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Nationwide CareMatters II Objective Review

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Nationwide’s CareMatters II

Nationwide is a Fortune 100 insurance company. They offer a full range of insurance products including a hybrid long-term care insurance known as CareMatters II.

In this article we will discuss:

How Does CareMatters II Work?

CareMatters II is a universal life insurance policy with a qualified long-term care insurance rider. This product combines both long-term care insurance and life insurance into one single policy.

This combination offers you flexibility. In the event you need long-term care, it provides long-term care benefits. However, if you never need care, the policy provides a death benefit or a return of premium option.

Illustration of how hybrid LTC life insurance works
Hybrid Long-term Care Life insurance

CareMatters II uses the life insurance policy’s death benefit while you are alive to provide you with long-term care benefits.

Once you’ve exhausted the accelerated death benefit, the policy then uses a Long-term Care Extension of Benefits Rider to provide you additional coverage.

Between the accelerated death benefit and the LTC Extension of Benefits Rider, CareMatters II can offer you up to 7 years of long-term care benefits!

What LTC Services Does CareMatters II Cover?

CareMatters II can cover a wide range of long-term care services. Nationwide places no restriction on how your benefits can be used. Therefore services covered include :

  • Home Healthcare
  • Adult day care
  • Assisted living
  • Nursing home care
  • Alternative care services
  • Informal care from immediate family members
  • Any LTC service existing today or developed in the future

These are some of the typical uses for benefits provided by CareMatters II.

How Do I Qualify For CareMatters II?

If you are between the ages of 30-70, you can apply for a policy. Approval for CareMatters II is subject to underwriting and may require a medical exam.

The rate classes for CareMatters II are Single non-tobacco/tobacco use and Couples non-tobacco/tobacco use.

How Is CareMatters II Funded?

CareMatters II offers a range of premium payment options including:

  • Single pay premium option
  • 10-pay premium option
  • Premium payments to age 65 (subject to age limits)
  • Premium payments to age 100 (subject to age limits)

CareMatters II also offers you the option to pay a larger lump-sum premium at the time the policy is issued followed by smaller recurring premiums.

The recurring premiums can be for a period of 5 years, 10 years, to attained age 65, or to attained age 100.

The amount and timing of premium payments are fixed an will be determined at policy issue.

This option works well if you wanted to do a 1035 exchange or transfer but the funds are not enough to buy a sufficient policy for your needs.

How Does CareMatters II Pay Benefits?

Nationwide CareMatters II pays benefits directly to you in the form of a check.

There is no requirement for you to submit your bills or receipts of long-term care expenses so you can receive your benefit payments.

This feature is great as it allows you to use your benefit payments however you desire! You can use your benefits for example to pay for informal care.

It is one of maybe two policies on the market that provides benefits in this manner.

With indemnity benefit payments, monthly benefits are paid to you at a set dollar amount. They are not based on the your long-term care expenses.

Nationwide will first determine if you meet the policy’s long-term care claims requirements. If eligibility requirements are met, Nationwide will pay you your monthly benefit check.

Your check amount will be based on the maximum monthly LTC benefit amount that you qualify for in your policy.

Key Features of CareMatters II

Guaranteed Minimum Death Benefit

Nationwide CareMatters II offers a very competitive guaranteed minimum death benefit.

The guaranteed minimum death benefit is typically 20% of the specified amount, assuming there were no loans or partial surrenders in the policy.

The specified amount is the amount used to determine LTC benefits and the death benefit in a policy.

Index Inflation Protection Option

CareMatters II is very unique as it is the only hybrid that offers a U.S. Medical Care Inflation Option.

This is an index rate inflation protection option as oppose to a fixed 3% or 5% inflation protection option.

Under this option, the maximum monthly LTC Inflation Benefit Rider Amount will be based on the greater of the performance of a Reference Index (subject to a floor rate of 0% and a cap rate of 6%) and a fixed LTC Rollup Inflation rate of 2%.

The Reference Index is currently the Medical Care Component of the Consumer Price Index for All Urban Consumers, Unadjusted.

Elimination Period (Retroactive Payments)

Nationwide’s CareMatters II is even more unique as it pays you retroactive long-term care benefits for the elimination period.

