Protect Your Retirement: The Smart Guide to Long-Term Care Coverage
Navigating your choices in the healthcare insurance jungle
Long term planning for who may be giving you sponge baths or how you’ll afford that walker with the tennis balls is kind of a bummer.
In my last article, I discussed long-term care and one way to pay for it: long-term care insurance. We've all researched insurance companies for our car or house insurance, but very few Gen Xers have investigated long-term care insurance.
With healthcare costs rising daily, long-term care insurance should be a cornerstone of your retirement plan. But, you need to protect your retirement funds and have enough to make sure you can purchase the care you need later in life.
When you start researching long-term care insurance options, it can become overwhelming. But with so many options out there, how do you know where to start?
Let me level with you here—I haven’t looked into long-term care insurance. So, I’m going to give you the information that I compiled, but I don’t have any real world examples I can give. I’ve actually learned as much as you will on this subject matter which is a win for both of us.
With that out of the way, let's walk through some resources and questions you may want to get answers to as you research buying long-term care insurance.
“Hello, you've reached the winter of our discontent.”—Troy Dyer in Reality Bites
Start with the right insurance providers
State Farm, Allstate, and Nationwide are a few of the names we know about for our ordinary insurance needs, but who sells long-term care insurance?
There are some big players in the long-term care insurance world, but they aren't common household names. If you need a starting point, some solid companies are Genworth, Mutual of Omaha, New York Life, and Northwestern Mutual. Despite not having celebrities pushing their name or catchy jingles, these companies have built long-term care policies for a long time. So they know what they’re doing and can customize a plan to your specific needs.
Genworth has been a leader in long-term care insurance for decades, offering flexible, customizable policies. They also have a “Cost of Care” survey you can take to see what it would cost for LTC in your area.
Mutual of Omaha is known for its competitive pricing and easy application process.
New York Life and Northwestern Mutual both have rock-solid reputations for financial stability.
If you're doing your research and when speaking with an insurance agent, these are some questions you can ask:
What customization options are available? Examples of items that can be customized are:
Benefit period: How long the coverage lasts.
Daily benefit amount: The amount of money paid per day.
Elimination period: The amount of time you pay for care out of pocket before the insurance company starts paying.
Premium payment structure: How often you pay your premium.
Riders or add-ons: Additional features that can enhance your policy, such as shared care or return of premium.
Inflation protection: An option to ensure your benefits keep up with inflation.
Are there coverage limits or exclusions?
How stable have premiums been historically?
What’s the claims process like? How satisfied are existing customers?
What company-specific perks or features do they offer?
“I'll have what she's having.”—Woman in Diner in When Harry Met Sally
Tap into online comparison tools
Shopping for insurance has become less complicated. You don’t have to sit through hours-long sales pitches. Online tools now make comparing policies simple.
Check out these resources:
LongTermCare.gov – A government-run site with unbiased comparisons and educational resources.
AALTCI.org (American Association for Long-Term Care Insurance) – Provides industry insights and connects you with specialized agents.
CompareLongTermCare.org – Pulls data from multiple providers for side-by-side comparisons.
These sites will help you:
Get instant quotes.
Read up on educational guides and resources.
See how different providers stack up with ratings and reviews.
Break down policy features and costs.
“We're gonna need some more FBI guys, I guess.”—Dwayne T. Robinson in Die Hard
Leverage government resources
If you want solid, unbiased advice, government sites are a great place to look. The U.S. Department of Health and Human Services has an excellent resource at LongTermCare.gov, where you’ll find:
State-by-state details on costs and regulations.
Tools to help you assess your care needs.
Guidelines for evaluating insurance policies.
Info on alternative funding options (not every solution has to come from private insurance).
Consumer protection resources to help you avoid any traps.
This helps you avoid falling for aggressive sales tactics from private insurers—because, let’s be honest, their main goal is to sell you something.
“Let's stop kidding ourselves. Full-fledged messiahs don't come in bunches.”—Diana Christensen in Network
Don't overlook financial advisors
A good financial advisor can help you look at the bigger picture and make sure your long-term care insurance fits into your overall financial strategy.
Here’s how they can help:
They’ll assess how insurance premiums will impact your budget.
They’ll help you compare insurance options with other funding methods.
They might even recommend specific policy features based on your personal situation.
Some advisors are certified in long-term care planning, so don’t hesitate to lean on their expertise.
I haven't felt this awful since we saw that Ronald Reagan film.—Shirley in Airplane!
Key factors to compare in long-term care policies
When it comes to long-term care insurance, all policies are not created equal. Focus on these critical factors:
Policy Types:
Traditional long-term care policies offer pure coverage.
Hybrid policies bundle life insurance with long-term care benefits.
Short-term care policies provide limited coverage at lower costs.
Coverage:
Daily or monthly benefit amounts.
Lifetime benefit maximums.
Where can you receive care? At home, assisted living, or nursing home?
Are there geographical limits to coverage?
Policy Features:
Inflation protection (because costs won’t stay the same forever).
Return of premium provisions (in case you don’t use the coverage).
Waiver of premium during claims (you won’t have to keep paying if you receive benefits).
Financial Factors:
Payment schedules and how premiums are structured.
The company’s history of raising premiums (this happens more than you think).
The insurance company’s financial strength (you want them to be solvent when it’s time to pay out).
Cost-sharing options.
“Lesson number one: Don’t underestimate the other guy’s greed.”—Frank Lopez in Scarface
Making your decision
The right long-term care insurance balances comprehensive coverage with a premium you can afford over the long haul. Here’s a checklist to help you make a smart decision:
Get quotes from at least three providers.
Compare apples to apples—make sure you’re looking at identical coverage levels.
Research each company’s financial strength. You don’t want your provider going belly-up in your golden years.
Read customer reviews and complaints.
Talk to both insurance agents and financial advisors.
If traditional policies seem too expensive, consider hybrid options that can offer more flexibility.
Before signing anything, review all the policy documents carefully—fine print matters.
And remember, the cheapest policy isn’t always the best value. It’s about finding the coverage that provides the right benefits for your situation and that will stick with you for the long run.
“Responsibility is a heavy responsibility!”— Cheech Marin in Cheech and Chong’s Next Movie
Closing thoughts
Finding the right long-term care insurance takes time and research, but it’s worth the effort. Use every tool—from insurance agents and comparison sites to government resources and financial advisors—to make an informed choice.
Take the time to understand your options and how they fit into your financial plan.
After all, the quality of care you receive in the future may depend on the decisions you make today.