Top 10 Best Long Term Care Insurance Companies

Comprehensive Guide to Long-Term Care Insurance

Planning for long-term care is one of the most critical yet overlooked aspects of retirement preparation. With nursing home costs now exceeding $120,000 annually and 7 out of 10 people needing some form of long-term care after age 65, finding the right insurance coverage has never been more important. This comprehensive guide will help you navigate the complex world of long-term care insurance and find the perfect solution for your unique situation.

Table of Contents:

• Key Takeaways
• Top Long-Term Care Insurance Providers (2025 Rankings)
• What to Look For in Long-Term Care Insurance
• Stand-Alone LTC vs. Hybrid LTC Insurance: Which Is Right for You?
• Long-Term Care Insurance: Pros and Cons
• Top 10 Best Long-Term Care Insurance Companies in 2025
• Current Long-Term Care Insurance Rates
• Long-Term Care Insurance FAQs
• Next Steps: Getting Professional Guidance

Key Takeaways for 2025

1. Diverse Insurance Options: The market now offers a wider array of long-term care insurance policies than ever before, including traditional stand-alone policies and innovative hybrid LTC insurance options that combine life insurance with long-term care benefits. Understanding these differences is crucial for making an informed choice.
2. New Tax Advantages: For 2025, traditional long-term care insurance premiums have increased deduction limits, with taxpayers age 71+ now able to deduct up to $6,020 per person, providing enhanced financial benefits beyond the insurance coverage itself.
3. Premium Stability in Hybrid Policies: Hybrid LTC policies continue to offer the security of fixed premiums, protecting against the unexpected increases that have affected many traditional policy holders, particularly important during retirement when income is often fixed.
4. Expanded Coverage Options: Today’s long-term care insurance covers a broader range of services than ever before, including in-home care, assisted living, adult day care, and innovative care solutions like remote monitoring and telehealth services.
5. Accelerating Cost of Care: The national average cost of nursing home care has increased by 5.1% annually over the past five years, now exceeding $120,000 per year for a private room, making long-term care insurance an essential component of comprehensive financial planning.
6. Simplified Underwriting: Several major carriers have introduced streamlined underwriting processes in 2025, making it easier for individuals with certain health conditions to qualify for coverage than in previous years.

Top Long-Term Care Insurance Providers (2025 Rankings)

Company	Best For	Policy Type	Financial Strength
Mutual of Omaha	Traditional LTC	Stand-alone	A+ (AM Best)
Nationwide	Hybrid Solutions	Hybrid	A+ (AM Best)
New York Life	Financial Stability	Both	A++ (AM Best)
MassMutual	Customizable Coverage	Both	A++ (AM Best)
Lincoln Financial	Premium Flexibility	Hybrid	A (AM Best)

What to Look For in Long-Term Care Insurance

The best long-term care insurance policy will be the one that offers the most features and flexibility while providing an affordable premium. When comparing different companies and policies, focus on these critical factors:

Key Features to Consider in 2025

• Benefit Period: How long will the policy pay benefits? Options typically range from 2-6 years, with some policies offering lifetime benefits.
• Daily/Monthly Benefit Amount: This is the maximum amount the policy will pay per day or month. The current average cost of nursing home care is approximately $330 per day for a private room.
• Elimination Period: Similar to a deductible, this is the waiting period before benefits begin. Common options include 30, 60, 90, or 180 days. Longer elimination periods typically result in lower premiums.
• Inflation Protection: With long-term care costs rising at about 5% annually, inflation protection is crucial. Options include 3% simple, 3% compound, 5% simple, or 5% compound increases.
• Premium Stability: Traditional policies can have premium increases, while hybrid policies typically offer guaranteed premiums. Review the company’s history of rate increases.
• Coverage Flexibility: The best policies cover a wide range of care options, including in-home care, assisted living, nursing homes, adult day care, and respite care.
• Additional Riders: Consider valuable add-ons like shared care benefits (allowing spouses to share policy benefits), return of premium features, or survivorship benefits.

