For consumers who want lifetime protection, strong living benefits and simplified policy maintenance, Nationwide Financial Services offers a new Nationwide ULtimate Universal Life product. ULtimate is a universal life insurance policy designed to provide consumers with low-cost, permanent life insurance with a guaranteed death benefit. Nationwide Financial guarantees the policy will be there when the consumer (or their beneficiary) needs it, as long as the regularly scheduled no-lapse premium is paid.
Also known as secondary guarantee or no-lapse guarantee universal life insurance, ULtimate Universal Life offers several beneficial riders and endorsements, which can be added to personalize the product. These include:
- long-term care rider
- spouse rider
- child rider
- waiver of monthly deductions
- accelerated benefit rider (no cost unless invoked)
- accidental death benefit rider
- maturity date extension endorsement (no cost).
Consumers should consult with their insurance professional to discuss costs, advantages and disadvantages of each rider in detail. Riders and endorsements may not be available in all states and most involve additional cost.
“Uncertainty about the future of their family, the markets and personal security is driving some consumers to more conservative products with guarantees,” says Peter Golato, senior vice president for Nationwide Financial. “We’re finding many consumers are concerned about having enough money throughout their lives because they expect to live longer, so low-cost protection is important. They also want financial independence and control, so the ability to access the death benefit while alive for terminal illness or long-term care needs is also important.”
Evolving client needs and preferences have made no-lapse guarantee universal life insurance products one of the top sellers in the industry. ULtimate can also be used for legacy planning and wealth transfer for clients who want to preserve assets for loved ones in a tax-efficient manner, provide lost income for survivors and create an estate for their heirs.
Uninsured LTC expenses can wreak havoc on a consumer’s financial security. Today, the average annual cost for a private room in a nursing home is nearly $70,000 and an in-home health aide runs approximately $18 an hour.
Nationwide’s LTC rider with an indemnity feature can provide the policyholder with an accelerated death benefit to use for long-term care. If the person doesn’t use LTC, they don’t lose the value of the death benefit.
Nationwide doesn’t require the policyholder to keep track of bills and receipts or worry about creating an unintentional taxable event from payments from its policies. After meeting the 90-day elimination period, Nationwide pays the policy owner directly and the money can be used as he or she wishes.
The policyholder controls the payment amount and enjoys a high degree of flexibility by choosing how much of the monthly benefit is received, up to the benefit maximum or HIPAA limit, using the payment for any purpose. The policyholder can choose to receive less LTC benefit than they are eligible for to help preserve the death benefit and effectively stretch the LTC coverage period.