Long-term care insurance can help aging adults afford a range of essential senior services. Also known as assisted living insurance or nursing home insurance, long-term care insurance can cover medical expenses and personal care services for seniors. Providers often have different long-term care insurance plans that aim to fit a variety of senior needs. If you’re helping an aging loved one make a financial plan for future care, we can help you explore some of the most trusted long-term care insurance companies and their most popular plans.

Key Takeaways

Many older adults have purchased long-term care insurance. More than seven million Americans have policies to help fund future medical and nonmedical care.
Many trusted insurance companies offer long-term care plans. Top-rated companies include Mutual of Omaha, Nationwide, New York Life, and Northwestern Mutual.
Benefits depend on your family’s unique needs and concerns. Some plans feature cash payment options or inflation protection, while hybrid plans offer both life insurance and long-term care coverage.
Long-term care insurance policies vary greatly in price. Premiums depend on the type of plan and the insured’s age, health, location, and more.

Understanding long-term care insurance

Long-term care insurance was first introduced in the 1960s as senior living communities became more commonplace and older adults needed help paying for this type of care. “Long-term care” is a general term for services provided to seniors who need daily support, ranging from help with activities of daily living (ADLs) to skilled nursing care.

Long-term care insurance is attractive to many aging adults because plans can cover a range of senior services, including:

Assisted living
In-home care
Nursing homes
Memory care
Adult day programs and respite services

Comparing long-term care companies and plans

As of January 2020, more than seven million Americans had long-term care insurance plans.^[01] The insurance market has recently expanded to meet the demand of adults seeking options to help fund their long-term care.

OurParents specializes in helping families find the right type of care for their unique situation, so we’ve compiled a list of long-term care insurance plans that address some of the most common concerns about future care needs. When considering a long-term care insurance plan, seniors often want to know whether providers offer discounts for couples, if they have cash-back options, and whether they have lengthy elimination or waiting periods.

This table shows some of the popular long-term care insurance plans offered by different companies, along with those plans’ key benefits, which we’ve determined based on our senior living expertise.

Let our care assessment guide you

Our free tool provides options, advice, and next steps based on your unique situation.

Insurance company	Insurance plans offered	Key benefits for seniors
Mutual of Omaha	Generic long-term care insurance Customizable long-term care insurance	Discounts are available for couples and individuals in good health. With cash benefits, seniors don’t have to navigate lengthy reimbursement processes. Policyholders can pick their initial elimination period, so seniors may have less time to wait before coverage kicks in.
Northwestern Mutual	Stand-alone long-term care insurance Hybrid long-term care and life insurance Life insurance with an accelerated death benefit payout	Premiums are waived as soon as policyholders begin receiving long-term care services. Seniors can select from one of three plans to fit their needs. Discounts for spouses are available, though they don’t offer shared spousal plans.
New York Life	Traditional long-term care insurance Combination life and long-term care insurance	For combination policyholders, premiums are guaranteed to stay the same indefinitely, so there’s no risk of an increased price. Seniors can choose between several elimination period options to receive coverage quickly after purchasing a plan.
Nationwide	Stand-alone long-term care insurance Life insurance with long-term care add-ons Linked-benefit long-term care with death benefits	Cash benefits allow seniors to receive money directly to pay for whatever care type they need. Inflation protection is guaranteed for linked-benefit plan holders. Multiple plans are offered at different rates for affordability, which is especially helpful for seniors on a budget.

How much does long-term care insurance cost?

Premiums for long-term care insurance vary greatly depending on a person’s age and health status in addition to the type of plan they want. While people of any age can apply for long-term care insurance plans, prices increase with the applicant’s age.

For example, a long-term care insurance plan with $165,000 in benefits and 0% growth would cost a 55-year-old male around $950 annually, while the same plan would cost a 65-year-old male $1,700 each year.^[02]

To understand what their personal rates would be for different plans, seniors and their families should work directly with insurance agencies and financial advisors. Many factors will influence your parent’s true premiums.

Talk with a Senior Care Advisor

Our advisors help 300,000 families each year find the right senior care for their loved ones.

Understand senior care options for the future

Long-term care encompasses a range of different care types, making it helpful for many adults as they age. While some long-term care needs can be anticipated, others arise quickly due to an accident, injury, or illness. Family caregivers are often responsible for helping with senior care in a variety of scenarios, so it’s important to be prepared and know what options exist for your parent’s long-term support.

Talking with a Senior Care Advisor can help families understand more about the benefits, services, and costs of the different senior care options your parent may be considering. Even if you’re just in the planning stages right now, getting support can help reduce anxiety about what’s to come in the future.

Recommended For You

Where Are All Your Parents’ Important Documents?

Paying for Senior Care: 5 Creative Tips

SHARE THE ARTICLE

References

American Association for Long-Term Care Insurance. (2020). Long-term care insurance – facts – data – statistics – 2020 reports.
American Association for Long-Term Care Insurance. (2022). Long-term care insurance – facts – data- statistics – 2022 reports.

Meet the Author

Leah Hallstrom

Leah Hallstrom is a copywriter at OurParents, crafting articles on senior living topics like home health, memory care, and hospice services. Previously, she worked as a communications professional in academia. Leah holds bachelor’s degrees in communication studies and psychology from the University of Kansas.

Edited byDanny Szlauderbach

Reviewed byLucinda Ortigao

The information contained in this article is for informational purposes only and is not intended to constitute medical, legal or financial advice or create a professional relationship between A Place for Mom (of which OurParents is a trademark) and the reader. Always seek the advice of your health care provider, attorney or financial advisor with respect to any particular matter and do not act or refrain from acting on the basis of anything you have read on this site. Links to third-party websites are only for the convenience of the reader; A Place for Mom does not recommend or endorse the contents of the third-party sites.

Top Long-Term Care Insurance Options for 2023