Most Affordable Long-Term Care Insurance Plans of 2024
|
August 20, 2024
|
Many people need long-term care after an illness or an injury, or toward the end of their lives. Long-term care, also known as LTC, can be prohibitively expensive, especially when you take into account inflation. Many people turn to long-term care insurance, which can be a standalone policy or a hybrid with life insurance.
It’s no secret that long-term care insurance can be pricey. You can expect to pay anywhere from $79 to more than $500 per month for a policy. It’s clear that long-term care insurance can be a lifesaver when you consider that assisted living and nursing homes will likely run you over $6,000 per month.
To help you find affordable long-term care insurance providers, I compiled a list of insurers that issue policies with low premiums and maximal coverage amounts. Your total cost will vary greatly based on your age, location, and health, but all these insurers offer policies for under $200 per month. Along with price, I took into account issue ages, third-party financial strength ratings, along with customer satisfaction ratings from the Better Business Bureau, Trustpilot, and Consumer Affairs.
Did You Know: To learn more about long-term care insurance, read my guide to long-term care insurance.
The Cheapest Long-Term Care Insurance Companies of 2024
- Nationwide : Best for Long-Term Care Riders
- Mutual of Omaha : Best for Spouses
- USAA : Best for Veterans and Members of the Military
Affordable Long-Term Care Insurance Providers Compared
|
Nationwide
 |
Mutual of Omaha
 |
USAA
 |
|
|---|---|---|---|
| Rating out of 5 | 4.5 | 4.9 | 4.6 |
| Issue Ages | Up to 75 |
Up to 79 |
Up to 75 |
| Monthly Benefit Amount | $2,500-$20,000 |
$1,500-$10,000 |
Up to $50,000 |
| Benefit Period | 2-7 years |
2-5 years |
N/A |
| Elimination Period | 90 days |
0-365 days |
90 days |
1. Nationwide - Best for Long-Term Care Riders
What We Like Most:
- Income tax-free death benefit to beneficiaries if you don’t use the LTC
- Affordable life insurance policies with long-term care riders
- Benefits paid via reimbursement or cash indemnity
- Strong balance sheet and financial portfolio
Policies offered: Nationwide YourLife CareMatters, Long-Term Care Rider
AM Best rating: A+
Monthly benefit amount: $2,500-$20,000
Benefit period: 2-7 years
Elimination period: 90 days
Overview
If you want a combination of life insurance as well as a LTC rider, I would recommend Nationwide. With an LTC rider as opposed to a linked-benefit LTC policy, the LTC coverage is secondary. If you don’t end up needing the LTC, your beneficiaries will receive a death benefit, and premiums are more flexible than with a linked-benefit LTC policy, in which both premiums and benefits are guaranteed.
With Nationwide, you can add the LTC rider to a universal life insurance policy. With universal life insurance policies as opposed to term policies, the benefit will be paid to the beneficiary for the remainder of their life rather than a fixed period of time. Plus, the death benefit is income-tax free if you don’t end up needing the LTC.
Nationwide is a financially strong company with an A+ rating from AM Best, just like Mutual of Omaha. But one drawback is the company doesn’t offer online quotes, unlike Mutual of Omaha. To buy a policy or learn more, you can call an agent directly. To learn more about this provider, check out my guide to Nationwide long-term care insurance.
Pros
- Unused long-term care benefits go to beneficiaries
- Flexible premiums
- Add-on to universal life insurance policies
- No restrictions on how benefits can be used
Cons
- No online quotes
- 1.5 out of five stars on Trustpilot
2. Mutual of Omaha - Best for Spouses
What We Like Most:
- Optional benefits
- Affordable monthly premiums
- Shared care benefits
- Couple discounts of up to 30 percent
Policies offered: MutualCare Secure Solution, MutualCare Custom Solution
AM Best rating: A+
Monthly benefit amount: $1,500-$10,000
Benefit period: 2-5 years
Elimination period: 0-365 days
Overview
If you’re married, you can save money on LTC insurance with Mutual of Omaha. The company offers a married person either 5 percent off if only one partner buys a policy, or 15 percent off if both partners buy policies. If the policyholder or holders are in good health, they can knock another 15 percent off, so this company is ideal for healthy, married couples. Additionally, the company has an optional benefit that would allow one partner to use their partner’s benefits in the event they used up their LTC maximum coverage limit.
