Key Metrics at a Glance
| Benefit Type | Cash Indemnity | No monthly bills required |
|---|---|---|
| Issue Ages | 30-70 | Best rates under 65 |
| Minimum Face | $60,000 | Single premium |
| Benefit Duration | 2-7 years | Flexible options |
| Elimination Period | 90 days | Paid retroactively |
| Residual Death Benefit | 20% | Highest in market |
Three Outcomes. One Asset. You Stay in Control.
With asset-based LTC, your money comes back to you or your family in one of three ways—guaranteed. The insurance company doesn't keep it.
| Scenario | What Happens | Benefit | Who Gets It |
|---|---|---|---|
| Door 1: LIVE | You need LTC care | Cash indemnity benefits pay for your care (up to 7 years) | You get the money |
| Door 2: DIE | You don't need LTC | Death benefit goes to your heirs (tax-free) | Family gets the money |
| Door 3: LEAVE | You change your mind | Multiple return of premium options | You get the money |
The Bottom Line: In every scenario, the money comes back to you or your family. You're not "betting against yourself"—you're planning for all outcomes.
How CareMatters II Works
Key features that set CareMatters II apart from other hybrid LTC products.
Cash Indemnity Benefits
The entire monthly LTC benefit is paid directly to you—no bills or receipts required monthly. Use benefits however you choose: home care, assisted living, nursing home, or paying family caregivers.
Unique Inflation Protection
The only product offering an inflation option tied to the U.S. Medical Care CPI. Also offers 3% simple, 3% compound, and 5% compound options.
Highest Residual Death Benefit
20% residual death benefit—the highest in the hybrid LTC market. Even if you use all your LTC benefits, your heirs receive at least 20% of your specified amount.
Flexible Payment Options
Single-pay, 5-pay, 10-pay, pay to age 65, or pay to age 100. All multi-pay options can be paid annually or monthly.
Informal Caregiver Coverage
Pay family members or friends to provide your care. No daily limit restrictions—full monthly benefit available for informal care.
International Benefits
100% of maximum monthly benefit available internationally while accelerating the LTC Rider (including inflation).
Inflation Protection Options
| Option | Growth | Cost | Best For |
|---|---|---|---|
| No Inflation | 0% | Lowest | Older buyers (65+) with shorter time horizons |
| 3% Simple | ~3%/year | Low | Budget-conscious buyers |
| 3% Compound | 3% compound | Moderate | Balanced approach |
| 5% Compound | 5% compound | Higher | Younger buyers, maximum protection |
| U.S. Medical Care CPIUnique | Varies | Moderate | Those who want inflation tied to actual healthcare costs |
Return of Premium Options
Minimum ROP with Maximum LTC
Maximizes your LTC benefit pool with a lower cash surrender value.
Best for: Those prioritizing LTC coverage over liquidity
Vested
Cash surrender value grows over time, reaching 100% after a vesting period.
Best for: Those who want flexibility to recover their premium
Step-Up
Death benefit increases over time while maintaining strong LTC leverage.
Best for: Those who value legacy planning alongside LTC protection
Leverage Ratios: The Numbers That Matter
This is THE number that matters. How much LTC protection do you receive for each dollar of premium? CareMatters II delivers competitive ratios with the added benefit of cash indemnity.
Age 60, 3% compound inflation
Age 58, 5% compound inflation
Age 55, U.S. Medical Care CPI
Actual benefits vary by age, gender, health classification, and selected riders. These are representative illustrations—request your personalized quote for exact figures. • January 2025
Real World Scenarios
Is CareMatters II right for YOUR situation? Here's who this works for—and who should look elsewhere.
Perfect Fit: The Early Planner
Perfect FitMargaret (Age 55): Repositioning $150,000 from a CD. Wants to protect retirement savings from LTC costs while maintaining flexibility. Has 10-15 years until she might need care.
How CareMatters II Helps:
Single-pay CareMatters II with 5% compound inflation. Her initial $6,000/month benefit grows to over $15,000/month by age 80. Result: • Total LTC Pool: $500,000+ by age 82 • Death Benefit: $150,000 (if LTC unused) • Monthly Benefit: Grows with 5% compound inflation • Cash Indemnity: No bills to submit, total flexibility
Outcome:
Margaret locks in coverage at healthy rates. If she needs care at 82, she has over $500,000 in LTC benefits. If she doesn't, her family receives the death benefit.
Great Fit: The Family-Focused Couple
Perfect FitRobert and Susan (Age 62 & 60): Combined $200,000 to reposition. They want coverage but worry about "use it or lose it." Their adult children live out of state.
