New product targets consumers seeking living benefits with guarantees
COLUMBUS, Ohio, June 26 /PRNewswire/ -- For consumers who want lifetime
protection, strong living benefits and simplified policy maintenance,
Nationwide Financial Services, Inc. (NYSE: NFS), today launched its new
Nationwide ULtimate Universal Life(SM) 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(SM) 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," said 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.
A lifeline if needed; a legacy if not
Uninsured long-term care (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.[a] An in-home health aide runs
approximately $18 an hour.[b] No wonder consumers are concerned!
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.
"Our long-term care rider helps provide a lifeline if the consumer
needs it, and a legacy to their heirs if they don't," Golato said.
"Consumers tell us that one of their biggest fears is the inability to
afford the long-term care they may need in retirement. ULtimate is truly a
living benefit for them and their families."
To keep things simple and easy, 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.[c] 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.
Patent-pending Automated Premium Monitor helps avoid policy lapse
No-lapse guaranteed UL products are one of the hottest-selling life
insurance products on the market today. But, there is a hidden danger. All
no-lapse guarantee universal life insurance products depend on specific
premiums to guarantee death benefits to certain ages -- usually for a
lifetime. When these premiums are not paid as originally illustrated, they
can compromise the client's death benefit guarantee. The guarantee is very
sensitive to the timing and amount of the premium payments. For example, if
the payment is made after the premium due date, it could negatively impact
the policy's death benefit guarantee. In some unusual situations, paying
the premium early could even shorten the guarantee's duration.
The good news is that Nationwide ULtimate Universal Life(SM)
proactively addresses this problem. A patent-pending Automated Premium
Monitor (APM) program can help protect the client from potential disaster.
There is no extra cost to the policyholder for this program.
APM is a three-tiered safety net designed to:
* prevent the intended guarantee from going off course
* notify the client and producer if the planned guarantee is off track
* correct guarantees that strayed from the intended plan.
A distinctive approach to underwriting
Nationwide's approach to underwriting is as unique as ULtimate.
"We believe in underwriting the individual and not just the
impairment," said Golato. "By applying our philosophy of looking at each
insured's specific situation, we offer more flexibility in underwriting our
life products. As a result, clients may be able to receive better ratings
from Nationwide than ever before."
For example:
* clients with well-controlled diabetes may qualify for a standard rating
* clients with a history of breast cancer or other certain cancer
histories may qualify for a standard rating
* decreased need for chest X-ray requirements provides greater flexibility
and client convenience
* Nationwide offers extremely competitive criteria for preferred classes.
As with all life insurance, guarantees are subject to the claims-paying
ability of the issuing life insurance company. As consumers' personal
situations change (for example, marriage, birth of a child or job
promotion), so will their life insurance needs. Care should be taken to
ensure this product is suitable for long-term life insurance needs. They
should weigh any associated costs before making a purchase.
Life insurance has fees and charges associated with it that include
costs of insurance that vary with such characteristics of the insured as
gender, health and age, and has additional charges for riders that
customize a policy to fit individual needs. All riders may not be available
in all states.
Neither Nationwide nor its representatives give legal or tax advice.
Consumers should contact their legal or tax advisor for answers to their
specific tax questions.
About Nationwide Financial
Nationwide Financial Services, Inc. (NYSE: NFS), a publicly traded
company based in Columbus, Ohio, provides a variety of financial services
that help consumers invest[i] and protect their long-term assets, and
offers retirement plans and services through both public- and
private-sector employers.
It's part of the Nationwide group of companies, which offers
diversified insurance and financial services. The group is led by
Nationwide Mutual Insurance Company, which is ranked No. 98 on the Fortune
500 based on 2005 revenue.[ii] For more information, visit
http://www.nationwide.com.
Nationwide, Nationwide Financial and the Nationwide Framemark are
federally registered service marks of Nationwide Mutual Insurance Company.
Not a deposit * Not FDIC or NCUSIF insured* Not guaranteed by the
institution * Not insured by any federal government agency * May lose value
a. U.S. Congressional Budget Office; Testimony before the Subcommittee on
Health of the House Committee on Ways and Means; April 2005
b. AARP Public Policy Institute; September 2004
c. Nationwide sends a monthly check equal to the lesser of two percent of
the LTC specified amount or daily HIPAA amount ($250 in 2006) times the
number of days in the month.
i. Nationwide Investment Services Corporation, member NASD. In MI only:
Nationwide Investment Svcs. Corporation.
ii. Fortune Magazine, April 2006
SOURCE Nationwide Financial Services, Inc.
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Related links:
http://www.nationwidefinancial.com/
http://www.prnewswire.com/comp/607050.html/
CONTACT:
Dan Orzano, +1-614-677-5115. or
orzanod@nationwide.com, or Jeff Botti, +1-614-249-6339, or
bottij@nationwide.com, both of Nationwide Financial Services,
Inc.
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