The long-term care rider from Nationwide

Transcription

1 The long-term care rider from Nationwide Adding long-term care coverage to a permanent life insurance policy can help your clients prepare for potential long-term care (LTC) expenses that could impact their finances later on. The Nationwide long-term care rider offers an indemnity-style benefit, the flexibility to choose the amount of the benefit payment and professional advice from the Nationwide Care Guide Network. Use the charts in this brochure to see how we compare to other carriers. Competitive overview: Long-term care and chronic illness riders Carrier Tax qualification status Benefit type Residual death benefit1 Pays for permanent conditions2 Pays for temporary conditions3 Eliminates the need to submit bills each month Benefits payable outside the U.S. and Canada Lapse protection of death benefit while on claim, regardless of facility/ nonfacility care Rider available for rated cases up to Table E Ability to add rider after issue, subject to rider underwriting Referral service Nationwide 7702B Indemnity AXA 7702B Indemnity John Hancock 7702B Reimbursement Minnesota Life 7702B Indemnity Transamerica 7702B Indemnity North American & Midland 101(g) Indemnity Pacific Life 101(g) Indemnity (if return to the U.S.) Principal 101(g) Indemnity Prudential 101(g) Indemnity (if return to the U.S.) 1 Residual death benefit: guaranteed minimum death benefit. If a rider claim is filed and 100% of the original death benefit is accelerated, an additional residual amount may be available. 2 Permanent conditions: defined as a qualifying condition that a licensed health care practitioner or physician expects will likely last the rest of the insured s lifetime. 3 Temporary conditions: a qualifying condition two of six activities of daily living (ADLs) impaired that a health care practitioner or physician expects not to be permanent or last the rest of the insured s lifetime. FOR INSURANCE PROFESSIONAL USE ONLY NOT FOR DISTRIBUTION WITH THE PUBLIC This brochure alone does not constitute full due diligence in offering solutions to your clients.

2 Long-term care and chronic illness rider comparison Company and rider name Nationwide Long-term Care Rider AXA Long-Term Care Services Rider John Hancock Long-Term Care Rider Minnesota Life Long Term Care Agreement Rider issue ages Maximum rider table rating Table E Standard classes or better Table C Table D Benefit amount Lesser of 2% per month of LTC specified amount or the HIPAA per diem amount on a monthly basis (some state variations may apply) Lesser of (1) the benefit percentage (1%, 2% or 3%) times the long-term care maximum total benefit or (2) 200% (100% in NY) of the applicable daily HIPAA limit times 30 1%, 2% or 4% of initial face amount Lesser of: (1) monthly benefit percentage shown on the policy multiplied by the LTCA amount or (2) per diem amount allowed by IRS multiplied by number of days in the month Qualification for benefits Unable to perform two out of six ADLs, or Unable to perform two out of six ADLs, or Unable to perform two out of six ADLs, or Unable to perform two out of six ADLs, or Submit proof of billable services each month Not necessary Not necessary Yes, must submit proof of billable services Each month may require proof of loss be submitted4 Use of chronic illness benefits Adult day care Assisted care Home health care Hospice care Intermediate care Skilled nursing home Any state-qualified LTC including any medical or nonmedical expenses Adult day care Assisted living facility Home health care Hospice care facility Long-term care facility Nursing home Any qualified licensed facility Home health care Assisted living facility Adult day care center Nursing home Hospice center Qualified LTC services including: Nursing care Facility care Home care Community care 4 Minnesota Life does not require copies of every itemized bill for the insured s care, only documentation showing that at least one dollar of services was received. Minnesota Life has the right to ask for this documentation on a monthly basis, but may not necessarily require it based on the client s current medical condition. Every effort has been made to present accurate information, but keep in mind that only the prospectuses, contract pages and/or individual policies from each of the companies represented contain the complete details of each policy and rider discussed.

