Do I Need Long Term Care Insurance?

Taking time to plan now can put you in control later.

 Choice, control, flexibility, it’s all in your hands!

Many of us will need long-term care (LTC) at some point, and the costs can be steep. Planning for the possibility of that care can be a challenge, though. There are many kinds of LTC coverage out there:

• What’s the difference?
• What care services will they pay for?
• What if care is never needed?

We designed Nationwide YourLife CareMattersSM to be a flexible way to plan for the future. It's LTC coverage that also provides a death benefit by linking to a universal life policy, and it helps give you choice, control and flexibility as your care needs unfold.

As your personal situations change (for example, marriage, birth of a child or job promotion), so will your life insurance needs. Care should be taken to ensure this product is suitable for your long-term life insurance needs. You should weigh any associated costs before making a purchase. Life insurance has fees and charges associated with it that include costs of insurance based on your sex, health and age, and has additional charges for riders that customize a policy to fit your individual needs. All guarantees and benefits of the insurance policy are subject to the claims paying ability of the issuing insurance company.

Facts about LTC

Many of us will need care as we age.

Americans age 65 and older 70% WILL NEED LTC

When given the choice, many people remain in their own homes while receiving care.

• 51%
• HOME HEALTH CARE
• Professional provider giving care in the home

==========

• 31%
• NURSING HOME
• 24-hour professional assistance

 ===========

• 18%
• COMMUNITY CARE
• Assisted living/Adult day care

People receive LTC for an average of 2? years in a nursing home and 4? years outside a nursing home. If you need care, where will this money come from?

2 Medicare & You 2014, U.S. Department of Health and Human Services, September 2013.

3 The 2014 Sourcebook for Long-term care information, American Association for Long-term Care Insurance, 2013.

4 Market Survey of Long-term Care Costs, Mature Market Institute, November 2012.

LTC coverage options

A look at two common types of coverage: Linked benefit and stand-alone

There are several different types of LTC coverage in the marketplace. Two of the most common are linked benefit policies and stand-alone insurance policies. Nationwide YourLife CareMattersSM is a linked benefit LTC insurance solution. To help you evaluate what kind of coverage could be the best fit for your needs, we’ll take a look at some of the characteristics and differences between the two.

Keep in mind that variations exist from product to product, and regardless of the type of policy you choose, it’s important to select the level of coverage that’s right for the care you think you’ll need.

How benefits are paid: cash indemnity vs. reimbursement

LTC policies can pay benefits in a couple of different ways.

1. The more common is through reimbursement: bills and receipts are submitted to the LTC insurance company, which then reimburses the facility, health care service or professional, or policy owner/insured for qualifying LTC expenses only, not to exceed the monthly LTC benefit.

2. With a cash indemnity plan, a check is mailed to the policyowner each month for the full amount of the monthly LTC benefit. The money can be used for your individualized care needs which could include expenses that might not typically be associated with LTC, such as lawn maintenance, or prescriptions not covered by other insurance.

Why Nationwide YourLife CareMattersSM?

It’s designed for choice, control and flexibility

Nationwide YourLife Nationwide YourLife CareMatters is a universal life insurance policy that provides long-term coverage along with a death benefit. We’ll explain all of the details and how it works, but here are three of the important ways it’s different from other products out there:

1. Choice Your policy adapts to meet your needs: choose a payment schedule that works for you, and select from options that meet your needs

2. Control Your premiums are guaranteed to never increase, and Nationwide YourLife CareMatters offers a return of premium feature6

3. Flexibility Nationwide YourLife CareMatters was created to help cover today's qualified LTC services as well as those that will be developed in the future

Here’s a look at how Nationwide YourLife CareMatters was designed to offer you choice, control and flexibility as you prepare for the future.

1. Choice

Choose the features that are right for you

Nationwide YourLife CareMattersSM isn't a one-size-fits-all product. It's filled with customizable features to meet your needs.

Fine-tune your care to work for you With Nationwide YourLife CareMatters, you have the ability to pick the options that work best for you. For example, if receiving care at home is deemed appropriate in the plan of care prepared by a licensed health care practitioner, you can use your benefit to pay for a home health care worker, or you could choose to pay a friend or loved one to care for you.

Just keep in mind that there can be tax implications depending on whom you pay for care. Nationwide? and its representatives don't give tax or legal advice, so please consult with your tax or legal advisor for answers to your specific questions.

Select the payment schedule that works for you and your finances

? Pay one time (single-pay)

? Pay annually or monthly for five years

? Pay annually or monthly for ten years

Protect yourself against rising LTC costs You can add optional inflation protection to your Nationwide YourLife CareMatters policy (this feature is available for an additional cost).

