NATIONWIDE YOURLIFE CAREMATTERSSM

FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC

• Not a deposit • Not FDIC or NCUSIF insured • Not guaranteed by the institution • Not insured by any federal government agency • May lose value

Brought to you by Nationwide®

Nationwide YourLife CareMattersSM

More than just a LTC Benefit Pool

NFM-13488AO.1

FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 2

Disclosure - This presentation was not intended by the author to be used, and cannot be used, by anybody for the purpose of avoiding any penalties that may be imposed on you pursuant to the Internal Revenue Code. 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 Insurance Company.Keep in mind that as an acceleration of the death benefit, the payment of long-term care rider benefits will reduce both the death benefit and cash surrender values of the policy. Additionally, loans and withdrawals will also reduce both the cash values and the death benefit. Care should be taken to make sure that life insurance needs continue to be met even if the rider pays out in full, or after money is taken from the policy. There is no guarantee that the rider will cover the entire cost for all of the insured’s long-term care, as this may vary with the needs of each insured. Nationwide pays the long-term care benefit to the policy owner; there is no guarantee the policy owner will use the benefit for long-term care expenses if the policy is owned by someone other than the insured. Guarantees are subject to the claims-paying ability of the issuing company. Life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio.

FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 3

Disclosure When choosing a product, make sure that life insurance and long-term care insurance needs are met. CareMatters is not intended to be a primary source of life insurance protection, so make sure life insurance needs have been covered by appropriate products. Because personal situations may changes (i.e., marriage, birth of a child or job promotion), so can life insurance and long-term care insurance needs. Care should be taken to ensure these strategies and products are suitable. Associated costs, as well as personal and financial objectives, time horizons, and risk tolerance should all be weighed before purchasing CareMatters. Life insurance, and long-term care coverage linked to life insurance, has fees and charges associated with it that include: costs of insurance which varies based on characteristics of the insured such as gender, tobacco use, health and age; and additional charges for riders that customize a policy to fit individual needs.

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

Benefit banking is available through the Excess Benefit Account feature, a separately established secure money market account with Nationwide Bank. Inflation protection is available to help the monthly benefit keep up with increases in the cost of care. International benefits are available if care is provided outside of the US. However, with these and other product features, there are limitations and exclusions. Refer to your policy and attached riders for details on product features, including benefits, exclusions, limitations, terms and definitions (which may vary by state).

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Disclosure

The extent to which an LTC benefit payment is received tax-free is limited, on an annual basis, to the greater of the actual qualifying LTC expenses incurred or the HIPAA per diem amount or its equivalent. CareMatters is a cash indemnity policy that pays benefits upon showing that the insured has been certified as a having the triggers required to qualify a claim. Submission and review of bills and receipts supporting actual LTC expenses incurred is not required for payment of benefits nor is the benefit limited to the daily HIPAA per diem. Therefore, the company cannot guarantee that LTC benefit payments will be treated as a tax-free given the taxpayer’s specific circumstances, especially when benefits are used to pay for care provided by family members or collected from more than one policy. Taxpayers should seek the advice of their own tax and legal advisors regarding any tax and legal issues applicable to their specific circumstances upon qualifying for LTC monthly benefits. For contracts that meet the MEC definitions of IRC Section 7702A, most distributions are taxed on a first-in/first-out basis, however LTC benefit payments can be received tax-free under IRC Section 7702B.  Gains from partial surrenders and loans from a MEC will be taxable and if taken prior to age 59 1/2, may be subject to a 10% penalty . Federal tax laws are complex and subject to change. Neither the company nor its representatives give legal or tax advice.Nationwide YourLife CareMatters may not be available in every state. Please contact Nationwide to determine product availability in your state.Life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. Nationwide, the Nationwide N and Eagle, Nationwide is on your side and Nationwide YourLife CareMatters are service marks of Nationwide Mutual Insurance Company. © 2015 Nationwide

FOR INSURANCE PROFESSIONAL USE ONLY — NOT FOR DISTRIBUTION TO THE PUBLIC

FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 5

Apples vs. Oranges

If you spreadsheet CareMatters against other companies– CareMatters will likely lose– because CareMatters is different

Why would you compare apples against an orange?

Other companies are applesCareMatters is an orange

CareMatters is MORE than just a benefit pool

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Agenda

• The importance of having LTC coverage

• What is CareMatters? How does it work?

• How CareMatters is different?

• Indemnity vs. Reimbursement - what you may not know

• The value of Cash Indemnity

• A different way to compare product pricing

•Sales positioning

•Talking to high net worth clients about LTC

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What are the chances of needing LTC?

They don’t identify with “risk pools”

IN REALITY……….. For one individual

0% or 100%What if it turns out to be 100%?

