Best Long-term Care Insurance Companies 2024

Best long-term care insurance companies are those that offer comprehensive coverage for individuals who require extended care services due to age, illness, or disability. With so many options available in the market, it can be overwhelming to choose the right provider. Therefore, it’s important to do your research and compare policies and features to select a plan that meets your specific needs and budget.

What Is Long-Term Care Insurance?

Long-term care insurance is a type of insurance policy that is designed to cover the costs associated with long-term care services. These services may include adult day care, in-home care, assisted living facilities, nursing homes, and hospice care. Best long-term care insurance companies provides financial protection and peace of mind to individuals who may require assistance with activities of daily living (ADLs), such as bathing, dressing, eating, and mobility. 

This type of insurance can help alleviate the financial burden that often comes with long-term care, as the costs can be substantial and may not always be covered by traditional health insurance or Medicare. Long-term care insurance policies vary in terms of coverage, benefits, and premiums, so it’s important to carefully consider your needs and options when selecting a policy.

Types of Long-Term Care Insurance

There are several types of long-term care insurance available:

1. Stand-alone long-term care insurance policy:

This type of coverage specifically provides long-term care insurance. It allows you to add an inflation rider that increases benefits over time, but this may also increase the cost of the policy.

2. Linked benefit life insurance:

Also known as a hybrid life insurance policy, this combines life insurance coverage with long-term care insurance. If you use the policy for long-term care services, it will reduce the death benefit. However, if you don’t need long-term care, your survivors will receive the full death benefit upon your passing.

3. Life insurance policy with LTC rider:

With this option, you can purchase a life insurance policy that includes a long-term care rider. While these riders may not offer as much coverage as a hybrid policy, they are often more affordable.

4. Critical illness insurance:

Critical illness insurance can serve as a means to pay for long-term care if you are diagnosed with a specific illness listed in the policy, such as cancer or a heart attack. These policies typically pay a lump sum amount, but they do not continue to provide coverage over an extended period like dedicated long-term care insurance does. As a result, they offer more limited coverage compared to other options.

It’s important to thoroughly research and compare these different types of  the best long-term care insurance companies to determine the option that best suits your needs and financial situation.

How Does Long-Term Care Insurance Work?

Long-Term Care Insurance operates based on specific triggers outlined in the policy, and benefits become accessible when these triggers are met. The triggers typically include:

• Assistance with ADLs: A need for help with at least two Activities of Daily Living (ADLs) for a duration of 90 days. ADLs encompass tasks like personal hygiene, dressing, toileting, eating, and transferring (moving from a bed to a chair or wheelchair).
• Cognitive Impairment: Experiencing a cognitive impairment that impacts daily functioning.
• Medical Doctor’s Recommendation: A recommendation from a medical doctor supporting the necessity for long-term care.

Before the benefits kick in, there is often a waiting period known as an elimination period. This waiting period can range from 20 to 100 days before the policy starts covering the costs of long-term care. Once this waiting period concludes, the Best long-term care insurance companies begin covering the associated expenses.

The duration of the Long-Term Care benefits varies from policy to policy. Some policies only cover qualifying expenses for a limited number of years or until a maximum benefit limit is reached. In contrast, others may provide coverage for the individual’s lifetime.

The Best Long term Insurance Companies

1. Nationwide

PROS:

1. Offers universal and variable universal life insurance policies with a long-term care (LTC) rider, providing more flexibility and options for policyholders.
2. Provides inflation protection riders, which can help policy benefits keep pace with rising long-term care costs, and offers flexible payment schedules to accommodate different financial situations.
3. Hybrid policies offer the advantage of paying cash benefits, allowing policyholders to use the benefits as they see fit for their long-term care needs.
4. Allows coverage for unlicensed caregivers, providing more choices for receiving care.

CONS:

1. Does not offer stand-alone long-term care policies, limiting the options for individuals who solely want dedicated long-term care coverage.
2. Policies with a shared pool of benefits are not available in New York or California, potentially limiting coverage options for residents in these states.
3. The LTC rider is not available in Montana or U.S. territories, which may restrict access to long-term care benefits for individuals in these areas.

2. Mutual of Omaha

PROS:

1. Offers three types of discounts to policyholders, providing additional savings opportunities.
2. Provides care coordination services with LTC policies, ensuring more comprehensive care for policyholders.
3. Offers the option to change your preferred benefit payment method, allowing for more flexibility and customization of your policy.
4. Offers several optional benefits, such as return of premium and inflation protection, which can provide additional coverage and protection.

CONS:

1. Couples discount is only available if policyholders are married or living together for a minimum of 3 years, which may exclude some individuals in long-term commitments.
2. Premiums are likely to increase over time, which could make coverage more costly in the long run.

3. New York Life

PROS:

1. Some policies offered by the company can cover 100% of care costs, providing comprehensive coverage for policyholders.
2. Premiums on stand-alone policies are guaranteed for the first three years, giving policyholders peace of mind about their premiums.
3. Offers a return of premium on linked-benefit policies, allowing policyholders to potentially recoup their premium payments if they do not need long-term care.
4. New York Life Secure Care and New York Life My Care policies are eligible for dividends, potentially providing additional financial benefits for policyholders.

CONS:

1. Benefit period options and covered benefits may vary by state, meaning that policy availability and coverage options may differ depending on the state of residence.
2. No online quotes are available at this time, requiring individuals to contact the company directly for policy pricing and information.
3. Asset Flex policies are not eligible for dividends, potentially limiting the financial benefits and returns for policyholders with this specific policy type.

4. Northwestern Mutual

PROS:

1. The option to waive premiums is available once you need care, even if you’re not yet receiving benefits. This provides financial relief during the time when care is needed.
2. Long-term care policies offered by the company are “participating” policies, which means they are eligible for dividends. This can potentially provide additional financial benefits to policyholders.
3. Up to 20% of the maximum monthly benefit can be used for caregiver education and training. This allows policyholders to invest in the training of their caregivers for better quality of care.

CONS:

1. No online quotes are available at this time, requiring individuals to contact the company directly for policy pricing and information.
2. The company offers only two benefit periods: three or six years. This limited range of options may not meet the specific needs or preferences of some individuals.
3. The coverage provided by the policy is limited to care services rendered by plan-approved providers. This may limit the choice and flexibility of care providers for policyholders.

5. Thrivent Financial

PROS:

1. Thrivent Financial is a member-owned organization that operates as a not-for-profit, which means their focus is on the interests and well-being of their members.
2. They offer a wide range of financial services and products, including insurance, investments, and retirement planning, providing individuals with comprehensive solutions for their financial needs.
3. Thrivent Financial has a strong commitment to social responsibility and encourages members to make a positive impact on their communities through volunteer work and donations.
4. They have consistently received high ratings from financial rating agencies such as A.M. Best, indicating their financial stability and ability to fulfill their obligations to policyholders and clients.

CONS:

1. As a membership-based organization, Thrivent Financial may have eligibility requirements or restrictions in terms of who can become a member, which may limit its accessibility to some individuals.
2. While Thrivent Financial offers a wide range of financial services, their product offerings may not be as extensive as those of larger financial institutions or insurance companies.
3. Some individuals may prefer to work with a purely independent financial advisor rather than a member-owned organization, as they may have more flexibility and access to a broader range of products and services.