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Long Term Care Blog

The High Cost of State Farm Long Term Care Insurance

by Jack Lenenberg

State Farm Long Term Care Insurance Review and Ratings

As most everyone knows, State Farm is easily the largest property and casualty insurer in the United States.  Just like Starbucks, there seems to be a State Farm office on every corner.

For auto insurance and homeowner's insurance, I have been a loyal State Farm Insurance policyholder for over thirteen years. 

Over the years, our family has been quite pleased with the service we have received from our State Farm agent.  We have filed 2 automobile claims and 1 homeowners claim.  Each time, our claims were handled promptly and fairly.  Like a Good Neighbor, State Farm has been there for us.

I am sure State Farm is not the cheapest property and casualty insurance company; likewise it is probably not the most expensive.  Yet, I have always resisted solicitations from other companies to switch my auto and homeowners coverage.

First of all, State Farm is rated A++ by AM Best, its highest rating. And secondly, State Farm has been very good to me at claim time.  

As long as I know my home and auto insurance premiums are  "in the range," I am a happy camper.

So, why are State Farm's Long Term Care Insurance Premiums so expensive?

While I do feel State Farm's auto and homeowner's insurance premiums are reasonably priced, State Farm's long term care insurance premiums are just not priced competitively.

With State Farm's recent filing of its new long term care insurance 97062 policy series, State Farm now has the distinction of offering possibly the highest priced long-term care insurance policy presently in the marketplace. 

Granted, State Farm is just one long term care insurance company that currently has a relatively higher cost.  Due to the present low interest rate environment, many insurers are re-pricing policies that include automatic 5% compound benefit increases.

Long Term Care Insurance Company Cost Comparison

Age 60 year old, Married, Preferred Health.  $200.00 daily benefit, 3 year benefit period, 5% compound inflation protection

Annual Long Term Care Insurance Premiums

Mass Mutual $1848         AM Best A++

Genworth $1851              AM Best  A

Mutual of Omaha $1890   AM Best A+

Prudential $2703              AM Best A+

John Hancock $3445        AM Best A++

Northwestern Mutual $3721   AM Best A++

State Farm $3968                  AM Best A++

Compare Long Term Care Insurance Plans in your Area

As you can see from the above premiums, it definitely pays to shop around for long term care insurance.  In the above example of the healthy married 60 year old, a long-term care policy offered by Mass Mutual, Genworth, or Mutual of Omaha today might be very affordable. 

*****UPDATE March 3, 2017*****

Long term care insurance pricing has changed over the past few years, however State Farm's rates are still outrageously expensive.

Please see the link below for current pricing for a 55 year old married couple for benefits of $150.00 day, 3 year benefit periods and 5% compound inflation.

National Guardian $4386

Mass Mutual $5324

Transamerica $5605

Mutual of Omaha $5842

State Farm $8314

Northwestern Mutual $9990

New York Life $10,205

***UPDATE*** March 3, 2017 Updated State Farm Pricing comparison 55 year old couple Preferred health

$150.00 day, 3 year benefit periods, 3% compound inflation

$150.00 day, 3 year benefit periods, 5% compound inflation

State Farm history of rate increase requests

There are many factors to consider in addition to cost when comparing long term care insurance policies.  Financial ratings and the claims paying ability of the insurance company are also key considerations.

LTC Partner is an independent long term care insurance agency, and has specialized in long term care planning since 1998.  We can answer your questions and help you explore your long term care insurance options. 

We will send you rates from the best long term care insurance companies including Lincoln, State Life, Pacific Life,  Mass Mutual, Mutual of Omaha, Transamerica, National Guardian, Genworth, and more. Compare and save up to 80%.

To receive your free long term care insurance quotes please contact us direct toll free at 1-800-891-5824. Or simply complete our easy quote request form.  We look forward to helping you.  Thanks.

Signature Ltc

Jack Lenenberg

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