2. Control

We’re putting the control in your hands

We designed Nationwide YourLife CareMattersSM to help you take control of the many different facets of LTC. From guaranteed premiums to the way you pay for care expenses, you have choices and options at every step.

Premiums are guaranteed never to increase Unlike many traditional LTC policies, premiums on this product are guaranteed; they will never increase.

Determine how you pay for care

After you qualify for benefits, you’ll receive a check each month for the full amount of your monthly LTC benefit (Nationwide YourLife CareMatters is a cash indemnity plan, and is currently the only linked benefit product in the industry to offer it).7 Once you are receiving LTC benefits, you don’t have to submit monthly bills or receipts because they’re not required, and the money can be used for your individualized care needs. Care payment decisions can have tax implications, so please consult with your tax advisors.

There’s no 'use it or lose it' risk

A common concern with buying LTC coverage is the possibility that you’ll never need care and your money will go to waste. Nationwide YourLife CareMatters is structured to ensure that the premiums paid into your policy are recovered, even if you never need care. If your LTC benefits aren’t needed, your beneficiaries will receive the policy’s death benefit, which will be equal to or greater than the premiums you paid. And if some of your LTC benefits are needed, the death benefit will pass to your loved ones, minus the benefits that were used.

Nationwide YourLife CareMatters offers a guaranteed return of all premium beginning the sixth policy year. The first five policy years are subject to a vesting schedule. Return of premium is only available when all planned premium is paid (minus any loans or withdrawals taken from the policy).8 For more information on return of premium see the product details.

Leave a death benefit even if you need care Even if you use every dollar of the money earmarked for long-term care, your beneficiaries will still receive a 20% guaranteed minimum death benefit.

If paying annually or monthly for five or ten years the return of premium is only available after the end of the premium payment period and all required premium has been paid (minus any loans or withdrawals taken from the policy). 9 The guaranteed minimum death benefit amount is 20% of the base policy specified amount used to determine LTC benefits and the death benefit, assuming no loans or withdrawals.

 3. Flexibility

Different ways to help you take care

Since we don’t know how our needs will change over the years, Nationwide YourLife CareMattersSM includes features that adapt to your individual needs and circumstances.

Choose the care that works for you You can use your policy to pay for the LTC services that are right for your needs. Based on your individual plan of care, service and care options may include:

? Home health care

? Nursing home care

? Hospice

? Assisted living

? Adult day care

? Family care (receive care from people you already know and trust by paying a family member or friend to care for you)

? Household services (cleaning person, yard maintenance)

? Home safety improvements (guard rails, ramps, handicap accommodations, accessibility upgrades)

? Certified alternative-style LTC services

? State-certified LTC coverage options developed in the future Put funds aside for later If you don’t need your full monthly benefit for care expenses, you have the flexibility to reserve that extra money for LTC costs another time. You can use this benefit banking feature to plan for higher expenses in the future or to make your overall benefit last longer. And if you never need the saved money, you can leave it to family members or anyone else you choose.

Home sweet home

With Nationwide YourLife CareMatters, you can stay in the home you know and love by using your LTC benefit to make any needed safety and accessibility upgrades or to pay for caregivers to come to you. You can even use your benefit for a housekeeper or other things that help keep your life running normally.

• Questions and answers
• Answers to common questions about Nationwide
• YourLife CareMattersSM

Q. How do I qualify for LTC benefits? 

A. The following things have to happen in order for you to qualify for and begin receiving monthly LTC benefits.

1. Your licensed health care practitioner must certify that, (a) you have a severe cognitive impairment, or (b) you are unable to perform two or more of these activities of daily living: bathing, eating, continence, toileting, dressing or transferring (moving into or out of a bed, chair or wheelchair)

2. There's a 90-calendar-day elimination (or waiting) period beginning immediately after the date you're certified as chronically ill and start receiving qualified LTC services; these days of care or services don’t need to be consecutive, though they do need to be accumulated within a continuous period of 730 days

3. You must also receive qualified LTC services according to a plan of care as prescribed by a licensed health care practitioner While you're receiving benefits, your licensed health care practitioner will be asked to recertify your care needs at least once a year.

