Long-term care insurance is becoming essential as Americans live longer and plan for retirement. This type of insurance helps cover the costs of assisted living, nursing home care, and home health aide expenses that traditional health insurance and Medicare typically don’t cover.
In this expert 2026 guide, we explain why long-term care insurance is crucial, what it covers, and how much it costs. You’ll also discover the top insurers and tips to choose the best long-term care insurance plan for your needs. Most people don’t realise that nearly 70% of Americans turning 65 will require some type of long-term care during their lifetime. By comparing the best LTC plans, you can make a cost-effective, informed decision that protects your savings and ensures quality care.
Why Long-Term Care Insurance Matters?
Care – known as long-term care (American Elder Care) or LTC, for help with daily living such as bathing, dressing and eating – is very costly. By 2024, it’s expected to average about $128,000 a year for private nursing home care, and $70,800 in an assisted living facility.
Without insurance, families typically pay half themselves or through Medicaid. Medicare does not cover long-term custodial care (such as assistance with activities of daily living) and only covers medically necessary skilled nursing facility or home health care following a hospital stay. This is even though a 2025 study showed 58% of Americans falsely believe Medicare will pick up the tab for LTC.long-term care insurance.
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High likelihood of need: About 70% of seniors will need some LTC services.
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Protect savings and family: LTC insurance can prevent rapid depletion of retirement funds and relieve the emotional burden on loved ones.
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Rising costs: Long-term care expenses continue to grow faster than inflation, making planning essential.
Understanding these facts underscores why securing good long-term care insurance early is a wise move.
Who Needs Long-Term Care Insurance?
Virtually anyone with assets or a family to protect should consider LTC insurance. Key candidates include:
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Retirees with savings: If you want to safeguard your nest egg and avoid Medicaid “spend-down,” insurance is critical.
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Medicare beneficiaries: Since Medicare won’t pay for nursing homes or assisted living, insurance ensures coverage beyond basic medical care.
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Those with family history: If chronic illness or dementia runs in your family, you have a higher chance of needing long-term care.
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Couples: Married or unmarried partners should plan together. Shared-care riders allow one partner to use remaining benefits if the other exhausts theirs.
Shockingly, only about 3–4% of Americans aged 50+ carry any long-term care policy. Most people assume Medicaid will cover them, but Medicaid has strict income/asset rules. Planning with insurance means more choices (home care, assisted living communities, etc.) instead of potentially low-quality care.
What Does Long-Term Care Insurance Cover?
A typical long-term care insurance policy pays a daily or monthly benefit for a range of care services when you can’t perform basic tasks (ADLs: eating, bathing, dressing, toileting, transferring, continence). Covered services often include:
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Nursing Home Care: 24/7 skilled nursing care in a facility.
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Assisted Living: Help with personal care in a residential community. (Often called assisted living insurance coverage.)
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Home Care: Part-time or full-time professional care at home (skilled nurses or aides).
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Adult Day Care: Daytime supervision and activities.
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Board & Care: Small residential homes providing meals and personal care
In short, long-term care insurance covers daily living assistance – not routine medical bills. Policies kick in once a licensed professional certifies that you need help with at least two ADLs or have a significant cognitive impairment. Importantly, these policies often cover services Medicare won’t, giving you flexibility in where and how you receive care.
Types of Long-Term Care Insurance Policies?
When choosing coverage, you’ll encounter different policy types:
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Traditional (Stand-Alone) LTC Policies: These pure LTC policies cover only long-term care. Many top insurers still offer these (e.g. Mutual of Omaha, Northwestern Mutual QuietCare). They typically allow flexible benefit pools and optional riders.
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Hybrid or Linked-Benefit Policies: These combine life insurance (or annuity) with LTC coverage. If you never use the LTC benefit, your heirs receive the death benefit. Providers like Nationwide and Thrivent offer popular hybrids. CareMatters® II (Nationwide) and Thrivent’s hybrid plans are examples.
