Nationwide Retirement: Review of All Services
Company background
Nationwide retirement considers itself the best firm in the US that sells financial and insurance products to all retirees in the US. Currently, the firm engages in the business of solving issues facing its customers.
The launch of Nationwide dates back to 1925 where it was known as The Ohio Farm Bureau Federation. Its headquarters has remained in Columbus, Ohio, since its inception.
It managed to sell its first insurance policy in 1926. The firm expanded its business into other states, including North Carolina, Vermont, Delaware, Maryland, and West Virginia, in 1928.
In 1939, the firm launched commercial lines providing group insurance and casualty insurance to cooperative organizations, union members, and farmers.
Farm Bureau Mutual changed its name Nationwide to sell its insurance products throughout the United States. In 1960, the firm became the first insurer in the US to endorse Medicare.
In 1997, Nationwide became a fully publicly traded company, and in 1999, it combined comprehensive long-term care benefits and retirement savings vehicle plans.
In 2002, Nationwide introduced the first sales system for the industry that included an underwriting and a simplified sales system for the variable universal life insurance.
In 2009, the company became the first insurer to launch an app for iPhone users where customers could start their claim process using a photo, receive quotes and find agents.
In 2018, Nationwide decided to focus its bank-related services on trust operations to support the retirement plan business.
By 2015, the firm had reported a net income of $820 million per year. Although the firm's revenue has continued to grow in recent years, they have not enjoyed the same profit growth.
That is because of the increased loss claims and premium rates. Nationwide focuses its development on its major markets that include retirement accounts, mutual funds, and term insurance.
Currently, Nationwide retirement has approximately $158 billion value in statutory assets. The firm is also ranked under the Fortune 100 list.
It provided variety of products and services to its customers, including investments such as mutual funds, annuities, casualty insurance lines, and commercial and life insurance.
The company has to prioritize volunteerism and charitable donation by supporting the American Red Cross with periodic blood donations and offering approximately $127 million to the United Way organization.
Most importantly, its mission statement highlights that they protect futures, businesses, and people with care.
Products and services provided by Nationwide
Life Insurance Nationwide offers life insurance that covers the following policies.
1. Whole-life
The policy can assist in preserving the policy which intends to pass to your beneficiaries. It is the most common kind of permanent life insurance policy that you can apply at Nationwide. It has a guaranteed cash value and fixed premium payments.
2. Term insurance
It is a more affordable policy that offers coverage for a specific number of years (10, 15, 20, 30), and you can continue to pay premiums provided your policy has not expired.
You can lock your rate for the specified period to make your planning and budgeting easier.
A term policy will be more affordable since it is available for a limited period. The option can be the best if you need coverage while making a mortgage payment or having young children.
3. Whole-life insurance
It is permanent life insurance where you will receive coverage for your entire lifetime. Your beneficiaries will receive the benefits regardless of the time you pass away, provided you pay all your premiums.
The policy has a fixed interest rate which establishes cash value with time. The cash value does not impact the death benefits.
If the cash value grows to become equivalent to the benefit amount, the insurer can terminate the policy and pay the coverage amount.
4. Universal life insurance
It offers coverage for your whole life provided you pay the premiums. The policy is more flexible than a whole life policy.
For instance, the policy allows you to decrease or increase your death benefits, and you can even skip or adjust your monthly premiums within specified limits. It also has cash value features that grow with time and allows you to borrow.
However, the cash value differs from that of the whole life policy because its interest rate is not fixed. That means the rate the cash value grows can change based on the market conditions.
5. Variable life insurance
It resembles a whole life insurance policy. In this case, you will choose a fixed death benefit that your beneficiaries will receive after you die. It offers a tax-free service and has an additional benefit where beneficiaries receive an investment component.
The cash value can fall and rise based on the performance and premiums of the investments which you choose. Unlike the universal and whole life policies, the variable cashback can form part of the death benefits.
The several investment options provided by the variable life policy imply that your beneficiaries will receive considerable benefits after you die.
6. Long term care (LTC)
Nationwide provides LTC solutions to assist you so that you can plan for your future needs. In particular, the firm offers Nationwide CareMatters that provides LTC coverage linked to a universal life policy.
The solution is suited to people between 40 to 65 years and is mainly looking to have the financial protection of flexibility of benefit use and life insurance.
You can also access Nationwide's LTC rider, which can assist in offering a source of funds that can cover your unexpected long-term expenses.
If you do not need the LTC, your entire death benefit can be paid to your beneficiaries.
7. Annuities
Nationwide provides annuities that refer to lasting investments designed to protect you from the likelihood of outliving your income.
When you undertake the annuity program, your contributions can be converted into periodic payments, which can last your entire life.
Nationwide offers flexible annuities, and you can select one which allows you to:
- Choose an indexed, variable, or fixed rate of return.
- Begin to receive your payments at a later date or immediately.
- Invest an inconsiderable amount of money with time or a lot of money within a short period.
