Nationwide CareMatters II Pricing Increase Announced

The financial landscape of long-term care insurance is evolving, and a recent development has captured the attention of many policyholders and potential buyers alike. Nationwide has announced a pricing increase for its CareMatters II long-term care insurance product. If you’re considering purchasing or currently hold a CareMatters II policy, understanding the implications of this price adjustment is crucial. This comprehensive guide will provide you with all the information you need about the Nationwide CareMatters II pricing increase.

What Is Nationwide CareMatters II?

Nationwide CareMatters II is a hybrid long-term care insurance policy that combines the benefits of traditional long-term care insurance with a life insurance component. It offers policyholders a flexible solution for addressing long-term care needs while also providing a death benefit if the care is not needed. This combination provides a unique advantage for individuals planning for their future care needs and financial security.

Key Features of CareMatters II:

• Flexible Premium Payments: Offers various payment options, including single pay, 5-pay, and 10-pay plans.
• Benefit Triggers: Provides benefits if you cannot perform two out of six Activities of Daily Living (ADLs) or have a severe cognitive impairment.
• Inflation Protection: Includes options for inflation protection to help maintain the value of benefits over time.
• Return of Premium: Allows for a return of premium if you decide to cancel the policy.

Why Is Nationwide Increasing Prices?

The pricing increase for CareMatters II is influenced by several factors, reflecting broader trends in the long-term care insurance market and Nationwide's strategic adjustments. Understanding these reasons can help you make an informed decision about your insurance needs.

1. Rising Healthcare Costs

The cost of long-term care services has been steadily rising. As healthcare expenses increase, insurance companies must adjust their pricing to ensure that they can cover these growing costs while maintaining financial stability.

2. Longer Life Expectancies

With advancements in healthcare and medicine, people are living longer. This extended lifespan increases the likelihood of needing long-term care, which impacts insurance pricing.

3. Low Interest Rates

Interest rates have been low for an extended period, affecting the returns on investments held by insurance companies. These lower returns can lead to higher premiums to cover future claims.

4. Claims Experience

Insurance companies periodically review their claims experience. If the actual claims exceed initial projections, adjustments in pricing may be necessary to balance the risk and ensure the company’s financial health.

Impact of the Pricing Increase

For current policyholders, the pricing increase may not immediately affect their premiums if they have already locked in their rates. However, for potential buyers, the new pricing structure will apply. Here’s what you need to consider:

1. Premium Adjustments for New Policies

If you are considering purchasing a CareMatters II policy, the new pricing will reflect the updated rates. It is essential to evaluate the cost and compare it with other long-term care insurance options.

2. Existing Policyholders

Current policyholders may see their premiums adjusted in the future, depending on Nationwide’s policy terms and any additional factors that may come into play. It’s advisable to review your policy and consult with an insurance advisor to understand how the change might impact you.

3. Planning and Budgeting

The increase in pricing underscores the importance of planning and budgeting for long-term care needs. It’s crucial to review your insurance coverage regularly and consider how changes in pricing may affect your overall financial strategy.

Strategies for Managing the Pricing Increase

Navigating the implications of a pricing increase can be challenging. Here are some strategies to help manage and mitigate the impact:

1. Evaluate Your Coverage Needs

Assess your long-term care needs and determine if CareMatters II is still the best fit for your situation. Compare it with other policies to ensure you’re getting the best value for your investment.

2. Consider Alternatives

If the pricing increase makes CareMatters II less feasible, explore alternative long-term care insurance options. Look for policies that offer similar benefits at a more competitive price.

3. Consult with an Insurance Advisor

An insurance advisor can provide personalized advice based on your specific needs and financial situation. They can help you understand how the pricing increase affects your policy and guide you in making informed decisions.

4. Lock in Rates Early

If you are considering purchasing a new policy, it may be beneficial to lock in rates before the increase takes effect. This approach can help you secure more favorable terms and potentially save money.

Benefits of CareMatters II Despite the Increase

Despite the upcoming pricing increase, Nationwide CareMatters II continues to offer several advantages that make it a compelling choice for many individuals:

1. Hybrid Structure

The combination of long-term care benefits with a life insurance component provides a unique financial safety net, allowing you to benefit from the policy even if you do not need long-term care.

2. Flexibility and Customization

CareMatters II offers flexible premium payment options and customizable benefits, allowing you to tailor the policy to your specific needs and budget.

3. Inflation Protection

The inclusion of inflation protection helps ensure that your benefits keep pace with rising healthcare costs, preserving the value of your policy over time.

4. Financial Security

The policy provides peace of mind by offering financial support for long-term care needs and a death benefit, contributing to your overall financial security.

The Nationwide CareMatters II pricing increase is a significant development for those involved in long-term care planning. Understanding the reasons behind the increase, its impact, and strategies for managing it can help you make informed decisions about your insurance needs. By staying informed and consulting with experts, you can navigate these changes effectively and continue to secure your financial future.

