Nationwide CareMatters Together – Cash Indemnity Long-Term Care Insurance

Updated June 6, 2025

High interest rates have allowed insurance companies to offer more appealing options than in the past. In this article, we'll provide an in-depth look at Nationwide's CareMatters Together policy, a hybrid life and long-term care insurance option. We'll discuss the advantages and disadvantages of this policy, its guarantees, tax implications, and other essential features. By understanding the benefits and drawbacks of Nationwide CareMatters Together, you can make an informed decision about whether this policy is the right fit for your long-term care planning needs.

Overview of Nationwide CareMatters Together

Nationwide CareMatters Together is a hybrid policy designed specifically for couples. It provides a shared pool of LTC benefits and a death benefit, ensuring that you and your partner are covered, whether you need care or not. This policy is ideal for those who want guaranteed premiums, flexible benefit options, and the simplicity of a single policy covering two lives.

According to the Administration for Community Living, about 70% of people over 65 will require some form of long-term care services during their lifetime, making joint coverage an important consideration for couples.

Key Features

• Joint Coverage: A single policy that covers two individuals, providing shared LTC benefits.
• Cash Indemnity Benefits: Receives full monthly benefits without submitting receipts or bills.
• Guaranteed Premiums: Premiums are fixed and will never increase.
• Second-to-Die Death Benefit: Provides a tax-free death benefit to beneficiaries after both spouses pass away, if LTC benefits are not fully utilized.
• Large Shared Benefit Pool: Typically offers 8 years (96 months) of benefits that either spouse can access.
• Refund of Premium Option: Offers options to receive a portion of premiums back if the policy is surrendered.

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Cash Indemnity Benefits – Flexibility and Control

One of the standout features of CareMatters Together is the cash indemnity benefit. This means:

• No Receipts Required: Once eligible, you receive the full monthly benefit without needing to submit claims paperwork.
• Use Funds as You Wish: You have complete control over how to spend the benefits, whether on professional care, family caregivers, or other needs.
• Simplified Claims Process: Reduces stress during a difficult time by simplifying access to funds.

Underwriting Requirements and Preferred Ratings

One critical aspect of CareMatters Together is the underwriting process. Unlike the individual CareMatters II product which has pass/fail underwriting, CareMatters Together offers tiered ratings:

• Both Spouses Must Qualify: Each applicant undergoes individual underwriting.
• Preferred Rates Are Key: The policy is most cost-effective when both spouses receive preferred ratings.
• Health Requirements: Preferred ratings require excellent health with no significant medical conditions.
• Alternative Options: If one or both spouses don't qualify for preferred rates, individual policies may provide better value.

Strong Guarantees and Fixed Premiums

Nationwide CareMatters Together offers:

• Fixed Premiums: Your premiums are locked in and will never increase, providing financial stability.
• Guaranteed Benefits: The LTC benefits and death benefit are guaranteed and will not decrease over time.
• Policy Flexibility: Multiple premium payment options to fit your financial situation.

Understanding the Benefits

Long-Term Care Benefits

• Shared Benefit Pool: Couples share a pool of LTC benefits, providing flexibility based on each individual's needs.
• Benefit Period Options: Choose from benefit periods ranging from 3 to 7 years.
• Inflation Protection: Options include 3% simple, 3% compound, and 5% compound to help your benefits keep pace with rising care costs.
• Elimination Period: A 90-day elimination period after which benefits begin. Notably, upon satisfying the elimination period, the policy pays out four times the monthly benefit in the first payment.

Death Benefit - Second-to-Die Structure

• Second-to-Die Policy: The death benefit only pays out after BOTH spouses have passed away.
• Reduced by LTC Claims: Any long-term care benefits used reduce the death benefit, often down to a minimum guaranteed amount.
• Tax-Free Payout: When paid, the death benefit is tax-free to beneficiaries.
• Consider Individual Policies: If preserving individual death benefits is important, two separate policies may be preferable.

Refund of Premium Options

• Protected Refund Option: Offers a percentage of premiums back if you choose to cancel the policy. This option provides flexibility if your needs change.
• Surrender Charges: Be aware that early cancellation may be subject to surrender charges, especially in the early policy years.

Pros and Cons of Nationwide CareMatters Together

Pros

• Comprehensive Joint Coverage: Simplifies planning by covering both partners under one policy.
• Cash Indemnity Benefits: Provides maximum flexibility and control over your care.
• Guaranteed Premiums and Benefits: No surprises with costs or benefit reductions.
• Tax Advantages: Potential tax-free LTC benefits and death benefits.

Cons

• Surrender Charges: Early cancellation can result in significant surrender charges.
• Higher Initial Cost: Premiums may be higher compared to traditional LTC policies due to the hybrid LTC policies nature and guarantees.
• Elimination Period: The 90-day elimination period requires self-funding care initially.

According to Medicare.gov, Medicare doesn't cover most long-term care services, making it crucial to consider policies like CareMatters Together for comprehensive coverage.

