Long-Term Care Insurance

Best Guide To The Best Long-Term Care Insurance

Many adults require long-term care insurance as they age. Almost 70% of people who turn 65 today will require long-term care support at some point in their lives. The cost of long-term care may be high, but purchasing LTC  insurance can lower that expense.

Maintaining your independence and being able to afford quality care are made possible by long-term care insurance. It also lessens the financial and emotional stress that a long-term care event may place on your family.

Although considering issues like long-term care insurance is never simple, it is always best to be ready. Assess your needs to know if your current insurance will cover long-term expenses like in-home healthcare, nursing home bills, and adult daycare before deciding whether you need long-term care insurance.

What is Long-Term Care Insurance?

Long-term care Insurance is the assistance required when a person cannot take care of themselves because of a chronic illness, a physical injury, a cognitive (mental) impairment, or frailty.

Also read: What Type of Life Insurance Generates Immediate Cash Value

This type of care is categorized as custodial care rather than skilled, acute, or rehabilitative care by medical experts, health insurance companies, and Medicare.

Long-Term Care Insurance

In long-term care, the main focus is on supervision or assistance with activities of daily living (ADLs) owing to memory loss brought on by Alzheimer’s disease or other types of dementia.

The 3 Types Of Long-Term Care Insurance

You can make the best choices and feel more at ease if you know which LTC policy is best for you and your loved ones. Below are the 3 types of long-term care insurance:

1. Stand-alone long-term care insurance policies

The costs of the care you receive at home, in a nursing home or in a residential care facility may be partially covered by a typical long-term care insurance policy. Stand-alone long-term care insurance policies give you some freedom regarding the type of insurance care you receive and when, where, and for how long.

The monthly benefit amount offered by stand-alone long-term care insurance policies is paid out throughout the benefit period. Benefits are paid out after an elimination period, usually lasting between 30 and 90 days, and benefit durations typically run from two to five years.

To your LTC insurance, you can add riders that expand or change the coverage, such as one that includes inflation protection to stop your benefit from declining in value as the cost of living rises.

2. Hybrid long-term care insurance policies

Hybrid long-term care policies usually combine two types of coverage: a long-term care rider and a life insurance policy or qualifying annuity.

A hybrid LTC insurance  policy has the following benefits:

  • If the policyholder does not use the LTC insurance benefits, the policy will pay a death benefit to your heirs.
  • Throughout the policy, no increase in premium payments is guaranteed.
  • Women may pay less since underwriting requirements are less strict.

3. Long-term care via Continuing Care Retirement Communities

Continuing Care Retirement Communities are home projects allowing you to age in place and offer long-term care if needed. It is one of the three main types of LTC insurance you can get. They provide:

  • Independent life for people who are still capable of doing so.
  • Nursing home care for those who require medical care and round-the-clock supervision.
  • Assisted living for people who require assistance with daily tasks like bathing, dressing, feeding, etc.

You can go from one level of care to another as your needs change without ever leaving the neighborhood. When you first move into one of these communities, you must be independent and healthy.

Usually, a person must be between 55 and 62 to move in. The size of these communities varies. Some of them are large campuses with homes, condos, and apartments. Others could be a single large building in the center of a city.

The Typical Things Long-term Care Policy Covers

LTC insurance covers costs commonly associated with long-term care, whether you want assistance at home or in a facility. Some of the services that LTC insurance often covers are as follows:

  • Hospice care
  • Adult daycare centers
  • Physical therapy
  • Respite care
  • Speech therapy
  • Nursing home care
  • Home health aides
  • Occupational therapy

What Is The Best Age For Long-term Care Insurance?

Most people will need long-term care, but not everyone qualifies for an LTC policy. Healthy adults between 55 and 65 are advised to purchase long-term care insurance.

Best Age For Long-term Care Insurance

You’ll discover that younger people have lower premiums, but if you purchase insurance too soon, you’ll have to pay premiums for a very long time before you can start receiving benefits.

However, it would help if you didn’t put off creating a long-term care strategy for too long, as almost 50% of insurance applications for people aged 70 or older were turned down.

How Much Does Long-Term Care Insurance Cost?

The AALTCI claims that the average cost of LTC insurance for a 55-year-old male is $1,700 annually, while the average cost for a 55-year-old female is $2,675 annually.

Although LTC insurance may be costly, it may be worth the cost when considering the prices of standard long-term care services.

5 Best Long-Term Care Insurance Companies

1. Mutual of Omaha

Long-term insurance to accidental death insurance is among the insurance products that Mutual of Omaha offers. Due to its late issue age for LTC policies, Mutual of Omaha is the preferred option for many older adults.

Older people can protect their savings and retirement assets with the assistance of Mutual of Omaha, a reliable and secure insurance company with over a century of experience.

However, one drawback is that its traditional long-term insurance policy does not include partner benefits like a survivorship benefit or a joint waiver of premium. It would help to upgrade to the MutualCare Custom Solution to get extra partner advantages.

2. New York Life

New York Life is the top choice for the most financially stable long-term care insurance and one of the oldest mutual insurance companies in the country with excellent financial ratings.

It is the third-highest of any insurance provider, regardless of type. Long-term care insurance is available from New York Life in two forms: traditional stand-alone and long-term care and life insurance combination policies.

The range of maximum daily rewards is $50 to $400 per day, and the waiting period is 90 to 180 days. Two, three, five, or seven years are the options for the benefit period.

3. Nationwide

 Nationwide is one of the biggest insurers in the country. Nationwide was named among the top companies for customer satisfaction in J.D. Power’s 2021 U.S. Life Insurance Study.

Customers who want to invest in financially secure products benefit from Nationwide’s reputation as a well-known national insurer by adding a layer of assurance.

Nationwide offers universal life insurance plans with two long-term care services: as an LTC rider and as a hybrid policy called CareMatters, which includes life insurance and LTC coverage. Nationwide policies have some practical benefits.

For starters, you are not required to submit monthly receipts and bills to obtain benefits under its CareMatters program. Your benefits may also be used to cover the cost of unpaid care provided by relatives or other informal caregivers.

4. GoldenCare Insurance

GoldenCare, in its capacity as an online insurance broker, collaborates with several of the most well-known companies in the industry to assist clients in identifying the best solutions for their long-term care needs. In addition to the National Guardian Life Insurance Company, it also collaborates with Transamerica, Thrivent, Mutual of Omaha, and Aetna.

The company pairs clients with a long-term care specialist who will collaborate with them on their care plan and direct them toward the insurer that best suits their situation.

5. Pacific life

 Pacific Life offers hybrid life insurance plans with long-term care coverage. Long-term care benefits are included in the universal life insurance policy known as the Pacific PremierCare Advantage.

With a choice of two to eight-year benefit durations and an inflation benefit to safeguard your long-term care, it offers death benefits that are paid out to beneficiaries.

Additionally, Pacific Life provides a terminal illness benefit that, if you are diagnosed with a terminal illness, allows you to prepay up to 75% of the policy’s death benefit, up to a maximum of $500,000, if necessary.

The Biggest Drawbacks Of Long-Term Care Insurance

The following are the biggest drawbacks of long term care insurance

  • It is costly.
  • The cost of long-term care insurance is uncertain and may increase.
  • You might pay premiums for years without ever using the insurance.
  • Qualifying might be challenging


Purchasing long-term care insurance is an excellent decision to prepare for what could be a significant expense later in life. Nowadays, especially with medical advancements resulting in people living longer, many people need assistance taking care of themselves as they age. LTC insurance provides more alternatives and flexibility than most public assistance programs, like Medicaid.

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