Nationwide Life Insurance Review: Compare Coverage and Rates

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Nationwide Insurance has served customers since 1925 with various products. Life insurance, homeowners insurance, and car insurance are just a few available options. Nationwide has capitalized on online quoting and easy auto policy management online. However, it aims to bundle insurance for discounts for loyal customers.

Unfortunately, bargain insurance doesn’t always have the same appeal for life insurance customers compared to auto insurance. So how does Nationwide stack up against its competitors?

Life Insurance Plans from Nationwide Insurance

Most life insurance policies fall into two categories: term and whole. Term life insurance insures you for a set period, usually 10, 20, or 30 years. Whole policies protect you for the duration of your life for a set fee broken up into monthly or annual payments. Some companies also offer one-time payment policies.

The myth of cheap term life insurance is common. However, customers often find whole life insurance more affordable, especially in the long run. Nationwide offers the two primary life insurance products and a few others.

Term Life Insurance

Term life insurance policies protect the insured for a set period, usually 10, 20, or 30 years. It is meant to replace the lost income of the deceased. These policies are, no surprise, most commonly sold as protection during your prime working years.

Nationwide’s term policy offers 10, 15, 20, and 30-year policies, depending on age and gender. At specific points, you can apply to convert your policy. But you should check your policy documents to see what restrictions you might face and when to complete your application.

Many life insurance companies have guaranteed conversion riders, which protect you if you want to avoid rejection later. But riders do not guarantee an affordable rate or sufficient coverage at that time. Recently, Nationwide added living benefits to its term policies. In short, if you develop a terminal illness during the preset term, you can withdraw part of your policy value to pay for medical bills, prepaid funeral costs, housing, and other costs that may come up. All claims have to be filed within the preset term.

Term policy quotes are available online. The site will generate a quote in seconds, but buyers may need a medical exam to confirm pricing.

Universal Life Insurance

Universal policies offer a permanent life insurance option with flexible payment options, low premiums, plan flexibility, and a guaranteed death benefit. Depending on the policy, some allow buyers to adjust payments, and the death benefit increases with further payments.

Nationwide universal policies allow policyholders to borrow against the plan’s cash value. So combined with its affordable pricing, it’s accessible to people from all walks of life. It’s great for someone who wants to build generational wealth or those who want to pass it along via a trust or other organized estate.

Nationwide’s universal life insurance policy has a $100,000 minimum. We recommend getting a quote, as you might be surprised by how affordable premiums can be. Nationwide policies don’t offer the aggressive growth you might find with companies like New York Life, Columbus, or MassMutual. But it makes some policies more accessible to the average consumer.

Whole Life Insurance

This plan option protects you for the duration of your life, unlike the set period offered by term policies. This life insurance option has set premiums, consistent growth, and a tax-free death benefit. With this offering, you’ll get living benefits such as chronic illness benefits, critical illness benefits, and terminal illness benefits.

Nationwide also attaches optional accidental death benefits and children’s term insurance riders for interested buyers. Once your child reaches adulthood, they can get an individual life insurance policy. This policy also has a $100,000 minimum.

Variable Universal Life

This life insurance option combines universal life insurance with an investment component. This gives policyholders additional benefits, from increased growth potential to supplemental retirement income.

There is some risk of loss with variable universal life as it invests in stocks and other variable investment vehicles. Some policies offer protection from loss, but returns are also limited. This policy is excellent for insureds who have an eye on their investments but still want a death benefit option for loved ones. It also comes with a $100,000 minimum.

Additional Coverage Options from Nationwide

Want more coverage? Nationwide also offers several riders. If you’re unsure or want guidance, an agent can clarify and answer questions about riders and overall coverage.

Nationwide CareMatters

CareMatters can be attached to Nationwide universal policies. CareMatters will pay a professional nurse, family member, or friend if you need long-term care later in life. This helps alleviate the financial burden for caregivers who might otherwise be unable to provide sufficient care due to other work obligations.

The site also states that approved policyholders don’t have to worry about submitting receipts every month.

Living Benefits

Nationwide has three living benefits riders: its chronic illness rider, critical illness rider, and terminal illness rider. The idea behind all three is if you face an unexpected debilitating illness, your beneficiaries don’t have to wait for funds to become available.

