Guide To Long Term Healthcare Insurance

Comprehensive Guide To Long Term Healthcare Insurance

Like most individuals, you likely won’t think about long-term healthcare insurance until you need it.

Don’t let yourself become one of them. Instead, study the many long term healthcare insurance companies and select the one that best suits your needs.

Regardless of your age or health condition, long term healthcare insurance can be a great asset.

The comprehensive guide will cover the basics of long-term healthcare insurance and how it can enable you to safeguard your resources.

Also read: Top 10 Best Life Insurance Companies in Canada

What is long-term healthcare?

When it comes to risk management, insurance is a vital tool. Health insurance will cover the medical costs if you get sick or injured.

long term health care insurance
long term health care insurance

But how can you lessen the substantial financial risk posed by the need for long-term care services, whether in a nursing home or at home?

Long-term healthcare includes all the help and support you need if you ever get a chronic illness that renders you unable to care for yourself for a prolonged period.

Long-term healthcare might be provided in your home or a nursing home.

Although older people utilize long-term healthcare services more frequently, someone who has been in an accident or developed a chronic condition of any age may also require long-term care.

How Much Does Long term Healthcare Insurance Cost?

The price of long-term healthcare insurance varies greatly, but an average-aged man will pay over $1,700 per year for a three-year coverage that insures $164,000 in medical expenses.

The cost of the same coverage for an average-aged woman is $2,675 yearly. Although some states permit savings of up to 30%, others limit them to about 15%.

Usually, mixed policies cost thousands of dollars more than conventional ones. It is so that you aren’t purchasing life insurance that you might not even need in addition to your long-term healthcare insurance.

Generally speaking, it is advised that you only invest 5–10% of your yearly income on long-term healthcare insurance.

Best Long-term healthcare insurance companies

1. Lincoln Financial Group

In our analysis of no-waiting period policies,  Lincoln Financial Group company outperforms its competition.

Its MoneyGuard II and MoneyGuard III policies have zero-day elimination periods for obtaining coverage for assisted living establishments and nursing homes.

Before giving coverage for such services, other companies often need a minimum of 90 days.

The premiums for MoneyGuard II, a universal life insurance policy with an alternative long-term healthcare benefit rider, are fixed from the beginning.

There is no waiting period, and customers can receive tax-free reimbursements for eligible LTC charges.

MoneyGuard III, the company’s other no-elimination-period plan, has several noteworthy features, such as a couple’s discount, a variety of inflation protection options, and a death benefit that ranges from $50,000 to $500,000.

In the case of a terminally life-threatening disease, the company’s terminal illness coverage permits a single claim for 25% to 75% of the death profit up to $250,000.


  • No waiting period
  • Solid financial ratings
  • International benefits


  • No online quotes
  • You must contact the agent for price data
  • A six-year wait time for the refund of premium

Also read: The Difference Between Home Insurance And Home Warranties

2. Brighthouse Financial

AM Best has rated Brighthouse Financial an A (Excellent), with over two million customers.

Customers can earn a payout for their beneficiaries or long-term healthcare coverage through the company’s hybrid life insurance and long-term health care insurance plan.

The process of integrating this plan into market indices gives clients the possibility to increase their long-term healthcare benefits while also providing built-in security from economic downturns and the flexibility to seal in the value at any moment.

It is a hassle-free alternative for obtaining benefit payments because the plan doesn’t need customers to present receipts or track expenses; hence, it earns our recommendation as the best for simple benefits payout.

Customers may also take loans against their insurance policy at any time and return their policies for their full cash value on their own time.

A payout of 50% of the policy’s value, up to a maximum of $250,000, is also available from Brighthouse Financial as an assured death and life-threatening illness benefit.

There is an extinction period, as there is with many other plans. It is a 90-day waiting period.

Customers between the ages of 40 and 75 do not need to undergo any tests or examinations, and no medical records are requested unless there is a serious medical problem.


  • Receipts are not requested
  • Excellent financial ratings


  • No online quotes
  • Has only one plan

3. New York life

Regarding general financial stability, New York Life is among the best long-term healthcare insurance companies.

