Which Company Offers The Best Long Term Care Insurance Policy?
We often get asked this question. Many of our clients wish to know if one company offers a significantly better long term care insurance policy than another company.
Today, however, long term care insurance policies are more alike than they are different.
In 1996, HIPPA legislation was passed. HIPPA standardized the benefit triggers for tax-qualified long term care insurance policies. Today, your eligibility to receive long term care insurance benefits is virtually the same under every contract.
You must either have:
- an inability to perform 2 of 6 activities of daily living without assistance from another individual; or
- a severe cognitive impairment such as Alzheimer's disease or dementia
So, then, how are long term care insurance policies actually different?
Well, each company may offer slightly different contractual policy benefits.
For instance, some policies will have a daily reimbursement cap on your expenses. Other policies will reimburse your expenses as a monthly cap.
Some long term care insurance companies may offer you the ability to buy "shared benefits " with your partner. Other companies may only sell you an individual policy.
Some companies may calculate its waiting period by "calendar days;" other policies may require "dates of service" to satisfy the waiting period.
Thus, long term care insurance policies are distinguished primarily by "bells and whistles." If an option is not included in one long term care insurance policy, it is likely the missing feature can be added as an additional cost option.
So, truthfully, benefits within policies can be made to look fairly alike with a little tweaking.
Long Term Care Insurance Financial Ratings and Policy Costs
There are two areas that long term care insurance policies may be different, however. These distinctions are:
- Financial strength and stability of the long term care insurance company
- Cost of the long term care insurance policy
Financial Ratings and Stability of the Long Term Care Insurance Company
When choosing a long term care insurance company, first and foremost, it is important to get with a strong carrier. Insist upon the company having at least an "A" rating from AM Best. Your long term care insurance claim may be 10 or 20 years away. Or longer. It is important to know the company will be there for you when you need it the most.
Cost of the Long Term Care Insurance Policy
Not only is it important to choose a strong and stable company for your long term care insurance policy, but also it is important to receive a fair and competitively priced policy. Long term care insurance costs are based upon your age, your health, and your marital or partner status. Long term care insurance premiums can actually vary by 60%-80% for the same level of benefits.
So, yes, we wish for your coverage to be with a financially strong and stable company. We also want for you to have good benefits for a great price, however.
Independent, Objective Advice
To ensure you are getting a good deal, it is important to work with an experienced and independent agency.
LTC Partner can help you review rates and policies from the best long term care insurance companies including Genworth, Mass Mutual, New York Life, Northwestern Mutual, Mutual of Omaha, John Hancock, United of Omaha, Transamerica, Pacific Life, Lincoln Moneyguard, USAA, AARP, State Life, State Farm, Medamerica, Life Secure, Country Financial and more. We will help you compare long term care insurance quotes and costs, and provide you with sound advice on the options for you to consider.
To receive and compare your free long term care insurance quotes, please call us toll-free at 1-800-891-5824 or complete our easy long term care insurance quotes request form.
We look forward to assisting you explore your long term care insurance options. Thank you for reading our blog.