Author: Amie Clark | 
Expert: Cory Smith | July 26, 2024 |While Mutual of Omaha provides long-term care for people up to age 79, New York Life is a good option for hybrid long-term care and life insurance policies.
July 26, 2024 Author: Amie Clark | Expert: Cory Smith | July 26, 2024 |
With the cost of care at an all-time high, a long-term care (LTC) insurance policy can help you pay for assisted living, nursing homes, or other care — in either your home or a facility. The best LTC insurance providers offer late issue ages, additional riders, discounts for couples, and flexible premium payment options. Some providers even eliminate waiting periods, so you can use your benefits as soon as you pay your first premium. In this list, I’ve broken down the best LTC options — whether you want it as a standalone policy or as a bundle with life insurance. I evaluated them based on their available riders, the company’s financial stability, benefit amounts, and elimination periods that restrict when care begins.
FYI: To learn more about the ins and outs of these policies and how they work, check out my guide to LTC insurance.
Policies Offered: MutualCare Secure Solution, MutualCare Custom Solution
A.M. Best Rating: A+
Monthly Benefit Amount: $1,500 – $10,000
Benefit Period: 2 – 5 years
Elimination Period: 0 – 365 days
Typically, LTC insurance providers will not want to issue policies to people who are too old, as they will want to cash in their benefits before adequate premiums are paid. However, Mutual of Omaha accepts clients up to age 79 — older than I’ve seen from any other provider. If you’ve waited a long time to shop for LTC and are worried you won’t be able to find coverage, Mutual of Omaha could be a great option for you.
Mutual of Omaha boasts a financial rating of A+ from AM Best. It also holds an A1 (stable) and an A+ rating from Moody’s and S&P, respectively, so you can depend on Mutual of Omaha to be around to pay for your care or an optional cash benefit.
That being said, it may not be the best option for unmarried people; married people get a discount of 5 percent, even if their spouse doesn’t sign up with them, or 15 percent if both partners sign up. People in bad health will also miss out on a 15 percent discount, so this is a better provider if you are older, married, and in good health. To learn more about this provider, read my guide to Mutual of Omaha LTC insurance.
Policies Offered: LTC Insurance Policy (traditional), Asset Flex, and NYL Secure Care
A.M. Best Rating: A++ (Superior)
Monthly Benefit Amount: $1,500 – $7,000
Benefit Period: 2 – 7 years
Elimination Period: 90 days
Many people do not want to buy LTC on their own, but instead want to purchase it in a bundle with life insurance. New York Life’s Asset Life plan combines life insurance and LTC insurance — providing coverages of up to $306,000 for LTC and $102,000 for life insurance. And one coverage does not exclude the other. For example, if you use your LTC benefits, your partner could still receive a death benefit.
For a 55-year-old female non-smoker, New York Life offers a one-time premium of $50,000, or installments if the person prefers. New York Life has an A++ rating from AM Best, same as USAA and higher than Mutual of Omaha, Nationwide, and Genworth. However, Moody’s gave it a negative outlook as of Nov. 14, 2023. To learn more about this provider, read my guide to New York Life LTC insurance.
Policies Offered: Nationwide YourLife CareMatters, Long-Term Care Rider
A.M. Best Rating: A+
Monthly Benefit Amount: $2,500 – $20,000
Benefit Period: 2 – 7 years
Elimination Period: 90 days
A linked benefit LTC policy means that it includes a death benefit to your partner along with LTC. Nationwide’s version is called CareMatters, and it guarantees your premiums and death benefits — even if you use your entire LTC benefit. Your premiums, which you’ll pay either at once or in installments, will be linked to a universal life insurance policy, a type of permanent life insurance. Permanent life insurance, as opposed to term life insurance, will last the insured person the remainder of their life; this provides peace of mind that your partner will be financially secure long after you pass.
Premiums are fixed, meaning they won’t change for the life of your policy. If you don’t want to pay all at once, you can either buy annually or monthly for five or 10 years, or annually/monthly up to age 65 or age 100. Like Mutual of Omaha, Nationwide has an A+ rating from AM Best, along with an A+ or stable rating from Moody’s and an A+ rating from S&P. Unfortunately, Nationwide does not provide online quotes like Mutual of Omaha, so to get a quote you’ll need to call an agent directly.
To learn more about Nationwide, read my guide to Nationwide LTC insurance.
The below LTC providers did not make the cut, but they could still be worth looking into.
To evaluate LTC insurers, I examined the following criteria:
While you’re shopping for LTC, keep the following factors in the forefront of your mind:
The purpose of LTC insurance is to cover the costs of LTC, which can be prohibitively expensive. According to the Administration for Community Living, this can include:
LTC is expensive. According to Genworth’s Cost of Care survey, which tracks LTC costs across the U.S. each year, by 2033, assuming an annual inflation rate of 3 percent, you’ll pay the following median costs monthly for LTC:
Also known as “person” or “custodial” care, LTC benefits people who have injuries, illness, or cognitive impairment. It can come in the form of unskilled workers, like caretakers, or skilled workers, like registered nurses. Additionally, this care can take place in your home, a process known as “aging in place”; in an adult day care; in an assisted living facility; or in a nursing home. You may need LTC for a finite period of time, or for the rest of your life; either way, LTC insurance guarantees that you’ll get the help you need.
To get started on finding a LTC insurance policy, I recommend making a list of your top providers. From there, you can obtain online quotes and speak to an agent to obtain one.
LTC insurance helps pay for services (both in-home and community-based) that assist with activities of daily living. It helps offset the costs of care administered both at home and in senior-care communities.
Assuming you’re still in good health, the ideal age to purchase LTC insurance is between 60 and 65. Many insurers don’t issue policies to people older than 70.
If you have a condition such as Alzheimer’s, Parkinson’s, or cancer, a provider may deny you coverage. It varies by insurer.
To figure out how much LTC coverage you need, look into the type of care you anticipate needing, whether it’s a nursing home, assisted living community, or home care services. Calculate how much the services will cost per month to get roughly the coverage amount you want.
Since a majority of older adults will need LTC at some point, most people will benefit from LTC policies.
Amie has been writing about senior care products and services for the last decade. She is particularly passionate about new technologies that help improve the quality of life for seniors and their families. Seeing her parents and grandparents age made Amie ask herself, “Would this be good enough for my loved ones?” In her spare time, Amie enjoys outdoor adventures and spontaneous road trips. Learn more about Amie here