3 Transamerica TransACE Long Term Care Rider North American & Midland Chronic Illness Accelerated Benefit Rider Pacific Life Premier Living Benefits Rider Principal Chronic Illness Death Benefit Advance Rider Prudential BenefitAccess Rider Table D Table D Table E Table C Table D Lesser of: 2% per month of the LTC specified amount when benefits begin, or the per diem amount allowed by HIPAA times the number of days in the month Maximum benefit each election is lesser of 24% of the death benefit on the initial election date or $240,000; the maximum benefit on the life of the insured is $1 million Accelerate up to 24% of the death benefit annually (2% if monthly) not to exceed 125% of the IRS per diem limit; a lifetime maximum of $1.5 million may be accelerated; accelerating the entire death benefit may terminate the policy Annual maximum is lesser of 25% of initial eligible amount or the annual per diem limit divided by reduction factor; the maximum lifetime accelerated benefit is the lesser of 75% of the initial eligible amount or $1 million Maximum monthly benefit under the rider is 2% of the death benefit amount at the time of claim, not to exceed the lesser of (a) the monthly equivalent of the IRS per diem limit at the time of claim; or (b) the monthly equivalent of the IRS per diem limit on the policy issue date compounded at 4% Unable to perform two or more of six ADLs, or severe Certified by a physician as permanently unable to perform two out of six ADLs, or Permanently unable to meet two out of six ADLs, or permanent A loss of functional capacity that is expected to be permanent; two of the six ADLs, or permanent Licensed health care practitioner must certify insured is chronically ill and not expected to recover during the rest of the insured s lifetime Each month will require submission of all receipts or bills of expenses as evidence of receipt of LTC services Not necessary Not necessary Not necessary Not necessary Long-term care facility Home health care services Home care Adult day care Hospice care Respite care Other qualifying services/facilities Benefit can be used for any medical or nonmedical expense Cash benefit may be used for any reason, medical or nonmedical Benefit can be used for any medical or nonmedical expense Benefit can be used for any medical or nonmedical expense

4 Long-term care and chronic illness rider comparison Company and rider name Nationwide Long-term Care Rider AXA Long-Term Care Services Rider John Hancock Long-Term Care Rider Minnesota Life Long Term Care Agreement Elimination period 90 calendar days can be met with more than one claim over a 730-day period 90 days must be satisfied only once over a consecutive 24-month period 100 days; need not be consecutive, regardless of any break in service 90 calendar days Recertification Annual recertification required Annual recertification required No Annual recertification required Lapse protection while on claim Yes, policy is protected from lapsing while on claim for all levels of qualified care Yes, for facility care when confinement in an LTC facility occurred prior to policy lapse and before LTC benefits are paid out; no death benefit available under this provision Yes, only while receiving service in a nursing home Yes Benefits payable outside of U.S. Yes, certification must be done by a health care practitioner licensed to practice in the U.S.; the assessment may be done abroad Yes, however, annual recertification is required by a U.S.-licensed physician; any facility or home health care service must also be U.S. licensed No No; excludes treatment for any condition received outside the U.S., its territories or Canada Residual death benefit Yes, 10% of policy specified amount (not available in New York or Virgin Islands) Not available No Yes, a minimum death benefit of 10% of the life insurance face amount subject to a $25,000 maximum Referral service Yes, Nationwide Care Guide Network No Yes, Seniorlink No Every effort has been made to present accurate information, but keep in mind that only the prospectuses, contract pages and/or individual policies from each of the companies represented contain the complete details of each policy and rider discussed.

5 Transamerica TransACE Long Term Care Rider North American & Midland Chronic Illness Accelerated Benefit Rider Pacific Life Premier Living Benefits Rider Principal Chronic Illness Death Benefit Advance Rider Prudential BenefitAccess Rider 90 service days; need not be consecutive; must only be satisfied once 90 consecutive days None None None No Yes Yes, annual recertification required at the expense of the insured If at least 50% of the death benefit on the initial election date has been accelerated, the policy will not lapse; but, if a previous chronic illness election is no longer in effect and 50% or more of the death benefit has not been accelerated, then additional premium may be needed to avoid lapse Annual recertification required Annual recertification required Annual recertification required No No Yes Only available in the U.S., District of Columbia and Canada No Yes, however must return to U.S. for recertification Yes, certification must be done by a licensed U.S. physician Yes, certification and recertification must be done in the boundaries of the U.S. by a licensed health care practitioner Yes, equal to the lesser of (a) 10% of the policy face amount from inception less any loans or (b) $10,000 Greater of 5% of the death benefit on initial election date or $10,000 No No No No No No No No

