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Firm’s wealth business thriving with another national accolade MILWAUKEE, May 9, 2023 /PRNewswire/ — With another prestigious industry recognition, Northwestern Mutual continues to reaffirm its status as a top-tier provider of wealth management strategies. Northwestern Mutual announced today it has moved up into the top five of independent broker-dealers based on gross revenue, according to … [Read more…]
If you have someone counting on you financially – or even if there is someone in your life who may be required to pay off your debts and your final expenses in case of the unexpected – then you likely need to have life insurance.
You can use life insurance proceeds for any number of circumstances, such as paying off a home mortgage and credit card debt, as well as replacing lost income. Replacing lost income ensures loved ones can continue to pay their everyday living costs, in turn, keeping those you care about from financial hardship.
When you are shopping for life insurance, you want to make sure that you choose the right type and amount of coverage for your specific needs. You should also ensure that the life insurance carrier you obtain the policy from is reliable and stable financially so that your loved ones can be more assured that they will get the funds that are owed to them. One insurer that fits these criteria is the Baltimore Life Insurance Company.
The History of The Baltimore Life Insurance Company
The Baltimore Life Insurance Company was initially founded back in 1882, as The Baltimore Mutual Aid Society of Baltimore City. Five men began the company with a starting sum of $260.93 in company asset. At that time in U.S. history, many people purchased life insurance coverage so that they or a loved one would not have to buried in a potter’s field, as versus replacing lost income of a breadwinner.
While it took several years for the company to start growing, by the year 1900, it was starting to pick up steam. At that time, the company’s name was also changed to The Baltimore Life Insurance Company of Baltimore City.
Over the years, the Baltimore Life Insurance Company has held steady through several recessions, and even depressions, in the United States. But it has persevered. Today, Baltimore Life Insurance Company insures more than 300,000 policy holders – both families and businesses – in communities across the country.
With its home office now located in Owings Mills, Maryland, the Baltimore Life Insurance Company operates in 49 of the U.S. states, and in the District of Columbia. The products and services of the Baltimore Life Insurance Company are marketed through 13 different career agency sales groups that operate in Maryland, Pennsylvania, Ohio, South Carolina, and West Virginia, as well as through an independent sales division.
The company’s independent marketing organizations’ ability to develop strong relationships with clients is the key to the success of clients as well as the insurer. To achieve this, the Baltimore Life Insurance Company offers extensive support, such as:
A competitive product portfolio
An electronic application and underwriting process (known as INSpeed)
Stellar customer service
The key market segment that the company targets is those who are in middle-class America.
The Baltimore Life Insurance Company Review
As of year-end 2016, the Baltimore Life Insurance Company had invested assets of nearly $1.2 billion – which equates to approximately 4 percent more than year-end 2015, and total assets of $1.241 billion. The company’s surplus stood at more than $81 million, which is a significant increase over the year prior.
The company also increased its new business sales in 2016, by 8 percent over its 2015 figures. Given its normalized sales and its death claims, the Baltimore Life Insurance Company continues to demonstrate positive operating income.
Today, just as it was when the company began in 1882, the Baltimore Life Insurance Company serves the mutual interests of its policyholders, its agents, its employees, and the communities around it. Commitment to excellence guides the company’s actions to the following:
Financial discipline
Making a positive difference
Integrity and respect
Openness and honesty
The Baltimore Life Insurance Company serves in some ways, including through sponsorships and employee volunteerism. Just some of the charities the company supports include the United Way and the Community Grants Program, as well as regular blood drives via the Red Cross.
Insurer Ratings and Better Business Bureau (BBB) Grade
Based on the company’s financial stability, and its ability to pay out its policyholder claims, the Baltimore Life Insurance Company has a rating of B++ (Good) from A.M. Best Company. This rating is fifth out of a possible 16 ratings.
Also, even though the Baltimore Life Insurance Company is not a Better Business Bureau (BBB) accredited company, the BBB has given this insurer a grade of A+. This is on an overall grading scale of A+ to F. Over the past three years, the Baltimore Life Insurance Company has only had to close out three customer complaints through the Better Business Bureau (and only one of these was in the past 12 months). All three of the complaints centered on problems with the company’s products and services.