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Short-Term Care Insurance: Covers only shorter stays (e.g. up to 1 year). Premiums are much lower. This is an option for those who worry only about brief nursing home stays. GoldenCare’s brokerage can quote such plans.
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LTC Riders on Existing Policies: You may add an LTC rider to a life or annuity contract. It accelerates death benefits to cover care.
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Return-of-Premium Options: Some policies refund paid premiums (minus claims) if you never use benefits. This increases cost but reduces regret of “wasting” premiums.
When shopping, note whether the policy is tax-qualified (meets IRS rules for tax-deductible premiums) or non-qualified. Most good plans today are tax-qualified.
How Much Does Long-Term Care Insurance Cost?
Premiums vary widely based on age, health, gender, benefit size, and riders. For example, the American Association for Long-Term Care Insurance (AALTCI) reports that a healthy 55-year-old pays roughly $950/year (male) or $1,500/year (female) for a $165,000 benefit pool policy (about $2,080 combined for a married couple). Waiting until age 60 can double the cost: about $1,200 (male) and $1,900 (female) annually.
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Age & Health: Younger and healthier buyers get much lower rates. Premiums rise steeply with age. Most experts suggest locking in coverage in your 50s for the best value.
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Gender: Because women live longer and have more claims, their premiums can be 40–50% higher than men’s.
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Benefit Amount & Period: More coverage and longer benefit periods cost more. E.g. raising your benefit period from 3 to 5 years can significantly hike premiums.
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Inflation Protection: Adding a 3% or 5% compound inflation rider typically increases cost (often by 50–100% depending on settings). But inflation protection is vital – without it, your fixed benefits may be insufficient decades later. (Every state requires inflation coverage to qualify for partnership benefits.)
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Elimination Period: This is the deductible period (0–365 days). Shorter elimination periods raise the premium. Some policies (e.g. Mutual of Omaha) offer a 0-day elimination option, meaning benefits start immediately once eligible.
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Plan Type: Hybrid policies often have a different pricing structure than standalone LTC policies. Multi-pay premiums (5-pay or 10-pay vs lifetime-pay) also affect cost.
Despite common beliefs, long-term care insurance can be relatively affordable. A Nationwide Retirement survey found nearly half of adults reconsidered buying after seeing examples around $130 per month. As Nationwide notes, that’s far less than paying out-of-pocket for care later. In short, you can secure comprehensive LTC coverage for “as little as a few hundred dollars a month,” often cheaper than a single month in a nursing home.
Top Long-Term Care Insurance Companies of 2026 (Expert Picks)
Our review of 2026’s best LTC insurance highlights companies with strong financial ratings, solid benefits, and good service. Here are our expert picks:
Noestern Mutual Best Overall
Northwestern Mutual stands out for comprehensive coverage and financial strength. Its QuietCare policy offers high maximum benefits (up to $12,000/month and includes riders like inflation protection, nonforfeiture (paid-up benefit), and survivorship. The company has an A++ AM Best rating and minimal complaints, reflecting confidence in paying future claims. (Note: Northwestern’s plans have a 6-week elimination period, so plan.) Overall, Northwestern is ideal for buyers seeking a trusted company with robust benefit options.
Thrivent Financial Best High-Benefit Plan
Thrivent’s LTC insurance is notable for massive benefits and strong ratings. It offers the highest monthly benefit in our study (up to $15,000) and an 8-year maximum payout period. Policies include a built-in care coordinator and a shared-care rider so couples can pool benefits. Importantly, Thrivent is financially rock-solid (AM Best A++), meaning claims will be paid. The main drawback is eligibility: only practising Christians (or spouses of) can apply, which limits access for others.