Once the 90-day elimination period is met, long-term care benefits will be paid to you for those 90-days. In addition, you will be paid your benefits for the first month after your elimination period.

How Does CareMatters II Compare To Other Hybrid LTC Products?

CareMatters II is quite competitive in today’s hybrid LTC market. Now when comparing hybrid long-term care insurance policies, it is important to review the following 5 categories:

  1. Long-term Care Benefit Pool (LTC Benefit Amount)
  2. Benefit Periods
  3. Elimination Periods
  4. Inflation Protection Options
  5. Premium Payment Options

(For a description of these 5 categories and how they affect a hybrid-LTC insurance policy, please read our post “5 Things to Review In Every Hybrid Long-term Care Policy.”)

Now CareMatters II already offers standard or exceptional performance in 4 of the 5 categories: Benefit Period, Elimination Period, Inflation Protection Option, and Premium Payment Options.

Therefore, the last remaining category and the most important one to consider when comparing policies is the LTC Benefit Pool.

Let’s see how CareMatters II compares to other products using a case study.

Case Study: Jack

Jack is a 60 year old male from Texas looking for a policy. He wants to place a $100,000 into the policy in a single premium and he’s asking for a 6 years benefit period.

Jack is in decent health and does not smoke or use tobacco.

Nationwide CareMatters II

Let’s see what CareMatters II can offer Jack.

Here is their illustration below. (Click the illustrations for a larger view)

Based on the illustrations, for a $100,000 single premium, CareMatters II will provide Jack with a total of $4,816 in monthly LTC benefits for 6 years!

Not is only is that a significant benefit amount, but benefits are paid to you in the form of a check!

There is no need to submit receipts or bills to receive your benefits!

In addition, this policy also provides Jack with retroactive payments for the 90 day elimination period as well as 3% compound inflation protection.

Lincoln Financial’s MoneyGuard III

Now let’s see what a competitor’s product like Lincoln’s MoneyGuard can offer Jack.

Based on the illustration Lincoln’s MoneyGuard III offers Jack a monthly LTC Benefit of $4,735.

This is slightly less than what Nationwide offers Jack. In addition, in order to receive benefits Jack must submit receipts or bills of his long-term care services.

Conclusion – CareMatters II Is Very Competitive

So what are the takeaways about this products performance?

CareMatters II is a competitive product that provides great value for the right individual.

Here is where CareMatters II is a nice option for long-term care planning needs:

  1. Provides competitive long-term care coverage
  2. Use your benefits however you desire (such as paying for informal care)
  3. No need to submit bills or receipts of LTC expenses every month to receive benefits
  4. Receive retroactive benefit payments for the elimination period
  5. Great flexibility for premium payment options

If you like the points above, then CareMatters II is worth discussing.

Is CareMatters II Right For Me?

CareMatters II offers you long-term care coverage with added flexibility. It is a good fit for the right individual.

Determining if CareMatters II is a good fit for you will be based on your long-term care goals and planning needs.

Request A FREE Quote Today!

If you are interested in CareMatters II, MoneyGuard II, PremierCare, or you are looking to discuss a long-term care plan, reach out to us now!

Give us a call today at 1(800) 498-3955 or request a FREE quote below!

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2 Comments

  1. Jon Whaling

    What is the difference in premiums between the single pay, 5-pay and 10-pay? Are there additional fees for spreading out the premiums? Thank you .

    • Michael B. Chapman

      Hi Jon! Thanks for visiting the site! This is a great question and a question that I am asked often. To better answer your question, we will use, for example, a 55 yr. old married male considering coverage. Let’s say this individual wanted a $3,500 monthly benefit with a 6 year benefit period and a 3% compound interest inflation option. Here is what his premium requirements would be for a single, 5 pay, and 10 pay option:

      Premium Requirements
      Single Pay: $59,793.66
      5 Pay: $12,835.79 – $64,178.95 at the end of year 5
      10 Pay: $7,011.84 – $70,118.40 at the end of year 10

      Therefore, from our example, you will see that the cost of the policy does increase when the premium payments are extended. However, this is not necessarily due to fees being added to your policy for spreading out the payments. I hope this helps. If you have additional questions or would like to discuss your options in more detail, feel free to email me @ contact@ChapmanInsuranceSolutions.com or call me at (800) 498-3955.

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