How Benefits Are Paid

Cash indemnity means you receive the full monthly benefit amount once eligible, without the need to track and submit care expenses. This is particularly beneficial for:

• Family Caregivers: You can compensate family members who provide care.
• Unanticipated Expenses: Use funds for additional needs like home modifications or therapies.
• Simplified Management: Reduces administrative burdens during a challenging time.

Policy Customization Options

Ages for Clients

• Eligibility: Issue ages are typically from 30 to 70 years old for both applicants.

Benefit Period Choices

• Options: Choose benefit periods of 3, 4, 5, or 7 years, which determines the size of your shared benefit pool.

Inflation Protection Options

• 3% Compound: Benefits increase by 3% annually.
• 5% Compound: Benefits increase by 5% annually.
• No Inflation Protection: Opt out if you prefer lower premiums.

Premium Payment Options

• Single Pay: One-time lump-sum payment.
• 5 Pay: Spread premiums over 5 years.
• 10 Pay: Spread premiums over 10 years.
• Pay to Age 95: Level premiums paid annually until age 95.

Tax Considerations

While Nationwide CareMatters Together offers tax advantages, such as tax-free LTC benefits and death benefits, it's important to:

• Consult a Tax Advisor: Individual tax situations vary; professional advice ensures you maximize benefits.
• Business Owners: Premiums may be tax-deductible if paid through certain business structures.

Comparing Joint vs. Individual Policies: A Practical Analysis

When evaluating CareMatters Together against purchasing two individual policies, consider these scenarios:

Advantages of CareMatters Together (Joint Policy):

• Large Shared Pool: An 8-year benefit period (96 months) can be accessed by either spouse as needed.
• Flexibility in Care Needs: If one spouse needs extensive care (e.g., 8 years) and the other needs none, the entire pool is available.
• Survivor Protection: A healthy spouse who outlives their partner has access to the full remaining benefits.
• Single Premium: One payment covers both spouses, simplifying financial planning.

Advantages of Two Individual Policies:

• Individual Death Benefits: Each spouse has their own death benefit that passes to the survivor if unused.
• More Forgiving Underwriting: You're not dependent on both spouses getting preferred ratings.
• Total Coverage: Two 6-year policies provide 12 years total (though split between spouses).
• Flexibility: Can choose different benefit amounts or features for each spouse based on individual needs.

Real-World Example:

Consider a typical scenario where the husband passes away without needing long-term care:

• With CareMatters Together: The surviving wife has access to the full 8-year benefit pool.
• With Individual Policies: The wife receives her husband's life insurance death benefit AND still has her own 6-year LTC policy.

The best choice depends on your priorities: maximum long-term care protection for a surviving spouse (joint) versus preserving individual death benefits and having more underwriting flexibility (individual).

Financial Strength of Nationwide

• A+ Ratings: Nationwide holds strong financial ratings from major agencies, reflecting its ability to meet future obligations.
• Established Company: With a long history in the insurance industry, Nationwide is a trusted provider. Check our insurance company reviews for detailed ratings and analysis.

Protecting Your Spouse: A Key Consideration

Statistics show that women typically outlive men and represent about 90% of nursing home residents. This creates a common scenario where:

1. The husband may pass away quickly or without needing extensive care
2. The wife is left needing long-term care for many years

How CareMatters Together addresses this: When designed properly, this policy can provide exceptional protection for the surviving spouse. If the husband uses minimal or no benefits, the wife has access to the full 8-year benefit pool—potentially providing better coverage than individual policies would have offered.

The trade-off: Unlike individual policies where the first spouse to die leaves a life insurance benefit to the survivor, CareMatters Together's second-to-die structure means no death benefit is paid until both spouses pass away.

Is Nationwide CareMatters Together Right for You?

Consider this policy if you:

• Both qualify for preferred ratings: This is when the policy offers the best value.
• Want maximum LTC protection for the surviving spouse: The shared pool can provide extensive coverage.
• Value simplicity: One policy, one premium, shared benefits.
• Are less concerned about individual death benefits: You understand the second-to-die structure.

It may not be the best fit if you:

• One or both spouses have health issues: You may not qualify for preferred ratings, making individual policies more cost-effective.
• Want to preserve individual death benefits: Two policies provide more legacy planning flexibility.
• Need different coverage amounts: Individual policies allow customization for each spouse's needs.
• Are concerned about surrender charges: Early cancellation can be costly.

Next Steps: Get Your Free Quote Today

Understanding all your options is crucial in making the best decision for your long-term care planning. To see how Nationwide CareMatters Together fits into your financial plan:

• Request a Personalized Quote: Get customized information based on your age, health, and coverage needs.
• Compare Policies: We'll help you compare top-rated insurance plans to find the best match.
• Consult with Experts: Our licensed professionals are available to answer your questions and provide guidance.

Take Control of Your Future Care Planning

It takes less than five minutes to start your quote. Our educational process will match your needs and budget with the right insurance plan. We will help you compare A.M. Best A+ long-term care plans, at no charge.

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