Q. How long will benefits be paid?

A. As long as you qualify, you will receive LTC benefits until the Lifetime Total Maximum Amount of LTC Benefits (reduced for loans or partial withdrawals) has been paid. The Lifetime Total Maximum Amount of LTC Benefits is shown on the policy specifications pages. If you choose to receive the maximum monthly LTC benefit each month, then LTC benefits will be paid for the LTC Specified Benefit Period that you selected on the application. You may choose to receive less than the maximum monthly LTC benefit. This will extend the time that benefits are paid beyond the LTC Specified Benefit Period.

Q. How long do I have to have the policy before I can begin receiving benefits?

A. Once your policy is in force and you qualify for benefits (see the question and answer in this section for details), you can begin receiving benefits. If all of your premiums have not been paid by the time you start a claim, the benefit amount you are eligible for may be affected.

Q. What if I only use some of my LTC benefits?

A. Your beneficiaries will receive either the remaining policy death benefit not used for LTC benefits or the minimum death benefit, whichever is greater.

Q. Can I pay my premiums in installments versus a lump sum?

A. Yes, in addition to the single-pay (lump sum) option, you can choose to pay annually or monthly for five or ten years12.

12 For Single Premium payments, the Return of Premium Value is available starting day one, subject to a vesting schedule. There is a full return of all premium starting in year six. Return of Premium is available on 5 and 10 year payment schedules only after the end of the Premium Payment Period and all Required Premium has been paid (minus any loans or withdrawals). 17

Q. Are there things that are not covered by Nationwide YourLife CareMattersSM?

A It does not cover any expense that results from:

? Suicide, intentionally self-inflicted injuries or attempts at suicide (either while sane or insane)

? Committing or attempting to commit a felony

? Alcoholism or drug addiction, unless addiction results from administration of drugs for treatment prescribed by a physician

? Active duty in the armed forces of any nation or international government or units auxiliary thereto, or the National Guard

? War or any act of war, whether declared or undeclared

Q. Are any expenses excluded from coverage?

A. No. Once you qualify for coverage, your monthly benefit can be used for any expenses you choose.

Q. How much of my LTC benefit will be tax free?

A. You can receive, tax-free, the greater of:

? The HIPAA per diem amount for the given period you make a claim, or

? Actual LTC costs incurred

If you’re collecting LTC benefits from more than one policy, care should be taken to ensure that part of your benefit doesn’t become taxable. We allow you to take less than your full benefit, which can help prevent your LTC benefits from becoming taxable. Nationwide and its representatives don’t give legal or tax advice, so please consult your advisors for answers to your specific questions.

Q. Is there special pricing available if both my spouse and I buy a policy?

A. Married couples (and those in legally recognized domestic partnerships or civil unions) receive a special rate that results in a larger pool of LTC benefits. This rate is applied if one or both spouses purchase a policy.

Q. Can I pool benefits with my spouse or transfer benefits?

A. No, each spouse must purchase his or her own policy, and no benefits can be transferred.

Q. Do I have to take the maximum LTC benefit amount?

A. You can take any benefit amount, up to the maximum benefit you qualify for. Taking less money can help extend the length of time your benefit is available. However, if Inflation Protection is elected, the maximum monthly LTC benefit amount must be requested in order to receive the Inflation Protection benefit.

If you’re collecting LTC benefits from more than one policy, care should be taken to ensure that part of your benefit doesn’t become taxable. We allow you to take less than your full benefit, which can help prevent your LTC benefits from becoming taxable. Nationwide and its representatives don’t give legal or tax advice, so please consult your advisors for answers to your specific questions.

Please keep in mind that there is no guarantee this product will cover the entire cost for LTC, as expenses vary with the needs of each individual.

Product features including benefits, exclusions, limitations, terms and definitions may vary by state.

The information contained herein was prepared to support the promotion, marketing and/or sale of life insurance contracts, annuity contracts and/or other products and services provided by Nationwide Life and Annuity Insurance Company.

All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. Policy guarantees and benefits are not backed by the broker/dealer and/or insurance agency selling the policy, nor by any of their affiliates, and none of them makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company.

Approval for coverage under the policy and LTC riders is subject to underwriting and may require 21 a medical exam.

? Not a deposit ? Not FDIC or NCUSIF insured ? Not guaranteed by the institution

? Not insured by any federal government agency ? May lose value

As your personal situations change (for example, marriage, birth of a child or job promotion), so will your life insurance needs. Care should be taken to ensure this product is suitable for your long-term life insurance needs. You should weigh any associated costs before making a purchase. Life insurance has fees and charges associated with it that include costs of insurance based on your sex, health and age, and has additional charges for riders that customize a policy to fit your individual needs. All guarantees and benefits of the insurance policy are subject to the claims paying ability of the issuing insurance company.

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