What is the best long-term care insurance?
January 22, 2024
Planning for future long-term care needs is more than choosing a well known company with a strong financial rating. The best long-term care insurance for your situation also depends on your:
- Age
- Health
- Goals for the coverage
- Budget
Long-Term Care Insurance Considerations
Owning long-term care insurance provides financial protection against the high cost of home health care, assisted living facilities and nursing homes. This ensures you can afford quality care without depleting your savings or burdening loved ones. Consider these important points:
- There are age and health restrictions for buying a long-term care insurance policy, so planning ahead is critical. Some applicants cannot qualify for insurance at all, while others are limited to which company or type of coverage is available.
- Some LTC insurance policies are a good fit for older applicants while other types are best for younger people with excellent health.
- Some plans include guarantees, offer limited pay options or even a single pay option.
Our professional LTC advisors are here to help — you don’t have to figure this out on your own.
Best Long-Term Care Insurance FAQs
What is the best long-term care insurance for my premium dollar?
Traditional long-term care insurance generally provides the greatest coverage for your premium dollar. The best insurance company will depend on your age, health and gender.
What's the best long-term care insurance for younger applicants?
Hybrid life insurance with a long-term care rider policies are a good fit for many younger applicants.
What's the best long-term care insurance with the highest maximum issue age?
Long-term care annuities can be purchased up to age 85 in some cases. There are also some short-term care insurance policies available up to age 89.
What's the best long-term care insurance if I have significant health history?
Long-term care annuities and short-term care insurance tend to have the most liberal health underwriting criteria.
Types of Long-Term Care Insurance
Understand the four types of LTC insurance and how they might work for you.
Traditional LTC Insurance
How It Works
The most comprehensive form of long-term care insurance protection. Flexible plan design provides options to meet individual needs and budget.
Available riders include; Inflation Protection, Return of Premium, Shared Care for couples, Ten-Pay and more.
Why It Might Work For You
A good choice if you’re concerned about your financial exposure to rising long-term care costs and want the greatest flexibility and cost efficiency.
The benefits are considered tax free and in many cases the premiums are tax deductible. Some business owners can deduct 100% of LTC premiums, depending on the type of corporation.
Things To Consider
Conservative health underwriting.
No cash value or death benefit if LTC is not needed.
Recurring premium that is not guaranteed. Learn more >
Long-Term Care Annuity
How It Works
A special type of deferred annuity with a fixed interest rate, possible indexing strategy for asset growth and LTC benefits. Long-term care benefits are usually double or triple the value of the annuity.
If not exhausted paying for long-term care, the annuity value will transfer to your estate.
Why It Might Work For You
A good option if you have a health condition that disqualifies you from other long-term care insurance options. Joint plan covering both spouses available.
Often works best for ages 70 and over and can be purchased up to age 85 in some cases. Tax-free 1035 exchange is possible from annuities or life insurance.
Things To Consider
Benefits paid may reduce the annuity value which could result in little or no remaining value for your heirs or estate.
Premiums will not increase, but must be funded with a one-time premium payment. Learn more >
Hybrid Life Insurance with LTC Rider
Permanent life insurance with long-term care benefits. If care isn’t needed, the tax-free death benefit passes to your estate. May build cash value and have a return of premium option.
A rider accelerates the death benefit so it can be used for long-term care needs.
Cash Indemnity plans are available.
Why It Might Work For You
Works well if your main concern is leaving a legacy or providing for loved ones when you pass, but still want access to the death benefit for LTC.
Often a better fit for those at younger ages.
Things To Consider
No inflation protection or increase of benefits beyond the death benefit amount. Long-term care benefits paid will reduce the death benefit.
Flexible premiums that can be guaranteed with some plans. Learn more >
Hybrid Life Insurance Linked-Benefit Policy
Permanent life insurance with long-term care benefits. If care isn’t needed, the tax-free death benefit passes to your estate. May build cash value and have a return of premium option.
Long-term care benefits extend beyond the amount of life insurance coverage. Optional inflation indexing and unlimited benefits.
Cash Indemnity plans are available.
Why It Might Work For You
A good choice when you’re primarily concerned with long-term care protection but want a death benefit in case little or no care is needed.
Joint plans covering both spouses are available.
Things To Consider
Often more expensive than traditional long-term care insurance, partly because two risks are being covered.
Premiums will never increase. Typically funded using 10-pay or single premium, but some plans offer recurring premiums. Learn more >
Compare Your Long-Term Care Insurance Options
Find the best option with professional recommendations.
About the author
Craig Matesky is the President of ACACIA Insurance Services, Inc.
He has specialized in long-term care insurance planning for over 30 years.
View Bio