How CareMatters II Helps:
Each gets a CareMatters II policy with the Vested ROP option. They can recover 100% of premium after the vesting period if plans change. Key Benefits: • Cash indemnity allows paying family caregivers • Vested option provides liquidity if needed • 20% residual death benefit protects legacy • Separate policies give each spouse full control
Outcome:
If Susan needs care, her daughter can coordinate—not provide—care. Robert's policy remains fully funded for his own needs.
Perfect Fit: The Home Care Advocate
Perfect FitJames (Age 58): $125,000 from a 1035 exchange. James watched his father struggle in a nursing home. He's determined to receive care at home, potentially from his wife or adult children.
How CareMatters II Helps:
CareMatters II with 6-year benefit period. Cash indemnity benefits allow him to pay family caregivers with no restrictions. Why CareMatters II Excels Here: • Full monthly benefit for family caregivers (no caps) • No receipts or bill submission required • 100% international benefits if traveling • 20% residual death benefit even after full LTC use
Outcome:
James can receive care from people he trusts in his own home. His wife can be compensated for caregiving without the "free labor" burden.
Poor Fit: Over Age 70
Look ElsewherePatricia (Age 72): Has $180,000 to reposition and is in excellent health. Wants hybrid LTC coverage.
Why It's Not Ideal:
CareMatters II has a maximum issue age of 70. Patricia cannot apply regardless of health status. Alternative carriers to consider: • Securian SecureCare: Issue ages to 75 • OneAmerica Asset Care: Issue ages to 80 • Lincoln MoneyGuard: Issue ages to 80
Better Alternative:
OneAmerica Asset Care or Lincoln MoneyGuard, both of which accept applicants up to age 80.
Where It Shines
Cash Indemnity Simplicity
No monthly bill submission, no reimbursement waiting. Once approved, you receive your full monthly benefit to use as you choose.
Highest Residual Death Benefit
At 20%, Nationwide offers twice the residual death benefit of most competitors (10%) and four times Pacific Life (5%).
Unique CPI Inflation Option
The only product that ties inflation to actual medical care costs rather than a fixed percentage.
Strong Informal Care Benefits
Full monthly benefit available for family caregivers with no daily limits—competitors often cap or restrict informal care.
100% International Benefits
Many competitors limit or exclude international coverage. Nationwide pays full benefits worldwide during the acceleration period.
⚠What Gives Us Pause
90-Day Elimination Period
While benefits are paid retroactively after meeting the elimination period, you must cover the first 90 days out of pocket. Some competitors offer 0-day elimination for home modifications.
Phone-Based Underwriting
The telephone interview process can feel intrusive to some applicants. Medical records (APS) may be required.
Maximum Issue Age 70
Older applicants (71-75) may need to look at competitors like Securian (75) or OneAmerica (80).
No 0-Day Elimination Options
Unlike Securian's 0-day for home modifications and caregiver training, Nationwide requires meeting the full 90-day elimination period first.
Underwriting Reality
Nationwide uses telephone interviews and may request an Attending Physician's Statement (APS). Here's what to expect.
Likely to Qualify
- •Ages 30-70 with no major health conditions
- •BMI within standard guidelines (varies by height)
- •Well-controlled conditions: high blood pressure under 140/90, diabetes with A1C under 7.5
- •No history of falls in past 36 months
- •No current use of assistive devices (walker, wheelchair, oxygen)
- •Doctor's visit within required timeframe (varies by age)
⚠May Face Challenges
- •BMI in marginal ranges with other health concerns
- •Joint replacement within 3-12 months (varies by type)
- •Recent physical therapy (within 3-12 months)
- •Tobacco use with certain cardiac or respiratory conditions
- •Diabetes with insulin over 50 units (Standard rate class only)
- •Bariatric surgery with BMI 33.0 or greater
Likely Declined
- •Alzheimer's, dementia, memory loss, or cognitive impairment
- •Parkinson's disease or Multiple Sclerosis
- •Any cancer within past 5 years (most types)
- •History of stroke/TIA in past 2-3 years
- •2+ falls in past 36 months due to gait disturbance
- •Current use of walker, wheelchair, oxygen, or hospital bed
- •Organ transplant (other than cornea)
- •Current narcotic or chronic pain medication use
Medical Care Requirements by Age
Tip: Complete all pending medical tests, surgeries, or follow-ups before applying. Outstanding medical recommendations can result in postponement.
Frequently Asked Questions
Compare to Similar Products
Explore these related guides to continue your research.
The benchmark for asset-based LTC. Reimbursement model vs. cash indemnity.
Reimbursement model, 0-day elimination, flexible premiums. Lower informal care benefits.
Cash indemnity competitor with 0-day for home modifications. Issue ages to 75.
Joint-life version for couples. Both insureds covered under one policy.