MassMutual is one of about ten insurance companies still offering traditional long-term care insurance policies. These policies are harder to come by because decreasing profits caused many companies to leave the market. MassMutual also offers two hybrid long-term care insurance policies, CareChoice One and CareChoice Select, which are both whole life insurance policies with long-term care riders. Let’s take a look at MassMutual’s LTC policies and see which, if any, are a good value.
MassMutual’s Signature Care
This is MassMutual’s traditional long-term care insurance policy. Daily benefits are anywhere from $100 to $400. You can choose a benefit period of 2, 3, 4, 5 or 6 years. Here is everything you need to know about traditional long-term care insurance.
The elimination period is 90 service days.
Available riders include:
- Inflation protection (3% or 5%)
- Return of premium
- Waiver of premium
Like all traditional LTC policies, you must have a certified medical professional state that you cannot perform at least two out of six ADL’s to receive benefits. You could also be suffering from cognitive decline. You must be diagnosed every year you receive benefits.
MassMutual used to have a shared care rider, but that has been dropped.
MassMutual has raised the rates on this policy, anywhere from 20% to 145%. This is not unusual, as the long-term care insurance market was unsustainable at the previous rates. However, with this policy it should be noted that rates can go up again, and they probably will.
MassMutual has gender specific pricing, so women will pay much more than men for the same policy. We couldn’t get a quote for this policy, but we would expect that rates are on the high side.
MassMutual CareChoice One and CareChoice Select
MassMutual CareChoice One is a single premium, whole life insurance option, and MassMutual CareChoice Select allows you to pay over 12 years. With either of these policies, you can access your death benefit while you’re still alive, providing you meet certain criteria. You can use this money to pay for your long-term care.
One advantage of this policy is that premiums are guaranteed, but only for 12 years. You are also eligible to receive dividends, as Mass Mutual is a mutual company.
Both policies feature a long-term care benefits rider, and an extension of benefits rider. For the first two years, you’ll use your death benefit to pay for care, and when your death benefit has been used up, the extension of benefits rider provides another two years of care. This rider essentially makes this policy a type of hybrid long-term care insurance.
These are both reimbursement benefits, so you must submit receipts every month.
Both have a 90-day elimination period, which is essentially the deductible.
Hybrid policies have gotten popular these days, as people still want some kind of long-term care protection, but it’s getting harder and harder to find traditional LTC insurance. Here are the best hybrid long-term care insurance companies.
Keep in mind, that since these are both whole life insurance policies, they are likely to be very expensive. We couldn’t get a quote, and Mass Mutual requires you to call and talk to a financial advisor (read: agent).
An interesting note is that MassMutual and Fidelity Investments have teamed up, so if you are a Fidelity customer, odds are that someone will try to sell you a hybrid policy from Mass Mutual.
Consumer Satisfaction Rating of MassMutual Long-Term Care Insurance
Mass Mutual scores 751 out of 1,000 points on J.D. Power’s insurance study, meaning they are solidly average.
Financial Strength Rating of MassMutual Long-Term Care Insurance
A.M. Best gives Mass Mutual an A++ on financial strength, which puts them in the top fifteen of all life insurance companies.
Although we couldn’t compare rates, because we couldn’t get a quote, we are betting that Mass Mutual long-term care and hybrid insurance policies are on the expensive end of the spectrum. Shop around to get the best deal.