By the best rating agencies, it has obtained the best ratings for financial stability. New York Life provides two varieties of long-term healthcare insurance.

A greater life insurance benefit or long-term healthcare (if necessary) are options offered by its dual long-term healthcare insurance plan.

The costs associated with various options, such as care received at a facility, at home, or from a family member, are covered in their long-term healthcare insurance.

A combined policy from New York Life offers a death benefit. A refund is enabled in the rare scenario that long-term healthcare is not necessary.

Additional benefits include fixed premiums that won’t change over time.

If you want the most long-term healthcare coverage with the widest selection of care options that will cover your assets and earnings during retirement, the company’s traditional long-term healthcare plan is a superior option.


  • The plan includes LTC inflation protection
  • Offers a death benefit


  • No online quotes
  • A waiting period for every policy

4. Mutual of Omaha

The Mutual of Omaha provides only one long-term health care plan.

It has features that are pre-installed and can be adjusted as required. Customers can obtain the following as part of the basic plan:

  • Cash benefits rather than being compensated for actual expenses.
  • Having access to a health care coordinator who can evaluate your requirements, create a personal care plan, and schedule services as necessary.
  • Premium waivers, which relieve clients of their obligation to pay their monthly premiums while getting LTC.
  • Protection for potential future alternative medical treatments.

The company distinguishes itself with its two discounts, available to couples who have lived together for at least three years and are legally married, in a civil union, or a committed relationship.

Couples who sign up for Mutual of Omaha together will save 15% on their policy. A 5% discount is applied when just one partner in a committed relationship has a policy with the company.

Irrespective of their relationship status, customers can receive a third discount for being in good health; qualified customers can reduce their costs by 15%.


  • Two premium discounts
  • Excellent financial ratings


  • Its cost of inflation protection is high
  • Premium refunds have an additional cost
  • Only one long-term health care plan

Also read: Why Does Insurance Often Provide Peace Of Mind?

Is long-term healthcare insurance worth it?

Yes, long-term healthcare insurance is worth it.

When the costs of assisted living or in-home care start to mount, monthly premiums are compensated.

healthcare insurance

Additionally, your family won’t have to take responsibility for everything, including dealing with the payment, which is one issue you shouldn’t skimp on.

And you’ll have a better quality of life than you would if you were always looking for ways to save money.

Is long-term health care insurance tax deductible?

Yes, it depends on your age and the amount of money you pay. Premiums may serve as medical costs for tax deductions.

In general, the percentage of your insurance premiums that surpass 7.5% of your adjusted income may be deducted.

Best Alternatives to long-term healthcare insurance

• Short-term recovery care

The benefit period for short-term recovery care coverage is less than a year.

In addition to completing requirements based on daily living activities, the policy may stipulate that you be admitted to a hospital before moving into a nursing facility.

Compared to other long-term healthcare policies, premiums are low. Policies for short-term rehabilitation care are not tax-qualified. In comparison to conventional long-term healthcare, they also provide fewer consumer protections.

Before purchasing a short-term policy, be aware of your rights to renew it, how it handles pre-existing illnesses, or if the policy offers inflation protection or a nonforfeiture bonus.

• Life agreement

Some companies purchase life insurance coverage. They often contribute a portion of the death benefit of the insurance. If you sell your life insurance policy, the new owner will be in charge of paying the premiums and will be entitled to the death benefit should you pass away.

• Reverse mortgages

You can utilize the money from a reverse mortgage if you own a property to pay for long-term care. Reverse mortgages are outstanding home loans available to customers over 62 and older.

They enable you to generate income from a portion of the equity you have accrued in your house without selling it or obtaining a second mortgage.

Until your home ceases to be your primary residence, you are not required to make loan payments.

Final Thought

Selecting the best long-term healthcare insurance plan can be challenging. It would be necessary to begin by researching several options and contrasting the advantages, coverage, and long-term healthcare charges.

When deciding, consider your age, healthcare services, style of living, and budget.

Then, make sure you comprehend your chosen coverage by consulting a knowledgeable insurance agent or financial counselor and asking them questions.

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