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6 Best Long-Term Care Insurance Companies
By Kat Tretina MONEY RESEARCH COLLECTIVE
Find and compare quotes from top insurers
Varies by company
Varies by company
Varies by company
Rated A++ by credit rating agency A.M. Best
Benefit Period: 2, 3,5, or 7 years
$50-400 per day
90 or 180 days
30% discount available for couples sharing a policy
Benefit Period: 1-5 years • Pool of Money: $50,000-500,000
$1,500-10,000 per month
0, 30, 60 90, 180 or 365 calendar days
Major insurer with top marks for customer service
2–7 years
Varies
90 days
Option available to waive premiums once you become eligible for benefits
Benefit Period: 3 or 6 years
$1,500-12,000 per month in $100 increments
6, 12, 25 or 52 weeks
Although no one wants to think about aging and declining health, it’s inevitable. According to the Administration for Community Living and the Administration on Aging, about 60% of people in the U.S. will need assistance, for at least a time, with everyday tasks like getting dressed or preparing meals.
Long-term care services, which can include care in a nursing home facility or in your own home, can be incredibly expensive. On average, it costs $34,210 to have a home health aide visit five days a week, and $89,297 to have a semi-private room in a nursing home.
Long-term care insurance pays for or reimburses you for your long-term care costs. It can provide essential protection as you age and require assistance.
If you’re shopping for a long-term care insurance policy, these are our choices for the best long-term care insurers of 2022.
Our Top Picks for Best Long-Term Care Insurance Companies
- GoldenCare: Best Insurance Marketplace
- New York Life: Best for Financial Stability
- Mutual of Omaha: Best for Premium Discounts
- Nationwide: Best Long-Term Care Rider
- Northwestern Mutual: Best for Additional Benefits
- MassMutual: Best for Coverage Outside the United States
Best Long-Term Care Insurance Reviews
Best Insurance Marketplace: GoldenCare
Why we chose it: GoldenCare is an insurance broker that connects customers with insurers that offer long-term care insurance nationwide. By submitting your information, you can get quotes from top insurers, and you can also purchase other forms of insurance.
- Partner insurers are some of the top companies in the market
- Options available for high-risk or individuals with poor health
- Offers other products, including life insurance, accident insurance and Medicare Supplement coverage
- Very little information about available policies online
- Must contact an agent for details and quotes
GoldenCare isn’t an insurance company; instead, it’s an insurance broker that connects customers to leading insurance providers. For long-term care insurance, GoldenCare’s partner lenders include Mutual of Omaha, NGL and Thrivent.
It has multiple options for coverage, including policies for high-risk individuals or those with a history of poor health. It also has a range of other products, including life, accident and Medicare Supplement insurance.
There is limited information about available policies online, and you have to work with an agent to get coverage. However, a long-term care specialist will be assigned to you and will help you through every stage of the application process.
Best for Financial Stability: New York Life
Why we chose it: New York Life stands out for its financial stability. It has an A++ (superior) rating — the highest-possible rating — from AM Best, a credit rating agency that focuses on evaluating insurance companies. In AM Best’s statement on the rating, it noted New York Life’s strong operating performance and business profile.
- Highest-possible financial strength rating
- Several types of policies and multiple discounts available
- Quotes only available through an agent
- Limited policy information online
When it comes to life insurance and long-term care coverage, you need to know that the insurance company you choose is financially sound — and likely to stay that way for decades to come. New York Life has top financial strength ratings from AM Best. And according to S&P Global, New York Life is one of the five strongest companies in North America in terms of financial strength and future outlook.
New York Life offers multiple long-term care products, including standalone coverage and life/long-term care hybrid policies. However, there is limited information about its policies on its website, so you will have to contact an agent for details and rates.
Best for Premium Discounts: Mutual of Omaha
Why we chose it: Long-term care insurance can be expensive. But with Mutual of Omaha, you can qualify for several discounts that can significantly lower your rates. In fact, taking advantage of its discount programs can help you save 30% on premiums.
- Multiple discounts and additional benefits available
- Coverage available to individuals as young as 30
- Must contact an agent for policy details and quotes
- Less-than-stellar customer reviews
- Partner discount only available if you live together for at least three years first
Mutual of Omaha is a highly-rated company that also offers robust discounts, including:
- 15% partner issue discount when you and your partner are issued under the same policy form
- 5% savings if you’re married but your partner doesn’t purchase a policy
- 15% preferred discount if you’re in good health
Mutual of Omaha’s long-term care policies are sold as standalone products, and coverage is available to people as young as 30. It also allows you to customize your policy with optional benefits like inflation protection, monthly home health care benefits, spouse waiver of premium and survivorship benefit, and return of premium.
