Yes, New York Life long-term care insurance can be worth it for people with assets to protect, family members to shield from caregiving costs, and good health in their mid-50s to mid-60s. The company offers strong financial stability with top ratings from major agencies, but the value depends on your age, health status, asset level, and ability to afford premiums that may increase significantly over time.
The federal government regulates long-term care insurance through the Internal Revenue Code Section 7702(b), which defines tax-qualified long-term care insurance contracts and establishes consumer protection standards, including limitations on premium increases and requirements for nonforfeiture benefits. These regulations create a framework that allows insurers to request rate increases when claims experience deviates from original pricing assumptions, leaving policyholders vulnerable to steep premium hikes that can reach 100% to 250% over several years. The immediate consequence for consumers is difficult financial decisions: pay dramatically higher premiums after investing thousands of dollars, or let the policy lapse and lose all previous premium payments plus future coverage when care is needed most.
Nearly 70% of Americans turning 65 will need some form of long-term care services before they die, yet only 7.4 million people currently own long-term care insurance policies—leaving millions exposed to costs that average $135,528 per year for a private nursing home room in 2026.
In this article, you will learn:
📊 How New York Life’s three main products compare in coverage levels, costs, and benefit structures so you can match the right policy to your financial situation and care preferences
💰 Real pricing examples by age showing what a 55-year-old versus a 65-year-old pays annually, plus how rate increases have impacted existing policyholders in New York State
🏥 The specific medical conditions that automatically disqualify applicants from coverage, helping you assess your eligibility before applying and wasting time on a denied application
⚖️ How Partnership Program policies protect your assets from Medicaid spend-down rules, potentially saving hundreds of thousands of dollars for your heirs
❌ The five most expensive mistakes buyers make when purchasing long-term care insurance, including the inflation protection error that costs tens of thousands over a lifetime
Understanding New York Life Long-Term Care Insurance Products
New York Life Insurance Corporation, the nation’s largest mutual life insurer with 180 years of history, offers three distinct long-term care insurance solutions designed for different financial situations and care preferences. The company structures these products to address varying levels of risk tolerance, budget constraints, and asset protection goals.
NYL My Care: Entry-Level Coverage with Dollar Deductibles
NYL My Care represents New York Life’s most affordable standalone long-term care option, utilizing a unique deductible structure instead of traditional elimination periods. This product covers up to 80% of eligible monthly care costs after you meet a one-time dollar deductible that ranges from $4,500 to $21,000 depending on your chosen coverage level.
The policy offers four tiered benefit options structured around lifetime maximum benefits. Bronze coverage provides $50,000 in lifetime benefits with a $4,500 deductible and $1,500 maximum monthly benefit. Silver coverage doubles these amounts to $100,000 lifetime benefit, $9,000 deductible, and $3,000 monthly maximum. Gold tier delivers $175,000 in lifetime benefits with a $15,000 deductible and $5,000 monthly cap, while Platinum provides the highest protection at $250,000 lifetime benefit, $21,000 deductible, and $7,000 monthly maximum.
A critical distinction of My Care involves the reimbursement percentage. Unlike traditional policies that cover 100% of costs up to the daily maximum, My Care reimburses only 80% of eligible expenses. This means if your care costs $5,000 per month and you have Gold coverage with a $5,000 monthly maximum, you will receive $4,000 from the policy and must pay the remaining $1,000 yourself. This cost-sharing structure keeps premiums lower but creates ongoing out-of-pocket expenses even after exhausting the deductible.
The deductible operates differently than traditional elimination periods. Instead of waiting a specific number of days, you pay all care costs until your out-of-pocket expenses reach your deductible amount. For someone with Silver coverage, this means personally covering the first $9,000 of care expenses before the policy begins its 80% reimbursement. If you need care costing $3,000 monthly, you would pay entirely for the first three months before insurance coverage activates.
NYL Secure Care: Comprehensive Coverage with Daily Benefits
NYL Secure Care functions as New York Life’s comprehensive long-term care insurance product, offering 100% reimbursement of eligible expenses up to the daily maximum rather than the 80% coverage provided by My Care. This policy uses a traditional 90-day elimination period instead of a dollar deductible, meaning you must receive care services for 90 consecutive days before benefits begin.
The product provides three bundled coverage levels identified by their daily benefit amounts. Secure Care 100 offers $100 per day for facility care (translating to approximately $3,000 monthly or $109,500 total over the life of the policy), Secure Care 150 provides $150 daily ($4,500 monthly, $164,250 lifetime total), and Secure Care 250 delivers $250 per day ($7,500 monthly, $273,750 lifetime maximum). All three options provide 100% of the daily benefit amount for home care, unlike some policies that reduce home care benefits to 50% or 75% of the nursing home daily rate.
Secure Care permits family members to serve as paid caregivers for home care services, a feature not available with My Care. This provision allows adult children or other relatives to receive compensation for providing care, which can help families manage care costs while keeping loved ones at home. The policy requires a Plan of Care approved by New York Life’s care coordinator before benefits begin.
Benefit period options include two, three, five, or seven years, or unlimited lifetime coverage depending on your age and the coverage level selected. These periods determine how long the policy will pay benefits. For example, a Secure Care 100 policy with a three-year benefit period provides $100 per day for up to three years, equaling $109,500 in total benefits ($100 × 365 days × 3 years). If your care needs exceed three years, you must pay for subsequent care yourself or transition to Medicaid if you meet eligibility requirements.
The policy includes a benefit restoration feature that replenishes your benefit pool after you stop needing care for one continuous year. This means if you use $50,000 in benefits during a two-year care episode, then recover and require no care for 12 consecutive months, your policy resets to its original maximum benefit amount. This restoration only applies once during the life of the policy.
Asset Flex: Hybrid Life Insurance with LTC Benefits
Asset Flex combines permanent life insurance with long-term care coverage in a single hybrid product purchased with a one-time lump sum premium payment ranging from $10,000 to $50,000. This payment immediately creates both a death benefit for your beneficiaries and an accelerated benefit pool for long-term care expenses.
The product structure typically provides a death benefit equal to 150% of your premium payment and long-term care benefits equal to 350% of the premium. For instance, a $50,000 premium payment generates approximately $75,000 in life insurance death benefit and $175,000 in long-term care benefits. However, these amounts are interconnected—money used for long-term care reduces the death benefit dollar-for-dollar.