Mutual of Omaha Best for Immediate Coverage
Mutual of Omaha offers two stand-alone LTC plans (MutualCare Secure and Custom) with flexible features. It’s unique in offering a no-waiting-period option, so benefits can start immediately once you qualify. Policies can be highly customised:
you choose your monthly benefit ($1,500–$10,000), benefit period (2–5 years), and elimination period (0–365 days). Mutual of Omaha also lets you take a partial cash benefit immediately for any care expense. As with all top carriers, premiums are guaranteed for a time but may rise later. Customer satisfaction is high (few complaints).
National Guardian Life is best for Lifetime Benefits.
National Guardian Life (NGL) offers EssentialLTC, a plan with an optional lifetime benefit duration – rare in the market. You start with a standard 3-year pool, but can add a rider to extend benefits to 4, 5, 6 years or for life. NGL’s policy also allows a zero-day elimination period in some areas, so it can pay out right away. This is a great choice if you want the security of never outliving your coverage. Downsides: NGL’s maximum monthly benefit ($9,000) is lower than some competitors’, and it does not support online claims.long-term care insurance
New York Life Best Financial Stability
New York Life is known for its exceptional financial strength (A++, AAA, etc.). It offers two robust stand-alone plans (Secure Care and My Care) plus a hybrid (Asset Flex). Stand-alone plans can cover 100% of care costs with no lifetime limit (subject to your benefit period). Premiums on stand-alone policies are guaranteed for the first 3 years, and linked-benefit plans return premiums if unused.
Coverage includes inflation and nonforfeiture options. One caveat: benefits and options vary by state, and New York Life currently requires working with an agent for quotes (no online quoting).
Nationwide Best Customisation (Linked Benefit)
Nationwide doesn’t sell a stand-alone LTC, but its CareMatters® hybrid policies are among the best in the industry. These are universal life policies with an LTC rider. They offer guaranteed cash LTC benefits (no reimbursement hassles)and a shared-benefit option for couples (CareMatters Together). You can fund them with a lump sum or periodic payments over 5 or 10 years. Benefit amounts and durations are flexible (2–7 years). Nationwide also allows “unlicensed caregivers” (like a family member) to be paid for care. Ideal for buyers who want an insurance annuity combo rather than a pure LTC policy.
GoldenCare Insurance Best for Comparing Quotes
GoldenCare isn’t an insurer but an independent brokerage specialising in LTC and related policies. It partners with 19 carriers (Mutual of Omaha, Aetna, Thrivent, NGL, etc.). This means they can provide multiple quotes from top companies quickly. Their agents help you match policy features (benefit length, inflation, riders) to your needs. GoldenCare also offers short-term care, annuities, and hybrid products.
The benefit is broad choice; the drawback is that GoldenCare itself only arranges policies – it’s not an underwriter and cannot quote online instantly. Still, for comprehensive comparison shopping, it’s hard to beat.
Other companies often recognised include Bankers Life (strong customer service) and Genworth (Legacy GUL), but the above list covers those with top ratings and recommended plans as of 2026.
Choosing the Right Policy: Key Factors
Selecting the best long-term care insurance involves balancing coverage and cost. Keep these in mind:
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Benefit Amount & Period: Decide how much coverage you need per month/day and for how long. A common strategy is a 3–5 year benefit period, but consider your family history – women, for instance, often need care longer.
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Inflation Protection: Always include compound inflation growth (3% or 5%) to keep pace with rising care costs. Without it, a fixed benefit will shrink in real value over time.
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Elimination Period: Shorter waiting periods give faster access to benefits but raise premiums. Many choose 90 days as a balance; some ultra-healthy buyers opt for 0 days (if available).
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Nonforfeiture Options: Look for a “paid-up benefit” or return-of-premium rider. If you stop paying, these ensure you retain some level of coverage (at least your paid-in premium).
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Shared/Survivorship Benefits: If married, check for discounts or shared benefits (one spouse can use the other’s leftover benefits). Northwestern and Thrivent offer generous couples discounts.
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Company Strength: Prioritise insurers with top financial ratings (A++ from AM Best or equivalent). Your premium payments should be safe, and claims should be paid decades later.