Like other long-term care insurers, coverage is only available through agents, and the partner discount is only available if you have lived with your partner for at least three years at the time of application.
Best Long-Term Care Rider: Nationwide
Why we chose it: Shopping around for multiple forms of insurance and managing several policies can be confusing. But with Nationwide, you can purchase life insurance and add long-term care coverage as a rider, giving you extensive coverage in a single policy.
- One of the highest-ranked companies in the JD Power study
- Multiple insurance products available for bundled savings
- Available to individuals as young as 21
- Standalone LTC policies not available
- Only available on variable and universal life policies
- Must contact an agent for quotes and to apply
While the other companies on our list offer standalone long-term care policies, Nationwide works differently. It offers long-term care coverage only as a rider on certain life insurance policies. You can only get long-term care coverage if you enroll in a variable or universal life policy; it’s not an optional rider on term or whole life policies.
The advantage of a life insurance policy with long-term care benefits (also called a hybrid policy) is that you can qualify for coverage at a much younger age. With standalone policies, you usually can’t get coverage until you’re 30 or older. But with Nationwide’s life insurance coverage, you can add a long-term care rider as long as you’re at least 21. And, you can purchase other insurance products through Nationwide as well and qualify for multi-policy discounts.
Best for Additional Benefits: Northwestern Mutual
Why we chose it: Beyond the standard coverage included in long-term care policies, Northwestern Mutual offers additional benefits and perks like a caregiver training benefit. Those benefits are not offered by most long-term care insurers and can provide additional protection.
- Caregiver training benefit option equals 20% of the monthly maximum
- Optional survivorship benefit
- 30% spousal discount
- Higher-than-average premiums
- Only two benefit period options
- Only covers care services from providers approved by the plan
Northwestern Mutual is a well-known life insurance company that is highly rated for its financial stability. Its long-term care plans offer additional benefits that other companies don’t provide, such as a caregiver training benefit and respite care. It also has optional benefits, like a survivorship benefit and inflation protection.
The company has several valuable discounts, including a 30% spousal discount if you and your partner qualify for a policy. However, Northwestern Mutual’s long-term care premiums tend to be more expensive than those of other providers, so be sure to compare rates.
Best for Coverage Outside the United States: MassMutual
MassMutual: Best for Coverage Outside the United States
Why we chose it: If you receive long-term care outside of the United States, your care isn’t eligible for coverage from most long-term care insurers. MassMutual is one of the few that will reimburse you for coverage you receive in another country.
- Sells standalone and hybrid long-term care policies
- Coverage available for care received outside of the U.S.
- fOffers multiple discounts
- Maximum benefit period is six years
- Quarterly or monthly payments have additional fees
With most long-term care policies, reimbursement is only provided for care delivered within the U.S. If you are in another country and need long-term care, you’re ineligible for coverage.
By contrast, MassMutual’s long-term care coverage will reimburse you for the eligible cost of care of facility services and home-based services outside the U.S., subject to certain policy limits.
MassMutual sells both standalone long-term care policies and hybrid life/long-term care coverage, allowing you to purchase what’s best for your needs. It offers several discount programs, but keep in mind that you’ll need to pay annually or semi-annually to get the lowest rates; if you opt for quarterly or monthly payments, you’ll have to pay an additional charge.
Long-Term Care Insurance Guide
While no one wants to think about needing a home health aide or having to live in a nursing care facility, it’s a reality many people will face. Long-term care can be prohibitively expensive, and many people are surprised to find that care isn’t covered under Medicare or private insurance.
Long-term care insurance can provide a financial safety net, and gives you the peace of mind that you’ll be able to pay for the care you need as you age without relying solely on family members and loved ones.
What is long-term care insurance?
A long-term care policy is designed for individuals who need help with activities of daily living, such as bathing, dressing, eating and toileting.
Long-term care insurance is a specific type of coverage for long-term care. Previously, it was known as nursing home insurance, but today’s policies cover other forms of care, including home-based services.