Stand-Alone Long-Term Care Insurance vs. Hybrid Long-Term Care

Understanding the differences between traditional stand-alone LTC insurance and hybrid LTC insurance is crucial for making the right choice for your situation:

Similarities:

• Coverage Scope: Both types cover a similar range of long-term care services, including in-home care, assisted living, and nursing home care.
• Customization Options: Both offer various options for benefit periods, elimination periods, and inflation protection, allowing you to tailor coverage to your specific needs.
• Eligibility Requirements: For both policy types, benefits typically trigger when you cannot perform a certain number of Activities of Daily Living (ADLs) or have a cognitive impairment.
• Inflation Protection: Both traditional and hybrid policies offer options to ensure that benefits keep pace with the rising cost of long-term care services.

Key Differences:

Feature	Traditional LTC Insurance	Hybrid LTC Insurance
Premium Stability	Premiums can increase over time	Guaranteed fixed premiums
Policy Structure	Stand-alone focus on LTC benefits only	Combines life insurance with LTC benefits
Death Benefit	“Use it or lose it” – no death benefit	Provides death benefit if LTC isn’t fully used
Tax Treatment	Premiums may qualify for tax deductions	Premiums typically don’t qualify for deductions
Up-front Costs	Lower initial premiums	Higher initial premiums or lump sum payments
Cash Value	No cash value component	May build cash value over time

Long-Term Care Insurance: Pros and Cons

Pros:

1. Asset Protection: LTC insurance helps shield your retirement savings and other assets from being depleted by high care costs, preserving your legacy for loved ones.
2. Enhanced Care Options: Having insurance coverage often provides access to higher quality care and more options than relying solely on Medicare or Medicaid.
3. Tax Advantages: Traditional LTC insurance premiums may qualify for tax deductions, with increased limits for 2025, potentially reducing the overall cost.
4. Peace of Mind: Knowing you have a plan in place for potential long-term care needs reduces stress for both you and your family members.
5. Comprehensive Coverage: Modern policies cover a wide range of services from in-home care to nursing facilities, providing flexibility as care needs evolve.
6. Inflation Protection: Many policies offer inflation protection features that increase benefits over time, keeping pace with rising healthcare costs.

Cons:

1. Premium Costs: Long-term care insurance can be expensive, particularly for those who apply at older ages or with existing health conditions.
2. Rate Increases: Traditional policies may experience premium increases over time, potentially making coverage unaffordable when you need it most.
3. “Use It or Lose It” Nature: With traditional policies, if you never need care, you generally don’t recoup your premium payments.
4. Complex Terms: LTC policies contain numerous options and features that can be confusing without professional guidance.
5. Strict Eligibility Requirements: Qualifying for benefits typically requires certification that you cannot perform specific Activities of Daily Living, which may delay access to benefits.
6. Underwriting Hurdles: Health conditions may make it difficult to qualify or result in higher premiums, especially if you wait too long to apply.

Top 10 Best Long-Term Care Insurance Companies in 2025

1. Mutual of Omaha

Best For: Traditional stand-alone LTC insurance

Mutual of Omaha has emerged as the market leader in traditional LTC insurance for 2025. Their MutualCare Solutions line offers two comprehensive options: Secure Solution and Custom Solution, available for ages 30-79.

Key Features:

• Flexible benefit periods from 2-5 years
• Choice between reimbursement or cash indemnity benefits
• Elimination periods: 30, 60, 90, 180 or 365 calendar days
• Inflation protection options: 1-5% compound in 0.25% increments
• Shared Care rider allows spouses to access each other’s benefits

2. Nationwide

Best For: Hybrid LTC solutions with flexibility

Nationwide leads the hybrid market with its YourLife CareMatters linked benefit product. This universal life insurance policy with LTC benefits provides exceptional flexibility and guaranteed benefits.

Key Features:

• Cash indemnity benefits without need for receipts
• Fixed premiums (single pay, 5-pay, or 10-pay options)
• Benefit periods ranging from 2-7 years
• Inflation protection: 3% simple or 5% compound
• Guaranteed return of premium upon surrender
• 20% minimum death benefit guarantee even after LTC claims

3. New York Life

Best For: Financial stability and policy options

New York Life offers three distinct LTC insurance options, providing excellent flexibility to meet different needs and budgets. Their A++ financial strength rating from AM Best demonstrates exceptional stability.