Asset Flex operates with a 90-day elimination period that can be waived for home care if you work with New York Life to create a personalized care plan before needing services. This waiver of elimination period feature allows home care benefits to begin immediately rather than after 90 days, providing faster access to care coordination and financial assistance.
The money-back guarantee represents a key advantage over traditional long-term care insurance. If you cancel the policy or die without using long-term care benefits, your beneficiaries receive the full death benefit. This eliminates the “use it or lose it” concern that discourages many people from purchasing traditional standalone long-term care policies.
However, the steep upfront cost creates a significant barrier. Most Americans do not have $10,000 to $50,000 in liquid assets available for a lump sum insurance payment. The product targets individuals with substantial savings who want to earmark a portion of their assets specifically for long-term care while maintaining a death benefit for heirs.
How Much Does New York Life Long-Term Care Insurance Cost?
Long-term care insurance premiums vary dramatically based on your age at purchase, gender, health status, chosen coverage amount, benefit period length, and optional riders. Understanding these pricing factors helps you anticipate true lifetime costs rather than focusing solely on the initial premium quote.
Pricing by Age: The Cost of Waiting
Your age when applying for coverage represents the single largest factor determining your premium. New York Life, like all insurers, prices policies based on actuarial tables showing the statistical likelihood you will need care at different ages. Younger applicants pose less immediate risk and pay lower premiums.
A 55-year-old single male purchasing New York Life My Care Silver coverage (the most popular tier) typically pays approximately $100 to $150 per month in premiums. The same coverage purchased at age 60 increases to roughly $150 to $200 monthly. Waiting until age 65 to buy pushes the premium to $200 to $300 per month for identical benefits.
For couples, the pricing structure provides automatic discounts. A married couple both age 55 purchasing comparable coverage pays approximately $3,875 annually combined when both apply together and both are approved. This represents a 25% to 40% reduction compared to two individuals purchasing separately. If only one spouse qualifies for coverage, the approved spouse receives a 10% discount rather than the full couples discount.
The cumulative cost difference between purchasing at 55 versus 65 becomes substantial over time. A person buying at age 55 with a $125 monthly premium pays $18,750 over 10 years before reaching age 65. If that same person waits and purchases at 65 with a $250 monthly premium, they pay $30,000 over the subsequent 10 years (ages 65-75). The person who bought earlier pays $48,750 total by age 75, while the late buyer pays $30,000 only from age 65 to 75. However, the early buyer has 10 additional years of coverage during ages 55-65 when they could potentially need care.
Women consistently pay higher premiums than men for identical coverage because actuarial data shows women live longer and use long-term care services more frequently and for longer durations than men. A 55-year-old woman purchasing My Care Silver coverage typically pays 35% to 45% more than a 55-year-old man.
Rate Increases: The Hidden Cost of Long-Term Care Insurance
New York Life guarantees initial premiums for the first three years on standalone policies like My Care and Secure Care. After this period expires, the company reserves the right to increase premiums with approval from state insurance regulators. These increases apply to an entire class of policyholders rather than individual policies based on health claims.
Recent rate increase filings in New York State reveal the magnitude of premium hikes affecting existing policyholders. In 2024 and 2025, multiple insurance companies (including some selling policies through similar distribution channels as New York Life) requested and received approval for increases ranging from 20% to 252%. Genworth, one of the largest long-term care insurers, received approval for rate increases of 99%, 252%, 35%, and 174% for different policy blocks. John Hancock requested increases between 44.9% and 66.8%. Mutual of Omaha sought a 24.1% increase citing “higher-than-expected claims incidence and longer claim durations.”
These increases compound over multiple years. A policyholder paying $2,000 annually faces a bill of $2,480 after a 24% increase. If another 24% increase occurs three years later, the premium jumps to $3,075. After two more rounds of similar increases, the annual premium reaches $4,733—more than double the original cost. This pattern forced Anita Palozzi, a 79-year-old New York resident, to confront a 179% increase over four years, raising her annual premium from $1,312 to $3,668.
Insurance companies justify these increases by citing faulty business assumptions from the 1990s and early 2000s when most long-term care policies were originally priced. Actuaries overestimated how many policyholders would drop coverage without filing claims, underestimated how long people would live and need care, and assumed higher investment returns on premium reserves than materialized during the low-interest-rate environment of 2008-2020.
The Department of Financial Services in New York can require insurers to phase in rate increases over multiple years to reduce the immediate financial shock to policyholders. This regulatory oversight provides some protection but does not prevent substantial long-term premium increases when insurers demonstrate actuarial necessity.
Sample Premium Scenarios
| Profile | Coverage | Monthly Premium | Annual Premium | 20-Year Total |
|---|---|---|---|---|
| Single male, 55 | My Care Silver | $125 | $1,500 | $30,000 |
| Single female, 55 | My Care Silver | $175 | $2,100 | $42,000 |
| Couple, both 55 | My Care Silver each | $325 combined | $3,900 | $78,000 |
| Single male, 65 | My Care Silver | $250 | $3,000 | $60,000 |
| Single female, 65 | My Care Silver | $350 | $4,200 | $84,000 |
| Couple, both 65 | Secure Care 150 each | $485 combined | $5,820 | $116,400 |
These figures represent initial premiums and do not account for rate increases that typically occur after the three-year rate guarantee period expires.
What Medical Conditions Disqualify You from Coverage?
New York Life, like all long-term care insurers, conducts medical underwriting to assess your health before issuing a policy. This process determines whether you qualify for coverage, and if so, at what premium rate. Understanding disqualifying conditions helps you evaluate your eligibility before investing time and effort in an application.
Automatic Disqualification Conditions
Certain diagnoses trigger automatic denial regardless of how well-controlled the condition may be. Alzheimer’s disease and all forms of dementia lead to immediate disqualification because these conditions inevitably require long-term care services, making the applicant uninsurable from a risk perspective. Insurance functions on the principle of protecting against uncertain future risks, not covering expenses that are certain to occur.