Life Insurance Coverage Offered Through The Baltimore Life Insurance Company
The Baltimore Life Insurance Company offers a long list of personal life insurance options to choose. These can help to address both individual and family needs. These policy offerings include the following:
Secure Solutions Protector – Level Term Life Insurance – The Secure Solutions Protector level term life insurance coverage offers initial level premium periods of 10, 15, 20, or 30 years. After that, the policy may be renewed on an annual basis. All of the death benefits and the premiums are fully guaranteed to the insured’s age 100.
Home Secure – Simplified Issue Level Term Life Insurance Coverage – This plan provides both a death benefit that can be used by beneficiaries, as well as the option for living benefits, which can be applied if the insured becomes disabled or is diagnosed with a terminal illness. These living benefits may also be used if the insured is confined to a skilled nursing home facility. Also, this plan has a return of premium option.
Secure Solutions Advantage – Whole Life Insurance – This whole life insurance policy offers guaranteed cash values, along with a level death benefit. The policyholder may also receive dividends from the company to take as cash, or to put towards the purchase of additional life insurance coverage.
Silver Guard I, II, and III – For those who are between the ages of 50 and 80, final expense life insurance protection may be necessary. The Silver Guard plan can provide those funds. And, once qualified, as long as the premium remains paid, the plan will stay in force.
Lifetime Navigator – Universal Life Insurance – The Lifetime Navigator universal life insurance plan combines the affordability of permanent life insurance, flexible premiums, and a built-in lifetime insurance protection guarantee feature. For those who are seeking long-term protection with a competitive premium cost, this could be a viable option.
Generation Legacy – The Generation Legacy allows the transfer of funds from non-qualified annuities and other qualified plans, and offers an easy, tax-efficient way of passing a much later gift from these proceeds to the insured’s loved ones.
Secure Solutions – Single Premium Whole Life Insurance – The Secure Solutions Single Premium Whole Life insurance plan allows the transfer of cash funds such as money market and CD accounts. Plus, if the insured is diagnosed with a terminal illness, he or she may access the policy’s living benefits for paying their medical costs, or any other financial need that they see fit.
Critical Illness Insurance – The critical illness coverage from the Baltimore Life Insurance Company provides for medical expenses that are associated with the major critical illnesses, such as cancer, heart attack, kidney failure, major organ transplant, and stroke. This plan provides a cash benefit that can be used for costs that are not typically covered by regular health insurance policies such as home health care, experimental medical treatments, copayments and deductibles, and the lost income of a spouse or other caregiver.
Other Products and Services Offered
In addition to the life insurance coverage products that are offered via the Baltimore Life Insurance Company, there are also other products and services that can be obtained through this insurer. These include the following:
Retirement Annuities – The annuities that are offered by the Baltimore Life Insurance Company include options such as flexible premium retirement annuities (FPRAs), single premium deferred annuities (SPDAs), and single premium immediate annuities (SPIAs). All of these financial vehicles can help to ensure that a retiree will have an income for a set amount of time in the future.
Workplace Solutions – Baltimore Life Insurance Company works with business owners to help provide voluntary supplemental benefits for better meeting the needs of employees and their loved ones. These solutions include a permanent whole life insurance product, critical illness insurance coverage, disability income protection, dental insurance, long-term care insurance, personal major medical coverage, and more.
Financial Needs Analysis – The Financial Needs Analysis, or FNA, can help clients to set financial goals, prioritize them, and initiate a plan of action. The FNA should ideally be reviewed on a regular basis.
Prescription Savings Program – The Baltimore Life Insurance Company offers the ScriptSave Value Program that can help individuals and families to save money on necessary prescription medications. Both name brand and generics are eligible for this savings program.
Personal Planning Guide – Although nobody wants to dwell on it, there can be unexpected expenses thrust upon loved ones when an individual passes away. But, by going through the personal planning guide, individuals and families can plan for such costs in advance, and can often avoid having to dip into savings or other assets to pay these expenses.
Grants Program – For over fifteen years, the Baltimore Life’s Community Grants Program has helped many organizations in the communities where the company’s employees live and work.
Identification Program – As a community service, Baltimore Life Insurance Company offers several ID card programs to local groups and organizations. These programs can enhance the safety of the communities where the company serves. These cards include Child ID and Youth SportSmart cards, as well as medical emergency cards.