In terms of price, when I got an online quote for a 65-year-old man in Pennsylvania with a monthly benefit of around $3,100, I got a minimum premium of $130 and a maximum of $254, not too bad. I loved how easy Mutual of Omaha made it for me to see how much different benefit amounts would cost in premiums. Other LTC providers like Nationwide and USAA do not offer online quotes, so I appreciated this transparent pricing.
One thing to take note of, however, is that the maximum benefit amount per month with Mutual of Omaha is only $10,000, while it’s five times that with USAA. While Mutual of Omaha provides affordable LTC insurance for couples, note that you get what you pay for in terms of reimbursement.
To learn more about this insurer, read my guide to Mutual of Omaha long-term care insurance.
Pros
- 30-day look period
- Couples discounts
- Inflation protection option
- Shared care benefits option
Cons
- Medical exam may be required
- Maximum monthly benefit of $10,000
3. USAA - Best for Veterans and Members of the Military
What We Like Most:
- Affordable life insurance policies
- Long-term care rider options
- A++ rating from AM Best
- Excellent customer service
Policies offered: John Hancock Long-Term Care Rider
AM Best rating: A++
Monthly benefit amount: Up to $50,000
Benefit period: 2-7 years
Elimination period: 90 days
Overview
USAA is a company that offers insurance, banking, retirement, and investing options for military members, veterans, and their immediate families. In terms of long-term care insurance, it has a policy for everyone except New York residents. If you’re in a New York state of mind, you might look at Nationwide or Mutual of Omaha instead. As far as the LTC insurance itself goes, the maximum benefit amount is $50,000 per month, very high compared to Mutual of Omaha.
USAA has the highest AM Best rating on this list: A++. It also has an AA+ rating from S&P Global and an Aa1 from Moody’s, although there is a negative outlook as of May 28, 2024.
To learn more about this provider, read my guide to USAA long-term care insurance.
Pros
- Excellent customer service
- User-friendly USAA mobile app to manage finances and insurance
- Offers a variety of life insurance policies
Cons
- No stand-alone long-term care insurance policy
- Need to contact other insurance providers for long-term riders
Honorable Mentions
The following providers of LTC insurance didn’t make the cut, but they are still viable options for certain people.
- Lincoln Financial: Lincoln Financial offers hybrids only, combinations of life insurance and LTC. It does not offer LTC on its own. Rather, you’ll need to purchase a universal life insurance policy with LTC as a rider.
- Northwestern Mutual: Northwestern Mutual doesn’t offer LTC/life insurance hybrids and has no online quotes. However, it may be a good option if you just want LTC on its own.
- Genworth: Genworth isn’t the most financially stable company, according to third parties like AM Best and S&P Global. However, it can provide decent LTC insurance to couples in particular.
- Pacific Life: Pacific Life only offers LTC as an add-on to life insurance policies, not as a standalone policy.
My Methodology
- Premiums: When it was available, I got online quotes to see how much LTC riders would cost. Since this page was focused on premiums, I looked for companies that offered LTC as a product on its own, and not just as a rider to life insurance policies.
- Issue ages: Since this is a website focused on older adults, I looked for companies with high issue ages, 70 and above.
- Financial ratings: A company needs to be able to pay out the promises it makes, which is why I checked each company’s financial strength ratings with third parties like AM Best, Moody’s, and S&P Global.