Parkinson’s disease results in automatic denial even in early stages because the progressive nature of the condition means long-term care needs are highly likely. Multiple sclerosis in moderate to severe stages, amyotrophic lateral sclerosis (ALS), and other progressive neurological conditions similarly disqualify applicants.
A history of stroke, particularly within the past two years or involving significant impairments, prevents approval. Transient ischemic attacks (TIAs or “mini-strokes”) within the previous 24 months also disqualify applicants. Even if you have fully recovered from a stroke, insurers view your history as indicating elevated risk for future strokes requiring long-term care.
Cancer diagnoses create complex underwriting decisions. Active cancer or cancer diagnosed within the past two to five years (depending on type and stage) typically results in denial. Some insurers will consider applicants five or more years post-treatment for certain early-stage cancers, but metastatic cancer at any point in your medical history leads to permanent ineligibility.
Severe heart conditions including congestive heart failure, significant coronary artery disease, and cardiomyopathy disqualify applicants. Well-managed high blood pressure or a history of successful stent placement may not prevent approval, but serious cardiac events signal too much risk for insurers.
AIDS and HIV-positive status result in automatic denial. Chronic obstructive pulmonary disease (COPD) in later stages, end-stage renal disease requiring dialysis, cirrhosis of the liver, and organ failure conditions all disqualify applicants because they indicate proximity to needing extensive care.
Functional and Cognitive Impairment Disqualifications
Applicants who already need assistance with activities of daily living cannot obtain coverage because they already require the care the insurance would cover. If you currently use a wheelchair, walker, cane for balance, hospital bed, stairlift, or require oxygen therapy, insurers will deny your application.
Cognitive impairments short of diagnosed dementia can also disqualify you. If assessment testing reveals memory loss affecting your orientation to time or place, inability to manage medications independently, or need for supervision for safety reasons, insurers will reject your application. Severe depression requiring antipsychotic medications or schizophrenia typically leads to denial.
Currently receiving long-term care services in any setting—nursing home, assisted living, or home care—automatically disqualifies you. If you currently receive disability benefits (except military disability in some cases), insurers view this as evidence you are already impaired and deny coverage.
Health Conditions Requiring Individual Underwriting Review
Diabetes presents a nuanced situation. Well-controlled Type 2 diabetes with normal blood sugar levels and no complications may not prevent approval. However, diabetes with complications affecting eyes (retinopathy), kidneys (nephropathy), or nerves (neuropathy) frequently results in denial because these complications indicate disease progression toward conditions requiring long-term care.
Obesity above certain body mass index thresholds (typically BMI over 40) can lead to higher premiums or denial. Recent hospitalizations within the past six to twelve months, especially for conditions related to mobility, cognitive function, or chronic disease management, raise red flags during underwriting.
Substance abuse history, even if you have been in recovery for several years, may result in denial or require a lengthy period of documented sobriety before consideration. Mental health hospitalizations within the past five years complicate approval.
The medical underwriting process typically includes a detailed health questionnaire, phone interview with a nurse, review of prescription drug history, and potentially an in-person assessment. Insurers also check the Medical Information Bureau (MIB), a database that tracks insurance applications and claims across companies.
When Should You Buy Long-Term Care Insurance?
The timing of your long-term care insurance purchase creates a delicate balance between affordable premiums when you are younger and avoiding unnecessary years of premium payments if you buy too early. Industry experts consistently identify a specific age window that optimizes this balance.
The Optimal Age Window: Mid-50s to Mid-60s
Financial planners, insurance professionals, and research studies converge on ages 50 to 65 as the ideal purchasing window, with the sweet spot specifically in the mid-to-late 50s. This timeframe offers several strategic advantages.
First, you remain young enough that premiums are affordable but old enough that you will not pay premiums unnecessarily for decades before potentially needing care. A 55-year-old purchasing coverage typically waits 20 to 25 years before using benefits, while someone buying at 70 may need care within 10 to 15 years.
Second, most people in their mid-50s remain healthy enough to qualify for coverage without facing numerous health-related exclusions or premium surcharges. By age 60, the percentage of people developing disqualifying conditions increases significantly. By 70, more than half of applicants face denial or receive offers with substantial premium increases due to health issues.
Third, the cost difference between purchasing at 55 versus 60 or 65 creates substantial savings over time without significantly extending the uninsured period. Someone buying at 55 locks in lower premiums for life compared to waiting until 60, saving thousands of dollars in cumulative premium payments.
Fourth, buying in your 50s allows you to purchase meaningful inflation protection that compounds over the longer time horizon before you need care. A policy with 3% compound inflation protection purchased at age 55 sees benefits grow by 181% over 30 years before the average age of first long-term care need around 85. The same inflation rider purchased at age 70 only compounds for 15 years, growing benefits by just 56%.
Why Not to Buy Too Early
Purchasing long-term care insurance in your 40s or earlier creates minimal benefit despite the lower premiums. Someone buying at age 40 typically pays premiums for 40 to 45 years before needing care, resulting in cumulative premium payments that could exceed the actual cost of paying for care out-of-pocket.
Additionally, the long-term care insurance market has evolved dramatically over the past two decades, with many products from the 1990s and early 2000s becoming unavailable. Policies purchased 30 to 40 years before you need care may not reflect the best available products when you actually file a claim.
The opportunity cost of premium payments also matters. Money spent on insurance premiums in your 40s cannot be invested in retirement accounts, college savings, or other priorities that may provide better returns.
Why Not to Wait Too Long
Delaying purchase past age 65 creates several risks and disadvantages. First, premiums increase substantially with each passing year. A couple both age 65 pays approximately $5,810 annually for a standard policy, while waiting until age 70 could push that cost above $8,700 per year.
Second, the likelihood of developing disqualifying health conditions rises sharply after 65. Medicare’s free preventive care and screenings at age 65 often uncover previously undiagnosed conditions like diabetes, high blood pressure, or early signs of cognitive decline that complicate or prevent insurance approval.
Third, you remain uninsured during the waiting period. If you experience a stroke, receive a cancer diagnosis, or develop another condition requiring long-term care before purchasing coverage, you will never qualify for a policy and must self-fund all care costs.
Fourth, some insurers impose maximum age limits for applications, typically between 79 and 84 years old. Waiting too long eliminates your option to purchase coverage entirely.
