Nationwide (NYSE:NFS)
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No-lapse guaranteed universal life insurance has been one of the top
selling products in the industry, and Nationwide Financial’s
YourLifeSM ULtimate product has been a sales
success since its launch in June 2006. Now the company has repriced it,
making it even more competitive. Nationwide is one of the few insurance
carriers that is consistently near the top in both premium rates and
target premiums.
Nationwide YourLifeSM ULtimate is a universal
life insurance policy designed to provide consumers with low-cost,
permanent life insurance with a guaranteed death benefit. YourLifeSM
ULtimate is designed for consumers who want lifetime protection, strong
living benefits and simplified policy maintenance. The product 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.
“As consumer needs and demands evolve, we
continually strive to improve the value of our life insurance products
and services to our customers,” said Peter
Golato, senior vice president for Nationwide Financial Services, Inc. (NYSE:
NFS). “This reprice is an example of our
commitment to the fixed universal life business. We reduced the premium
pricing to improve the competitiveness of 10-pay and level-pay premiums
to complement our already competitive single-pay premiums.”
Golato added that as consumers expect to live longer, they are concerned
about having enough funds throughout their lives, so protection at a
very competitive cost is important.
“Uncertainty about the future of their
family, the financial markets and personal security is driving clients
to more conservative products with guarantees,”
he said. “ULtimate is most competitive for
consumers age 45 through age 70 who are looking for guaranteed death
benefit coverage at a very competitive price.”
Optional riders provide more choices for consumers
YourLifeSM ULtimate offers several beneficial
riders, which can be added to personalize the product. These include:
Long-term Care Rider
Accelerated Benefit Rider
Accidental Death Benefit Rider
Child Rider
Spouse Rider
Waiver of Monthly Deductions Rider
Consumers should consult with their financial professional to discuss
costs, advantages and disadvantages of each rider in detail. All riders
are available for an additional cost, may not be available in all states
and may be known by different names in different states.
Uninsured long-term care expenses can wreak havoc on consumers’
finances
“Consumers tell us that one of their biggest
fears is the inability to afford the long-term care they may need in
retirement,” Golato said. “ULtimate
is truly a living benefit for them and their families, as we’ve
seen the cost for a private room in a nursing home average nearly
$70,000 a year, and $18 an hour for a home health care aide.”
a.
Nationwide’s indemnity-style rider can
provide the policyholder with an accelerated death benefit to use for
long-term care. If the person doesn’t use the
accelerated death benefit, they don’t lose
the value of the final death benefit.
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.
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, and any excess funds not needed
for LTC expenses may be used for any purpose. b.
“Almost 28 percent of all ULtimate policies
written since we first launched the product two years ago have included
this important rider, so we know it is a key feature for consumers to
protect their assets and plan for their futures,”
said Golato.
a. “Insurers Push for Long-term Care”
The Wall Street Journal, Dec. 27, 2005
b. Nationwide sends a monthly check equal to the lesser of two
percent of the LTC specified amount or daily HIPAA amount ($270 in 2008)
times the number of days in the month.
Automated Premium Monitor helps avoid policy lapse
Nationwide YourLifeSM ULtimate proactively
addresses the problem of policy lapse. A patent-pending Automated
Premium Monitor (APM) program can help clients pay their premium at the
exact time needed, which ensures the death benefit guarantee stays in
force as originally illustrated. 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
Important Consumer Information
Neither Nationwide nor its representatives give legal or tax advice.
Consumers should contact their legal or tax advisor for answers to their
specific questions. 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. Any associated costs should
be evaluated before making a purchase. Investing involves market risk,
including the possible loss of principal.
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.
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 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. 108 on the Fortune 500 based on 2007 revenue.1
For more information, visit www.nationwide.com.
Life insurance is issued by Nationwide Life Insurance Company or
Nationwide Life and Annuity Insurance Company, Columbus, Ohio.
Nationwide, Nationwide Financial, the Nationwide framemark and On
Your Side are federally registered service marks of Nationwide Mutual
Insurance Company. Nationwide YourLife is a service mark of Nationwide
Mutual Insurance Company.
1 Fortune Magazine, April 2007