FAQs

1. What is Nationwide CareMatters II?

Nationwide CareMatters II is a hybrid long-term care insurance product that combines traditional long-term care coverage with a life insurance component. It provides financial support for long-term care needs if you cannot perform two out of six Activities of Daily Living (ADLs) or if you have severe cognitive impairment. Additionally, it offers a death benefit if the long-term care benefits are not used.

2. Why is Nationwide increasing the pricing for CareMatters II?

The pricing increase for CareMatters II is influenced by several factors, including rising healthcare costs, longer life expectancies, low interest rates, and recent claims experience. These factors impact the cost of providing coverage and require adjustments to ensure the insurance remains financially viable.

3. How will the pricing increase affect new policyholders?

New policyholders will be subject to the updated pricing structure, which means they will pay higher premiums compared to the previous rates. It’s important for potential buyers to review and compare the new rates with other available long-term care insurance options.

4. Will existing policyholders see an increase in their premiums?

Existing policyholders may not experience an immediate increase in their premiums if their rates have already been locked in. However, depending on Nationwide’s policy terms and future adjustments, there could be changes in premiums for current policyholders over time.

5. What factors are contributing to the pricing increase?

Several factors contribute to the pricing increase, including:

• Rising costs of long-term care services
• Longer life expectancies leading to a higher likelihood of needing care
• Low interest rates impacting investment returns
• Higher-than-expected claims experience

6. What options do I have if I’m concerned about the pricing increase?

If you’re concerned about the pricing increase, consider evaluating your coverage needs, exploring alternative long-term care insurance options, consulting with an insurance advisor for personalized advice, and potentially locking in rates before the increase takes effect.

7. How does Nationwide CareMatters II compare to other long-term care insurance policies?

CareMatters II offers a hybrid structure combining long-term care benefits with a life insurance component, which can be advantageous for those seeking both types of coverage. When comparing it to other policies, consider factors such as coverage options, premium costs, inflation protection, and flexibility to determine which policy best meets your needs.

8. Can I lock in my current rate before the increase takes effect?

If you’re considering purchasing a CareMatters II policy, it may be beneficial to lock in rates before the pricing increase is implemented. This can help you secure more favorable terms and potentially save money.

9. What are the payment options for CareMatters II premiums?

CareMatters II offers flexible premium payment options, including single pay, 5-pay, and 10-pay plans. These options allow you to choose a payment schedule that fits your financial situation.

10. What benefits does CareMatters II provide?

CareMatters II provides benefits if you cannot perform two out of six Activities of Daily Living (ADLs) or have severe cognitive impairment. It also offers inflation protection to help maintain the value of benefits over time and a death benefit if the long-term care benefits are not utilized.

11. How does inflation protection work with CareMatters II?

Inflation protection in CareMatters II ensures that the value of your benefits keeps pace with rising healthcare costs. This feature helps maintain the purchasing power of your benefits over time, so they remain adequate to cover future care expenses.

12. What should I consider when evaluating my long-term care insurance needs?

When evaluating your long-term care insurance needs, consider factors such as your health status, family history, financial situation, and preferences for coverage. It’s also important to compare different policies and their features to find the best fit for your needs.

13. How can I determine if CareMatters II is still the best option for me?

To determine if CareMatters II remains the best option, review your current policy and assess how the pricing increase affects your financial plans. Compare CareMatters II with other long-term care insurance policies and consult with an insurance advisor for personalized advice.

14. What are some alternatives to CareMatters II?

Alternatives to CareMatters II include other long-term care insurance policies, hybrid policies with different features, and traditional long-term care insurance plans. Exploring these options can help you find a policy that meets your needs and budget.

15. How can I consult with an insurance advisor about the pricing increase?

To consult with an insurance advisor, reach out to a licensed professional who specializes in long-term care insurance. They can provide personalized guidance based on your specific needs and help you navigate the implications of the pricing increase.

16. What is the return of premium feature in CareMatters II?

The return of premium feature allows you to receive a refund of premiums paid if you decide to cancel the policy. This feature provides additional flexibility and value if you no longer need the coverage or if your circumstances change.

17. How does Nationwide ensure the financial stability of CareMatters II?

Nationwide ensures the financial stability of CareMatters II by adjusting pricing based on factors such as rising healthcare costs, claims experience, and investment returns. This approach helps maintain the financial health of the insurance product and ensure it can meet future claims.

18. What should I do if I have more questions about the pricing increase?

If you have additional questions about the pricing increase, contact Nationwide directly or consult with an insurance advisor. They can provide detailed information and address any specific concerns you may have.

19. Are there any special considerations for seniors regarding the pricing increase?

Seniors should carefully review their existing policies and consider the impact of the pricing increase on their long-term care planning. It may be beneficial to explore alternative options or consult with an advisor to ensure their coverage remains suitable for their needs.

20. How often does Nationwide review and adjust the pricing for CareMatters II?

Nationwide reviews and adjusts the pricing for CareMatters II periodically based on factors such as claims experience, healthcare costs, and investment returns. These adjustments help ensure that the policy remains financially viable and able to meet future obligations.