Long-term care policies generally cover the following types of care:
- Skilled nursing home care
- Home care, such as services provided by a licensed provider
- Respite care
- Hospice care
- Personal care in your home
- Services provided in an assisted living facility
- Services provided in an adult day care center
- Services provided in other community facilities
Some policies also provide coverage for caregiver or homemaker services, which pays for someone to cook meals, clean or do other chores.
How does long-term care insurance work?
Traditional long-term care insurance policies cover eligible expenses provided at qualifying facilities or by qualifying caregivers. When reviewing policies, there are a few terms you should keep in mind.
- Coverage limits: Coverage usually has a daily, weekly or monthly benefit maximum, as well as an overall maximum benefit limit. For example, a policy may pay up to $100 per day, up to a lifetime maximum of $500,000.
- Elimination period: Your coverage doesn’t start reimbursing you for care right away; long-term care policies usually have elimination or waiting periods — typically 30, 60, 90 or 120 days — where you are solely responsible for your own care before your insurance kicks in.
- Benefit triggers: You must meet certain criteria to use your long-term coverage. These insurance benefit triggers vary by company, but typically require a doctor’s certification that long-term care is critically necessary due to Alzheimer’s, dementia or other physical or cognitive impairments.
- Benefit payments: Long-term care coverage can be paid in one of two ways:
- Indemnity: With the indemnity payment method, the insurance company pays you a set benefit amount each month based on the amount you select when you purchase the policy. You receive this amount regardless of the actual cost of care.
- Reimbursement: If an insurance company pays long-term care policies with a reimbursement method, you are reimbursed for qualifying expenses. They pay for the actual cost of long-term care, up to the daily, weekly or monthly maximums.
How much does long-term care insurance cost?
Long-term care policies are subject to medical underwriting, so your rates are typically based on your age, health, medical history and location. Because women tend to live longer than men, your gender also plays a large role in your premiums; the cost of coverage for women is significantly more expensive.
According to the American Association for Long-Term Care Insurance, the average cost for a policy for a 55-year-old man was $1,700 per year, while the average cost for a 55-year-old woman was $3,141 per year. For married couples, the average cost was $3,050.
Those averages are based on a $164,000 initial policy benefit with a $150 daily benefit and a three-year benefit period.
Is long-term care insurance worth it?
The U.S. Department of Health & Human Services estimated that someone turning 65 today has a 70% chance of needing long-term care in their later years. The cost of long-term care can be staggering, with nursing home care costing $290 per day for a private room.
Long-term care isn’t covered under Medicare or private insurance, only Medicaid will cover long-term services and support. But Medicaid eligibility varies by state and may be subject to federal requirements, such as maximum income thresholds.
Long-term care can rapidly deplete your savings and retirement fund if you do not qualify for a government health insurance program like Medicaid, so long-term care insurance can be a worthwhile investment.
How We Found the Best Long-Term Care Insurance Companies
To choose the best long-term care companies, we evaluated 14 leading insurers that offer long-term care policies or riders based on the following criteria:
- Availability: We looked for companies available in all 50 states and the District of Columbia.
- Monthly and Lifetime Benefit Maximums: Monthly and lifetime benefit maximums vary by company. We found that top insurers have monthly maximums of $12,000 or more, and lifetime maximums of $750,000 or more.
- Financial Strength Ratings: For long-term care insurance, it’s particularly important for a company to be financially sound and able to weather any economic changes. Our choices for the best long-term care insurance companies all had financial strength ratings of A+ (superior) or higher from AM Best.
- Third-Party Ratings: We examined third-party ratings from leading data analytics and consumer intelligence companies like J.D. Power. All of our choices — with the exception of GoldenCare, which was not included in the study — were ranked in the top 10 of J.D. Power’s 2021 U.S. Life Insurance Study, with scores above the industry average for customer satisfaction, product offerings, communication and pricing.
- Additional Benefits: The best long-term care insurance companies offer additional perks and benefits, such as optional riders or discount programs.
Summary of the Best Long-Term Care Insurance Companies of 2022
- GoldenCare: Best Insurance Marketplace
- New York Life: Best for Financial Stability
- Mutual of Omaha: Best for Premium Discounts
- Nationwide: Best Long-Term Care Rider
- Northwestern Mutual: Best for Additional Benefits
- MassMutual: Best for Coverage Outside the United States
If you’re considering a long-term care policy, it pays to get insurance while you’re relatively young and healthy when you can qualify for coverage at a lower rate. Shop around and compare rates and terms from multiple insurers to find the best policy for your needs.