You can withdraw a specific portion of your policy value to pay for medical care, housing costs, and much more. Some buyers also use funds to pay for prepaid funeral arrangements to alleviate some stress immediately after their passing.

Unfortunately, the settlement of even a small estate can take months or even years, according to Empathy’s Cost of Dying report, with some estimates suggesting loved ones could spend upwards of $17,000 before the estate is settled (and money is accessible). As a result, prepaying and, by extension, preplanning funeral arrangements can lift a heavy burden.

How Much Does Life Insurance from Nationwide Cost?

Nationwide only provides term life insurance quotes online. All other quotes must be done over the phone. Our quote for a 38-year-old woman in good health with no tobacco usage came back at around $15 monthly for a 30-year term. Its term policies are accessible to many buyers, pending a medical exam.

Its whole and universal policies are similarly highly accessible in terms of price. However, we cannot speak to its underwriting and the likelihood it will issue policies to higher-risk buyers. Getting a quote online is more accessible, but we must caution against shortcuts in life insurance.

Unfortunately, the internet is full of misinformation. Sometimes this can even leave shoppers asking should I buy life insurance at all? An experienced life insurance agent can keep you on track to find the right fit, which often means customizing your plan with individual riders. More importantly, more permanent options may not be as expensive as you think.

How Do I File A Claim with Nationwide?

Filing a life insurance claim with Nationwide is reasonably straightforward. Visit the claims website or call 1-800-848-6331. When filing a life insurance claim, you’ll likely need to provide a copy of the death certificate. Your funeral director can help you acquire this.

Who Are The Ideal Customers For Nationwide?

If you’re looking for a well-known company with various insurance products, good customer service, and insurance bundling, Nationwide is a solid choice. However, it doesn’t offer complex multi-million dollar investment life insurance policies. Realistically, many buyers aren’t necessarily looking for that kind of product.

They want something to make their passing easier and pay for standard funeral and other costs. Many family members take on debt with sometimes predatory loans to pay for funerals and estate settlements because estates don’t settle quickly.

With $100,000 minimums, Nationwide policies are a bit more robust than many funeral policies. That said, the ideal customer for Nationwide is an average-income earner looking for budget-friendly options with generous returns.

Compare Nationwide vs. Progressive

Like Nationwide, Progressive is another of the largest insurance companies in the country and is well-known within the industry. Progressive’s life insurance offerings, however, are slightly different. It sells whole, term, short-term, and final expense policies.

Progressive’s options seem slightly cheaper, though both companies score similarly in customer service and satisfaction. More importantly, Progressive fills a gap with its final expense policy with no medical exam.

At $53 per month, Progressive’s no medical exam life insurance policy is a bit more expensive than some whole or universal life insurance options. But it requires less paperwork, and the expectation is buyers will not live as long or make as many payments. For many elderly or higher-risk buyers, leaving a final expense policy is far better than no life insurance.

If you’re looking for a one-stop shop for all your insurance needs, both companies offer various insurance products for budget-sensitive to middle-income buyers.

Compare Nationwide vs. State Farm

State Farm offers both permanent and term life insurance products. Unlike Nationwide, all policies must be quoted through a licensed State Farm agent. While it has a comprehensive suite of policies and riders, it operates under two company names depending on where you’re buying.

Most customers will buy from State Farm Life Insurance Company. New York and Wisconsin customers will buy from State Farm Life and Accident Assurance Company. Its website suggests Massachusetts buyers cannot purchase life insurance from State Farm.

Unlike Nationwide, State Farm also offers a final expense policy for buyers who want to skip a medical exam. However, benefits top out at $10,000. Its policies are sold primarily to existing State Farm customers looking to bundle insurance costs.

Depending on the policy, state, and buyer, State Farm might be cheaper than Nationwide. State Farm agents are highly trained to include all available discounts and otherwise quote aggressively.

Methodology

We compared companies based on coverage options, customer satisfaction, and extra offerings such as additional riders and policies. Of course, rates also came into play when comparing competitors, though this can get a bit murky, as premiums vary greatly depending on age, gender, and general health.

Our insurance rating methodology accounts for the most critical factors for long-term performance and customer satisfaction. This combined allows us to issue objective ratings for each insurance company.

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