How to Find the Best Life Insurance Premium Quotes with Baltimore Life Insurance Company
If you have been looking for the best life insurance premium quotes on coverage from the Baltimore Life Insurance Company – or from any insurance provider – it is typically recommended that you work in conjunction with an independent life insurance agency or brokerage that has access to many different insurance carriers. In doing so, you will be better able to compare, side-by-side, the plans and the premium prices of different options, and from there you can decide which one will be the best for you and your specific needs.
When you are ready to move forward with comparing available life insurance options, we can help. We are an independent insurance broker, and we work with many of the top life insurance carriers in the industry. We can provide you with all of the important information that you will need for making a well-informed decision – and we can do so right from your computer. If you are ready to begin the process, then all you have to do is just simply fill out our quote form.
We understand how overwhelming it can seem when you are in the process of shopping for life insurance. There are many different policies and companies to choose from – and you want to be sure that you are moving in the right direction. Our life insurance experts can get you through this process easily, though. So, contact us today – we’re here to help.
Shopping for life insurance is not the way that you want to spend an evening. I know that nobody wants to sit around and think about his or her death, but you can’t avoid it. Not planning for your passing is one of the worst things that you can do for your loved ones.
When you start looking for the perfect life insurance plan, you can easily feel like you’re drowning in all of the options. There are hundreds of companies that you can choose from and several different types of life insurance policies.
Every insurance company is different. You’ll get different rates, benefits, and policy options depending on the company, and you could spend weeks trying to find the best policy. Luckily, I’ve done some of the dirty work for you. I’ve reviewed dozens of companies and outlined all of the advantages and disadvantages of the companies and the plans that they offer.
This post is going to look at Conseco.com and help you decide if they are the best fit for you and your life insurance needs.
The History of Conseco.com Life Insurance Company
CNO Financial Group was initially incorporated in 1979, and the company started its operations just a few years later in 1982. In 1985, the company went public and changed its name to Conseco, and then, in 2010, the company again changed its name to CNO Financial Group, Inc.
Since its initial inception, Conseco / CNO has grown and expanded considerably, and the company has several insurance and financial related subsidiaries that develop, market, and administer health insurance, life insurance, annuities, and other insurance products. These subsidiaries include the following:
Bankers Life and Casualty Company
Colonial Penn Life Insurance Company
Washington National Insurance Company
Today the company serves more than 4 million customers, who are primarily considered to be in “middle income working America.” The headquarters of CNO / Conseco is in Carmel, Indiana.
CNO Financial is ranked as one of the ten largest public companies in the state of Indiana. It currently possesses a market capitalization of approximately $3.5 billion. As of year-end 2016, CNO had roughly $4 billion in revenue and $263 million in operating income.
Over the past four years, CNO has had a total shareholder return of more than 115% – which makes it incredibly strong financially. Given its strong capital position, CNO Financial can withstand both up and down markets.
Conseco / CNO Financial, as well as its subsidiary companies, have earned numerous awards and accolades over the years, such as:
Ranking second in the 2016 Healthiest 100 Workplaces in America due to its vision, leadership, and comprehensive wellness policies
Received Well-Being Top Honors for its ongoing commitment to promoting a healthy work environment and encouraging its workers to live more healthy lives
Received the highest level of recognition by the American Heart Association for being a Fit-Friendly Company
Bankers Life named as one of the U.S. top 50 performing life-health insurance companies in the 2013 Ward’s 50 – an honor that is typically bestowed to only 50 of the 800 life-health insurers that are analyzed.
Colonial Penn won the Pega 2012 Customer Experience Award
Insurer Ratings and Better Business Bureau Grade
Because of its strong and stable financial foundation, Conseco / CNO Financial and its subsidiaries have earned very high ratings from the insurer rating agencies. These include the following:
Subsidiary Claims-Paying / Financial Strength
A.M. Best
Standard & Poor’s
Fitch
Moody’s
Bankers Conseco Life Insurance Company
A- (Stable)
BBB+ (Stable)
BBB+ (Stable)
Baa1 (Stable)
Bankers Life and Casualty Company
A- (Stable)
BBB+ (Stable)
BBB+ (Stable)
Baa1 (Stable)
Colonial Penn Life Insurance Company
A- (Stable)
BBB+ (Stable)
BBB+ (Stable)
Baa1 (Stable)
Washington National Insurance Company
A- (Stable)
BBB+ (Stable)
BBB+ (Stable)
Baa1 (Stable)
Also, the subsidiaries of CNO Financial / Conseco also have been given top grades from the Better Business Bureau (BBB). For example, Bankers Life has been an accredited company through the Better Business Bureau since August 1, 2013, and the BBB has provided this company with a grade of A+ (which is on an overall grade scale of A+ to F).
