when a higher level of assistance is required.
👨👩👧 Family or Friend Care
This is particularly interesting. The policy can allow you to pay a family member or friend to provide your care when the applicable requirements are met. The plan of care prepared by a U.S.-licensed health care practitioner must indicate that care from family members or another informal caregiver is appropriate.
Future Care Options
The policy is also designed to accommodate certain alternative LTC services and LTC options that may be developed in the future.
What Can You Do With the Money?
Once you qualify, monthly LTC benefit payments can be used without restrictions from Nationwide. That can provide considerably more flexibility than a policy that only reimburses specifically approved expenses. For example, depending on your circumstances, the cash benefit could provide resources while you arrange the care that works for you.
The Point Is Choice.
Your care.
Your circumstances.
Your family.
Your decisions.
What If You Never Need Long-Term Care?
This is one of the reasons someone may consider a linked-benefit policy instead of standalone LTC coverage.
If you never need LTC: Your Heirs Can Receive a Death Benefit. CareMatters II provides a death benefit, so the premium isn't simply lost if LTC is never needed.
What If You Use Your LTC Benefits?
Using LTC benefits accelerates the policy's death benefit and reduces the policy's death benefit and cash surrender value. However, CareMatters II also includes a guaranteed minimum death benefit, so Nationwide states that even if some or all LTC benefits are used, heirs will receive a guaranteed minimum death benefit, subject to policy provisions.
That's an important distinction from simply saying:
“Whatever isn't used goes to your beneficiaries.”
There is an additional minimum death-benefit feature built into this particular product.
Four Important Guarantees
1. Guaranteed LTC Benefits
The scheduled premiums for this product are guaranteed not to increase and LTC benefits are guaranteed not to decrease, subject to the policy provisions.
2. Guaranteed Death Benefit
The policy includes a death benefit and a guaranteed minimum death benefit, even if some or all LTC benefits are used, subject to policy provisions.
3. Guaranteed Money Back
If you decide to cancel the policy, Nationwide states that the amount available under its money-back feature is guaranteed, subject to policy provisions.
4. Guaranteed Paid-Up Benefits
If you cannot continue scheduled premium payments, the portion of the LTC benefit already paid for can be locked in. LTC benefits are proportionately reduced based on premiums actually paid, with a minimum paid-up benefit of $250 per month.
Choose How You Fund Your Policy
CareMatters II provides several premium-payment options. Depending on the policy selected, you may be able to:
Pay Once: Single premium
Pay Over 5 Years: Annual or monthly payments.
Pay Over 10 Years: Annual or monthly payments.
Pay to Age 65: Annual or monthly payments.
Pay to Age 100: Annual or monthly payments.
This lets clients choose a funding strategy that better fits their financial situation.
Choose How Long Your LTC Benefits Last
CareMatters II also lets you select the benefit period. Available options shown in the brochure range from: 2 Years to 7 Years. The appropriate option depends on the client's needs, budget and long-term care strategy.
What About Inflation?
The Cost of Care Today May Not Be the Cost of Care 20 Years From Now.
CareMatters II offers optional inflation protection for an additional cost. Available options include:
No Inflation Protection
The monthly LTC benefit remains level.
3% Simple Inflation
The benefit increases annually by an amount equal to 3% of the original annual LTC benefit.
3% Compound Inflation
The monthly LTC benefit increases by 3% each year.
5% Compound Inflation
The monthly LTC benefit increases by 5% each year. This can be particularly important for someone purchasing coverage many years before they expect to need care.
How Is This Different From Premium Chronic Care?
Premium Chronic Care:
An optional chronic illness rider attached to an eligible life insurance policy. It accelerates life insurance benefits following a qualifying chronic illness according to that rider's provisions.
Nationwide CareMatters II:
A linked-benefit policy specifically designed to combine Long-Term Care coverage and life insurance. CareMatters II provides dedicated LTC features including a cash-indemnity structure, customizable LTC benefit periods, optional inflation protection, family/friend care, guaranteed minimum death benefit and other features.
They're Not the Same Thing.
Frequently Asked Questions
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It's a linked-benefit insurance policy combining long-term care coverage with a universal life insurance policy.
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A U.S.-licensed health care practitioner must certify that you require substantial supervision due to severe cognitive impairment or cannot perform at least 2 of the 6 Activities of Daily Living due to loss of functional capacity for at least 90 days, subject to policy requirements.
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There is a 90-calendar-day elimination period. Once completed, benefits for the first 90 days are paid retroactively with the applicable month-four benefit.
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No. CareMatters II is a cash-indemnity policy. After the claim is approved and the elimination period has been satisfied, Nationwide states that monthly bills and receipts don't need to be submitted for payment of benefits.
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Yes. Home care is among the covered care options described by Nationwide.
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Potentially, yes. Care from family members or friends can be an option when the plan of care prepared by a U.S.-licensed health care practitioner states that such informal care is appropriate.
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If you never need LTC, your heirs can receive a death benefit, subject to the policy provisions.
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CareMatters II includes a guaranteed minimum death benefit, subject to policy provisions and adjustments.
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The brochure states that the product's scheduled premium is guaranteed not to increase and LTC benefits are guaranteed not to decrease, subject to the policy provisions.
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The policy includes a guaranteed money-back feature, subject to the policy's terms and applicable adjustments.
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Yes. Optional 3% simple, 3% compound and 5% compound inflation-protection options are described in the brochure and are available for an additional cost.
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Yes. The brochure you uploaded is specifically the California version, and Nationwide states that CareMatters II is available in California, although it may not be available in some other states.
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No. Nationwide specifically states that this policy is not a California Partnership for Long-Term Care program policy and is not a Medicare supplement.
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Don't advertise them simply as universally “tax-free.”
Nationwide states that benefits can be tax-free up to applicable federal tax limits but may be taxable under certain circumstances, and clients should consult their tax advisor regarding their individual situation.
Your Care. Your Choice. Your Future.
Long-term care planning isn't only about preparing for a nursing home. It's about creating options.
Where would you want to receive care?
Who would you want caring for you?
How would you want to pay for it?
And what would you want to happen to your money if you never needed care?
A linked-benefit life insurance and LTC strategy may help answer all four questions.
Explore Your Long-Term Care Options
The Right Coverage. The Right Policy. The Right Time.
Important Information Nationwide CareMatters II is a cash-indemnity linked-benefit product that pays LTC benefits when the insured satisfies the policy's qualifying requirements and needs LTC services. Payment of Long-Term Care Rider benefits accelerates the death benefit and reduces both the death benefit and cash surrender value. Loans, withdrawals and other policy activity may also reduce benefits. The rider is not guaranteed to cover the entire cost of an insured's long-term care. The product contains fees, charges, exclusions, limitations and benefit reductions. Approval is subject to underwriting and may require a medical examination. Product availability varies by state. Guarantees are backed by the claims-paying ability of Nationwide Life and Annuity Insurance Company. CareMatters II is not intended to be a primary source of life insurance protection. Consult appropriate insurance, tax and legal professionals regarding your individual circumstances.