Key Features:

• NYL Essential Care: Affordable traditional option
• NYL Custom Care: Comprehensive traditional coverage
• Value Plus Care: Hybrid policy with life insurance benefits
• Partial to complete premium refund options
• Multiple inflation protection choices

4. Lincoln Financial

Best For: Premium payment flexibility

Lincoln National offers its hybrid long-term care life insurance under the Lincoln MoneyGuard II product line in all states except NY. In NY, the Company offers MoneyGuard Reserve. This limited pay universal life insurance policy with long-term care reimbursement rider provides exceptional flexible premium options.

Key Features:

• Flexible premium payments (years 1-10)
• Value Protection Rider providing return of premium upon surrender
• Long-Term Care Accelerated Benefits Rider (LABR) included
• Optional Long-Term Care Extension of Benefits Rider (LEBR)
• Total benefit periods from 2-7 years
• Inflation protection options: 3% or 5% compound

5. MassMutual

Best For: Both traditional and hybrid options

MassMutual offers both traditional and hybrid LTC solutions. Their SignatureCare provides stand-alone long-term care insurance, while CareChoice One offers a single premium whole life insurance policy combined with a long-term care insurance rider.

Key Features:

• Choice between facility-only or comprehensive coverage
• Payment options: lifetime, 10-pay, or 20-pay
• Elimination periods: 0, 30, 60, 90, or 180 days
• Income protection rider with 5% simple or compound growth
• Cash indemnity benefit option
• Dividend potential can increase policy benefits

6. Minnesota Life (Securian)

Best For: Cash indemnity benefits

Minnesota Life provides a hybrid long-term care life insurance policy under its SecureCare product line. This single premium universal life insurance policy provides death benefit protection, long-term care coverage and return of premium.

Key Features:

• Cash indemnity long-term care insurance (no need for reimbursements)
• Income benefit period maximum of 3 years
• Extended long-term care benefits option for up to 4 additional years
• Income protection rider options: 3% simple, 5% simple or 5% compound
• Single premium payment structure

7. OneAmerica

Best For: Asset-based LTC with guaranteed interest

OneAmerica’s Asset-Care provides whole life insurance plus long-term care coverage with flexible payment schedules including single premium, 10-pay, 20-pay, or to age 100.

Key Features:

• Available for ages 35-80
• Guaranteed minimum 4% interest rate
• Guaranteed death benefit
• 30-day elimination period for in-home care; 60 days for other care
• Income protection benefit options: 2%, 3%, or 4%
• Premium waiver when receiving qualified care
• Non-cancelable policy with fixed premiums
• Coverage for mental or nervous disorders

8. Pacific Life

Best For: Whole life + LTC with flexible payment options

Pacific Life offers life insurance with long-term care through its PremierCare Choice line of products. The policy is hybrid whole life insurance plus long-term care insurance combined.

Key Features:

• Premium schedules: single pay, 5-pay, 10-pay, 15-pay, or 20-pay
• Income benefit periods of 2-8 years
• Base policy includes Accelerated Benefit Rider (ABR) with 2-year benefit
• Optional Extended Benefit Rider (EBR) extending benefits by 2-6 years
• Zero-day elimination period for in-home care; 90 days for facility care
• Inflation protection options: 3% or 5% simple, or 5% compound
• Spousal discount available

9. AXA Equitable

Best For: Monthly cash indemnity benefits

AXA offers a hybrid long-term care policy under the product name Long Term Care Services Rider. Available on single life UL and VUL policies for ages 20-75, this product provides monthly cash indemnity rather than reimbursement.

Key Features:

• Monthly benefit percentages of 1%, 2%, or 3% available
• Choice of fixed or increasing death benefit options
• Up to 200% IRS per diem limit available in first year
• 90-day elimination period after claim filing
• Temporary claims allowed (condition doesn’t need to be permanent)
• Certification requirement: inability to perform 2 of 6 ADLs

10. Guardian

Best For: Dividend-paying whole life with LTC

Guardian’s Long Term Care Rider is a combination long-term care whole life insurance policy. The rider allows you to accelerate a portion of the policy’s death benefit to help cover long-term care costs.