Over the past three years, Bankers Life has closed out a total of 112 customer complaints (of which 39 have been closed within the previous 12 months). Of the 112 total, 73 were regarding problems with the company’s product and service. 15 had to do with delivery issues, 12 were concerning billing and collection issues, 11 were related to advertising and sales issues, and one had to do with the company’s guarantee issues.
Colonial Penn Life Insurance Company has an A- rating from the Better Business Bureau. Within the past 36 months, this CNO Financial subsidiary has closed out a total of five customer complaints. Four of these complaints dealt with problems with the products and services, and the other one was regarding billing/collection issues.
The subsidiaries of CNO Financial (Conseco) offer a wide variety of life insurance coverage. For example, Bankers Life Insurance Company offers both term and permanent life insurance products. With term life, insureds can choose a pre-determined number of years of coverage, such as 5, 10, or 20. The premiums on these policies will remain level throughout the life of the policy.
Bankers Life also offers both whole life and universal life insurance coverage in its permanent life coverage category. With whole life, the premiums will stay level and will never go up (if they are paid on time). The universal life insurance coverage that is offered by Bankers provides more flexibility regarding premium payment and amount. Both policy categories offer guaranteed cash value in the policies. And, this money may be borrowed or withdrawn by the policy holder for any need that he or she sees fit.
Colonial Penn Life Insurance Company has been offering life insurance coverage for more than 50 years. This Conseco / CNO subsidiary provides both term and permanent protection, too. And, with the company’s guaranteed acceptance life insurance, an applicant is guaranteed to be approved for coverage – and there are no medical exams or health questions required for approval. With these permanent life insurance policies, the premium rate will be locked in, and the plan will start to build up cash value after the first year.
The life insurance plans that can be purchased through Colonial Penn offer coverage of up to $50,000 (for both term and whole life coverage). And, individuals may apply for either a term or a whole life policy up to age 75.
Likewise, Washington Mutual Insurance Company also provides an extensive list of life insurance coverage options to choose from. These also include both term and permanent coverage options.
The term policies from Washington Nation can provide coverage for just a few years, or for many years. The monthly premiums will remain level throughout the life of the policy.
Regarding permanent life insurance coverage, Washington Mutual offers both whole life and indexed universal life insurance plans. Whole life policies offer a choice of having a level benefit (where the policy pays out the face amount and any rider benefits to a named beneficiary upon the insured’s death), or a graded benefit (where the policy will pay out a reduced amount of benefit if the insured’s death occurs for reasons other than an accident within the first two policy years).
With an indexed universal life insurance policy through Washington Mutual, there is a death benefit, as well as a cash value component. The growth of the cash inside the policy will have a return that is based on the performance of an underlying market index (such as the S&P 500). If the index performs well, the policy holder can obtain an excellent return for that period. However, if the underlying index performs poorly in a given year, the return will just be credited as a 0% for that time – which essentially allows the protection of the policy holder’s principal).
The indexed universal life policies at Washington Mutual Insurance Company may also allow the insured to access “living benefits” in certain situations. This means that he or she could access the policy’s death benefit proceeds, while still alive, for expenses that are related to a terminal illness diagnosis and confinement in a nursing home.
Burial Insurance
Even if you have all your finances in order, there may still be one area that has been left out – and because of that, it could leave those you care about vulnerable to future financial hardship. That is the payment of final expenses.
Today, the average cost of a funeral is between $8,500 and $10,000. This is especially true when you factor in the price of a memorial services, flowers, and transportation, along with other items such as a burial plot and headstone.
Rather than having your loved ones dip into their savings, or worse, put these expenses on credit when the time comes, you could provide them with the financial gift of a burial insurance policy.
Burial insurance is a type of life insurance that is specifically designed for paying one’s final expenses. Also, often referred to as funeral insurance or final expense insurance, these plans will typically have a benefit amount of between $5,000 and $25,000.
