Comparing long term care insurance companies and choosing the best insurers can help you cover your future long-term care needs. With the rising costs of long term care and health care, we need to ensure full coverage by finding a policy that can meet your ltc needs early because delaying getting insured has consequences.
Long term care insurance policies help pay for your ltc whether you choose home care or nursing home. Unlike the limited coverage that Medicare provides, long term care insurance policies provide a tailored coverage designed to fit your needs.
However, the assurance of full coverage can depend on the long-term care insurance provider you purchase a policy from.
Individuals have a wide range of long term care insurance companies to choose from, but how do you determine the right one for you?
How to Find the Best Long Term Insurance Companies
Commitment to Long Term Care Insurance
The market can be hard to predict at times, and if the company’s commitment is not as firm as the best companies, they will not be able to stay long when the situation gets critical.
Another indicator to look out for is the company’s dedication to long-term care and health care. Look into specific actions that insurers do to illustrate their commitment. One great example of this is Northwestern Mutual’s move to form a separate company that sells long term care solely.
Financial Strength of Long Term Care Insurance Companies
Many individuals who purchased a policy will not need it for about 10 years or so. This why it is extremely important to choose a company such as Mutual of Omaha, TransAmerica, Genworth, and LifeSecure that is financially strong enough and established enough to ensure that it will be around in the next couple of decades.
A great deal of financial resources is necessary to introduce a new product, build market share, and reach a critical mass of premium income that eventually starts producing profits. Often, it is the top long term care insurance carriers, with their years of experience and deep pockets, that come out on top when the market changes.
Underwriting Experience
As much as you want to get approved for coverage, you don’t want to choose a company that accepts everyone who applies for long term care insurance – older people with poor health.
Choose a long term care insurance company with conservative underwriting standards, which gives the impression that they really mean business and to stay in the industry for the long haul.
Offers Short Benefit Periods
A benefit period refers to the length of time it will pay for your care after you file a claim. The ideal coverage would be as long as you need it, but policies that last a lifetime are hard to find these days.
The average period a person would need long term care in the U.S is around three years. So, it’s practical to buy a policy that would only last that long. However, if you can’t afford three years, a policy with a shorter benefit period is still useful and better than paying out-of-the-pocket.
Choose a company that offers benefit periods as short as two years, making it much easier for people to buy long term care insurance.
Standard Provision for Waiver of Premium Option
Most insurance requires you to pay for premiums while you’re receiving benefits. In the case of long-term care insurance, it’s going to be hard since the policy kicks in when you’re already retired and living on a predictable stream of income. This is where waiver of premiums comes in very handy because it removes the burden of paying for premiums once you get approval for your claim. Waiver of premium is not standard on every policy but this is a nice feature that you should have on your policy.
Look for a company that offers a waiver of premiums to avoid the burden of paying for premiums while receiving your benefits.
Availability of Shared Care Rider
Couples can share long term care benefits through shared care rider. To top it all, it allows couples to purchase shorter policies that are affordable, which helps them save more money. This means an increase in premiums compared to a regular policy. But, the benefits you can get are definitely more than what you’re going to pay for.
There’s a risk involved though since one spouse can use up the entire pool of benefit. But it’s a risk worth taking especially if that means saving on insurance costs and having enough flexibility to make the most of this great add-on.
When choosing an insurer, make sure it offers spousal shared care especially if you’re a couple looking for ways to save on your premiums.
Compare the Best Long Term Care Insurance Companies
Mutual of Omaha – Best for Robust Coverage
 |
|
|---|
TransAmerica – Best for Affordable Policies
 |
|
|---|
Genworth Financial – Best for Home Care Coverage
 |
|
|---|
Life Secure – Best for Flexible Policy for a Good Price
 |
|
|---|
Summary of Best Long Term Care Insurance Companies
| Mutual of Omaha | TransAmerica | Genworth | Life Secure | |
|---|---|---|---|---|
| Best For | Best for Robust Coverage | Best for Affordable Policies | Best for Home Care Coverage | Best for Flexible Policy for a Good Price |
| States Licensed | 49 | 50 | 50 | 48 |
| A.M. Best rating | A+ | A+ | bb- | A- |
| Standard & Poor’s rating | AA- | AA- | AA- | N/A |
| Moody’s rating | A1 | A1 | B2 | N/A |
Avoid the Worst Long Term Insurance Companies Using These Company Reviews & Ratings
A financially stable long term care insurance carrier is at a lower risk of going out of business in the following decades. Every policyholder’s worst nightmare is to spend a sizable amount of money and time paying insurance premiums, only to find out that the company will not be able to cover the costs because they did not survive the competitive market.
