Nationwide Long-Term Care Rider Designed to Help Business Owners Recruit, Retain Key Employees

Indemnity-style benefit, care options highlight rider flexibility

COLUMBUS, Ohio--()--Advisors looking to help business owners recruit and retain key employees now have a new tool at their disposal. Today, Nationwide’s business solutions group introduced a long-term care (LTC) rider for supplemental benefit plans that features indemnity-style payouts and a choice in care providers.

Nationwide’s new LTC rider is the first in the business life insurance industry to offer indemnity-style benefit options, meaning the monthly benefit is paid to the policy owner tax free1 regardless of monthly expenses. Unlike most long-term care riders, policy owners are not required to turn in receipts, and monthly verification of billable services is not needed2.

Additionally, policy owners can use the indemnity-style benefits for a variety of long-term care options. For example, the policy owner can pay a qualified family member3 to care for them so they can remain in their home.

The LTC rider is available on all new and existing Future Executive Universal Life Insurance and Variable Universal Life Insurance contracts.

“Our new long-term care rider offers business clients’ key employees a safeguard against the financial burden of long-term care,” said Joe Sprague, vice president of Nationwide’s business solutions group. “We feel this is an opportunity for advisors to differentiate themselves in today’s market and address the needs of their business clients. We’ve found that advisors who provide business owners with answers on how to attract and retain key employees are likely to remain a valued partner.”

The timing is right to help America’s workers prepare for long-term care costs in retirement. According to a survey released late last year by the Nationwide Retirement Institute, 75 percent of pre-retiree respondents said they are concerned they won’t have enough money to cover long-term care expenses in retirement. And, only 13 percent of all respondents said they have long-term care insurance.

“The reality is we can’t count on someone else to fix this problem, which means employees and business owners need access to the products, tools and information that address these planning needs,” said Peter Golato, senior vice president of Nationwide’s financial network. “Our new long-term care rider is a prime example of how Nationwide is committed to helping businesses large and small find innovative solutions to today’s complex issues.”

Additional rider benefits

Up to two times the HIPAA per diem – The LTC rider allows policy owners access to two times the HIPAA per diem per month to help pay for long-term care expenses4.

Death benefit – If the insured is fortunate enough never to need long-term care, then, as with any life insurance policy, the beneficiaries will receive the policy’s death benefit.

Benefit banking – If the policy owner does not need the maximum monthly benefit available, they have the ability to save a portion of that benefit for use at a later time, to either supplement their future monthly benefits or to use the money after the benefits are exhausted. This benefit is optional. There is no charge for setting it up.

For more information, advisors should contact their Nationwide wholesaler or call the Nationwide business solutions group at 1-877-351-8808.

About Nationwide

Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A+ by both A.M. Best and Standard & Poor’s. The company provides a full range of insurance and financial services, including auto, commercial, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; banking and mortgages; pet, motorcycle and boat insurance. For more information, visit

Life insurance is underwritten by Nationwide Life Insurance Company, Columbus, Ohio.

Nationwide, Nationwide is on your side, Join the Nation and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company.

1 Benefits are tax free after qualifying requirements are met. The LTC rider is intended to be a qualified long-term care policy under Section 7702B(b) of the Internal Revenue Code. Nationwide and its representatives do not give legal or tax advice. Consult an attorney or tax advisor for answers to specific questions.

2 Bills or receipts may be required to establish proof of the claim only.

3 Care provided by a family member must follow a plan of care provided by a licensed health care practitioner.

4 Please keep in mind that the amount of LTC benefits that may be received federal income tax-free is the greater of the HIPAA per diem for the given year of claim or the actual LTC cost incurred for all policies. A portion of the benefits paid may be taxable, depending on your specific circumstances. As with all tax matters, you should consult your personal tax advisor to assess the impact of this benefit.


Ryan Ankrom, 614-249-5145


Ryan Ankrom, 614-249-5145