In some cases, an insured will add an amount of coverage so that other unanticipated expenses may also be covered, such as hospice care and end of life hospitalization that is not included in a regular medical insurance policy.
When you are seeking the best burial insurance policy for your needs, several factors should be considered. These include the type and amount of coverage, as well as the insurance carrier that you plan to purchase the coverage through. In this case, you will ideally want the company to be secure and stable financially, and to have a good reputation for paying out its policy holders’ claims. One insurer that meets these criteria is Conseco.
Other Products and Services Offered
In addition to life insurance protection, the Conseco / CNO Financial subsidiary companies also offer additional financial and insurance related products. These include the following:
Bankers Life
Medicare Supplement Insurance (the company offers several of the ten Medicare Supplement insurance plans)
Retirement Annuities (these products can provide a way to save money in a tax deferred fashion, and they can also provide a guaranteed lifetime income stream in the future)
Long Term Care Insurance (most long-term care insurance policies will pay out benefits if the insured is receiving qualified care in a facility or their own home)
Washington National Insurance Company
Washington National Insurance Company also offers a variety of different products. These include:
Health Insurance
Workplace Benefits (including term and universal life insurance, hospitalization and ICU coverage, cancer and critical illness insurance, and accident and disability coverage
How to Get the Best Premium Rate on Life Insurance Coverage
If you are seeking the best premium rate on life insurance coverage through the subsidiary companies of Conseco / CNO Financial – or from any insurance carrier – it is recommended that you work with an independent life insurance agency or brokerage. That way, you will be more easily able to compare numerous policy options side-by-side in an unbiased manner. You will then be able to determine which of the policies – and the premium prices – work the best for you, and for your budget.
When you are ready to start comparing the best life insurance coverage for your needs, we can help. We are an independent life insurance broker, and we work with many of the top life insurance providers in the market place today. We can assist you with getting all of the information that you need for making a well-informed buying decision. And, you won’t have to meet in person with a life insurance agent. If you are ready to begin the process, then just simply fill out our short quote form.
We understand how overwhelming it may seem when you are looking for the right life insurance protection. There are many different variables to consider – and you want to make sure that you are choosing the right policy – and the right insurance company – for your specific needs.
But the good news is that you don’t have to go through this process alone. Working with an expert can put you back in control. So, contact us today – we’re here to help.
Now in its third year, company initiative provides $100K, mentorship and resources to support qualifying high-potential Black entrepreneurs MILWAUKEE, May 4, 2023 /PRNewswire/ — Northwestern Mutual, in partnership with gener8tor, today announced the addition of five promising tech startups to its innovative Black Founder Accelerator program. An extension of the company’s Sustained Action for Racial … [Read more…]
Did you know that the average American has a nearly 70% chance of needing some form of long-term care upon reaching age 65? But did you also know that you may be able to prepare for the event by purchasing long-term care insurance? That’s why we’ve prepared this guide of the 7 best long-term care insurance of 2023.
Before getting into our reviews of the seven best long-term care insurance providers of 2023, scan the table below to see which company you think will work best for you:
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Our Picks for Best Long-Term Care Insurance
Dozens of insurance companies offer long-term care insurance, but below is our list of the top seven, and what each is best for:
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Best Long-Term Care Insurance – Company Reviews
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Maximum Benefits: Varies by provider
Benefit Period: Varies by provider
Waiting/Elimination Period: Varies by provider
GoldenCare, also known as National Independent Brokers, Inc, is a privately held long-term care insurance brokerage firm, and one of the leading such firms in the industry. They provide policies from the top-rated insurance companies in the industry. The company is based in Plymouth, Minnesota, and has been in business since 1976. Their plans are available in all 50 states.
The list of companies they work with includes the following:
GoldenCare also offers critical illness insurance, Medicare supplements and Medicare Advantage plans, prescription drug plans, life insurance, annuities and final expense policies.
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Maximum Benefits: Varies by provider
Benefit Period: Varies by provider
Waiting/Elimination Period: Varies by provider
Like GoldenCare, LTC Resource Centers is also an insurance brokerage specializing in long-term care insurance. Based in Cape Coral, Florida, the company has been in business for more than 40 years. They provide long-term care insurance, short-term care, linked or combination products, Medicare supplements, life insurance, critical illness, and annuities.