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Riders: Consider helpful riders like waiver of premium (premiums stop if you enter a nursing home), return of premium, or caregiver training benefits.
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Tax Advantages: For tax-qualified policies, a portion of your premium (based on age) may be deductible. Check IRS rules or a tax advisor.
Because LTC policies are complex, we recommend consulting an independent insurance specialist. They can compare features and rates across multiple insurers. GoldenCare, AALTCI member agents, or your financial planner can provide quotes. Don’t rush: take time to review sample policy contracts and ask about future rate increase history.
Long-Term Care Insurance vs. Other Options
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Medicare: Covers only short-term skilled nursing (up to 100 days) after a hospital stay. It does not pay for custodial care in most cases.
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Medicaid: Only covers LTC if you spend down assets to very low levels. Relying on Medicaid means losing control of where you live/receive care.
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Savings/Assets: Self-funding is an option if you have substantial wealth, but even millionaires can drain assets quickly with prolonged care.
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Life Insurance with LTC Rider: As noted, hybrid plans offer a fallback for heirs. But pure LTC insurance can generally provide higher benefits for the same premium than a hybrid rider.
Common FAQs (People Also Ask)
Q: What does long-term care insurance cover?
A: Most policies cover long-term custodial care when you cannot perform basic daily tasks. This includes nursing home care, assisted living, home health aides, and adult day care. It pays a daily or monthly amount for qualified care services. It generally does not cover medical treatments (doctor visits, surgeries) or regular health insurance expenses.
Q: How much does long-term care insurance cost?
A: Premiums depend on your age, health, benefit level, and riders. For example, a healthy 55-year-old might pay roughly $950/year (male) or $1,500/year (female) for a modest policy. By age 60, those prices might be ~$1,200 and $1,900. Adding inflation protection or longer benefits will raise the premium. Think of it as budgeting a few hundred dollars per month now to avoid paying tens of thousands a month later out-of-pocket.
Q: When should I buy long-term care insurance?
A: Sooner is usually better. Premiums rise significantly with age. The ideal age is often in your mid-50s to early 60s, when premiums are lower, and you can still qualify healthwise. Waiting until the late 60s or 70s often means higher costs or being declined if health issues arise. Some employers offer LTC coverage (or you can join a partnership program), but if not, shop privately early.
Q: Is long-term care insurance worth it?
A: If you have assets to protect and want care-choice flexibility, it often is. With 70% chance of needing care and annual LTC costs easily six figures, even modest insurance can be a bargain. Without it, many families end up spending thousands per month from savings or relying on Medicaid. Most experts consider LTC insurance a key part of a solid retirement plan – especially if you live in a state without much Medicaid benefit for the middle class.
Q: What’s the difference between nursing home and assisted living insurance?
A: These terms generally fall under LTC insurance. A nursing home insurance policy covers 24/7 skilled care; an assisted living insurance policy covers help with daily tasks in a residential community. Most LTC policies cover both settings (and home care), but you should check that your plan explicitly includes assisted living and home health care.
Q: Can I keep the long-term care policy if I move states?
A: Yes, LTC insurance is guaranteed renewable across the U.S. State rules vary on approved benefits (e.g. some elimination periods differ), but your policy stays in force.
Conclusion: Protect Your Future Today
Choosing the best long-term care insurance for 2026 means weighing costs, coverage, and company strength. With so many top-rated insurers (Northwestern Mutual, Thrivent, Mutual of Omaha, New York Life, and specialised brokers like GoldenCare), you can find a policy that fits your budget and needs. Plan early – the sooner you lock in coverage, the lower the premium. Long-term care insurance offers peace of mind that you’ll have quality support as you age without depleting your savings.
Don’t wait until it’s too late. Get quotes from qualified agents, compare the expert picks above, and secure your care options now. Your future self (and loved ones) will thank you.