Special Timing Considerations
Couples should apply together even if one spouse has minor health concerns. The approved spouse receives a partial discount (typically 10%) if the other spouse is denied, which is better than no discount when purchasing individually later.
If you have a family history of conditions requiring long-term care (Alzheimer’s, Parkinson’s, stroke), consider purchasing on the earlier end of the optimal window before you potentially develop similar conditions.
Anyone with diagnosed health conditions should apply sooner rather than later, as waiting allows conditions to progress and potentially worsen your underwriting outcome.
Federal and State Regulations Governing Long-Term Care Insurance
The regulatory framework for long-term care insurance operates through a combination of federal tax law provisions and state insurance regulations that establish minimum standards, consumer protections, and oversight mechanisms.
Federal Tax Law Requirements
Internal Revenue Code Section 7702(b) defines federally tax-qualified long-term care insurance contracts and establishes the requirements policies must meet to qualify for tax deductions and preferential tax treatment. This federal statute requires qualified policies to cover only qualified long-term care services provided to chronically ill individuals following a written plan of care.
A chronically ill individual meets one of two conditions under federal law. First, they cannot perform at least two of six activities of daily living (eating, bathing, dressing, toileting, transferring, or maintaining continence) without substantial assistance from another person for at least 90 days due to a loss of functional capacity. Second, they require substantial supervision to protect their health and safety due to severe cognitive impairment such as Alzheimer’s disease.
The federal law mandates that policies include specific consumer protections. Contracts must be guaranteed renewable, meaning the insurer cannot cancel your policy due to age or health deterioration as long as you pay premiums. The statute limits premium increases to class-wide rate adjustments rather than individual increases based on claims history.
Federal regulations also establish maximum daily benefit amounts eligible for tax-free treatment. For 2025, long-term care insurance benefits up to $420 per day receive tax-free status. Benefits exceeding this amount may be taxable depending on your actual care costs.
The tax deductibility provisions set age-based limits on the amount of premium that can be deducted as a medical expense. For 2026, these limits range from $500 for individuals age 40 and under to $6,200 for those over age 70. However, you can only claim this deduction if you itemize deductions and your total medical expenses exceed 7.5% of your adjusted gross income.
A new provision in the SECURE 2.0 Act allows penalty-free withdrawals from certain retirement accounts to pay for qualified long-term care insurance premiums starting in 2026. This provision permits up to $2,600 per person annually to be withdrawn from 401(k), 403(b), or governmental 457(b) plans for long-term care insurance premiums without incurring the 10% early withdrawal penalty typically assessed on distributions before age 59½.
State Insurance Regulations
Each state maintains its own insurance department that regulates long-term care insurance policies sold within its borders. New York State, where New York Life is headquartered, imposes particularly rigorous standards on long-term care insurance products.
New York insurance law establishes minimum benefit requirements for policies sold in the state. Comprehensive long-term care policies must cover at least 24 consecutive months of benefits and provide minimum daily benefits of $100 per day for nursing home care in the New York City metropolitan area ($70 per day in other parts of the state) and at least 50% of the nursing home daily benefit for home care.
The state mandates a 30-day “free look” period during which purchasers can cancel their policy and receive a full refund of all premiums paid. This cooling-off period allows you to review the policy carefully, consult with family members or advisors, and reverse your decision without penalty.
New York requires insurers to offer inflation protection options with all long-term care policies. While purchasers can decline this coverage, the insurer must present the option and document your decision to reject it. This requirement aims to protect consumers from purchasing policies with fixed benefits that lose purchasing power over 20 to 30 years before care is needed.
The state’s Department of Financial Services reviews and approves all premium rate increase requests before insurers can implement them. This regulatory oversight provides some consumer protection but does not prevent increases when insurers provide actuarial justification demonstrating inadequate premium reserves to pay future claims.
New York offers a tax credit for long-term care insurance premiums equal to 20% of premiums paid during the tax year. This state-level tax benefit supplements the federal tax deduction and reduces the effective cost of coverage. To claim the credit, you must complete Form IT-249 and attach it to your New York State income tax return.
The Long-Term Care Partnership Program
The Long-Term Care Partnership Program represents a joint federal-state initiative designed to encourage private long-term care insurance purchases while reducing Medicaid spending. Congress authorized these programs through the Deficit Reduction Act of 2005, allowing states to create Partnership-qualified policies that provide special Medicaid asset protection.
Partnership policies provide dollar-for-dollar asset disregard when determining Medicaid eligibility. This means for every dollar your Partnership policy pays toward your care, you can retain an additional dollar of assets above Medicaid’s normal asset limits and still qualify for Medicaid coverage once your insurance benefits exhaust.
For example, suppose you purchase a Partnership policy with $200,000 in total benefits. Over three years, the policy pays the full $200,000 for your nursing home care. When you apply for Medicaid, you can keep $200,000 in assets above your state’s regular Medicaid asset limit (typically $2,000 for individuals) and still qualify for coverage. Without the Partnership protection, you would need to spend down all assets above $2,000 before Medicaid would cover your care.
The asset protection extends to Medicaid Estate Recovery, the program through which states attempt to recoup long-term care costs from deceased beneficiaries’ estates. Partnership-protected assets remain shielded from estate recovery, preserving wealth for your heirs.
Partnership policies must meet specific requirements beyond standard tax-qualified policies. Most significantly, they must include compound inflation protection of at least 3% annually for purchasers under age 76. This requirement ensures the policy keeps pace with rising care costs over the decades before you need services.
Currently, 44 states plus the District of Columbia participate in the Partnership Program. The exceptions are Alaska, Hawaii, Massachusetts, Mississippi, Utah, and Vermont. Massachusetts offers a similar program called MassHealth Qualified Policies with comparable asset protection features.
Partnership protection follows you if you move between Partnership states that have reciprocal agreements. However, not all Partnership states recognize policies purchased in other states, so relocation could jeopardize your asset protection.
Real Cost Scenarios: What You Will Actually Pay
Understanding abstract premium figures and benefit maximums does not reveal the true financial impact of long-term care insurance until you see how coverage operates in specific situations based on real cost data and benefit structures.