A specialization they offer is what is known as asset-based long-term care. It’s a strategy that uses a whole life insurance policy or annuity to provide long-term care coverage, which eliminates the need for an expensive, dedicated LTC policy. A pricing comparison is presented in the screenshot below:
As a broker, they work with multiple long-term care insurance providers. That means to get detailed information you’ll need to set an appointment with a long-term care insurance specialist and make the request. The company’s licensed to operate in all 50 states.
Maximum Benefits: Up to $400 per day or $10,000 per month
Benefit Period: Up to 5 years, or unlimited lifetime benefit
Waiting/Elimination Period: 0, 30, 60, 90, 180 or 365 days
Mutual of Omaha is one of the top individual providers of long-term care insurance. They offer some of the best plans in the industry, including lifetime benefits coverage, multiple elimination periods, and inflation protection. They are a full-service insurance company providing coverage in all 50 states, providing virtually all types of insurance policies.
Mutual of Omaha also offers premium discounts. For example, you can save 15% when you purchase a policy for both you and your partner. You can also save 15% if you’re in good health. There’s even a 5% discount if you are married but your spouse does not purchase a policy.
Maximum Benefits: Up to $7,000 per day, up to a $250,000 lifetime maximum
Benefit Period: Up to maximum daily or lifetime limit
Waiting/Elimination Period: One-time deductible of $4,500 up to $21,000
Like Mutual of Omaha, New York Life is a large, well-established and diversified insurance company. In addition to long-term care policies, they also offer virtually every other type of insurance policy available. Also like Mutual of Omaha, New York Life is a mutual insurance company, which means it’s owned by its policyholders, not shareholders. The company partnered with the American Association of Retired Persons as a preferred provider of long-term care insurance policies.
New York Life provides their NYL My Care long-term care policy. The basic parameters are as follows:
Like other direct insurance providers on this list, New York Life also offers annuities and whole-life insurance policies with long-term care riders.
Maximum Benefits: Up to $750,000 maximum lifetime benefit
Benefit Period: Up to 7 years
Waiting/Elimination Period: 90 days
Nationwide is one of the leading providers of long-term care insurance in America. With a maximum lifetime benefit of up to $750,000, they provide the highest lifetime maximum benefit on our list. They also offer a single, simple, 90 calendar-day elimination period. You can choose between two years and seven years for a maximum benefit period.
The policy will also cover home healthcare, hospice, adult day care, household services, home safety improvements, and even family care. And in a unique twist, nationwide also provides international benefits. If you live out of the country during the benefit period, the policy will pay 50% of the maximum monthly benefit.
Maximum Benefits: Up to $250,000 maximum lifetime benefit
Benefit Period: Up to maximum lifetime benefit limit
Waiting/Elimination Period: 90 days
Brighthouse Financial is an insurance provider that offers two types of products, annuities and life insurance. Either is available with a long-term care rider. The company has $254 billion in assets, serving about 2 million customers.
Brighthouse Financial provides long-term care insurance through its SmartCare plan. It’s a combination plan that adds a long-term care provision to a whole life insurance policy. You’ll get the benefit of long-term care if it’s needed, but you’ll also have a life insurance benefit to pay to your beneficiaries if it’s not, or if there are any funds left over after your long-term-care stay.
The policy will cover adult day care, hospice, and home healthcare, in addition to nursing homes and assisted living facilities, and skilled nursing care.
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Maximum Benefits: Varies by provider
Benefit Period: Varies by provider
Waiting/Elimination Period: Varies by provider
CLTC Insurance Services, or California Long Term Care Insurance Services, is a long-term care insurance aggregator, based in San Francisco. Aggregator is a fancy word for an online insurance marketplace. As an aggregator, CLTC will give you access to a large number of long-term care insurance companies. You can then choose the one offering the plan that will work best for you. The main limitation of this provider is that they offer policies only in the state of California.
In addition to long-term care insurance, they also offer annuities and life insurance policies, both with long-term care riders. These types of policies eliminate the need for a dedicated LTC policy, since the cost of long-term care is paid out of the proceeds of the annuity or life insurance. CLTC also offers critical illness insurance.
Long-Term Care Insurance Guide
What is Long-Term Care?
When an individual reaches a point where they can no longer care for themselves, long-term care becomes necessary. That care can be provided by anyone from family members to nursing homes.