Key Features:

• Indemnity policy providing cash benefit upfront
• Dividend-paying whole life insurance can grow LTC benefits
• Monthly benefit: lesser of 2% of basic LTC pool or 200% of daily IRS per diem
• Maximum benefit: lesser of 90% of total death benefit or face amount less $25,000
• Benefit period lasts as long as you remain eligible

Update on Genworth

Note: Due to Genworth’s continued financial problems and with various sources indicating that the deal with China Oceanwide Holding Co. may not win regulatory approval, we do not currently recommend Genworth to our clients. While they were previously a major player in the long-term care insurance market, their financial stability concerns make other options more advisable at this time.

Current Long-Term Care Insurance Rates (2025)

The cost of long-term care services continues to rise, with the national average for nursing home care now exceeding $120,000 annually. When considering long-term care insurance, it’s important to understand how premiums are calculated and what represents good value.

Factors That Influence Your Premium Costs:

• Age at application: Premiums increase significantly with age
• Health status: Pre-existing conditions may increase costs
• Gender: Women typically pay more due to longer life expectancy
• Benefit amount: Higher daily/monthly benefits increase premiums
• Benefit period: Longer coverage periods cost more
• Inflation protection: More robust protection increases premiums
• Elimination period: Shorter waiting periods increase costs

Sample Annual Premium Rates (2025)

Below are sample annual premiums for a policy with a $4,500 monthly benefit, 3-year benefit period, 90-day elimination period, and 3% compound inflation protection:

Age	Single Male	Single Female	Couple (each)
50	$1,850 – $2,400	$2,900 – $3,600	$1,500 – $2,100
55	$2,200 – $2,900	$3,400 – $4,200	$1,900 – $2,600
60	$2,800 – $3,700	$4,200 – $5,100	$2,400 – $3,100
65	$3,900 – $5,100	$5,800 – $7,200	$3,400 – $4,500
70	$6,100 – $7,800	$8,900 – $11,200	$5,200 – $6,900

Note: These are approximate ranges based on industry averages across top carriers in 2025. Actual premiums will vary based on individual health status, policy features, and carrier.

Long-Term Care Insurance FAQs

The following are frequently asked questions about long-term care insurance in 2025. If you have additional questions, please don’t hesitate to reach out to us directly.

What are the requirements for a successful long-term care benefit claim?

To qualify for long-term care benefits, you must be diagnosed as a chronically ill individual for a period of at least 90 days. According to IRC 7702B(c)(2), a chronically ill individual must be certified by a Licensed Health Care Practitioner as either:

1. Being unable to perform 2 of 6 Activities of Daily Living (ADLs), or
2. Requiring substantial supervision due to cognitive impairment to protect you from threats to your health and safety.

What are the different Activities of Daily Living (ADLs)?

The six Activities of Daily Living (ADLs) assessed for long-term care benefit eligibility are:

1. Bathing: Washing oneself and getting in or out of the tub or shower
2. Continence: The ability to maintain control of bowel and bladder function
3. Dressing: Putting on and taking off clothing, including braces and artificial limbs
4. Eating: Getting food from plate to mouth, or managing feeding tubes/intravenous feeding
5. Toileting: Getting to and from the toilet, getting on and off the toilet
6. Transferring: Moving in and out of a bed, chair, or wheelchair

Are long-term care benefits taxed?

In most cases, benefits from qualified long-term care insurance policies are not taxable. Specifically:

• Reimbursements for actual long-term care expenses are generally not taxable income, even if they exceed the per diem limit.
• Payments received in excess of actual expenses may be taxable if they exceed the IRS per diem limit.
• For 2025, the IRS per diem maximum is $420 per day.
• Similar to life insurance benefits, accelerated death benefits under IRC Section 7702B are generally excluded from income taxation.

Do I need long-term care insurance?

According to the U.S. Department of Health and Human Services, at least 70% of people over age 65 will require long-term care services at some point, and more than 40% will need nursing home care. Consider these factors when deciding:

• The national average cost for nursing home care now exceeds $120,000 per year
• The average duration of long-term care needs is approximately 3 years
• Medicare covers only limited skilled nursing care and does not cover custodial care
• Medicaid requires spending down assets to qualify, which can significantly impact your legacy plans

Anyone who desires to protect their retirement savings and maintain control over their care options should consider long-term care insurance.