To keep this from happening, look into the ratings from AM Best and choose a company with a rating of at least -A, at least Aa from Moody’s, or at least AA from S&P Global Ratings (formerly Standard & Poor’s Ratings Services). Below are individual rating guides to assist you.
AM Best Company Financial Strength Rating Scale
| Ratings | Definitions |
| A++ and A+ Superior | These are the companies that display superior ability to meet their ongoing insurance obligations. |
| A and A- Excellent | These are the companies that display superior ability to meet their ongoing excellent obligations. |
| B++ and B+ Good | These are the companies that display a good ability to meet their ongoing insurance obligations. |
| B and B- Fair | These are the companies that display a fair ability to meet their ongoing insurance obligations. The company’s financial strength may be affected by adverse changes in underwriting and economic conditions. |
| C++ and C+ Marginal | These are the companies that display a marginal ability to meet their ongoing insurance obligations. The company’s financial strength may be affected by adverse changes in underwriting and economic conditions. |
| C and C- Weak | These are the companies that display a weak ability to meet their ongoing insurance obligations. The company’s financial strength may be affected by adverse changes in underwriting and economic conditions. |
| D Poor | These are the companies that display a poor ability to meet their ongoing insurance obligations. The company’s financial strength may be affected by adverse changes in underwriting and economic conditions. |
Standard & Poor’s Long Term Insurer Financial Strength Ratings
| Ratings | Definitions |
| AAA | This is the highest rating of Standard and Poor’s, and it is given to companies that have extremely strong financial security characteristics. |
| AA | This rating is given to companies with very strong financial security characteristics. The difference from the highest rating is only marginal. |
| A | This rating is given to companies with strong financial security characteristics but is somewhat vulnerable to adverse business conditions. |
| BBB | This rating is given to companies with good financial security characteristics but is more likely vulnerable to adverse business conditions. |
| BB | This rating is given to companies with marginal financial security characteristics. While the companies have positive attributes, but adverse business conditions can significantly affect their financial capabilities. |
| B | This rating is given to companies with weak financial security characteristics. Adverse business conditions impair their financial capabilities. |
| CCC | This rating is given to companies with very weak financial security characteristics. Their financial capabilities are also dependent on favorable business conditions. |
| CC | This rating is given to companies with extremely weak financial security characteristics. These are the ones unlikely to meet some of its financial commitments. |
| R | This rating is given to the companies under regulatory supervision owing to their financial conditions. |
| SD or D | Selective Default and Default ratings are given to companies in default on one or more of their insurance policy obligations but are not under regulatory supervision. |
| NR | This is designated to companies that have not been rated. |
Moody’s Global Long Term Rating Scale (Insurance Financial Strength Ratings)
| Ratings | Definitions |
| Aaa | This rating is given to companies with exceptional financial security. |
| Aa | This rating is given to companies with excellent financial security, but with marginally greater longer term care risks than Aaa-graded companies. |
| A | This rating is given to companies with good financial security. However, some elements suggest that stability might change in the future. |
| Baa | This rating is given to companies with adequate financial security. The companies may lack certain vital elements or may be unreliable over time. |
| Ba | This rating is given to companies with questionable financial security. Their abilities to meet regulations are moderate which means that they might not be able to ensure it in the future. |
| B | This rating is given to companies with poor financial security. |
| Caa | This rating is given to companies with very poor financial security. These companies display strong elements that could mean delay or inability regarding claims and obligations. |
| Ca | This rating is given to companies with extremely poor financial security. |
| C | This rating is given to companies with extremely poor prospects of providing financial security. |
Start Comparing Best Insurance Providers Today
ALTCP will help you explore coverage options offered by top long term care insurance companies. We will provide you with a side-by-side comparison of policy costs, features and benefits of every insurer in your state including Mutual of Omaha, TransAmerica, Genworth, and LifeSecure. Get started by requesting for your no-obligation quotes now.