The need for long-term care generally applies when the individual can no longer perform one or more of the six activities of daily living (ADL). This can include inability to dress, groom, go to the bathroom, bathe, eat, or even to move about freely.
In most cases, long-term care becomes necessary after a major health event, like a heart attack or stroke. But it can also be the result of an ongoing, degenerative health condition or simply advancing age.
In most cases, long-term care is provided by a family member. But institutional care may be necessary if the individual is unable to perform several ADLs, which may overwhelm the ability of family members to provide ongoing care.
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How to Purchase Long-Term Care Coverage?
We recommend contacting any of the seven best long-term care insurance providers in this guide. Otherwise, do a search and identify insurance companies that offer long-term care coverage. But be aware that not all insurance companies offer it, precisely because of the many variables. It involves.
When purchasing a policy, be aware of the following:
Like life insurance, it’s best to purchase LTC insurance when you’re young and healthy. That’s when the premiums are lowest.
Consider purchasing a long-term care insurance alternative, like a life insurance policy or an annuity with a long-term care rider (see below). It’s generally much less expensive.
Pay close attention to the maximum benefit paid, whether daily, monthly, annually, or lifetime. It should approximate nursing home costs in your area. (Be aware that these costs vary greatly from one state to another.)
Pay close attention to the benefit period. While the typical number of years an individual needs long-term care coverage is three years, there’s no way to tell what you may need. If you can afford the higher premium, it may be best to go with the longer benefit period, say, five years or longer.
Be aware of the elimination period. The standard is 90 days, but it can be as long as one year. This is not a minor factor, since nursing home care at $8,000 per month could cost you $24,000 with a 90-day waiting period before benefits kick in. The waiting period you choose should match the amount of liquid assets you expect to have available to cover it.
When you take a policy, be prepared to pay the premium for the rest of your life. If you take a policy at 60, stop making the payments at 80, then you need long-term care at 85, you’ll get no benefits from the lapsed policy.
According to the website Consumer Affairs, long-term care insurance premiums look something like this:
Now, the screenshot above reflects only sample averages for very specific policies at ages 55 and 65. The actual premium you will pay will be based on a combination of factors, including your age at the time of purchase, any health conditions you have, as well as the dollar amount and term of the benefits your policy will include.
Finally, given how complicated long-term care insurance is, it wouldn’t be overkill to have the policy reviewed by an attorney before accepting it. If so, an attorney who specializes in elder care will be your best choice.
Who Needs Long-Term Care Coverage?
The short answer to this question is everyone. The unfortunate reality is that people turning 65 have an almost 70% chance of needing some type of long-term care services during their lifetimes. Approximately 37% will require institutional care. And statistically, women and single individuals are more likely to require long-term care than men and married individuals.
If you’re unsure if you need long-term care, check out Jeff’s post, Long term care insurance: do you really need it?.
Though it isn’t well-known outside the industry, there are two basic types of long-term care coverage available. The first is a standalone long-term-care insurance policy.
Like a life insurance policy, medical underwriting will be performed. The insurance company will consider your age, your health condition, your family health history, your occupation, requested benefit levels, and other factors in approving your application and setting the premium level. This is the more costly of the two options.
The other is a hybrid policy. Most commonly, this is life insurance with long-term care benefits. You’ll purchase a basic life insurance policy, then add a long-term care rider to the policy. This will increase the premium on the life insurance policy, but it will be much less expensive than a standalone long-term-care policy.
Meanwhile, you’ll also have a death benefit from the life insurance policy, in addition to long-term-care coverage. But the policy may also include using some or all the death benefits to pay the long-term-care benefits. Your beneficiaries will receive only the amount of the unused death benefit upon your death.
Most of the best life insurance companies offer life insurance policies with this rider.
Another variant of this option is to use an annuity with long-term care rider. Annuities are designed to provide an income stream, very similar to a pension. But similar to a life insurance policy with a long-term care insurance rider, you can also add the rider to an annuity.
Again, it will be less expensive than purchasing a standalone long-term-care policy. And the long-term-care benefits may reduce any death benefit in your annuity. But the provision will be much less expensive than purchasing a standalone long-term-care policy.
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Finding the Right Policy
Long-term care insurance is one of the more complicated insurance types. It also includes more potential variables than other policies. For example, not only will you not know if you will need the coverage at all, but you won’t know when, to what degree, what level of care will be required, or how long it will be needed.
