TABLE OF CONTENTS

1. USAA Long-Term Care Insurance Overview
2. USAA Long-Term Care: Features and Limitations
3. How USAA’s Plan Compares to Other LTC Options
4. Is USAA’s Plan Right for You?

                 Estimated reading time: 8 minutes

USAA Long-Term Care Insurance: At a Glance

USAA provides access to long-term care coverage, but the structure may surprise members expecting traditional LTC insurance:

• USAA does NOT offer traditional stand-alone long-term care insurance
• USAA offers hybrid long-term care insurance through a life insurance policy
• The coverage combines universal life insurance with a long-term care rider

The USAA coverage is a universal life insurance policy with an LTC rider, underwritten by John Hancock Life Insurance Company. This hybrid approach prioritizes the life insurance death benefit over comprehensive long-term care protection.

Important Distinction: Stand-alone long-term care (LTC) insurance policies are also referred to as “traditional long-term care insurance” and provide more focused LTC benefits than hybrid policies.

USAA Long-Term Care Insurance Plan

How USAA’s Plan Compares to Other LTC Options

A useful comparison to the USAA long-term care insurance offering is the Nationwide Insurance universal life policy, as both are built on universal life insurance.

One notable distinction between these two plans is that the Nationwide policy includes a Cash Indemnity Benefit, which provides additional flexibility in how benefits are received.

How The Nationwide Cash Indemnity Benefit Works

The Cash Indemnity benefit works like this:

• Nationwide Insurance pays the entire long-term care benefit each month
• You have no restrictions on how you use your LTC benefits
• Even your family and friends can be paid to provide care
• The policy will pay 100% of benefits internationally

Most long-term care insurance policies use reimbursement benefits, requiring you to submit receipts for approved expenses, which are then repaid up to your policy’s monthly or daily limit.

About Medicare and Long-Term Care

Medicare  provides very limited long-term care coverage, primarily up to 100 days of skilled nursing care following a 3-day hospital stay. It does not cover custodial care (help with daily activities), which represents over 90% of long-term care needs. This limited coverage is why many people consider long-term care insurance. Get complete details about Medicare’s limited LTC coverage.

When To Buy Long-Term Care Insurance

When is the best age to get long-term care insurance? It depends on your situation, but here are some key factors to consider:

• Experts suggest buying in your 50s or early 60s. Because long-term care insurance premiums cost less at that age and you’re likely in better health. While you would pay premiums for more years, the total lifetime cost may still be lower.
• Buying earlier, like in your 40s, can work too. Premiums are likely to be even lower and you’d lock in coverage and your good health. But you’d pay for a longer period before needing it.
• Waiting until your late 60s might make sense if you’re healthy and have sufficient savings. But premiums are much higher, and health issues may arise that make coverage harder to qualify for. And discounts may no longer be available. If you become ill before purchasing coverage, you would be responsible for all long-term care costs.

One of our licensed long-term care professionals can pre-qualify any health concerns and provide you with quote comparisons.