Choosing The Best Long-Term Care Insurance

On February 16, 2025 By newsroom Topic: Insurance Basics

Why Long-Term Care Insurance Matters

Covers nursing home, assisted living, and at-home care costs not fully covered by health insurance or Medicare.
Protects savings and assets, especially critical during retirement years.
Offers peace of mind for families, ensuring loved ones receive adequate care.

Key Features to Consider When Choosing Long-Term Care Insurance

1. Coverage Considerations

Read the plan: Check if the policy includes in-home care, nursing homes, or both.
Look for exclusions: Policies may not cover certain conditions (e.g., undisclosed pre-existing conditions like smoking).
Upgrade if needed: Ensure coverage meets the cost of care in your area; consider add-ons if necessary.

2. Premium Costs

Age: Buying younger generally means lower annual premiums.
Payment options: Paying annually might offer discounts.
Premium increases: Watch for class-wide rate hikes, even though policies are \"guaranteed renewable.\"
Premium tiers: Higher-cost policies provide more coverage but may strain budgets over time.

3. Out-of-Pocket Costs

Policy trigger: Policies activate after inability to perform a set number of Activities of Daily Living (ADLs).
Waiting period: Benefits often kick in after a waiting/elimination period - be prepared to cover initial costs.
Extra expenses: Non-medical costs like phone or cable in care facilities may not be included.

4. Coverage Limitations

Medical exclusions: Coverage often excludes self-inflicted injuries, substance abuse, or certain mental disorders.
Spending caps: Policies may have daily, monthly, or lifetime benefit limits.
Specific services: Some plans may cap home care or home modification expenses.

5. Policy Options

Skilled vs. assisted care: Coverage may extend to assisted living or nursing home facilities.
Home and community care: Some policies cover in-home services, adult daycare, or home safety modifications.
Care coordination: Policies might include professionals to help navigate care requirements.

Types of Long-Term Care Insurance

Individual Plans: Purchased through brokers; customizable.
Employer-Sponsored Plans: Often offer group rates or discounts.
Group Plans: Available through professional or service organizations.
State Partnerships: Combine private insurance with Medicaid benefits.
Shared Policies: Cover two people (e.g., couples) under one policy, splitting the benefits.

Who Should Consider Long-Term Care Insurance?

Employers: To reduce productivity loss and liability for injured employees.
Retirees: To protect savings and assets from unexpected health costs.
Elderly: For safety in daily living and to plan for future care.
Parents: To reduce financial dependency on their children.

1. MedAmerica

Key Features:
Focuses on customer education, making policies easy to understand.
Account holders can easily access policy details online.
Best For: Employers, retirees, and the elderly.

2. ACSIA Partners

Key Features:
Nationwide distributor offering comprehensive coverage options.
Works with individuals, employers, and other insurers for tailored plans.
Best For: Employers, retirees, the elderly, and parents.

3. GuideOne Insurance

Key Features:
Specializes in niche markets like churches and schools.
Provides diverse insurance options to streamline multiple needs.
Best For: Employers.

4. Transamerica

Key Features:
Offers a broad range of financial and insurance services, including investment advice.
Provides guidance on understanding coverage needs.
Best For: Parents, retirees, and the elderly.

5. Bankers Life & Casualty Company

Key Features:
Trusted since 1879 for affordable insurance solutions.
Offers a variety of long-term care packages, including facility-only or comprehensive options.
Best For: Parents, retirees, and the elderly.

6. John Hancock

Key Features:
Serves 3.5+ million policyholders and pays $2.3 billion annually in claims.
A+ rating from A.M. Best, reflecting strong financial stability.
Offers inflation protection and a cost-of-care calculator.
Best For: Employers, parents, retirees, and the elderly.

7. Mutual of Omaha

Key Features:
Established in 1909, provides life, disability, and Medicare supplement insurance.
Focused on comprehensive and family-friendly packages.
Best For: Employers, parents, retirees, and the elderly.

8. Genworth

Key Features:
Provides cost comparisons and future care cost predictions.
Offers online billing and convenient payment options.
Best For: Families seeking transparent and data-driven planning.

9. MetLife

Key Features:
Global reach with many in-person offices for personalized assistance.
Comprehensive quote and policy options.
Best For: Consumers preferring face-to-face customer service.

10. CNO Financial Group (Formerly Conseco)

Key Features:
Serves 4+ million Americans through subsidiaries like Bankers Life and Colonial Penn.
Offers a wide range of financial products.
Best For: Families seeking bundled financial and insurance products.

Tip: Read the fine print of policies, compare premiums, and ensure the coverage aligns with your long-term care needs. Compare multiple providers to find a plan that aligns with your care preferences, budget, and long-term health needs!