Skip to content

The 5 Best Hybrid Long-Term Care Insurance Companies for 2021

If you’ve decided to plan for every eventuality, you’d be smart to include a plan to cover long-term care. Someone turning 65 this year has an almost 70% chance of needing some type of long-term care, and about 13% of those will need it for five years or more. Long-term care is expensive and can drain your entire nest egg. But stand-alone long-term care insurance has the distinct disadvantage that if you are one of the lucky ones who doesn’t need long-term care, all that money you paid in premiums is wasted. That’s why someone came up with hybrid long-term care/life insurance policies. There’s a handful of companies offering such policies. The question is, which company is right for you?

Methodology

We got quotes from five hybrid long-term care insurance companies. Our client is a 50-year old woman in good health, non-smoking, living in Houston, Texas. We want to get $6,000 monthly long-term care benefit for 4 years period, or a total of $288,000 long-term care benefit.

These are the five companies we recommend if you’re interested in a hybrid long-term care life insurance policy. None of the quotes we got had an inflation option built in, but it’s something you might want to consider. Health care costs rise every year, and what $288,000 dollars buys you today won’t go nearly as far tomorrow, or in five or ten years. Policies with 3.0% inflation options are available, although they are more expensive. Below is the summary of these 5 quotes.

Nationwide Care Matters Lincoln Financial MoneyGuard IIIOneAmerica Asset CareSecurian Secure Care Universal LifePacific Life’s PremierCare Choice
Best for Best for Cash Indemnity Best for no elimination period Best for Couples Best Value Best for flexibility
Premium years 10 years 10 years 10 years 10 years 10 years
Annual premiums$9,048$11,623$13,213$7,952$11,965
Total premiums $90,480$116,230$132,130$79,520$119,650
Long term care benefits $288,000$288,000$288,000$288,000$288,000
Benefit period (years)44444
Maximum monthly benefit$6,000$6,000$6,000$6,000$6,000
Reimbursement or Cash indemnityCash indemnityReimbursementReimbursementCash indemnityEither, your choice
Death Benefit$144,000$156,000$200,000$144,000$144,000 and increase to $220,000 by Y10
Full reviewFull reviewFull reviewFull reviewFull review

Each policy has its own unique features, so you should evaluate these policies in all aspects to select the best one for you. However, we have set up the quotes for these policies to provide similar coverages so that we can compare the premiums. In that aspect, Secure Care Universal Life policy from Securian Financial (or formerly Minnesota Life) provides the best value with the lowest premiums at $7,952 a year.

>>MORE: Hybrid Long-Term Care Insurance: Explained

Below are the full analysis of each policy for your further consideration:

Nationwide Care Matters II – Hybrid Long-Term Care Insurance: Best for Cash indemnity

This policy assumes a 10-year payment of premiums. Nationwide recently updated this policy, making it much more competitive in today’s marketplace. 

  • Premiums 1-10 years: $9,048
  • Total premium: 90,478
  • Long-term care benefit: $288,000
  • Benefit period: 4 years
  • Maximum monthly benefit: $6,000
  • Death benefit: $144,000

This policy provides $288,000 in long-term care benefits, should you need long-term care, and a $144,000 death benefit if you don’t. In addition, you also have the Return of Premium feature, which will return 70% of your premium to you in years 1-10 should you decide to cancel.

One thing that’s great about Nationwide’s Care Matters policy is that it’s a cash indemnity policy. That means they pay your benefit to you as soon as you qualify for care. You can spend it however you see fit, and Nationwide doesn’t even require receipts. It’s your money – $6,000 a month. 

There is a 90-day elimination period. That means you will pay for your first 90 days of care out-of-pocket before benefits kick it. However, Nationwide will retroactively refund you those costs. 

Also, read our full review of Nationwide’s YourLife CareMatters hybrid long-term care insurance policy.

>>MORE: Long-Term Care Insurance: Everything You Need to Know

Lincoln Moneyguard – Hybrid Long-Term Care Insurance: Best for no elimination period

This is a new product, Lincoln Moneyguard III, which replaces Lincoln MoneyGuard II, at a higher price. 

This policy also assumes ten years of premiums and doesn’t allow for inflation.

  • Premium years 1-10: $11,623
  • Total premiums: $116,23
  • Long-term care benefit: $288,000
  • Benefit period: 4 years
  • Maximum monthly benefit: $6,000
  • Death benefit: $156,000

This policy has a 0 day elimination period—no having to pay out-of-pocket for up to three months before your long-term care benefits kick in. As soon as you qualify (certified as being chronically ill, with an illness expected to last at least 90 days) they will start reimbursing you for care. Notice we said “reimburse.” You have to pay for care out of your own pocket and provide receipts to Lincoln, who will then reimburse you. 