Now what?

70% chance of needing

LTC if you live to age 651

1 2015 Medicare Handbook

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Long term care is generally paid for by either…..

• Cost is the potential loss of health, well being or earning ability a spouse or other loved one

Lifestyle

• Dollar for dollar expenditure of your moneyIncome

• Cost efficient leveraged benefit amountInsurance

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How will providing unpaid care affect the lifestyle of a loved one?.......

There is a cost to unpaid care giving ……

Seniors giving care are more likely to be seniors who need careN 40% of seniors caregivers predecease person they are caring for1

• The average unpaid caregiver is a middle aged woman who works (or did) full time2

N But loses an average of $565,000 in lost wages and benefitsN Quit job, reduce hours, pass up promotions

N Loses time with their own family1 Ron Kauffman, “I’m Losing Myself Being a Caregiver”, Caring.com Feb. 20142 AALTCI American Association for Long-Term Care Insurance, Jan. 2013

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Does your client have disposable income for LTC?....

Income Sources in Retirement

• Social Security • Pension income• Assets (liquid)

• Savings• Stocks, bonds

and mutual funds• Other

Assets Create Income

• Income maintains lifestyle of person and/or spouse

• Income pays for Long-term Care

• Does your client have enough income for both?

Assets Create Inheritance

• S.S. and Pension end at death of recipient/spouse

• Only assets are inherited

• Does your client want to leave as much as possible to loved ones?

Long-term care coverage protects income and assets

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Ways to Insure for Long-term Care …..

Traditional LTC insurance

Most customizable Most LTC coverage

Only pays if LTC is needed, No DB

No premium guarantees

Limited mostly to annual pay modes

LTC Riders on Life Insurance

Least customizable- Full DB, Least LTC

Pays full benefit - LTC needed or not

Premiums can be guaranteed

Choice of premium schedules/base prod.

LTC Linked Benefit Policy

Customizable - DB for cost recovery

More LTC

Always pays at least the premium paid

Premiums are guaranteed

Single pay up to 10 - pay schedules

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CareMatters is a Linked-Benefit LTC Policy – What does that mean?

A linked benefit policy is also known as asset based LTC N An asset is repositioned to create:

• benefit pools that can be used if LTC is needed - OR• a death benefit, guaranteed to be equal to or more than the

premium paid into the policy if LTC is never needed

N Income sources can also be used for a short pays • Excess income, RMDs from IRAs, etc.• 5 pay and 10 pay schedules available

T Monthly modes available on 5 and 10 pay optionT (no modal factor!)

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Long-term Care if you need it……Death benefit if you don’t

• No loss of premium dollars (“no use it or lose it”)T Policy intended for LTC coverage, not death benefit

protectionT LTC Benefit provides

T a source of income to pay for LTC expensesT helps preserve assets providing other income sources

T Death Benefit providesT cost recovery if LTC is not usedT preserves the asset used

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$100,000

$180,419 $360,838 $541,257

$36,083

$7,517

• Return of Premium Feature (to owner)• More features similar to Traditional LTC policies• DB at least 20% of Specified DB Amt.

Nationwide YourLife CareMattersSM — How It Works

*Stated benefit amounts are based on hypothetical examples, actual benefit amounts received may vary. This example assumes a 55-year old female, couple rate, non-tobacco, 6-year benefit duration, and no inflation option.

FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 15

How CareMatters is different

• Return of Premium feature• Cash Indemnity Benefit Payout

T currently the only one in the linked-benefit industryT no HIPAA limits

• Optional Benefit Banking available• Informal Caregivers allowed – family, friends• 20% Guaranteed Minimum Residual death benefit

T currently the highest in the industry

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Return of Premium Feature

• 30 day free look period• Return of Premium feature

T Single pays – 5 year vesting schedule

T 5 Pay - ROP available on day 1 of year 6T 10 Pay - ROP available on day 1 of year 11

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

85% 88% 91% 94% 97% 100%

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The difference is in the details ……… Reimbursement Policies

• What you might already know- Requires monthly submission of bills and receipts- Reimburses lesser of monthly LTC benefit or amount of bill- May coordinate benefits with other reimbursement policies owned

- Each insurer pays a proportional amount- Only receive in total the amount of your bill

•What you may not know- Have limitations - Only reimburse approved services

• Concierge level services may not be approved

- Generally do not cover or have limitations for transportation costs- Generally places limits on coverage for home modifications

• May need approval for modification prior to reimbursement• Ex. – one modification a year• Ex. – lifetime limit totaling 2 months LTC benefits for modifications

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The difference is in the Details…..Indemnity Policies

•What you might already know- Pays the full monthly LTC benefit to the policy owner- Pays in full even when collecting from other policies- No monthly bills or receipts to submit

- Note: some companies require monthly “proof of billable services” before the full monthly benefit is paid

- Nationwide does not require this

•What you may not know- Few restrictions on services – may require licensed provider- Use excess benefits as desired for home modifications, transportation costs,

prescriptions, or anything else- May pay in excess of HIPAA

- You may collect tax free the greater of the HIPAA per diem for the year of claim or, actual LTC costs incurred

- There is more than one type of indemnity plan

FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 19

CareMatters is Cash Indemnity •Currently the only Cash Indemnity linked benefit policy•There for what you need when you need it•No restrictions on services

N Use informal caregivers, even family members (as long as in Plan of Care)

•Pays owner of the policyN Use in an Irrevocable Life Insurance Trust (ILIT)

• No monthly bills or receipts needed to collect monthly benefits1

• CareMatters has no HIPAA capN Pay for concierge level LTC services without needing approval

• No approvals needed from insurance companyN Pay for all home modifications neededN Pay for transportation costs and other care related needs

• Use excess benefits for anything else1Bills and receipts may be one source needed to establish the claim, however, they will not be required on a monthly basis in order to receive monthly LTC benefits

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70% of claims are

Home Health Care1

• Average cost of Home Health Care in 2013 - $1274 monthly1

• Projected Home Health Care costs in 30 years - $3000 monthly3

Indemnity– helps to collect more

CareMatters Cash Indemnity

$5000 monthly LTC benefit

Pays full $5,000 monthlyAfter 48 months

(with first 3 months - $0)

pays $225,000

Claim scenarioHome Health Care costs

$3000 monthly

4 year (48 month) claim

Reimbursement$6000 monthly LTC benefit

only pays $3000 monthly

after 48 monthspays $144,000

1Assumes 2013 average Home Health Care cost for 82 year old at 4 hours a day 3.5 days per week at $21 per hour …….. 2AALTCI 2014 Sourcebook …….. 3 Assumes current inflation of 0.5%1 becomes 2.9% over 30 years

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Benefit Banking Details …..

• What is Benefit Banking?- Saving excess benefits not needed for care for later use

•How do you bank excess funds and why?- Deposit in your own checking or savings account - OR- Open an optional Nationwide Benefit banking account- Helps collect more LTC benefit dollars if death occurs before

policy benefits are exhausted

•How does the Nationwide Benefit Banking work?- Excess benefits are separately deposited in a Nationwide

secure money market account- Account earns interest and has check writing privileges- Funds considered to have been received by owner

- Unspent dollars distributed by will – or - set up a TOD for bene.

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Benefit Banking – helps you keep more

Take the money - bank the excess!

Reimbursement

$6,000Maximum monthly LTC

benefit issued

$3,000 monthlyLTC reimbursement

Benefits to Bank = $0$3,000 X 48 months =

$144,000Total LTC benefits paid

LTC expenses = $144,000Side account $0

• 6 year benefit period

• Claim lasting 4 years

• $3,000 monthly HHC expenses

• Reimbursement pays no excess to bank

• Indemnity pays full benefits – excess can be banked for later

CareMatters Cash Indemnity

$5,000Maximum monthly LTC benefit

issued

$5,000 per monthLTC benefit paid

Bank $2,000 per month3 month elimination = $0

$5,000 X 45 months =$225,000

Total LTC benefits paid

LTC expenses = $144,000 plus$81,000 in benefit bank

account (or personal account)

Benefit Banking is optional and at no charge. Banked benefits are owned by the policy owner.

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Informal Caregivers • What is informal caregiver?

- Generally, it’s a caregiver that is not licensed or certified- Most often a family member- Sometimes a friend or neighbor

•CareMatters pays Cash Indemnity benefits - Informal (unlicensed) caregivers allowed – (100% benefit)- Immediate family allowed to provide care – (100% benefit)

•Are there any special requirements?- Just one - the plan of care must state informal care is

appropriate for the insured

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20% Residual Death Benefit

• What is the Residual Death Benefit?N Guaranteed death benefit if some or all LTC is usedN Guaranteed to be at least 20% of Specified Amount

• Currently highest in the industry• Paid income tax free to beneficiary• May be used to determine potential net cost of policy

- Gross cost = what you pay in premium at issue- Net Cost = gross cost minus residual death benefit

amount

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Comparing CareMatters with the competition

A traditional spreadsheet of products will not likely show the VALUE

of CareMatters

•You can’t compare an orange to apples•Look at net cost instead of gross cost•Consider the value of cash indemnity

FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 26

Net Cost vs. Gross Cost

• Why consider net cost?- 70% chance you will need LTC if you reach age 651

- Indemnity has greater chance of paying full Residual DB• full benefits paid to owner regardless of expenses• first pool may be paid faster – may get you to RDB faster

- Benefit Banking retains unneeded funds for later– Nationwide currently has largest residual DB at 20%

1Wall Street Journal Marketwatch – “The Cost of Long-term Care in your State”, Anne Tergensen, April 15, 2014

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The Value of Cash Indemnity …….

• It also helps to consider features that have value to client

•CareMatters Cash Indemnity features with extra “value”- Flexibility and Ease of Use at claim time

- No monthly paperwork to submit to receive LTC benefits- No approvals needed

– Home modifications, alternative care - you decide• Pay for what you need when you need it

- Banked funds can be use for anything- Informal caregivers allowed – even immediate family

FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 28

Gross Cost vs. Net Cost Comparison • Hypothetical case study

- Female age 60, single, non-tobacco- 6 year LTC benefit period (using 2 plus 4 strategy)- $540,000 total LTC benefits, $180,000 death benefit

-

•Residual death benefit is an important pricing consideration

Nationwide CareMatters

Lincoln Money Guard Reserve II

Pacific Life Premier Care

Benefit payment style Cash Indemnity Reimbursement Reimbursement

Simplified Underwriting Yes Yes Yes

Single Prem. $120,179 $117,669 $133,738

Residual DB minus $ 36,000 minus $ 9,000 minus $ 5,000

Net Cost $ 84,179 $108,669 $128,738

Information shown above is based on single premium scenarios. All information presented is deemed reliable but its completeness and accuracy cannot be guaranteed. We have made every effort to make sure that the information provided here is accurate, but it cannot be guaranteed. It’s possible that there are differences between the products compared which are not reflected and/or of which we are unaware

FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 29

Current Assets

Today - $100,000

Age 88 - $228,793With tax on interest

out of pocketIn 52 years - $465,089

(if taxes paid out of pocket)

Assumes annual rate of 3%

CareMatters

Today - $472,977

Age 88 - $472,977

Plus no tax on growthPlus Potential Residual DB

- $31,531

Female, age 60, NT couples rate, no inflation

Case Study

Repurposing a Certificate of Deposit

Self-insure vs. Long-term Care with CareMatters℠

FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 30

CareMattersSM for the AffluentCase Study

1Stated benefit amounts are based on hypothetical examples, actual benefit amounts received may vary. This example assumes a 55-year- old female, couple rate, non-tobacco, 6-year benefit duration, no inflation option….2 Assumes at least $100,000 spent on care

Net Cost2 of care = $100,000 or more Net Cost2 of $541,257 in benefits = $63,917

Reposition

$100,000For up to $541,257 of LTC1

For heirs$36,083

DEATH BENEFIT

……

……

……

……

……

……

……

……

……

……

……

……

Policy pays benefits first from premium$100,000

Ease of use - flexibility – cash indemnity

Nationwide’s pays monthly LTC benefits up to an

additional $441,2571

vs. Self Assuring with CareMattersSM

Dedicate$100,000

of assets to pay for LTC

Client uses more of their own income/assets to pay

for additional LTC bills

Pay for care using the$100,000

Ease of use – flexibility

Self Insuring

But when that runs out

If LTC is needed If LTC is needed

If LTC is still needed

FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 31

Don’t just look at the buckets – look at how the benefits are paid!

FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 32

In Summary

Nationwide CareMattersSM is a LTC solution that offers:• a different way to insure long-term care• with a Return of Premium feature• and Cash Indemnity benefits• that guarantees to pay the full monthly LTC benefit amount• allows informal and family caregivers• and pays a minimum death benefit even if all LTC is used

LTC planning is part of good, comprehensive retirement planning that protects income and assets

Having cash indemnity long-term care coverage in place provides flexibility and keeps the client in control of:

their Premiumoptions

their Benefits

their Care

Choices

Questions?

• Not a deposit • Not FDIC or NCUSIF insured • Not guaranteed by the institution • Not insured by any federal government agency • May lose value

FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC

[third part name] is not related to or affiliated with Nationwide Life Insurance Company or any of its affiliates.

Nationwide, the Nationwide N and Eagle and Nationwide is on your side are service marks of Nationwide Mutual Insurance Company. Beneficiary Protector is a service mark of Nationwide Life Insurance Company. © 2015 Nationwide

• Not a deposit • Not FDIC or NCUSIF insured • Not guaranteed by the institution • Not insured by any federal government agency • May lose value

Independent Dealer: 1-800-321-6064Financial Institutions: 1-800-893-5399Wirehouse/Regionals: 1-800-720-1511Nationwide Agents: 1-888-333-4202Nationwide Financial Network: 1-877-223-0795BGA: 1-888-767-7373