What are the 2025 tax deduction limits for long-term care insurance premiums?

For 2025, traditional stand-alone long-term care insurance premiums may qualify for a federal income tax deduction as medical expenses, subject to these age-based limits:

Age at End of Tax Year	2025 Deduction Limit
40 or younger	$480
41-50	$900
51-60	$1,800
61-70	$4,810
71 or older	$6,020

Note that hybrid long-term care life insurance policy premiums do not qualify for these tax deductions. Also, these deductions only apply if your total medical expenses exceed 7.5% of your adjusted gross income.

Can I use my HSA to pay for long-term care insurance?

Yes, you can use your Health Savings Account (HSA) to pay for qualified long-term care insurance premiums, subject to the same age-based limits that apply to tax deductions. For 2025:

• If you’re 40 or younger, you can use up to $480 from your HSA
• Ages 41-50: up to $900
• Ages 51-60: up to $1,800
• Ages 61-70: up to $4,810
• Age 71+: up to $6,020

Important: HSA funds cannot be used to pay premiums for hybrid long-term care life insurance policies.

What does long-term care insurance cover?

Long-term care insurance provides coverage for a wide range of services needed when you can no longer perform activities of daily living independently. Coverage typically includes:

• In-home care: Professional assistance in your own home
• Assisted living facilities: Residential communities with support services
• Nursing home care: Skilled nursing and personal care services
• Adult day care centers: Supervised care during daytime hours
• Hospice care: End-of-life comfort and support services
• Respite care: Temporary relief for family caregivers
• Caregiver training: Professional instruction for family members
• Home modifications: Some policies cover adaptations to improve accessibility
• Care coordination: Professional assistance in planning and managing care

The exact coverage varies by policy, so it’s important to review the specific terms and conditions of any policy you’re considering.

Does Medicare cover long-term care costs?

Medicare provides very limited coverage for long-term care services:

• Medicare covers short-term skilled nursing facility care after a qualifying hospital stay (minimum 3 days)
• Full coverage for the first 20 days
• Partial coverage for days 21-100 (with a significant daily coinsurance amount)
• No coverage beyond 100 days
• Does NOT cover custodial care or non-skilled personal care assistance
• Does NOT cover long-term care in assisted living facilities
• Home health care is covered only when medical in nature and part-time

This limited coverage is why many financial advisors recommend dedicated long-term care insurance as part of a complete retirement plan.

What is the Long-Term Care Partnership Program?

The Long-Term Care Partnership Program is a joint federal-state initiative designed to encourage individuals to purchase long-term care insurance by providing additional asset protection if they later need to apply for Medicaid.

Key features include:

• Dollar-for-dollar asset protection: For every dollar your LTC policy pays in benefits, you can protect an equal amount of assets if you later need to apply for Medicaid
• Requirements vary by state, but typically include mandatory inflation protection (often 5% compound for younger applicants)
• Available in most but not all states
• Only applies to qualified traditional LTC policies (not hybrid policies)

This program can be particularly valuable for middle-income individuals who want to protect some assets while still potentially qualifying for Medicaid if their long-term care needs extend beyond their policy coverage.

Does long-term care insurance have exclusions?

Yes, long-term care insurance policies typically contain certain exclusions. Common exclusions include:

• Pre-existing conditions: May be excluded for a limited period (typically 6 months) after policy issue
• Mental health conditions: Some policies exclude coverage for certain mental or nervous disorders (though Alzheimer’s and other dementias are typically covered)
• Self-inflicted injuries: Including attempted suicide or intentionally self-inflicted harm
• Alcohol or drug abuse: Care needed primarily due to alcoholism or drug addiction
• War or acts of war: Whether declared or undeclared
• Care outside the United States: Many policies limit or exclude international coverage
• Services covered by government programs: Such as Medicare or workers’ compensation

Exclusions vary by insurer and policy, so it’s essential to carefully review the terms before purchasing.