Long-Term Care Insurance Companies

A number of companies sell long term care insurance policies. Because it may be a long time between your purchase of the policy and the time you actually need to collect the benefit, it is important to choose a reputable company.

• First, identify the companies that offer these types of policies in your state. Several large insurance companies have recently this marketplace, so you may want to identify companies that specialize in long-term care insurance or who have a long history of selling it. (Note that these companies that no longer write new policies will still honor the policies they have already issued.)
  
• Once you have narrowed the list down to several companies, check their ratings. There are several agencies that rate insurance companies, including A.M Best, Standard & Poor’s, and Moody’s. You can usually find each company’s ratings from all agencies on the company web site, or you can go to the rating agency’s web site to find the ratings for all companies. Each rating agency uses a slightly different scale, so be sure you understand what each rating means at each company. The ratings measure the financial stability of the company and project the company’s ability to pay claims when they come due.
  

Some employers offer coverage for long-term care to their employees and their spouses as a company benefit. Carefully consider if a policy obtained through your employer is the best one for you. Make sure, for example, that you can take the policy with you when you leave your job. (This is known as “portability.”) This is particularly important with long-term care insurance because you may not need the benefit until you are well into retirement. If you are in good health and your employer’s group policy does not require medical underwriting, you may be able to get a less expensive policy on your own.