Scenario 1: Home Care in California
Profile: Maria, age 82, lives in San Diego and needs assistance with bathing and dressing due to arthritis and balance issues. She purchased NYL My Care Silver coverage at age 58.
| Care Need | Financial Impact |
|---|---|
| Home health aide: 4 hours daily, 5 days/week | $34/hour × 4 hours × 5 days = $680/week = $2,947/month |
| Policy deductible (one-time) | $9,000 (already paid in first 3 months) |
| Policy monthly maximum | $3,000 |
| Policy reimburses | 80% × $2,947 = $2,358 |
| Maria pays out-of-pocket | $2,947 – $2,358 = $589/month |
| Policy lifetime maximum | $100,000 |
| Estimated duration benefits last | $100,000 ÷ $2,358 = 42 months (3.5 years) |
Maria pays premiums of approximately $215 per month for 24 years before needing care, totaling $62,000. When she needs care, she pays an additional $9,000 deductible plus $589 monthly out-of-pocket. After 3.5 years when her policy exhausts, she must pay the full $2,947 monthly herself or transition to Medicaid if she has spent down her assets below $130,000 (California’s 2026 asset limit).
Total cost to Maria over 3.5 years of care: $62,000 (premiums) + $9,000 (deductible) + ($589 × 42 months) = $95,738. Her policy paid $100,000 toward $123,774 in total care costs. Without insurance, Maria would have paid the full $123,774 herself.
Scenario 2: Nursing Home Care in New York
Profile: Robert, age 85, requires skilled nursing care in Rochester, New York following a stroke. He purchased NYL Secure Care 150 at age 62 with a 5-year benefit period and 3% compound inflation protection.
| Care Need | Financial Impact |
|---|---|
| Nursing home semi-private room | $9,086/month |
| Original daily benefit at purchase (age 62) | $150/day = $4,500/month |
| Benefit after 23 years of 3% compound inflation | $4,500 × (1.03)^23 = $8,950/month |
| 90-day elimination period cost | $9,086 × 3 months = $27,258 (Robert pays) |
| Monthly benefit after elimination period | $8,950 (policy pays), $136 (Robert pays) |
| Total benefit period | 5 years |
| Total policy payout | $8,950 × 57 months = $510,150 |
Robert paid approximately $340 per month in premiums for 23 years, totaling $93,840. He pays the $27,258 elimination period plus $136 monthly shortfall ($7,752 over 57 months). His total cost equals $128,850 for care costing $545,934 total. The policy paid $510,150, providing a net benefit of $381,284 ($510,150 paid minus $128,850 in premiums and out-of-pocket).
If Robert’s care needs extend beyond five years, he must pay the full $9,086 monthly himself or qualify for Medicaid.
Scenario 3: No Care Needed – The Alternative Outcome
Profile: Susan purchased NYL Asset Flex at age 60 with a $50,000 one-time premium. She receives a $75,000 life insurance death benefit and $175,000 in long-term care benefits. She lives to age 92 without needing long-term care.
| Financial Impact | Amount |
|---|---|
| One-time premium paid | $50,000 |
| Long-term care benefits used | $0 |
| Death benefit paid to heirs | $75,000 |
| Net outcome | Paid $50,000, heirs receive $75,000 = +$25,000 |
Susan receives a positive return because the hybrid policy provides a death benefit even when long-term care coverage goes unused. In contrast, someone with a traditional standalone policy like My Care or Secure Care who pays premiums for 30+ years without needing care loses all premium payments with no benefit to show for the expense.
This scenario illustrates why hybrid policies appeal to people concerned about “wasting” money on traditional long-term care insurance. However, the steep upfront premium prevents most people from choosing this option.
Common Mistakes to Avoid When Buying Long-Term Care Insurance
Consumers make predictable errors when purchasing long-term care insurance that cost tens of thousands of dollars over time or leave them with inadequate coverage when care is needed.
Mistake 1: Choosing Future Purchase Option Instead of Automatic Inflation Protection
Long-term care insurance policies offer two types of inflation protection: automatic compound inflation and future purchase options. Automatic compound inflation increases your benefits by a fixed percentage each year (typically 3% or 5%) without requiring any action or premium increase. Future purchase options allow you to buy additional coverage every few years, but your premium increases to the rate for your then-current age each time you exercise the option.
The future purchase option appears attractive because initial premiums are lower. However, this creates a trap. If you purchase a policy at age 55 with a $150 daily benefit and future purchase options, you may pay $150 per month initially. Every three years, the insurer offers you the chance to increase your daily benefit to keep pace with inflation, but each increase raises your premium to the rate a new purchaser of your current age would pay.
By age 70, your premium could reach $400 per month even with a relatively modest daily benefit because you are paying current rates for a 70-year-old rather than locked-in rates from age 55. Many policyholders decline the benefit increases due to premium shock, leaving them with fixed benefits that lose purchasing power over time.
A policy with 3% compound automatic inflation purchased at age 55 with a $150 daily benefit grows to $262 per day by age 70 and $458 per day by age 85 without any premium increases beyond general rate adjustments affecting all policyholders. Your premium remains relatively stable while your benefits grow substantially.
The cost difference over 30 years heavily favors automatic inflation. You pay slightly higher premiums initially but avoid the escalating premiums and benefit adequacy crisis that future purchase options create.
Mistake 2: Buying Only Facility Care Coverage
Some policies cover only nursing home and assisted living facility care while excluding home care benefits. These facility-only policies cost less than comprehensive coverage, making them appear attractive.
However, the vast majority of long-term care occurs in home settings. Of the 48% of older adults who receive paid long-term care services, 29% receive paid home care while only 28% receive nursing home care. Many people receive home care for years before transitioning to facility care, or they receive home care exclusively and never enter a facility.
A facility-only policy provides no benefits during home care episodes, forcing you to pay the full $34 per hour for home health aides ($5,900+ monthly for full-time care) entirely out-of-pocket. This defeats a primary purpose of insurance: covering the most common care scenarios.
New York Life’s policies all include home care coverage, but some group policies through employers or other insurers reduce home care benefits to 50% of the facility benefit. Always verify that home care receives 100% of the daily or monthly benefit amount rather than a reduced percentage.