- Customer satisfaction: Finally, along with taking in the experiences of my clients, I gathered customer reviews and ratings from sources like the Better Business Bureau, Trustpilot, and Consumer Affairs.
How to Find Cheap Long-Term Care Insurance
Buy Policies When You’re Young
It’s generally better to buy insurance policies when you’re younger. Insurance companies may be hesitant to sell their products to someone who is in poor health or poses a risk or liability. Rates tend to go up with age, so purchasing a policy as soon as possible is a good idea.
Find a Trustworthy Agent
Finding an agent you can trust can help you navigate the process of long-term care with ease. You want to work with an agent who is certified and has years of experience selling insurance to consumers like you. They should understand the market and be able to help you find the best policies with affordable premiums for your individual needs.
Consider Potential Care Needs
If cancer runs in your family or you anticipate needing to leave your family in steady financial hands, then you may want to look into long-term care insurance or life insurance. If you have a chronic illness or preexisting condition, then you’ll want to see if you can receive coverage for potential care needs. You could also be in excellent health but still need long-term care coverage in the future due to an unexpected chronic or terminal illness. Take a moment to consider your potential care needs and how long-term care policies can help alleviate the rising costs of long-term care.
Obtain Multiple Quotes
When in doubt, do your research ahead of time. Many insurance providers will offer free quotes or sample policies to give you an idea of the type of products they offer. Usually, they will have a special online quote calculator where you can input your age, location, smoking habits, and whether your spouse or partner needs coverage. You can then compare the monthly quotes to find the best affordable long-term care insurance provider.
Bottom Line
Navigating the process of finding long-term care insurance can be daunting. Luckily, there are many resources, local agents, and trusted family and friends who can help you get started on securing your finances and long-term care health. We recommend going over your budget, making a detailed list of providers you plan to contact, and creating a list of pros and cons to help get the best long-term care coverage for you or a loved one.
To learn more about our favorite insurance options, check out my guide to the overall best long-term care insurance.
Frequently Asked Questions
-
What factors should I consider when comparing different affordable long-term care insurance policies?
When comparing different affordable long-term care (LTC) insurance policies, here are the factors you should consider:
- Stand-alone or hybrid: It will be cheaper to get a stand-alone LTC policy, but you could also add a LTC rider to a life insurance policy. However, your premiums will increase.
- Benefit amount: Figure out how much you’d need to pay for LTC each month. The more you want each month, the higher your premiums will be.
- Premiums: Also, determine your budget for LTC insurance. Some companies offer installment plans, while others require a single lump-sum payment.
- Financial strength: Check financial strength ratings with third parties like AM Best, Moody’s, and S&P Global. You want to choose a company that will still be around to pay out your claims if you need them.
-
Are there age or health-related restrictions for obtaining long-term care insurance coverage?
Yes, depending on the company, there can be age or health-related restrictions for obtaining long-term care insurance coverage. For example, Mutual of Omaha does not accept customers ages 80 and older, and other companies may not accept people with preexisting conditions like Alzheimer’s or Parkinson’s.
-
Are long-term care riders better than long-term care insurance policies?
I would recommend getting a long-term care rider as an add-on to a universal life insurance policy as opposed to a standalone long-term care insurance policy. That way, your beneficiaries can get paid a death benefit after you pass. With a standalone LTC policy, you will only receive funds for your long-term care during your lifetime.
-
What can I do to find lower long-term care insurance premiums?
To find lower long-term care insurance premiums:
- Check out companies like Nationwide, Mutual of Omaha, and, for military members, veterans, and their families, USAA. Mutual of Omaha, in particular, lets you determine your premiums based on your monthly benefit amount with easy online quotes.
- Get married. Some companies, like Mutual of Omaha, offer discounts to married people, and higher discounts if both partners are insured.
- Stay healthy. Insurance companies offer lower premiums to those in good health, non-smokers in particular.
- Act fast, as premiums will increase the older you are.
- Compare quotes from multiple providers.