Long-term care insurance (LTCI) policies reimburse policyholders for expenses such as adult daycare, in-home, nursing-home or custodial care costs for individuals with chronic or disabling conditions who need round-the-clock assistance with basic activities like as dressing, bathing, eating, continence, toileting, and walking. While Medicare and Medicaid can help cover certain long-term care services under specific circumstances, those wanting an additional layer of protection for their assets and savings or looking to insure someone under the age of 65 may benefit from purchasing this type of policy. However, long-term care can be expensive, LTCI premiums generally increase as the policyholder ages and the plan only pays out for a certain number of years if and when the individual requires long-term care.

Those who cannot afford long-term care insurance or feel the benefits of LTCI don’t outweigh its costs may want to consider a hybrid policy that combines long-term care and whole or universal life insurance. Like whole life insurance policies, these life combination products also have a cash value component that policyholders can use to cover the expenses of assisted living if they ever require it or leave it as a death benefit for their heirs. The main advantages of purchasing a hybrid policy are having a secured death benefit amount for beneficiaries in the event long-term care is never required and having the ability to select a return of premium rider and have that money refunded if the plan is canceled within a set number of years. There are also some potential disadvantages to having a life insurance policy with a death benefit rider, as the annuity component of these plans can have a lower rate of return than other fixed-income investments and premiums may have to be paid more often.

Life insurance with long-term care benefits may be best for those who have ample savings and can comfortably invest in a plan with high premiums. On the other hand, it may still be more profitable to purchase traditional LTCI if the individual is hoping for a higher rate of return or thinks they may need those funds to cover additional living expenses down the road. Whether you’re thinking about purchasing long-term care insurance or a combination product, consider inflation protection and look into buying separate life insurance and LTCI if you think you may require long-term care and worried about using up your entire death benefit before your beneficiaries can.


Top 6 Life Insurance with Long-Term Care Benefits

#1
Our Partner
8.9 / 10

As one of the largest life insurers in the world, New York Life offers reliable life insurance policies customers can fully customize to meet their particular needs. Like other insurers, New York Life extends policy riders as separate products that can be purchased for an added cost. Their additional plan options include a flexible and affordable chronic care rider that protects individuals against potential expenses caused by a chronic or debilitating illness. If the chronic illness coverage is never used, the policyholder will still have a secured death benefit or the ability to use their cash value to supplement future living expenses.

#2
Our Partner
8.9 / 10

As a licensed agency and online insurance marketplace, National Family Assurance works with highly-rated carriers like New York Life, Allstate, and Liberty Mutual to provide term, whole, universal, and final expense insurance policies with a broad range of optional riders. Although plan riders vary by carrier and may not be available in every state, several leading insurers partnered with National Family Assurance offer long-term care benefits with a guaranteed death benefit amount.

#3
Our Partner
8.8 / 10

Life Insurance Lab is an online insurance marketplace offering an excellent range of products from an extensive list of partner companies, including AIG, New York Life, and Mutual of Omaha. Their marketplace approach affords customers greater flexibility with regard to plan riders, which typically include options such as long-term care and critical illness, among others. 

#4
8.0 / 10

Lifeinsurance.net is yet another online marketplace helping customers connect with industry-leading carriers like AIG Direct, Mutual of Omaha, and Nationwide. Optional plan riders through this company will depend on the insurance product and carrier selected, yet most insurers in their network offer a broad spectrum of additional coverages including long-term care.

#5
Our Partner
8.0 / 10

John Hancock, a wholly owned subsidiary of Manulife Financial, has been delivering unparalleled protection through their comprehensive suite of financial and insurance products for over a century. The company enjoys outstanding financial and credit ratings from all major credit rating companies and offers a variety of quality insurance products that are easy to qualify for and can be customized through a broad range of qualified and non-qualified riders.

To qualify for coverage, both John Hancock's qualified and non-qualified long-term care riders will require the policyholders to have a cognitive impairment or be unable to perform at least two of the six activities of daily living, which include eating, toileting, continence, dressing, bathing, and walking. The major difference between both options is that with the non-qualified chronic illness rider the client’s condition must be declared chronic for them to be covered while the qualified LTC rider will cover non-permanent conditions like rehabilitation after a hip replacement or stroke.

#6
9.5 / 10

Nationwide is a group of leading insurance and financial service companies with over ninety years of experience in the industry. The Nationwide Mutual Insurance Group offers a flexible line of life insurance policies with several plan riders including a long-term care option. Nationwide's long-term care rider works the same way as would a traditional LTCI policy, where the customer selects a long-term care amount upon purchasing the plan and can receive benefits upon meeting certain "qualifying requirements". 

If the policyholder never requires long-term care, their beneficiaries will receive an income tax-free death benefit as long as the policy remains in force. If the client does require long-term care, their beneficiaries can receive either the unused portion of the long-term care benefit or 10% of the policy's specified amount.

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