Mistake 3: Purchasing Insufficient Coverage to Avoid Higher Premiums
Many buyers select minimal coverage tiers to keep premiums affordable, then discover their benefits run out years before their care needs end. A $50,000 lifetime maximum sounds substantial, but at current nursing home costs of $9,842 per month for a semi-private room, this coverage exhausts in just 5 months.
The average nursing home stay for those who enter a facility lasts approximately 2.5 years for men and 3.6 years for women. A $50,000 policy covers less than 6 months, leaving 2 to 3 years of care costs entirely uninsured.
Balancing premium affordability against adequate coverage requires honest assessment of your assets and income. If you have $300,000 in savings excluding your home, a $50,000 policy provides minimal protection. The remaining $250,000 in assets will be spent down over the 2 to 3 additional years of care before Medicaid eligibility.
A better approach involves calculating the amount of coverage that preserves at least some assets for a surviving spouse or heirs. For someone with $300,000 in assets, a policy providing $150,000 to $200,000 in coverage protects half of the estate while keeping premiums manageable.
Mistake 4: Failing to Coordinate Coverage with Partnership Program
Many people purchase long-term care insurance without determining whether the policy qualifies for their state’s Partnership Program. Partnership qualification provides dollar-for-dollar Medicaid asset protection, significantly enhancing the value of your insurance.
A non-Partnership policy provides no Medicaid asset protection. When your insurance benefits exhaust, you must spend down all assets above $2,000 (or your state’s limit) before Medicaid covers your care. A Partnership policy allowing you to keep an additional $150,000 in assets above the Medicaid limit saves your family $150,000 that would otherwise be lost to spend-down requirements.
New York State requires Partnership policies to include at least 3.5% compound inflation protection unless purchased at age 80 or older. Some buyers decline inflation protection to reduce premiums, unknowingly disqualifying their policy from Partnership protection and forfeiting hundreds of thousands in potential asset protection.
Always verify whether a policy qualifies for your state’s Partnership Program before purchasing. If you plan to retire in a different state, confirm whether that state has a Partnership Program and whether it recognizes policies purchased in your current state.
Mistake 5: Ignoring the Impact of Rate Increases
Many buyers focus exclusively on the initial premium quote without considering the potential for substantial rate increases after the three-year rate guarantee period expires. This creates dangerous financial assumptions when evaluating affordability.
A couple age 60 purchasing coverage for $4,500 annually may budget this expense comfortably into their retirement plan. However, a 100% rate increase at age 70 (not uncommon based on recent New York State filings) raises the annual premium to $9,000. A second 50% increase at age 80 pushes the premium to $13,500 annually.
Retirees living on fixed incomes from Social Security and pension payments often cannot absorb these increases. They face a devastating choice: pay premiums that now consume a large portion of retirement income, or lapse the policy after paying premiums for 20+ years just when care becomes most likely.
Building a rate increase buffer into your budget provides protection. If quoted a $4,500 annual premium, plan your retirement budget assuming $6,000 to $7,000 annually for long-term care insurance. This creates room for moderate rate increases without forcing policy cancellation.
Additionally, review your financial capacity to handle a 50% to 100% increase before purchasing. If such an increase would force you to drop coverage, you may need to purchase a smaller benefit amount with lower premiums that remain affordable even after doubling.
Alternatives to Traditional Long-Term Care Insurance
Traditional standalone long-term care insurance represents only one option for funding potential care needs. Several alternatives provide coverage through different structures or rely on public programs and personal savings.
Life Insurance with Long-Term Care Riders
Many permanent life insurance policies now offer long-term care riders that allow you to access the death benefit while living to pay for qualifying long-term care expenses. These hybrid products function similarly to New York Life’s Asset Flex policy.
The primary advantage involves eliminating the “use it or lose it” concern of traditional long-term care insurance. If you never need long-term care, your beneficiaries receive the full death benefit. If you do need care, you can access the death benefit to pay for services, though this reduces the amount remaining for heirs.
These policies typically require either a substantial single premium payment ($10,000 to $100,000) or ongoing annual premiums higher than standalone long-term care insurance. The higher cost reflects the dual benefit structure providing both death benefit and care coverage.
Some insurers offer these riders with more lenient underwriting than standalone long-term care policies, making them accessible to people with health conditions that would disqualify them from traditional coverage. However, the life insurance underwriting itself still evaluates your health and may result in denial or rated premiums.
Health Savings Accounts (HSAs)
Health savings accounts allow you to save money tax-free for qualified medical expenses, including long-term care services. To contribute to an HSA, you must have a high-deductible health insurance plan.
For 2026, individuals can contribute up to $4,300 annually ($8,600 for families), with an additional $1,000 catch-up contribution for those age 55 and older. These contributions reduce your taxable income, funds grow tax-free, and withdrawals for qualified medical expenses incur no taxes.
Long-term care expenses including nursing home care, assisted living, and home health services qualify for tax-free HSA withdrawals. You can also use HSA funds to pay long-term care insurance premiums up to age-based limits.
The significant limitation involves the contribution caps. Even with maximum contributions of $5,300 annually from age 55 to 65, you would accumulate only $53,000 plus investment growth over 10 years. This provides meaningful supplemental funding but falls far short of covering the average $135,528 annual cost of nursing home care for multiple years.
HSAs work best as one component of a comprehensive long-term care funding strategy rather than the sole solution.
Annuities with Long-Term Care Benefits
Some annuity products include long-term care riders that increase payouts or provide additional funds when used for qualifying long-term care expenses. These products typically involve purchasing an annuity with a lump sum payment, which then provides guaranteed income payments for life or a specified period.
The long-term care rider might double or triple the monthly payment if you need care, or it might provide access to a lump sum above the regular annuity value. For example, a $100,000 annuity might normally pay $500 monthly but could pay $1,500 monthly if you need long-term care services.
Like hybrid life insurance policies, annuities with long-term care benefits eliminate the use-it-or-lose-it concern. Even if you never need long-term care, the annuity continues providing income payments. This makes them attractive to people who want guarantees that their money will provide value regardless of whether they need care.
The primary drawbacks include limited liquidity (your lump sum payment is locked into the annuity), complexity in understanding how benefits and riders interact, and potentially lower returns compared to other investment options.
Medicaid Planning
Medicaid covers long-term care for individuals with limited income and assets who meet strict financial eligibility requirements. For many Americans, Medicaid ultimately pays for nursing home care after they spend down their private assets.
