10 Worst Long-Term Care Insurance Companies in 2024

In the United States, the insurance business sector growing very fast in past years. Every year, the insurance industry made $1 trillion cost of premium paid by policy holders, according to the American Association for Justice.

But there are many companies are preform bad among them. Some insurance companies are better to stay away from, especially the ones that are known for worst long-term care insurance companies.

If you’ve had a car accident and you’re dealing with one of these insurance companies, it’s important to know that they’re not trying to help you or need a like Car insurance attorney specialized for kind settlement .

They have ways to make you agree to much less money than you really need to get back on your feet financially after your injuries.

In this article, will tell you about the 10 worst long-term care insurance companies in USA and why you should stay away from them.

What is Long-Term Care Insurance?

Long-term care insurance is a type of insurance available in the United States, the United Kingdom, and Canada. It helps with the expenses related to long-term care.

This long-term care insurance covers things that regular health insurance, Medicare, or Medicaid usually don’t cover.

When you have long-term care insurance, it will help pay for services like staying in a nursing home, getting care at home, and going to adult daycare centers. You can use this insurance when you qualify for long-term care help.

To qualify long-term care, you should need help with at least 2 out of 6 daily living activities (or ADLs). These activities are including bathing, toileting, eating, getting around, grooming, and dressing.

What are the Cost of Long-term Care Insurance ?

Long-term care is too expensive, and cover all things that regular can’t cover. If you are younger then buy long-term care insurance policy, it can be cheaper.

The best age to buy long-term care insurance policy is when you’re in your early 50s or late 40s. And of course, how healthy you are also deciding how much you have to pay for the insurance.

A regular insurance plan that covers long-term care with a total benefit of $216,000 for 3 years might cost:

  • For a 50-year-old: Between $2,000 and $3,000 per year.
  • For a 55-year-old: Around $2,200 to $3,400 per year.
  • For a 60-year-old: About $2,500 to $3,900 per year.
  • For a 65-year-old: Somewhere between $13,500 and $14,700 per year.

What is Covered Under Long-term Care Insurance Companies?

Every insurance company decides what expenses its long-term care coverage will pay for. They typically allow you to use your daily benefit in a variety of settings, including:

  • Your home
  • Adult day service centers
  • Hospice care
  • Respite care
  • Alzheimer’s special care facilities
  • Nursing homes

In the home setting, comprehensive policies generally cover these services:

  • Skilled nursing care
  • Occupational, speech, physical, and rehabilitation therapy
  • Help with personal care, such as bathing and dressing

Read Also : Liability vs. Full Coverage Car Insurance

10 Worst Long-Term Care Insurance Companies in 2024

#1. MassMutual

MassMutual is one of about 10 insurance companies that still offering regular long-term care insurance. These kinds of insurance plans are not as common now because some companies stopped selling due to not making good profit.

MassMutual also has two different kinds of hybrid long-term care insurance plans: CareChoice One and CareChoice Select. These are both whole life insurance policies that come with extra coverage for long-term care.

MassMutual’s long-term care insurance policies were not very competitively priced.

So, it’s actually a good thing that they stopped selling these plans from January 28th, 2021. But if you already have a plan with them, they will still follow through on their promises.

#2. Genworth Financial

Genworth Financial is a worst long-term care insurance companies. The cost of their insurance went up by 150%, and this led to a big lawsuit where a lot of people joined together. Genworth used to be really important in the long-term care insurance business, but now they only sell insurance through employers or direct-to-consumer channels.

There was a lawsuit about Genworth’s long-term care insurance. They had to pay $24.5 million to settle this lawsuit. The problem was that they promised people that the price they paid wouldn’t go up, but then they actually increased it by as much as 150%. This is a main reason this insurance company comes in list worst long-term care insurance companies 2024.

#3. New York Life

New York Life gets support from AARP, but that doesn’t automatically make their long-term care insurance plan the best. Their long-term care insurances is most expensive as compared to other companies, sometimes almost double the cost.

If your health isn’t good and you can’t qualify for the best level of coverage, you might only get some benefits and not everything. Many people have disputes with New York Life, including their long-term care insurance, and this is seen in complaints on Consumer Affairs.