You actually have two options for the Return of Premium (which is what you get back if you decide to cancel):

  • Option one: 70% return of paid premium
  • Option two: Vested—100% of your premiums are available after year 10. This option is about 20% more expensive. 

Historically, not that many people cancel their long-term care insurance, so you have to decide whether it’s worth the extra 20% to possibly get 100% of your premium back if you cancel.

Also read our full review of Lincoln Financial’s MoneyGuard II hybrid long-term care insurance policy

OneAmerica Asset Care Hybrid Long-Term Care Insurance: Best for Couples

  • Premiums years 1-10: $13,212
  • Total premium: $140,460
  • Long-term care benefit: $6,000 a month
  • Yearly: $72,000 (A total of $288,000)
  • Benefit period: 4 years
  • Death benefit: $300,000

If you choose to, OneAmerica Asset Care can provide long-term care benefits to both you and your spouse. No other LTC policy offers that, making OneAmerica Asset Care unique in the hybrid insurance world. 

Another unique feature is that OneAmerica offers a lifetime of long-term care benefits. The policy quote we were quoted was for 48-months, but you can get a policy that will provide you or your spouse life a lifetime of long-term care benefits. If you are diagnosed with Alzheimer’s and spend eleven years in a nursing home, OneAmerica will cover all of that. 

The only drawback is the 90 day elimination period. 

See more details in our full review of OneAmerica’s Asset-Care hybrid long-term care insurance policy

>>MORE: Life Insurance with Long-Term Care Benefits

Securian Secure Care Universal Life Hybrid Long-Term Care Insurance: Best Value

  • Premiums years 1-10: $7,952
  • Total premium: $79,520
  • Long Term care benefit: $288,000 total
  • Monthly benefit: $6,000 a month
  • Benefit period: 4 years
  • Death benefit: $144,000

Even if you use all of your long-term care benefits, Securian still guarantees a $10,000 death benefit, so you can cover final expenses. 

Another great feature of Securian is that it’s a cash indemnity policy, meaning you get $6,000 a month to pay for long-term care services as you see fit. No need to clear it with Securian, spend the money how you like. 

One drawback to Securian is the 90-day elimination period, although there is no waiting period to access funds for home modifications or caregiver training. Also, you may have noticed that Securian is a good value for the money, being much less expensive than the other policies. 

Securian also has a 100% vesting return of premium after five years.

Also read our review of Securian’s SecureCare hybrid long-term care insurance policy

Pacific Life Premier Care Choice Max—Best for Flexibility

  • Premium: $11,965/year for 10 years
  • Long-term care benefit: $6,000/month for 4 years
  • Total long-term care benefit: $288,000
  • Death benefit: $144,000. Increase up to $220,000 by year 10
  • 70% Return of premium

If you use all of your long-term care benefits, Pacific Life will still give you 5% of the base value of the policy, up to $5,000.

A great feature of this policy is that you can choose whether you want cash indemnity or a reimbursement plan. If you choose the cash indemnity plan, you get about 80% of your long-term care benefits, but you won’t have to submit receipts and you can do whatever you like with the money. You have to decide when you purchase the policy, though, and you can’t change it later. 

You also get 70% of your premium returned if you change your mind.

Read our full review of Pacific Life’s PremierCare Choice policies, covering both Choice Max and Choice 100

Last Thoughts 

Hybrid long-term care policies eliminate the uncertainty that you’ll never use the benefts, because if you don’t need long-term care, your heirs will get a guaranteed, tax-free death benefit. Different companies offer different features at different prices, so it’s up to you to decide what you need and what you’re willing to compromise on. These four companies have good products, and it’s just a matter of finding the right one for you.

>>MORE: Accelerated Death Benefits (ADB) in Life Insurance for Long-Term Care

Click to rate this post!
[Total: 0 Average: 0]
Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest

No comment yet, add your voice below!


Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Tax-Free Retirement Savings Plan - IUL Quotes Comparison

We only need a few data from you (3 mins) to compare quotes of 20+ Indexed Universal Life Insurance (IUL) products from 10+ reputable companies. We’ll recommend the best 3 quotes for your consideration.

Completely free and no commitments! * Required

Guaranteed Life Insurance Policy (GUL) Quotes Comparison

We only need a few data from you (3 mins) to compare quotes of 40+ Guaranteed and Permanent Life Insurance (GUL) products from 15+ reputable companies. We’ll recommend the best 5-8 quotes for your consideration.

Completely free and no commitments! * Required
%d bloggers like this: