What are Living Benefits in life insurance?

Living Benefits let you access a portion of your life insurance death benefit while you're still alive if you’re diagnosed with a qualifying illness or condition.

What types of conditions qualify for Living Benefits?

Conditions may include heart attack, stroke, cancer, chronic illness, and terminal illness. Each policy varies.

How do Living Benefits work?

If you’re diagnosed with a qualifying condition, you can claim a portion of your policy’s death benefit for medical bills or daily expenses.

Is there an extra cost for Living Benefits?

Many life insurance policies include Living Benefits at no additional cost.

Can I use Living Benefits more than once?

Some policies allow multiple claims for different conditions, while others may only allow a one-time access.

Do I have to be terminally ill to use Living Benefits?

No. Living Benefits can be used if you're diagnosed with critical or chronic illness, not just terminal conditions.

Who is Living Benefits life insurance best for?

It's ideal for parents, homeowners, business owners, or anyone wanting financial protection during life, not just after death.

How do I get a quote?

You can get a free quote by contacting the agent directly for a no-pressure consultation.

Can I still qualify if I have health issues?

Yes, depending on your situation, there are simplified and guaranteed issue policies available.

Why should I work with you?

You're working with a licensed agent who specializes in Living Benefits and provides personalized, no-pressure service.

Can I skip the quote and start an application right away?

Yes, you can call directly to begin the application process immediately with expert guidance.

13 Jul 2025 3 min read

Is Nationwide Permanent Life Insurance Right for You? A Complete Guide to Coverage and Benefits

Permanent life insurance provides lifelong protection and builds cash value over time—and Nationwide excels in offering a range of permanent options. Whether you're considering whole life, universal life, indexed universal life (IUL), or variable universal life (VUL), Nationwide’s products are designed to meet diverse financial goals.

🛡️ Nationwide’s Permanent Life Insurance Options

Nationwide offers several types of permanent life insurance:

Whole Life Insurance – Traditional coverage with fixed premiums, guaranteed cash value, and guaranteed death benefit.
Universal Life (UL) – Flexible premium and death benefit; cash value grows at a fixed interest rate.
Indexed Universal Life (IUL) – Cash value earns interest linked to market indexes like the S&P 500®, with downside protection.
Variable Universal Life (VUL) – Policyholder decides where to invest cash value among subaccounts, with growth potential tied to market performance.

1. Core Benefits Shared by All Policies

Lifetime Coverage – As long as premiums are paid, the policy remains active.
Tax-Free Death Benefit – Beneficiaries receive the proceeds tax-free.
Cash Value Growth – Accumulates tax-deferred and accessible via withdrawals or loans.
Living Benefits – Nationwide includes its Living Access benefits—such as chronic illness riders—on many permanent policies.

2. Whole Life Insurance at Nationwide

Key Features:

Fixed premiums
Guaranteed cash value
Potential dividends (participating policies)
Living Access benefits, including chronic illness rider

Best for individuals seeking simplicity, predictability, and dividend potential.

3. Universal Life Insurance

Highlights:

Adjustable premiums and death benefit
Cash value grows at a fixed interest rate with a guaranteed minimum
Offers long-term care riders

Ideal for people needing flexible coverage and cash value accumulation.

4. Indexed Universal Life (IUL)

What Makes It Stand Out:

Interest ties to market indexes (e.g., S&P 500) with 0% floor protection
Two flagship IULs:
- Accumulator II 2020 – aimed at maximizing growth
- Protector II 2020 – provides cost-efficient protection

Suitable for those seeking growth with market upside and downside safety.

5. Variable Universal Life (VUL)

Investor-Friendly Option:

Subaccount investments in equities, bonds, and funds
High growth potential—and higher risk
Often paired with extended no-lapse guarantee ridersRecommended for financially savvy individuals comfortable with market risk.

6. Death Benefit Protection

Nationwide provides guaranteed protection. If properly maintained, your policy will pay the stated death benefit to beneficiaries—typically income-tax-free.

7. Cash Value Access

All permanent policies allow borrowing or withdrawing from your cash value, though doing so may reduce your death benefit and could incur taxes. It’s generally easier to save and access than retirement account funds.

8. Living Access Benefits

Nationwide’s products include Living Access benefits such as accelerated death benefits for chronic illness. These riders are included at no additional cost, though using them reduces the policy death benefit.

9. Long-Term Care Options

Some UL and IUL products allow LTC riders. For example, the IUL Protector II policy can include Nationwide's LTC Rider II, offering long-term care coverage up to the death benefit amount.

10. Premium Flexibility & Payment Options

Whole Life: Fixed premiums
UL/IUL/VUL: Flexible premium schedules and occasionally limited-pay options

11. Policy Loans vs. Withdrawals

Loans are tax-free if arranged properly, but unpaid balances reduce the death benefit and may affect the policy's status. Withdrawals beyond cost basis may trigger taxes.

12. Who Should Consider Nationwide Permanent Coverage?

Those who want lifelong protection and estate planning tools
People seeking tax-advantaged savings in one product
Anyone looking to hedge LTC costs or chronic illness risks
Smart investors wanting indexed or variable cash value growth
Individuals desiring policy flexibility and living benefits

13. Potential Drawbacks

Higher premiums compared to term policies
VUL/IUL performance depends on market returns and expenses
Complexity—requires careful planning and monitoring
Using cash value or accelerated benefits may reduce final payout

14. Nationwide’s Financial Strength & Technology

Backed by an AM Best A+ rating and praised for its online tools and simplified underwriting, Nationwide ranks high among insurers in digital experience and financial reliability.

Final Thoughts

Nationwide’s permanent life insurance lineup—from whole life to IUL and VUL—offers comprehensive coverage, cash value growth, and policy flexibility. With living benefit riders and LTC solutions, these products fit many financial scenarios: retirement planning, legacy building, and care coverage. However, they’re best for those who can commit financially and engage with their policies.

To see if Nationwide’s permanent coverage matches your goals, speak with a licensed advisor and request personalized illustrations. The ideal plan balances protection, growth, tax efficiency, and living benefits tailored to your financial life.