USAA Long-Term Care Insurance Reviews and Costs
Founded in 1922, USAA offers life, vehicle, property, health, and supplemental insurance products to seniors, veterans, and members of the military and their families. Those who previously purchased a long-term care insurance policy before 2018 through USAA are encouraged to reach out to issuing companies such as John Hancock, Genworth, MetLife, and Fortis.
USAA offers a long-term care policy rider through John Hancock. Unfortunately, the state of New York is excluded from long-term care policies, and USAA stand-alone long-term care policies are no longer available at this time.
FYI: For stand-alone long-term care insurance policies, be sure to check out our guide to this year’s best long-term care insurance.
Pros and Cons of USAA Long-Term Care Insurance
Pros
- Customer service: USAA offers exceptional customer service with assistance from a virtual agent online or through their main phone line. Wait times are short, and representatives are always willing to help with questions about insurance and other products.
- Streamlined mobile app: The USAA mobile app provides a simplified navigation menu, which is an easy way to chat with USAA representatives about insurance or other products. You can also pay bills and report claims as needed.
- Additional insurance: In addition to life insurance, USAA also offers specialized supplementary insurance such as pet, travel, special event, and personal cyber insurance.
- Affordable life insurance policies: Although USAA doesn’t offer stand-alone long-term care insurance policies, the company offers affordable life insurance policies that start at $12 per month with options for term or permanent coverage. You can also opt for a long-term care rider through John Hancock.
- Free membership: Membership to USAA is free, pending eligibility requirements.
Cons
- No stand-alone long-term policies for some states: Unfortunately, a representative has confirmed that USAA is not offering new long-term care policies for residents in the state of New York at this time.
- Eligibility: USAA membership is only open to active, retired, and former veterans and members of the military, including their families.
Policy Options
USAA doesn’t offer a stand-alone long-term care policy at this time. However, a representative referred us to the John Hancock USAA Long Term Care Rider.
USAA recommends that federal employees or service members and qualifying relatives consider the Federal Long Term Care Insurance Program (FLTCIP). You can check eligibility by visiting the FLTCIP website.
John Hancock USAA Long-Term Care Rider
Offered by John Hancock, this long-term care rider helps lock in financial security and plan for long-term care. As a personalized life insurance policy with a long-term care rider, you can use your policy’s death benefit to help pay for long-term care expenses — including in-home or adult day care and assisted living or nursing home facilities.
The policy offers flexible issue ages between the ages of 20 and 75. Additionally, the rate for the rider is guaranteed not to change over the life of the policy. You will need to satisfy a 90-day elimination period before you can receive long-term care insurance benefits. The maximum amount of coverage per month is $50,000, but this is dependent on your long-term care needs. Benefits are tax-free and eligibility for benefits is contingent on whether a physician can affirm that you are unable to perform two of six activities of daily living.
The Federal Long-Term Care Insurance Program
The FLTCIP is designed to help pay for long-term care services in an assisted living facility, adult daycare, home, or nursing home. Under this program, insured clients will receive comprehensive coverage, including international benefits outside of the United States. It also provides stay-at-home benefits and compensation for informal care provided by friends and family caregivers.
The program also offers benefits such as a waiver of premiums while you’re receiving long-term care benefits as well as respite care to your primary caregiver up to 30 times your daily benefit amount each year.
USAA Long-Term Care Insurance Costs
Although USAA doesn’t currently offer free online quotes on long-term insurance, the company has provided a referral link to John Hancock’s “Cost of Long Term Care Calculator.” This calculator helps estimate the cost of long-term care depending on your state of residence. For example, the cost of a one-bedroom in an assisted living facility is $5,770.34 monthly. The long-term care rider through John Hancock can help pay for services needed at an assisted living facility, skilled nursing facility, or home care setting (up to your maximum monthly benefit limit).
How the John Hancock USAA Long-Term Care Rider Works
Benefits for long-term care coverage are paid through a reimbursement or indemnity benefit model. To use the long-term care rider offered with John Hancock’s life insurance, you need to be between the ages of 20 and 75 when applying for the rider. You will also need a physician to attest that you are unable to perform two of the six activities of daily living to be eligible for benefits. Additionally, you need to fulfill a 90-day elimination period before long-term care benefits can be paid out. The maximum coverage amount each month is up to $50,000, and these benefits are tax-free.
Additional Benefits
The John Hancock USAA Long Term Care Rider offers the following benefits.
- Guaranteed rate: The rate you pay for the rider won’t change over the life of the policy.
- Long-term care benefit amount: You can get up to $50,000 worth of coverage each month depending on your long-term care needs.
- Stay-at-home services: If you need to pay for services to help you stay at home for a longer period of time, you can increase one maximum monthly benefit amount.
- Extension of benefits: If your policy ends while you’re receiving long-term care, the provider will continue to pay claims.
- Bed-hold benefit: The Bed-hold benefit pays to reserve your bed for up to 21 days per year, should you need hospital care while you’re in a nursing home or assisted living facility.
- Care advisory benefits: John Hancock offers an optional long-term care resource and consultation service that offers access to discounted rates.
How to Buy a USAA Insurance Policy
To purchase a USAA insurance policy, we recommend contacting 800-531-8722 if you’re a member of USAA. If you purchased a long-term care policy previously through USAA before 2018, you will need to contact the following issuing companies for further assistance:
- John Hancock – 800-377-7311
- Genworth – 800-456-7766
- MetLife – 888-565-3761
- Fortis (now John Hancock) – 800-377-7311
USAA Performance
The BBB gives USAA an A+ rating in customer satisfaction, despite the company not being BBB-accredited. In terms of customer complaints, USAA has had 2,065 complaints closed in the last three years and 1,021 complaints closed in the last 12 months.
According to Consumer Affairs, the overall satisfaction rating for USAA (for auto insurance) is 3.9 out of 5, with high overall satisfaction ratings and coverage for military members and their families.
Financial Strength
It’s important to choose an insurance provider with a strong financial standing and exceptional customer satisfaction ratings. AM Best, a global credit rating agency, gave USAA an A++ or Superior financial rating, followed by Aa1 for Moody’s Investors Service, and AA+ rating by S&P Global Ratings.
Having an insurance provider that’s in strong financial standing is important. AM Best, a global credit rating agency, gave Nationwide an A+ (Superior) rating for financial strength. Additionally, S&P Global Ratings affirmed the A+ rating for financial strength, and A1 (Good rating) by Moody’s Investors Service, making them financially reliable and among the highest-rated insurance providers in the nation.
Bottom Line
Overall, USAA is a strong contender for life insurance and other types of insurance coverage. Although the insurer doesn't currently offer stand-alone traditional long-term care policies, you can look into their life insurance policies through USAA Life Insurance Company of New York.
Additionally, if you’re looking for a life insurance policy with long-term care insurance, you can look into the John Hancock USAA Long-Term Care Rider, issued by John Hancock. If you’re a member of the military, a veteran, or have family members that need to get insured, we’d recommend considering membership through USAA.
To learn more about our favorite long-term care insurance providers, check out our other guides:
Frequently Asked Questions
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How much is USAA long-term care insurance?
USAA doesn’t currently sell stand-alone long-term care policies, but you can look into riders offered by other providers.
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Can only veterans purchase USAA insurance policies?
Products and services offered by USAA are open to current and former military members including their spouses.
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What does USAA long-term care insurance cover?
The long-term care insurance rider offered by John Hancock covers up to $50,000 in long-term care expenses per month, depending on your long-term care needs. Additionally, the rider cost is set at the rate you initially pay and is guaranteed not to change over the life of the policy.
