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We hope this message finds you, your families, and your staffs in good spirits. Due to the persistent low interest rate environment carriers that offer fully guaranteed products have had to adjust. We were recently notified of Nationwide’s plans to increase rates on CareMatters II (their LTC Hybrid product). This price increase applies to new cases only however current pricing can still be maintained.

Applications must be signed and In Good Order no later than May 10th, 2020. Further, cases will need to be placed in-force and funded no later than July 24th, 2020.

Premium Changes
We will not be able to run new rates until May 8th, 2020 but have been told the increases will range from 8% – 14% across all payment, age, and inflation options. There are no changes to the product structure, contract language, forms, compensation, or types of benefits provided. There are no changes to in-force policies as a result of this update.

Update in Maximum Issue Age for CareMatters® II
Beginning May 11, 2020, the maximum issue age for Nationwide CareMatters II will increase to 70. This applies to single pays, 5-pays, and 10-pays using the Minimum Refund of Premium with Maximum LTC Benefit option only. The maximum issue age for Vested Refund of Premium and Step-Up Refund of Premium remains 69. Extended pay options have not changed: Pay to Attained Age 65 maximum issue age is 54; Pay to Attained Age 100 maximum issue age is 65.

As a reminder, the underwriting for CareMatters does not involve a physical exam but rather just a telephone interview. We are able to complete applications online which cuts down on the contact and time needed from your clients. 

This notice follows the pricing increase previously announced by Lincoln MoneyGuard. Now is a good time for clients to take advantage of current pricing with a conservative investment that safeguards their financial futures in the event of a long-term healthcare event.

We have begun to gather presale lists of your open cases and look forward to discussing this opportunity with you further.

Be Safe and Be Well.

Belman Klein Associates