Annuities can assist in creating:
Spousal protection: Protecting your spouse is one of the major concerns you can plan for your future. When you extend benefits to your spouse after you die, you can offer them protection when they need it.
Legacy: Death benefit and tax-deferred asset growth can you in protecting your retirement savings. That means your unused assets can be passed to your next generation, spouse, or institution of your choice so that you create a long-term legacy.
Protected retirement income: An annuity can offer you a guaranteed income source for your entire life.
In summation, Nationwide offers transparent annuity solutions for your investment journey that starts from planning and living in retirement. It also functions to protect your assets so that you can leave a lasting legacy for your beneficiaries.
8. Mutual funds
A mutual fund is an investment strategy that can enable you to gather your money together with other investors to purchase a large pool of bonds, stocks, and other securities that can be challenging for you to recreate on your own.
The price of a mutual fund also referred to as the net asset value, is determined by the weight of securities in your portfolio divided by the fund's outstanding shares.
Types of mutual funds that the company offers:
Exchange-traded funds (ETF): These are securities that combine stocks' flexibility and the diversification of mutual funds. An ETF deals with gold bars, bonds, and stocks and divides the ownership into shares held by shareholders.
The nationwide variable insurance trust (NVIT) fund is one of the mutual fund's products that the Nationwide variable life insurance products and variable annuity provide exclusively.
The firm does not sell its NVIT funds to individual investors. Instead, it sells them to separate accounts of insurance firms to fund benefits payable under variable life policies and annuities issued by life insurance firms.
Benefits of investing in mutual funds
It takes expertise and time to research and select securities that you like successfully.
However, mutual fund managers at Nationwide can help you with that, combined with trading efficiency. Since mutual funds have several investors, Nationwide can make extensive trades that will lead to a diversified and cost-effective portfolio.
You can open your mutual fund account with Nationwide with a relatively low amount of money. In particular, if you choose an open-end mutual fund, you will have the option of investing at any time that you like.
Also, with mutual funds, you can access liquidity so that you redeem your shares whenever you want.
If you invest in mutual funds products, you will regularly receive information regarding the updates, reports, and statements, including tax and transaction information.
👍 Pros of investing with Nationwide
You should invest in Nationwide retirement because it offers numerous solutions and tools to educate you and offers you the information you can use to drive your retirement readiness.
The firm's simple but comprehensive retirement solutions can assist you to know where you lie and discover what the future hold for you. In particular, you can enjoy the following benefits:
Enrollment
You can drive better retirement plan participants with the firm's eligibility reporting capabilities, auto-enrollment, and online enrollment.
Retirement readiness experience
Nationwide will off you a quick snapshot of your projected retirement income with their retirement readiness experience using a feature known as My Interactive retirement PlannerSM.
In this case, you will receive a printable report and actions that you can consider when improving your retirement plan.
Customized policies
The company understands that its clients face different risks and need varying retirement plans. That is why the firm offers custom-tailored insurance policies with endorsements designed to align with your specific needs.
Sales and marketing
Nationwide has managed to accumulate more than 30,000 associates throughout the United States. The associates make it easier for clients to get an office near them easily.
Also, Nationwide provides products throughout the 50 states of the US. Apart from its headquarters in Columbus, the firm other extensive offices in Arizona, Scottsdale, Texas, San Antonio, Pennsylvania, Harleysville, Lowa, Des Moines, California, and Brea.
Personal customer service
When you join Nationwide, you can enjoy online customer services through the best network of Nationwide agents or over the phone.
If you have any concerns or questions, customer support will respond to them within the shortest time possible.
Payment options
The firm provides flexible billing options that it has designed to align with your schedule.
For instance, you can pay your insurance premiums through mail, credit or debit card, check, phone or have it deducted automatically from your checkout account.
Solid financial ranking
Nationwide has more than $161 billion in statutory assets, making it one of the largest insurers in the world.
The firm's business diversity, mutual heritage, and operating structure make it a strong foundation for a stable company.
Good value
The business insurance products of the company are appropriately priced to offer you the best value for your finances. If you become a long-term policyholder, you can access discounts for most of the policies provided by Nationwide.
👎 Cons of investing with Nationwide
Most of the customers complain about the failure of the firm to offer a rideshare rider. That means clients who take part with Lyft or Uber cannot receive protection while they work.
Recently, some customers have reported that the company was involved in a lawsuit because it failed to honor its policies. Also, customers have claimed that the firm offers higher policy charges than what the competitors offer.
Nationwide is one the best choice for insurance coverage. It is one of the largest insurers in the US, and it offers several coverage options which can fit your retirement goals and needs.
Most importantly, the firm has continued to provide its services for almost 100 years and has received the highest possible professional ratings. However, it does not mean that it best life insurance firm for all people.
In particular, the firm has its drawbacks that can include pricing. The best way you can shop for retirement plan coverage is by working with an agency that offers you more than one option.
For instance, Nationwide is the best insurance provider which offers several retirement savings options for you. That enables the firm to fit its clients with the best coverage based on their needs.
