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Long Term Care Insurance | Pros And Cons | How It Works

Age is not a determining factor in needing long-term care. But over 65 years of individuals cannot do most of their day-to-day activities, So Long Term Care Insurance is here to help you.

Let’s talk a little about long-term care insurance

Long Term Care Insurance (LTCI) is a host of services not covered by regular health insurance. This includes assistance with routine daily activities, like bathing, dressing, or getting in and out of bed.

There are many essential things to know about Long Term Care Insurance LTCI, so relax and read this article to get more information before going for it.

The table of contents provided below will give you an overview.

Long Term Care Insurance LTCI

What Is Long-Term Care Insurance

According to Wikipedia, Long term care insurance (LTC Or LTCI) is an insurance product sold in the United States, United Kingdom, and Canada that helps pay for the costs associated with long-term care.

This insurance covers care generally not covered by health insurance, Medicare, or Medicaid. Generally, individuals who need long-term care are not sick in the real sense but cannot perform some of their activities of daily living (ADLs) like 2/6.

Examples are dressing, bathing, eating, toileting, continence, transferring (getting in and out of a bed or chair), and walking.

Furthermore, age is not a determining factor in needing long-term care. About 70 percent of individuals over 65 will require at least some type of long-term care services during their lifetime.

There are about 40% of people receiving long-term care today which are between 18 and 64.

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How Does long-term care insurance works

You round out an application and answer well-being questions to purchase a drawn-out consideration protection strategy. The net safety provider may request to see clinical records and meet you by telephone or up close and personal.

You pick the measure of inclusion you need. The approaches cap the sum paid out daily and paid during your lifetime.

You pay expenses whenever endorsed for inclusion, and they issue the approach.

Under most long-haul care arrangements, you’re qualified for benefits when you can’t do two out of six “activities of day-by-day living,” alone or you experience the ill effects of dementia or other psychological weakness.

The day-to-day activities are Bathing, Caring for incontinence, Dressing, Eating, Toileting, etc.

Why Buy Long-Term Care Insurance? 

About half of the 65-year-old people today will develop a disability and require some LTC service.

According to a study revised in 2016 by the Urban Institute and the U.S. Department of Health & Human Services. Most will need services for less than two years, but about 14% will require care for more than five years.

There are two reasons why people buy long-term care:

  • To Protect Savings: Long-term care costs can quickly deplete a retirement nest egg. The median cost of care in a semi-private nursing home room is $89,297 a year, according to Genworth’s 2018 Cost of Care Survey.
  •  To Give You More Choices For Care: The more money you can spend, the better the quality of care you can get.

If you have to rely on Medicaid, your choices will be limited to the nursing homes that accept payments from the government program. Medicaid does not pay for assisted living in many states.

What Is The Cost Of A Long-Term Insurance?

The rates you pay depend on a variety of things, which includes Gender, age, health, Marital Status, Amount of Coverage, and Insurance company.

A single 55-year-old man in good health buying new coverage can expect to pay an average of $2,050 a year for a long-term care policy with an initial pool of benefits of $164,000, according to a 2019 price index from the American Association for Long-Term Care Insurance.

Note: The price could go up after you buy a policy; prices are not guaranteed to stay the same over your lifetime.

List Of Companies That Sell LTCI

The number of insurance companies selling long-term care insurance has plunged since 2000. However, here are the companies selling long-term care insurance.

  • Bankers Life & Casualty
  •  Genworth Financial
  •  Mutual of Omaha
  •  New York Life
  •  Northwestern Mutual
  •  MassMutual
  •  Transamerica

We will talk about a few of the companies.

#1. Bankers Life & Casualty

Bankers Life is the primary subsidiary of CNO Financial Group, Inc. The company was established in 1879 in Chicago, Illinois.

CNO is a Fortune 1000 company whose subsidiaries provide insurance products and services to customers in the United States.

Bankers Life is the marketing brand of Bankers Life and Casualty Company, Medicare Supplement insurance policies sold by Colonial Penn Life Insurance.

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#2. Genworth Financial

Genworth Financial is an S&P 400 insurance company. The firm was founded as The Life Insurance Company of Virginia in 1871.

This Financial company is dedicated to helping you secure your financial life through long-term care insurance, life insurance, annuity retirement solutions, and more.

Furthermore, their financial products are offered/underwritten by more than one company, including Genworth Life and Annuity Insurance Company.

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#3. Mutual of Omaha

Mutual of Omaha is a trusted Medicare Supplement Insurance, Life Insurance, Finance, and Mortgages provider.

The company is a Fortune 500 mutual insurance and financial services company based in Omaha, Nebraska.

Mutual of Omaha is highly-rated; in 2023, it ranks #5 in Affordable Life Insurance Companies 2023.

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#4. New York Life

New York Life Insurance Company is the third-largest life insurance company in the United States and the largest mutual life insurance company in the United States.

Established in 1845, since then, their goal is to secure the best life for you and your family.

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What Are The Benefits Of Long-Term Care Insurance LTCI?

Here are the benefits of long-term care insurance LTCI, below.

  • Long-term care insurance can cover home care, assisted living, adult day care, and respite care
  •  Also, the LTCI hospice care, nursing home, Alzheimer’s facilities, and home modification to accommodate disabilities.
  •  Long-term care insurance LTCI could help cover out-of-pocket expenses
  •  Moreso, premiums paid on a long-term care insurance product may be eligible for an income tax deduction.

Long-Term Care Insurance LTCI Pro and Cons

Here are the following long-term care insurance pros and cons to consider as you weigh your options.

Cons Pros

In long-term care insurance LTCI, there’s currently no certainty in pricing. Long-term care provides peace of mind.

 It’s hard to figure out how much insurance you might need It’s worthwhile if you’re sure you’ll use it.

Benefits may not be deployed as you need them You really are likely to require long-term care from age 65 age and above.

You might not qualify because you must pass a physical before they insure you. Out-of-pocket costs for long-term care are expensive.

Is Long-Term Insurance Worth It?

It all depends on your financial health if long-term care insurance is worth it or if you need it or not. For example:

If you are wealthy, you might be better off using your money to pay for long-term care expenses. Fund long-term care out of pocket.

Or If you have very little income, you probably can not afford the insurance. You will likely have to run through whatever assets you have and qualify for Medicaid to cover the care.

Using a Retirement Calculator can be a useful way to figure out if you need long-term care insurance LTCI or not. A good calculator will give you a glance at your finances now and in the future, also when you might need the care. 

You can check out your cash flow and resources at different future dates and decide if they will be adequate for funding a long-term care need.


This article will help you to know more about Long Term Care Insurance and enables you to make a decision.


  • Nerdwallet – Long-Term Care Insurance Explained
  •  Wikipedia – Long-Term Care Insurance
  •  New retirement – Is Long-Term Insurance Worth It? Explore the Pros and Cons


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