Nationwide started out as a small mutual company in Ohio with just auto insurance on the books. The Fortune 100 company now offers a full range of financial products across the country, including term, whole life, universal life, and indexed universal life insurance; business insurance; wedding coverage, and more! Availability may differ among states.
In this article, we will drill down into Nationwide’s term product, universal life, indexed universal, and the long-term care riders that are available.
NOTE: We are not Nationwide Insurance Company. If you would like to contact them, you can call them at 1-877-669-6877 or contact them through their website at Nationwide.com or by mail at:
P.O. Box 742522
Cincinnati, OH 45274
Financial Ratings and Stability of Nationwide Life Insurance Company
Certainly, consumers want to pay the lowest rate possible for life insurance and rates are a major part of the decision process.
However, an insurance policy is simply a promise to pay a benefit in exchange for a premium, so it’s incredibly important to select an insurer that demonstrates the financial stability to keep every promise to its policyholders.
Consumers can quickly gauge that stability by examining the insurance company’s ratings from the national rating services:
- A.M. Best: A+
- S&P Global: A+
- Moody’s: A1
Life Insurance Products offered by Nationwide
Term Life Insurance
Term life insurance is the most affordable option that protects your family in case something happens to you. You choose a term and make monthly payments until its expiration date. If were to die during the term of your policy, your insurer would pay your beneficiary the full death benefit in the policy.
Term life insurance tends to be the most popular choice for individuals who require a large death benefit to replace the income of the policyholder. Term insurance doesn’t build any cash value that you can borrow against or invest and it ends at the term of your contract instead of providing lifetime coverage.
If you still need coverage at the end of your term, however, you may be able to renew or convert your policy.
Universal Life Insurance
Universal life insurance is a type of permanent, tax-deferred cash value policy. Unlike term life insurance, universal coverage provides you with lifelong protection and access to your steadily growing investment funds in the form of interest rates set by the insurer.
With a universal life insurance policy, a portion of your monthly premiums will go towards your policy fees and cost of insurance and then the remainder of your payment is considered the cash value which earns interest at an annual fixed rate.
You are able to withdraw or borrow against this amount as needed throughout the course of your policy with no tax liability and there is no requirement to repay the loan. If you should pass away, any outstanding policy loans and interest will be deducted from the death benefit.
CareMatters – Universal Life with Long-Term Care Coverage
If you want to cover both long-term care and life insurance needs in one product, a special combination of universal life insurance and long-term care coverage (sometimes called a hybrid life product) can provide cash value that helps pay for your medical expenses as well as providing an important death benefit to beneficiaries.
Indexed Universal Life
Accumulating enough money to be financially secure is important, but it’s also essential that you protect what you already have.
You can get a balance of both of these needs with Nationwide’s Indexed Universal Life Accumulator II. This product was designed to offer permanent life insurance protection for your family along with solid strategies and significant tax advantages that allow for accumulating more cash value and potential income.
The IUL life Accumulator II also allows the policyholder to participate in market growth without the risk of losses.
Applicants can also elect to add a Long-Term Care rider that provides for the insurer to pay benefits to cover long-term care costs that personal health insurance or Medicare do not cover.
Statistics reveal that 7 out of 10 individuals turning 65 will need some form of long-term care at some point during the remainder of their lives.
Other riders that are available with Nationwide’s Universal Life and Indexed Universal Life products are:
Chronic Illness Rider
Allows you to request a portion of your death benefit early if diagnosed with a permanent chronic illness.
Critical Illness Rider
Allows you to request a portion of your death benefit early if diagnosed with a critical illness, such as a heart attack or cancer.
Accidental Death Benefit Rider
Provides additional coverage in the case of death due to an accident.
Premium Waiver Rider
Credits a monthly premium to your policy in case you become disabled.
Overloan Lapse Protection Rider
Helps to protect heavily loaned policies from lapsing.
Whole Life Insurance
Whole life insurance is good for people who want to be insured throughout their entire lives, and prefer to have consistent premiums. This type of insurance also has the benefits of building up a tax-deferred cash value with a fixed rate over time.
When you pay your whole life insurance premium, a portion of it is set aside in the form of cash value. The longer that you hold onto this policy, the more cash value it accumulates.
If the need arises and if your cash value accumulation is sufficient, you can borrow against this available money to provide yourself with financial protection while still continuing to accumulate funds for later use – like an emergency fund without actually having one!
Additionally, many of the living benefit riders that were mentioned earlier are also available to add to your whole life policy for an additional premium.