Nationwide Long-term Care Insurance Review
You will likely need long-term care like in-home nursing services, assisted living or a nursing home at some point. Most Americans need at least one of these services in their later years. If you are 65 years old, you have a 70% chance of needing long-term care as you age, according to the U.S. Department of Health and Human Services. Nationwide Long-term Care Insurance is one way to prepare for this financial burden.
Founded in 1926, Nationwide Mutual Insurance Company is one of America’s oldest and most trusted insurance companies. While Nationwide does not offer stand-alone long-term care policies, you can add the option to Nationwide life insurance. We chose Nationwide Long-term Care Insurance as our top pick for Great Cash Reimbursements in our Long-Term Care Insurance guide.
- May be used for short-term needs, like care after surgery or stroke
- Tax-free reimbursements
- Some plans include options to choose methods of care
- Guaranteed minimum death benefit
- No stand-alone policy available
How Nationwide Long-term Care Insurance Works
Nationwide Long-term Care Insurance works by redirecting death benefits from your life insurance policy to pay for your care before your death. This type of plan is known as a hybrid policy, and Nationwide does not offer long-term care insurance separate from life insurance. Nationwide customizes long-term care riders to provide the coverage you need.
All Nationwide long-term policies guarantee a minimum death benefit. So, even if you use all benefits to pay for long-term care, some money remains for beneficiaries to pay your final expenses. Unused long-term care benefits go to your heirs after you die.
Nationwide Long-Term Care Options
Nationwide offers two types of long-term care plans, indemnity and reimbursement. The chart below explains some of the differences between the two options.
|Nationwide Long-term Care Plans|
|You receive monthly payments||You get reimbursed the lesser of your monthly benefit or your LTC costs|
|Typically no monthly bills or receipts needed to verify costs||Your long-term care facility may be able to bill insurance directly for expenses|
|You can use benefit payment for any purpose, not just long-term care||You pay out-of-pocket for non-qualifying charges|
Nationwide Long-term Care Insurance and Medicare
Medicare only covers some long-term care expenses. You’re required to be in the hospital at least three consecutive days, and then Medicare pays for up to 100 days of long-term care. However, this coverage is not nearly enough for most Americans. Women need an average of 3.7 years of long-term care, and men an average of 2.2 years.
Nationwide Long-term Care insurance can be a good option for those with Medicaid who cannot afford to pay out-of-pocket for possible long-term care expenses.
Nationwide Long-term Care Insurance Cost
The cost of Nationwide Long-term Care Insurance varies depending on many factors, like your state regulations, age and health. Talk to a Nationwide advisor to get a quote after you complete a risk assessment form. The assessment takes your gender, age, medical issues, income and health insurance coverage into consideration.
How to Buy Nationwide Long-term Care Insurance
Speak to a Nationwide representative to buy a long-term care policy. If you don’t have Nationwide life insurance, you will choose a plan to add long-term care benefits. Long-term care insurance plans are only available as add-ons to Nationwide universal life or variable universal life insurance policies.
Mandatory Plan of Care for Nationwide Benefits
Once you have your long-term care plan, you need to have a plan of care approved by a licensed health care provider. A plan of care outlines the health services you would use, treatments and related information.
You can’t receive benefits to cover for long-term care costs from Nationwide until the plan is in place. Procrastinate on finalizing a plan of care, and you could pay for benefits you can’t use when needed.
Nationwide Long-term Care Insurance Complaints
ConsumersAdvocate gives Nationwide Long-term Care Insurance a 4.1 out of 5 rating. Nationwide receives an A+ rating from the Better Business Bureau, though there are negative reviews on the BBB site. However, this is common for insurance companies. ConsumerAffairs readers give Nationwide 3.9 stars out of 5.
Most complaints revolve around not understanding the policy before purchase. We always recommend you read all the information with insurance contracts and ask questions. The positive remarks say Nationwide insurance agents are fair and honest, and the company offers excellent discounts for bundling policies.
Nationwide Long-term Care Insurance Q&A
Why would I want a hybrid long-term care policy from Nationwide?
Hybrid policies offer the option of paying for long-term care while preserving a death benefit. If you never need care, the death benefit pays out at a higher level. If you use the long-term care benefits, your survivors still receive a payout. Nationwide Long-term Care Insurance is not a “use it or lose it” policy.
Are there any discounts available for Nationwide Long-term Care Insurance?
Married couples can qualify for a discount. More than one member signing up for a Nationwide Long-term Care Insurance rider can make you eligible for savings as well.
Are Nationwide Long-term Care Insurance benefits taxed?
Long-term care benefits payout is income tax-free in most states. Speak to a Nationwide advisor or tax professional for more information.
Do Nationwide Long-term Care Insurance benefits pay for a private health care provider or a family member to provide my care?
You have access to these options depending on the rider you choose and your state regulations.
Do Nationwide Long-term Care Insurance benefits pay for adult day care?
Many states allow you to use long-term care insurance benefits to pay for adult day care. Talk with your advisor to learn about your state’s laws.
Nationwide Long-term Care Insurance provides a death benefit combined with coverage for long-term care expenses. These hybrid policies are attractive because there is always a payout. Consider whether you need long-term care insurance, and read all the information that comes with a Nationwide policy. Discuss coverage specific to your state of residence.