Approximately 13% of older adults receive long-term Medicaid-financed nursing home care after age 65, with higher rates among women (17%), African Americans (23%), and unmarried individuals with low income and limited wealth. About 16.4% of nursing home residents who initially pay privately eventually spend down their assets and transition to Medicaid coverage.
Medicaid’s asset limits vary by state but typically require individuals to have no more than $2,000 in countable assets (excluding home, car, personal belongings, and certain other exempt items). Married couples where one spouse applies for nursing home Medicaid can protect between $32,532 and $162,660 in assets for the community spouse remaining at home.
Strategic Medicaid planning involves legally restructuring assets to meet eligibility requirements while preserving wealth. Common strategies include spending down excess assets on exempt items (home improvements, vehicle modifications, prepaid funeral expenses, paying off debt), establishing Medicaid Asset Protection Trusts that remove assets from your estate, and converting countable assets to income streams through annuities.
However, Medicaid imposes a 60-month “look-back period” during which any asset transfers for less than fair market value result in penalties that delay your eligibility. This means Medicaid planning must occur years before you need care to be effective.
The primary disadvantages of relying on Medicaid include limited choice of care facilities (not all nursing homes accept Medicaid patients), potential for estate recovery where the state reclaims assets from your estate after death to repay care costs, and the requirement to impoverish yourself to qualify.
Self-Funding Through Savings and Investments
Some individuals choose to forego insurance entirely and plan to pay for long-term care directly from savings and investment accounts. This approach makes sense for people with substantial wealth who can afford years of care without exhausting their assets.
The Department of Health and Human Services estimates that an average American turning 65 will incur $120,900 in lifetime long-term care costs. However, this average masks significant variation. The 53% of people who never use paid long-term care services incur $0 in costs, while the 15% who spend more than two years in nursing homes face costs exceeding $300,000.
Self-funding requires maintaining liquid assets sufficient to cover worst-case scenarios. For a couple, this might mean keeping $500,000 to $750,000 accessible specifically for potential care costs rather than tied up in illiquid real estate or business investments.
The advantage involves avoiding insurance premiums and maintaining full control over your assets. The disadvantage creates enormous financial risk if you are among the 15% who need extended care and your assets prove insufficient.
Pros and Cons of New York Life Long-Term Care Insurance
Evaluating New York Life’s long-term care offerings requires understanding specific advantages and disadvantages that distinguish these products from alternatives in the marketplace.
Pros
Exceptional financial strength ratings protect policyholders from insurer insolvency. New York Life holds the highest ratings from all major rating agencies: A++ from AM Best, Aaa from Moody’s, AAA from Fitch, and AA+ from S&P. These ratings indicate minimal risk that the company will become insolvent and unable to pay claims decades from now when you need care. Many long-term care insurers have exited the market or face financial challenges, making New York Life’s stability a significant advantage.
Dividend payments on participating policies reduce net premium costs. New York Life My Care and Secure Care policies qualify for dividend payments beginning in year six and year eleven respectively. In 2026, the company paid $2.78 billion in dividends to eligible policyholders, the largest dividend in company history and its 172nd consecutive annual dividend. Dividends are applied to premiums to reduce your out-of-pocket costs, though dividends are not guaranteed and fluctuate based on company performance.
Couples receive substantial premium discounts. Married couples applying together receive a 25% discount when both are approved, or a 10% discount for the approved spouse if one is denied coverage. These discounts reduce lifetime premium costs by tens of thousands of dollars compared to individual policies.
Nationwide network of over 12,000 agents provides local service. New York Life maintains agents in every state who can meet in person to explain coverage options, help with applications, and assist with claims. This local presence contrasts with online-only insurers where you never speak with the same representative twice.
Partnership Program qualification protects assets from Medicaid spend-down. New York Life policies can be structured to qualify for state Partnership Programs, providing dollar-for-dollar Medicaid asset protection equal to the amount your policy pays toward care. This feature potentially saves hundreds of thousands of dollars for your heirs by protecting assets from Medicaid spend-down and estate recovery.
Cons
No online quote or purchase options require phone consultations or in-person meetings. New York Life does not provide instant online quotes or the ability to purchase coverage through their website. You must contact an agent, schedule a consultation, and complete the application process through personal interaction. This creates delays and prevents easy comparison shopping with competitors.
80% reimbursement on My Care creates ongoing out-of-pocket costs. Unlike most long-term care policies that reimburse 100% of eligible expenses up to the daily maximum, My Care only pays 80% of covered costs. This means you pay 20% of all care costs out-of-pocket for the entire duration of your claim, which can total tens of thousands of dollars over multiple years of care.
Rate increases after the three-year guarantee period can be substantial. While New York Life guarantees initial premiums for three years, the company reserves the right to increase rates afterward with state regulatory approval. Industry-wide rate increase filings in New York State show increases ranging from 20% to 252% as insurers adjust for claims experience exceeding original projections. These increases force policyholders to choose between dramatically higher premiums or policy lapses after years of premium payments.
Customer service complaints indicate inconsistent claims handling. The Better Business Bureau gives New York Life a 1.2 out of 5 star rating based on customer reviews, with complaints focusing on delayed claim processing, difficulty reaching claim managers, and denied claims without clear explanations. While the company resolves most formal complaints, the volume of customer service issues raises concerns about the claims experience.
Strict medical underwriting disqualifies many applicants. New York Life applies rigorous health standards during the underwriting process, resulting in denial rates comparable to other long-term care insurers. Approximately half of applicants over age 65 face denial or premium surcharges due to health conditions. This strict underwriting protects the company’s financial stability but prevents many people from obtaining coverage when they decide to purchase.
Do’s and Don’ts for Long-Term Care Insurance
Following evidence-based guidance when purchasing and managing long-term care insurance prevents costly mistakes and ensures coverage functions as intended when you need care.
Do’s
Do purchase coverage in your mid-50s to early 60s when premiums are affordable and health qualification likely. This timing window locks in lower premiums while you remain healthy enough to qualify without exclusions or surcharges. Waiting past 65 increases costs substantially and elevates denial risk as health conditions emerge.