Because of all these variables, the cost of a long-term care insurance policy can be all over the place. But it may be better to pay a little bit more for a more comprehensive policy than to price-shop for the least expensive plan.
Before deciding to purchase a long-term-care insurance policy, first review Jeff’s Podcast episode: Long Term Care Insurance – How much do you need? Given how complicated long-term-care insurance is, it’s best to go in with as much knowledge as possible.
How We Found the Best Long-Term Care Insurance Companies
We used the following criteria to determine the best long-term care insurance companies of 2023:
Maximum Benefits: Given that the cost of long-term care can easily run into hundreds of thousands of dollars, we favored companies with the most generous lifetime benefits.
Benefit Period: One of the most basic problems with long-term care is the uncertainty. There’s no way to know in advance what level of care you might need, or how long it might be necessary. For that reason, we favor the companies that provide the most flexibility in this area.
Waiting/Elimination Period: Just as most insurance policies have deductibles, long-term care insurance uses the waiting period in much the same way. The standard delay on benefits is 90 days. But we prefer companies that offer longer waiting periods, since this will represent an opportunity to lower the cost.
Speaking of cost, as much as we would like to provide a list of average costs per provider, this information simply is not available. That’s because long-term care insurance is highly customized. There’s nothing approximating a “one-size-fits-all” policy, as each policy premium is determined by a multitude of factors.
These include your age at the time you purchase the policy, your general health condition, your family health history, the length and amount of coverage you need, and many other factors. The only way to get a reliable premium figure will be to contact one of the companies above and get a quote.
Best Long Term Care Insurance FAQs
What is long-term care insurance?
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Long-term care insurance is a type of coverage that will provide benefits to pay for your personal care when you’re no longer able to do so for yourself. While the typical long-term-care scenario involves a nursing home, it also applies in lesser situations. That can include assisted living arrangements, home nursing care, and even family care. The policy will begin paying benefits when you qualify for care based on inability to perform several of the ADLs.
What does long-term care insurance cover?
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As mentioned earlier, long-term care insurance benefits begin to apply when you are unable to perform activities of basic living. Depending on the type of policy you have, you’ll receive benefits for a stay in a nursing home, an assisted living facility, skilled nursing care, an adult day care, hospice, and even home care provided by your family.
Some policies will even provide for the cost of modifying your home to better accommodate your capabilities, or the purchase of certain helpful equipment.
How long does long-term care insurance work?
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A typical long-term-care insurance policy will pay benefits between two and five years, though some will go as long as seven, and a few providers offer lifetime benefits. You should be aware that you will need to qualify for whatever coverage term you prefer, and the longer the term, the higher the premium will be.
Is long-term care insurance worth it?
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It really depends on your perceived need for the coverage, and your ability to pay the premiums. Need can be determined by your family history. If you have multiple family members who require long-term care, having the coverage for yourself will be highly desirable. But if you’re in excellent health, and there’s little history of a need for care in your family, you may want to pass on the coverage.
And of course, given the high cost of the premiums, your ability to afford coverage can never be ignored. But if you have very limited financial means, Medicaid may provide benefits for long-term care. However, to qualify your total assets must generally be below $2,000.
Summary of the Best Long-Term Care Insurance Companies
Let’s wrap up this guide by giving you one more look at our list of the seven best long-term care insurance companies of 2023:
Long-term care insurance isn’t inexpensive. But given the unusually high likelihood that will be needed at some point in your life, it’s a policy worth having if you can afford it. And if you can’t, consider taking an annuity or a whole life insurance policy with a long-term care provision.
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My family has been fortunate to not have had a family member spend a considerable time in the nursing home. For families who have not been as fortunate, the whole experience can be a devastating one; emotionally and financially. For those who were fortunate enough to have taken out a long term care policy, they […]
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Northwestern Mutual Ranked as Sixth-Largest Independent Broker-Dealer by Financial Advisor Magazine MILWAUKEE, April 6, 2023 /PRNewswire/ — Northwestern Mutual’s wealth management business continued its ascension with another prominent third-party recognition announced this week. Financial Advisor magazine, a leading trade publication for the financial advice industry, ranked the company as the sixth-largest independent broker-dealer firm by … [Read more…]