#4. AARP

AARP is a popular in senior citizen. They provide helpful information to guide seniors through retirement and offer special benefits for them. They also create a lively community where seniors can connect and learn from each other.

AARP business partners is New York Life where both provide long-term care insurance in USA. 

It’s actually the same insurance product from New York Life, just with the AARP name attached. If you trust AARP, you should be cautious about their long-term care insurance.

It’s similar to New York Life’s insurance but not very good. So, be careful if you’re thinking about getting AARP’s long-term care insurance.

#5. CalPERS

CalPERS has temporarily stopped allowing new enrollments in their long-term care program. It’s not very likely they will start it again, but in case they do, it’s important to know that they’re facing a class-action lawsuit because of raising rates and giving fewer benefits.

Just recently, they agreed to raise rates for existing long-term care customers by a 77%. This is on top of the 85% increases they already put in place back in 2015 and 2016. These earlier increases were actually the reason the class-action lawsuit was brought up in the first place.

#6. Unum

This is a big company that provides disability insurance across the country, but it’s not well-liked by the people who have its insurance.

They’re famous for making people wait a long time and saying no to claims. The CEO, Thomas Watjen, earned a lot of money, $7,300,000, in 2007.

The news agencies often look into how this company treats claims unfairly. Because of this, they’re known as the second-worst company.

#7. AIG

AIG is considered one of the worst long-term care insurance companies. Even though their previous CEO, Martin Sullivan, was let go, he’s still expected to make a staggering $68,000,000.

AIG is the biggest insurance company globally, but they’ve managed to treat their customers badly for a long time. People have claimed that the company’s leaders intentionally raise prices when there’s a big disaster.

#8. State Farm

This company has done really bad things to avoid claim settlement to its customers. For example, after Hurricane Katrina, they changed reports about the damage the storm caused. They even faked signatures to get out of paying for earthquake damages.

State Farm is the biggest insurance company for things like property and accidents in the whole country. Just like many other insurance companies, they will do whatever it takes to avoid paying claims quickly. And yet, their CEO, Edward Rust Jr., got paid a huge salary $11,700,000 in 2007.

#9. Conseco

Learning about how Conseco works is really upsetting. They mostly sell insurance to older people for long-term care, and they know that waiting can help them avoid paying money.

According to AAJ, it’s unfortunate but true that Conseco uses the fact that their customers get sicker. They wait a long time so that the people who need claim might pass away before they have to give any.

Their CEO, C. James Prieur, got a big payment of $2,600,000 in 2007. This puts them among the worst companies for long-term care insurance.

#10. Torchmark Corporation

Torchmark is a company from the South that’s been around for a long time. But they do some really bad things. One problem is that they make their minority customers pay more for insurance than White customers.

They also have many smaller companies under them, and they sell special insurance like coverage for cancer. But these smaller companies don’t treat their customers well either, just like the main company. This makes them one of the worst companies for long-term care insurance.

FAQs

Is long-term care insurance necessary?

Yes, long-term care insurance is essential part of life as well as for securing your future daily healthcare needs. As you age, the likelihood of requiring extended medical care increases, and the costs associated with such care can be substantial. Long-term care insurance provides financial protection and peace of mind for you and your loved ones.

When is the best time to purchase long-term care insurance?

The best time to purchase long-term care insurance is when you are young and healthy. At this time premiums tend to be more affordable when you are younger, and you are more likely to qualify for coverage without pre-existing conditions affecting your rates or eligibility.

What factors should I consider when choosing a long-term care insurance company?

When selecting a long-term care insurance company, consider factors such as the company’s reputation, coverage options, policy terms, customer reviews, and financial stability. It’s also important to assess whether the company has a history of claim denials or delays.

Can I switch my long-term care insurance company?

Yes, you can switch your long-term care insurance company, but it’s essential to do so carefully. Before making the switch, thoroughly review the new policy’s terms, compare coverage and costs, and ensure there are no coverage gaps during the transition.

Conclusion

Above these companies definitely have enough money to pay their customers fairly.

AIG is at the top, making $6.2 billion in profits in 2007. Only three of these companies made less than a billion dollars. This means 70% of the worst insurance companies made over a billion dollars, but they still tried hard to pay their customers.

You should definitely stay away from these 10 worst long-term care insurance companies in 2024.

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