6 Nationwide long-term care rider highlights Indemnity versus reimbursement Many LTC hybrid products and stand-alone policies are reimbursement plans. With a reimbursement plan, your clients must submit bills and receipts to the insurance carrier, which then reimburses the exact amount of the bill up to the amount of benefit the insured qualifies for. Nationwide s LTC benefit is an indemnity-style not a reimbursement benefit, which means: Payment is made directly to the policyowner No monthly bills or receipts need to be submitted (although receipts may be requested to establish the claim) The payment is intended to be tax free and is sent on a monthly basis The policyowner may choose to take the full benefit amount even if the insured s LTC bills are less than the benefit amount The rider has an additional cost, may not be available in all states, and may be known by different names in different states. Keep in mind that, as an acceleration of the death benefit, the long-term care rider payout will reduce both the death benefit and cash surrender values. Make sure life insurance needs will still be met, even if the rider pays out in full. Costs for long-term care vary by person, and there is no guarantee the rider will cover all long-term care costs. Please be aware that if the owner and the insured are not the same person, there is no guarantee the long-term care expenses of the insured will be paid since Nationwide pays benefits to the owner of the contract. Taking care of tax management, so your clients don t have to In addition to the convenience of the indemnity feature, Nationwide helps provide tax management for your clients by setting the maximum monthly payment to be the lesser of 2% of the LTC specified amount or the current daily HIPAA rate ($330 a day in 2015). If your client is collecting LTC or chronic illness rider benefits from another company in addition to benefits from Nationwide, the total benefits that can be received tax free is the greater of the daily HIPAA rate or actual costs incurred. Any excess amount will be taxed as ordinary income. Nationwide and its representatives do not give tax advice. Your clients should consult their attorney or tax advisor. Putting them in control With the Nationwide long-term care rider, clients maintain control of the amount of the payment and enjoy a high degree of flexibility: Clients choose how much of the monthly benefit is received, up to the benefit maximum As long as the insured is receiving care from a licensed care facility or service, excess benefits not needed to pay for care can be used for any other purpose Policyowners may choose to receive less of the LTC benefit than they are eligible for to preserve their policy, effectively stretching the LTC coverage period

7 Professional advice when it's needed Often the need for long-term care arises suddenly. Where can your clients find information quickly from a reliable source? The Nationwide Care Guide Network. Whether your clients need simple household services, home care or relocation services, the Nationwide Care Guide Network can help with a whole host of questions and concerns, including: Home care and housing options Medical and medication issues Problem prevention and legal resources services Fun activities and recreation Mental health and Alzheimer s care Safety and adaptive equipment Financial help Transportation Meals and nutrition Caregiver support Adult day care End-of-life care The company that currently provides professional consultation services through the Nationwide Care Guide Network is a member of the National Association of Professional Geriatric Care Managers. This service provider is not affiliated with Nationwide or its affiliates. The service provider may be changed or the Nationwide Care Guide Network discontinued at any time.

8 Not a deposit Not FDIC or NCUSIF insured Not guaranteed by the institution Not insured by any federal government agency May lose value Sources: Competitor information was compiled from respective companies' rider guides and their responses to Nationwide competitive intelligence survey conducted in October All competitive information is believed current at the time of publication. All information presented is deemed reliable, but its completeness and accuracy cannot be guaranteed. Many factors affect the characteristics of the products shown here. It's possible that there are differences between the products compared which are not reflected and/or of which we are unaware. Be sure to choose a product that meets long-term life insurance needs, especially if personal situations change for example, marriage, birth of a child or job promotion. Weigh the costs of the policy, and understand that life insurance has fees and charges that vary with sex, health, age and smoking status. Riders that customize a policy to fit individual needs usually carry an additional charge. Life insurance is issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. Nationwide, Nationwide Care Guide Network, Nationwide is on your side and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company 2015 Nationwide FOR INSURANCE PROFESSIONAL USE ONLY NOT FOR DISTRIBUTION WITH THE PUBLIC LAM-0649AO.9 (03/15)