Best Cash Benefits 

There are many reasons why Nationwide long-term care insurance could be a good option for seniors. Nationwide is ranked 76th on the Fortune 100 list for revenue and the company paid $16.9 billion to its customers in benefits and claims. Known for its stability and quality, Nationwide is currently ranked A+ by A.M. Best. One of the best features of Nationwide’s policies is the cash benefits. It allows seniors to choose how they wish to use their money without having to worry about all of the monthly paperwork. The policies are flexible with generous terms, making them a great option for many seniors. 

Pros:

  • High transparency with detailed plan information available online.
  • Highly customizable with choices for benefit periods, inflation protection, and payment options.
  • Retroactive payment after the 90-day elimination period.

Cons:

  • Not available in California or New York, but a reimbursement payment model policy with fewer options can be purchased.

Overview of Nationwide Long-Term Care Insurance 

Nationwide has become one of the largest insurance and finance companies in the world over the last 90 years thanks to its focus on supporting and valuing customers. In addition to selling and managing insurance and protection services, the company also offers investment and retirement services, such as life insurance and retirement funds. The company provides standard banking and borrowing services, including checking accounts and mortgages. 

Nationwide’s CareMatters II policy is renowned for being one of the best hybrid indemnity policies available. The policy offers a wide variety of benefits and is a very competitive option. 

Policy Types

Hybrid

Number of Policies Offered

1

Reimbursement or Indemnity?

Indemnity

Issue Ages

30-70

A.M. Best Company Rating 

A+

How Much Does Nationwide Charge for Long-Term Care Insurance?

The cost of policies depends on a number of factors, including the age and gender of the applicant, their health status and their location. Depending on the policy, monthly costs typically range between $20 and $120. Women typically have to pay more than men as they live longer and are therefore more likely to have the need for care.

Eligibility, Plan Details, & Other Information

Eligibility

To be eligible for the plan, applicants must be between the ages of 30 and 70. Although anyone can sign up for the plan, it is generally recommended for wealthier 50 to 69-year-olds. 

Plan Details

The Care Matters II plan is a newer version of the original CareMatters plan (Note: As of June 2022, the CareMatters II plan is not yet available in New York or California). It is a hybrid policy that has consistent premiums and payments of at least 20% as a death benefit, including if all long-term care benefits are used.

The maximum lifetime benefit is between $60,000 and $500,000 and the benefit amount is highly variable. The benefit period is between 2 and 7 years and the first 2 years of each benefit period are an acceleration of the amount that is specified. The elimination period is 90 days meaning before the benefits begin the policyholder must go through a 90 calendar day elimination period. Then the benefits for the first 90 days will be paid along with the benefits for month 4. 

Plan

CareMatters II

Type

Hybrid

Maximum Lifetime Benefit

$60,000-$500,000

Benefit Amount

Variable

Benefit Period

2-7 years

Elimination Period

90 days

There are a number of customization options available. 

Premium payment options:

  • A single payment
  • Pay annually or monthly for 5 years
  • Pay annually or monthly for 10 years
  • Pay annually or monthly to attained age 65 (available for issue ages 30 to 54)
  • Pay annually or monthly to attained age 100 (available for issue ages 30 to 65)

Policyowners also have the option of paying a larger lump-sum premium at the time the policy is issued. This could be funded from a 1035 transfer from another life insurance policy in addition to a recurring smaller premium for 5 or 10 years to reach attained age 65 or 100. 

Who Should Consider Nationwide Long-Term Care Insurance?

Seniors looking for flexibility with how they use the money

The Nationwide policy allows seniors to receive cash and choose how they spend their money, whether it be for home health care, adult day care, assisted living, nursing home care or care from immediate family members. An upgrade from the previous CareMatters policy means that seniors no longer have to worry about monthly paperwork, making it a much simpler process. 

Seniors seeking optimum customization and inflation protection

The Nationwide CareMatters II policy is highly customizable, with options to pay in a single payment, monthly or annually and benefits periods of between 2 and 7 years. It’s also a great choice for seniors worried about the effects of inflation as it offers inflation protection riders. 

What Are People Saying About Nationwide?

The overwhelming majority of people who took out Nationwide insurance were satisfied with the service. They remarked that they liked the flexibility of the plans and the option to choose the method of care. Reviewers also liked the guaranteed benefits that meant whether they ended up needing long-term care or not, they could still get a tax-free death benefit or receive the cash at surrender value. In addition to this, people noted that they particularly appreciated that everything is paid in cash and no bills are required. 

The overall complaints rate is very low and far below average. The only real negative is that the plans are not available in California or New York. However, there is a policy with fewer options that can be purchased there. 

Frequently Asked Questions


What Is Long-Term Care Insurance?


Long-term care insurance covers a range of long-term care types, such as home care, assisted living communities, nursing home care and adult day care centers. The insurance helps to pay for these services for varying numbers of years depending on the policy. Most people take out cover in their mid-50s to mid-60s, as taking cover out any later when there is already a need for care may lead to rejection by the insurance company. Click here for our full answer to this question. 


Is Long-Term Care Insurance Tax Deductible?



There are some tax benefits to long-term care insurance. Some federal and state tax codes count long-term care as medical expenses, which can be tax-deductible. There are however limits to this, and the amount of premiums that can be deducted goes up with age. For example, in 2021, the maximum amount that someone between 51 and 60 years old could deduct was $1,690, compared to $5,640 for individuals over the age of 71. Click here for our full answer to this question.


Who Should Consider Long-Term Care Insurance?



Long-term care insurance is a good option for individuals who are aged 55 and over. It is a particularly wise option for individuals who know they may not have family members to help look after them should the need arise or individuals who know they would struggle to pay for long-term care costs. Click here for our full answer to this question.


How Does Long-Term Care Insurance Work?



For most companies, policyholders pay monthly or annual premiums for as long as the policy is in effect, and then at a later date should the need for care arise, you can make a claim. Different policies cover different types of care for differing lengths of time. Some insurers pay out in cash, while others will directly pay for the care. Click here for our full answer to this question. 


What Does Long-Term Care Insurance Cover?



Most long-term care insurance policies cover a range of long-term care options. The most common are home care, assisted living communities, nursing homes and adult day care centers. Some policies will not cover certain types of care so it’s important to check before purchasing. Click here for our full answer to this question.