Nationwide's Great Care Matters II Product Now Available in CA

Claude Thau

5/10/2023 · 3 min read

Nationwide’s CareMatters II has been the leading linked-benefit product in the USA for a couple of years. It is now available in CA! Key features:

  1. You can draw benefits without incurring commercial cost. You need only to satisfy triggers and have a Plan of Care approved by a licensed healthcare provider. You do not have to submit bills.
  2. The illustration is entirely guaranteed.
  3. 3 months of retroactive benefits are paid at the end of the 90-calendar-day elimination period (EP). The EP avoids the expense of setting up claims that last less than 90 days. If people need care less than 90 days then die, the death benefit will be paid soon after their LTC costs are incurred anyway. Most insurers do not pay benefits retroactively after the EP
  4. The death benefit never gets lower than 20% of the specified amount (higher than any other such product). Because the full benefit is paid each month (not reimbursement) and because of the retroactive EP, the 20% residual death benefit increases the death benefit beginning in the 20th month of being on claim.
  5. It has 3% and 5% compounding and 3% simple. Benefits resulting from such increases do not reduce the death benefit.
  6. The married discount applies even if your partner does not buy.
  7. For issue ages 30-65, it is available with a to-age-100 premium. It also has a pay-to-65 option as well as single Premium, 5-year-pay, and 10-year-pay for ages 30-75. A larger premium can be paid in the first year to accommodate a §1035 exchange. Nationwide will not date back to save age.
  8. The core benefit period is 2 years, so the initial monthly benefit is the Specified Amount/24. Conversely, the Specified Amount is 24 x the desired initial monthly benefit. You can add extension of benefits (EOB) of 0, 1, 2, 3, 4, or 5 years. The 4-year and 5-year EOBs are especially attractive.
  9. Pricing is competitive. If you pay 1/12 of the annual premium each month, you can earn interest in an investment account during the year without impacting your LTCi or death benefits. It simply reduces your cash value which you’re unlikely to access anyway. With a compounding LTCi benefit, cash values will never reach the sum of the premiums.
  10. Insureds, policy-owners, and their families can access the Nationwide Care Guide Network, which provides care support services for caregivers.
  11. The foreign LTC benefit is 100% of the monthly benefit (including compounding) until the full death benefit has been used. The EOB can be used only in the USA.
  12. The minimum size is a $2,500/month LTCi benefit ($60,000 Specified Amount).
  13. Waiver of premium applies to the ADB, EOB and CBIO premiums but not the life insurance part of the premium.

To see our recorded webinar about this product (including a short comparison to State Life), Click Here Here’s the timing of the webinar so you can skip to the portion you’d like.

  • Intro to Back9
  • Nationwide’s CareMatters II California product (3:00 to 13:45)
  • WA Care Fund and CA Potential Tax (13:45 to 35:45)
  • Opportunities including tax breaks for employers and reasons why people should buy LTCi now (35:45 to 43:25)
  • Back9’s tools to help advisors (43:25 to 53:00)

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