What are the top 10 long-term care insurance companies?
Below is a list of our choices for the top 10 long-term care insurance providers. These insurers were chosen for their financial strength, the quality and flexibility of the plans they offer, and their history and reputation within the industry. Keep in mind that every company has different strengths and weaknesses in details of their policies and in how they price things. It really does pay to shop around!
1) Mutual of Omaha
Mutual of Omaha’s long-term care policies are some of the most flexible on the market and offer many great features, leading Reviews.com to rate them as the best company for robust LTC coverage. Their elimination periods are measured in calendar days rather than service days, meaning that enrollees receive benefits sooner and don’t have to fuss with a lot of receipts. They also offer a cash alternative payout which allows you to receive a portion of your policy’s maximum monthly benefit even if you have few, if any, qualified healthcare expenses that month. There is a zero-day waiting period for in-home care, and they are one of the few insurers to cover care received from independent home caregivers. Last but certainly not least, Mutual of Omaha’s pricing is competitive and their premiums are more stable than those of many other insurers.
Transamerica is a leader in the long-term care insurance industry and was rated the best choice for affordable long-term care insurance by Reviews.com. Transamerica offers a cash alternative payout which, while not as strong as Mutual of Omaha’s, is still a great incentive. They also offer smaller total benefit amounts, which is great for customers who are looking for a less expensive policy. Additionally, Transamerica has no yearly caps and uses a flexible “pool of money” model to define benefits, allowing policyholders to withdraw greater or lesser amounts of benefits according to their needs rather than receiving a set amount per unit of time. Their policies also are highly customizable, and customers can choose from a range of elimination periods, maximum daily benefits, and benefit approaches. Transamerica’s policies also offer a zero-day waiting period for home care.
MassMutual is a leading national insurance carrier offering a wide range of products. A combination of the company’s phenomenal financial strength, coverage of independent home caregivers, and the remarkably long benefit period it offers led Reviews.com to rank it the top choice for those looking for extended long-term care coverage. MassMutual also offers a wide range of daily benefit options to choose from. They enjoy excellent financial strength ratings from A.M. Best, Fitch, Standard & Poor’s, and Moody’s Investors Service.
4) Northwestern Mutual
Northwestern Mutual offers a comprehensive list of plans and benefits which are among the best available on the market today. Their policies also include automatic inflation protection at 3, 4, or 5%. Above all, though, the company is committed to steady, lasting value. While they did have to raise their rates recently, Northwestern had previously gone nearly two decades without any price jumps for existing policies – something that is nearly unheard of in today’s long-term care insurance market.
5) New York Life
America’s largest mutual life insurance company, New York Life has the highest possible ratings for financial strength from A.M. Best, Fitch, Standard & Poor’s, and Moody’s Investors Service. They also have the distinction of offering the only long-term care insurance plan currently endorsed by AARP. New York Life offers a wide variety of riders and inflation protection options to help you customize your policy in the way that best suits your needs and budget. Additionally, their NYL Secure Care policy includes dividend eligibility and access to a care planner at no extra cost.
One of the companies that pioneered long-term care insurance more than 40 years ago, Genworth remains a leader in the industry, serving more than 1.3 million Americans. Genworth’s policies cover a wide variety of care settings and services, including in-home care, assisted living facilities, and nursing homes. Notable features available on their policies include shared care, spousal survivorship, nonforfeiture, alternate care, waiver of premium, and home modifications.
7) Minnesota Life/Securian
Part of Securian Financial Group, Minnesota Life offers a hybrid life insurance and long-term care policy. What sets this particular policy apart from other hybrids is that it is a traditional indemnity policy. Most hybrid life/LTC policies are reimbursement policies, which require you to submit documentation for all of your long-term care expenses before you can receive your monthly benefit. A traditional indemnity policy like Minnesota Life’s is different – it allows you to receive your benefit even with documentation for just a small portion of your expenses or even just documentation of informal care. This means a lot less paperwork, time, and worry on the part of the person making the claims. There are very few traditional indemnity LTC policies on the market today, and Minnesota Life’s is by far the most competitive.
8) State Life
State Life, part of OneAmerica, is one of the leaders in hybrid life insurance/long term care insurance policies. One of the things that sets State Life apart from other companies in the LTC insurance industry is its lifetime benefit option. With this option, there are no limits on the number of years that your long-term care expenses are covered or the total amount of long-term care benefits that you can receive. This is great for people with Alzheimer’s, dementia, and other forms of cognitive impairment and is something that is rarely offered these days. State Life also has the only hybrid LTC policy that covers more than one person, making it a great choice for those who have a spouse or sibling who could also use coverage. They are also the only company to offer a policy that accepts funds from qualified retirement accounts. Last but not least, unlike most companies selling hybrid policies, State Life allows enrollees to pay their premiums in installments over many years – even over the rest of one’s life.
9) Lincoln National
Lincoln National offers a universal life insurance policy with an optional long-term care benefit rider backed by their 100+ years’ experience in the insurance industry. Unlike traditional LTC insurance plans, the cost of Lincoln’s MoneyGuard II policy is set from the beginning and will not increase so long as the policyholder pays their premiums on time. Lincoln National Life Insurance has been awarded good ratings and a solid financial outlook from all of the major independent ratings agencies.
Guardian protects more than 6 million people and their families. Their life insurance policies come with the option of adding an Accelerated Death Benefit for Long Term Care Services Rider, which allows enrollees to draw from their death benefit to pay for long-term care. Guardian has received great financial strength scores from all of the major independent ratings agencies.
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