The insurance sector is one of the most successful sectors in America.
Hence, according to the American Association for Justice, the insurance industry makes about $1,000,000,000,000 annually from premiums.
However, there are some insurance companies you avoid.
They use a tested strategy to make you settle for a little division of what you really need in order to recover financially from your injuries or accident.
Hence, in this article, we will be listing the 10 worst long-term care insurance companies and the reasons you should avoid them.
However, keep reading to get every info you need
What is Long-Term Care Insurance?
Long-term care insurance is an insurance product, that helps pay for the costs linked with long-term care.
It is mostly sold, in the United States, the United Kingdom, and Canada.
However, in most cases, long-term care insurance mainly covers care not covered by health insurance, Medicare, or Medicaid.
Also, Long-term care insurance pays for your long-term care expenses, such as; assisted living, nursing home stays, in-home care, and adult daycare services.
Long-term care insurance pays for your long-term care expenses when you are qualified for long-term care.
Hence, these long-term care expenses include; assisted living, nursing home stays, in-home care, and adult daycare services when you are qualified for long-term care.
However, you can be qualified for long-term care when you need help for 2 out of 6 activities of daily living (ADLs).
These activities of daily living including; bathing, toileting, eating, getting around, grooming, and dressing.
How Much Does Long-term Care Insurance Cost?
Long-term care is costly, and also long-term care insurance.
Hence, the younger you purchase a long-term care insurance policy, the lower you can get.
However, the early 50s or late 40s is the best age to purchase a long-term care insurance policy.
And also, your health condition plays a big role in the benefits of your long-term care policy.
On the other hand, a basic long-term insurance policy with a total of $216,000 LTC benefit for 3 years can cost;
- 50-year old $2,000 to $3,000 a year.
- 55-year old $2,200 – $3,400 a year.
- 60-year old $2,500 – $3,900 a year.
- 65-year old $13,500 – $14,700 a year.
Every insurance company benefits from the covers in its long-term care.
Hence, they basically permit you to use your daily benefits in various settings like;
- Your home
- Adult day service centers
- Hospice care
- Respite care
- Assisted living facilities (also called residential care facilities or alternate care facilities)
- Alzheimer’s special care facilities
- Nursing homes
However, in the home setting, complete policies generally cover the following services:
- Skilled nursing care
- Occupational, speech, physical, and rehabilitation therapy
- Help with personal care, such as bathing and dressing
10 Worst Long-Term Care Insurance Companies
Earlier in this article, we promised to list the 10 Worst Long Term Care Insurance Companies.
However, below are the 10 Worst Long Term Care Insurance Companies;
MassMutual is one of the insurance companies still offering regular long-term care insurance policies.
However, due to the decreasing profits, these policies are harder to come by making many companies leave the market.
Hence, MassMutual offers two hybrid long-term care insurance policies.
These policies include; CareChoice One and CareChoice Select, which are both whole-life insurance policies with long-term care conditions.
However, Mass Mutual was never ambitious as far as pricing for its long-term care insurance.
Hence, they will no longer offer long-term care insurance as of January 28th, 2021.
Meanwhile, if you already have a policy via Mass Mutual, it will still be honored by them.
Genworth used to be a top choice in the long-term care insurance market, hence, it is now one of the worst long-term care insurance companies.
However, its assets increased by 150%, which led to a class-action lawsuit, which was recently settled for $24.5 million.
This suit was due to the massive increases in assets, which customers were either forced to pay or stop paying and let their policy lapse.
Hence, Genworth now sells policies through employers or direct-to-consumer channels only.
New York Life
New York Life is one most expensive long-term care insurance, it is endorsed by the AARP.
It is very pricey, and sometimes almost twice the amount of other companies offering long-term care insurance.
Hence, if you are not qualified for the top classification due to health, you will be eligible for some benefits.
However, generally, there are many complaints about New York Life on Consumer Affairs, alongside their long-term care insurance.
AARP Long-Term Care Insurance
AARP offers a lot of useful content to lead the senior consumers into their retirement and specific benefits for the seniors.
It is one of the trusted names among the senior population.
Hence, they also build an exciting place for of seniors to stay in touch and learn from one another.
In the same vein, they partnered with New York Life to provide long-term care insurance.
