Long-term insurance companies can be your best friend during the latter years of your retirement. In today’s article, learn more about long-term care insurance and the top 10 long-term care insurance companies in the U.S. today.
In this article:
- What Is Long-Term Care?
- Who Will Require Long-Term Care?
- What Is Long-Term Care Insurance?
- Cost of Long-Term Care: How Much Would You Potentially Pay?
- Factors to Consider When Choosing LTC Policies and Companies
- 10 Best Long-Term Care Insurance Companies in the Country Today
10 Best Long-Term Care Insurance Companies You Should Consider
What Is Long-Term Care?
As people age, needing assistance for even the most basic daily living activities like bathing and moving around the house becomes more of a necessity. Because most traditional health insurance companies don’t provide for needs like these, long-term care insurance is something to seriously consider for retirement.
Long-term care refers to services that address a person’s personal or health care needs for a period of time. These services enable people to live as safely and independently as possible when they’re unable to care for themselves.
Different caregivers provide long-term care to different people with different needs in different places. In most cases, unpaid friends and family members provide long-term in-home care to their loved ones.
Communities or facilities, like nursing homes, also provide long-term care to those who don’t have friends or family members to take care of them.
The most popular type of long-term care is personal care, which provides assistance in doing daily living activities. Care services in this type include assistance in the following activities:
- Dressing up
- Going places
- Moving around, such as getting out of bed and going to the bathroom
- Using the bathroom
Other services that long-term care companies provide may include meal preparations, adult daycare, and transportation. These may be free or paid, depending on the company and the package availed.
Who Will Require Long-Term Care?
While it’s hard to foresee whether a person will require long-term care in the future or how much of it, there are factors that can provide clues. These factors include:
- Age – The older a person is, the higher the risk he or she will need long-term care.
- Gender – Because women generally have longer life spans than men, they’re at a higher risk for needing long-term care.
- Marital Status – Because single people have no partner or family to take care of them, they’re at a relatively higher risk than married people for needing long-term care.
- Family and Health Histories – Long-term disability, genetics, previous sicknesses, and pre-existing conditions may have an impact on whether a person will need long-term health care and long-term care insurance later on.
- Lifestyle – A sedentary lifestyle coupled with chronic high stress, lack of quality sleep, unhealthy habits (e.g., smoking), and a very poor diet significantly increases one’s risks for needing long-term care.
What Is Long-Term Care Insurance?
Long-term care insurance is a type of insurance that helps people afford long-term care. Depending on the coverage, long-term care (LTC) insurance may cover part or all of one’s long-term care expenses.
Unlike a health insurance policy, the care coverage of an LTC insurance policy reimburses a person for eligible personal care expenses. In most cases, eligible personal care includes activities of daily living like bathing, eating, and mobility, and board and lodging.
Cost of Long-Term Care: How Much Would You Potentially Pay?
A long-term care insurance plan is important to have because long-term care can be very expensive.
Wondering how much you may pay for long-term care? Consider the average costs of long-term care in the United States as of 2016 according to the U.S. Department of Health and Human Services.
- The average cost of a nursing home private room is $7,698 per month or $253 per day.
- On average, a semi-private, nursing home room costs $6,844 per month or $225 per day.
- The average cost of caregiving services in a one-bedroom assisted living facility is $3,628 per month or $119 per day.
- On average, an adult day health care center’s services cost $68 daily.
- The average hourly rate of a caregiver is $20.50.
Factors to Consider When Choosing LTC Policies and Companies
Because long-term care and an insurance policy are crucial, one must carefully choose an LTC insurance company. Here are some things to consider when doing so:
- Homes can be excepted up to a value of $552,000, with some states excepting more than this amount.
- When a person’s spouse or another relative also lives in the same home, said home can be excluded without limits.
- In most cases, the spouse of a person requiring long-term care can keep up to 50% of their joint possessions up to specific limits.
10 Best Long-Term Care Insurance Companies in the Country Today
1. CLTC Insurance Services
This company offers long-term care services all over the U.S. by thoroughly scouting all US-based insurance companies. By doing this, CLTC finds options and discounts that can best fit a person’s unique circumstances.
CLTC also gives a free guide to long-term care planning, obligation-free consultations, and multiple quotes for comparing the best options for long-term care.
2. Genworth Financial
Genworth provides lots of options through a wide range of services, including long-term care and mortgage insurance policies. It currently offers long-term care insurance for individuals and groups (company employee benefits), and caregiving support services.
This company’s specialists educate clients individually on the company’s coverage options. Its LTC insurance specialists also provide personal guidance on long-term care planning to its clients.
GoldenCare carefully chooses its products and services from the long-term care industry’s top-rated providers. Also, its specialists have over 40 years’ worth of long-term care insurance experience and expertise in the field.
4. LTC Resource Centers
This independent Managing General Agency has over 40 years of experience providing chronic health care solutions. LTC Resource Centers’ portfolio of long-term care products and services includes:
- Combination or linked products and services
- Critical illness benefits
- Life insurance
- Long-term care insurance
- Medicare supplements
- Short-term care
5. LTC Financial Solutions
This limited liability company has long-term care professionals with a collective experience of more than 65 years.
Their professionals help clients plan well for long-term care by educating them on the importance of long-term care insurance. And more importantly, they can help clients find tailor-fit long-term care solutions within their budget for their insurance policy.
6. Mass Mutual
It’s one of the country’s largest and leading insurance companies, with high ratings from top financial rating agencies. Its strong financial condition puts it in a position to sustain its long-term care services well into the future.
7. Mutual of Omaha
This long-term care insurance company provides customers with a wide array of plans and policies. With such options, Mutual of Omaha enables their clients to meet their individual long-term care needs within their budget.
8. New York Life
Its strong capital position puts New York Life among the top financial service providers in the country. It holds an A++ rating from AM Best and has been recognized for being a reliable long-term care insurance company a person can count on.
9. Northwestern Mutual
Having a sound financial backing makes Northwestern Mutual one of the most reliable LTC insurance companies in the country. It provides clients with a wide array of benefits and plans, which stand toe-to-toe with the industry’s best.
What makes Northwestern Mutual’s LCTI unique is automatic inflation protection, which ranges between 3% and 5%. With this feature, a similar plan with no such protection can be upgraded from a daily benefit of $100 to up to $200.
10. TransAmerica Long-Term Care
This company provides diversity in terms of financial services, which is one of the reasons why it’s one of the top insurance companies in the U.S. today.
One of the company’s objectives is to enable more Americans to afford long-term care insurance. To accomplish this, TransAmerica provides many long-term care solutions like inflation-protected and tax-qualified long-term care plans, among others.
Long-term care is one of the most important aspects of retirement planning. And because long-term care can be very expensive, it’s important to understand it well, plan it meticulously, and choose the best long-term care insurance company based on your personal circumstances.
Which long-term care insurance company do you think best suits your needs and circumstances? Let us know in the comments section below!
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