However, it is fully the same as New York Life’s long-term care insurance product, just that it is now cobranded with AARP.
Hence, you have to be careful with the AARP long-term care insurance product since it is as bad as New York Life’s long-term care insurance.
CalPERS technically has “suspended open enrollment” in the long-term care program.
Hence, they are also the subject of a class-action lawsuit due to rate increments and benefits reductions.
In the same vein, they accepted a 77% rate increase for current LTC customers.
Which is in addition to the increases initiated in both 2015 and 2016 by them, which led to the first class-action lawsuit.
Unum is among the most remarkable disability insurers.
However, they are famous for delaying and denying claims set forth to them, which led to a poor reputation with their insurers.
The media often investigates this company for their continual claim abuse, earning them the number two spot of the Worst Long Term Care Insurance Companies.
On the other hand, Thomas Watjen the CEO of Unum made about $7,300,000 in 2007.
AIG is one of the worst long-term care insurance companies.
It is the largest insurance company in the world and one way or another they’ve gotten away with taking advantage of its clients for years.
However, there have been reports stating that the executives of AIG Company deliberately try to increase prices when there is a sudden disaster.
Hence, this made them to rank #3 as one of the worst long-term care insurance companies.
On the other hand, former CEO Martin Sullivan is still expected to earn $68,000,000, even with his dismissal.
State Farm is the largest property- fatality insurance company in the country.
However, just like other companies mentioned, they will go to the highest lengths to delay and reject claims.
Hence, after Hurricane Katrina, they changed the engineering reports about damage from the storm.
That’s not all, they also went as far as forging signatures on earthquake denial after major earthquakes.
This company has committed some really terrible acts, just to avoid paying its clients.
However, CEO Edward Rust Jr. made about $11,700,000 in 2007.
Conseco is one of the worst long-term care insurance companies.
Hence, it is very upsetting to attain Conseco’s strategies.
They mostly serve the elderly with long-term care policies, knowing that delaying is key to not having to pay out money.
However, AAJ reported that “unfortunately, Conseco uses the deteriorating health of its policyholders to its advantage because the company knows if it waits long enough to pay out claims, its customers will die.”
On the other hand, James Prieur, the CEO made about $2,600,000 for his role in 2007.
Torchmark has some very offensive practices.
Hence, as a Southern company for more than 100 years, they have never been under investigation for charging higher benefits for their minority group customers than they charge their Caucasian customers.
Also, they make use of many subordinate companies boasting case-specific insurance such as cancer insurance that is met with the same lack of customer care as the mother company.
Hence, it is one of the worst long-term care insurance companies.
Liberty Mutual has used the strategy of leaving and refusing renewal to clients in high-risk areas such as those vulnerable to hurricanes or floods.
They seek the help of the same consulting firm that the State Farm and Allstate companies did to reduce costs.
Hence, their CEO Edmund Kelly made $27,000,000 in 2005.
In conclusion, these companies are not lacking the necessary funds to
These companies are by no means lacking the funds necessary to properly recompense their customers.
hence, Only three of these companies made below a billion dollars, which means 70% of the worst insurance companies made over a billion dollars yet they refuse to compensate their clients.
However, these are the 10 long-term care insurance companies, you should completely avoid.
Thus, AIG tops the list with $6,200,000,000 in profits in 2007.
FREQUENTLY ASKED QUESTIONS (FAQS)
Long-term care (LTC) policies are typically sold for 12 or more months of care.
Hence, you can purchase a policy that pays benefits for only 1 year or one that pays for 2, 3, or 5 years.
However, most companies have stopped selling benefits for as long as you live.
Meanwhile, the priciest place for long-term care is the Bridgeport-Stamford-Norwalk area of Connecticut.
An average cost of a room in a nursing home there is about $159,359 for just one year.
The second on the list is Anchorage, Alaska, with an average annual nursing home cost of $156,950.
The daily benefit amount. The amount of inflation protection. The length of benefit payment. The waiting period before benefits begin. Your current age.
However, a long-term care allocation is a delayed fixed allocation (hybrid allocation) created to aid in paying long-term care costs without destroying retirement savings.
Primarily, long-term care would be provided in three different stages- skilled nursing assisted living, and independent living.
However, California tops the list of the best insurance companies to go to for long-term care.