Do include automatic compound inflation protection of at least 3% annually. Inflation protection ensures your benefits keep pace with rising care costs over the 20 to 30 years between purchase and use. A 3% compound rider grows a $150 daily benefit to $262 by 30 years and $458 by 50 years, maintaining real purchasing power as care costs increase. This rider qualifies your policy for Partnership Program protection in most states.
Do coordinate with your state’s Partnership Program to maximize Medicaid asset protection. Partnership qualification allows you to keep assets equal to your policy’s total benefit amount above Medicaid’s normal asset limits, protecting wealth for your spouse or heirs. A $200,000 Partnership policy protects an additional $200,000 in assets from Medicaid spend-down, potentially saving your family that amount.
Do apply as a couple if married to receive significant premium discounts. Joint applications generate 25% to 40% premium reductions compared to individual purchases, saving thousands over the life of the policies. Even if one spouse is denied, the approved spouse receives a 10% discount rather than paying full individual rates.
Do build rate increase contingencies into your retirement budget. Plan your retirement finances assuming your long-term care insurance premium will increase 50% to 100% over time rather than remaining fixed at the initial rate. This creates financial capacity to handle rate increases without forcing policy cancellation after years of premium payments.
Do verify that home care receives 100% of the daily benefit amount. Many group policies and some individual policies reduce home care benefits to 50% or 75% of the facility care daily rate. Since most long-term care occurs at home, policies with reduced home care benefits provide inadequate coverage for the most common care scenario.
Do read the benefit trigger definitions carefully to understand when coverage activates. Tax-qualified policies require inability to perform at least two activities of daily living or severe cognitive impairment before benefits begin. Understanding exactly what medical evidence and documentation the insurer requires prevents claim denials and delays when you need care.
Don’ts
Don’t purchase future purchase option inflation instead of automatic compound inflation. Future purchase options appear cheaper initially but result in dramatically higher premiums and inadequate benefits over time as you age and must pay current rates for benefit increases. Automatic compound inflation costs more upfront but provides superior long-term value and Partnership qualification.
Don’t rely exclusively on group coverage through an employer without comparing individual policies. Group policies often lack couples discounts, provide reduced home care benefits, and offer only future purchase option inflation rather than automatic compound increases. Individual underwritten policies frequently provide better benefits for equal or lower premiums, especially for married couples in good health.
Don’t transfer assets or make large gifts during the 60-month look-back period before applying for Medicaid. Medicaid imposes penalties and delays eligibility if you transferred assets for less than fair market value during the five years before applying. These penalties can disqualify you from coverage for months or years, leaving you unable to pay for care.
Don’t purchase minimal coverage just to have a policy without calculating adequate benefit amounts. A $50,000 lifetime maximum provides less than six months of nursing home coverage at current rates. Purchasing inadequate coverage creates false security while leaving you financially exposed for the majority of a typical care episode lasting 2 to 3 years.
Don’t cancel existing coverage due to rate increases without thoroughly exploring options. Many policies include reduced paid-up benefit options, extended term options, or other alternatives to outright cancellation that preserve some coverage without ongoing premium payments. Contact your agent or the company’s policyholder services before canceling to understand all available options.
Don’t assume Medicare covers long-term care costs. Medicare covers only short-term skilled nursing facility stays following a hospitalization (up to 100 days with copayments after day 20) and limited home health services. Medicare does not pay for custodial care in nursing homes or assisted living, nor for long-term home care services that constitute the vast majority of long-term care needs.
Don’t fail to disclose medical conditions on your application hoping to avoid denial. Insurance companies verify information through prescription drug databases, Medical Information Bureau records, and medical record requests. Undisclosed conditions discovered during claims review result in claim denials or policy rescission, leaving you without coverage when you need it most.
Frequently Asked Questions About Long-Term Care Insurance
Does Medicare pay for long-term care expenses?
No. Medicare covers only short-term skilled nursing following hospitalization (up to 100 days with copays after day 20) and limited home health services. Medicare does not pay for custodial care, assisted living, or long-term nursing home stays that constitute most long-term care needs.
Can I deduct long-term care insurance premiums on my taxes?
Yes. Tax-qualified policy premiums qualify as medical expenses subject to age-based limits ranging from $500 (age 40 and under) to $6,200 (age 70+) in 2026. However, total medical expenses must exceed 7.5% of adjusted gross income to claim the deduction.
What happens if I move to another state after purchasing a Partnership policy?
It depends. Partnership protection transfers only to states with Partnership Programs and reciprocal agreements recognizing policies from other states. Not all Partnership states have reciprocity agreements, potentially eliminating your Medicaid asset protection if you relocate.
Will my premiums increase after I purchase coverage?
Probably yes. Insurers can increase premiums after the initial three-year guarantee period with state regulatory approval. Recent rate increase requests in New York range from 20% to 252% as companies adjust for claims exceeding original projections.
Can family members get paid for providing my care?
Yes, with some policies. New York Life Secure Care permits family members to serve as paid caregivers for home care services. However, My Care does not include this feature. Tax-qualified policies require caregivers to provide services under a Plan of Care.
What is the elimination period and how does it work?
Yes. The elimination period is the waiting time between becoming eligible for benefits and receiving payments, typically 30, 60, or 90 days. You must pay for all care during this period before insurance coverage begins.
Do I need a doctor’s certification to receive benefits?
Yes. All tax-qualified policies require physician certification that you cannot perform at least two activities of daily living or have severe cognitive impairment. The insurer typically sends a nurse to assess your condition and verify medical necessity.
Can I cancel my policy and get my money back?
It depends on the policy type and timing. Standalone policies like My Care and Secure Care offer 30-day free-look periods for full refunds. After that, cancellation forfeits all premiums paid. Hybrid policies like Asset Flex may offer return of premium riders.
What percentage of people who buy long-term care insurance actually use it?
Yes, approximately 47%. About 48% of people over 65 receive some paid long-term care services during their lifetime. However, only 29% use paid home care and 28% receive nursing home care for 90+ days qualifying for insurance benefits.
Will inflation protection significantly increase my premium?
Yes. A 3% compound inflation rider typically increases premiums 20% to 40% compared to policies without inflation. However, without inflation protection, a fixed $150 daily benefit loses 59% of purchasing power over 30 years at 3% annual care cost inflation.
Can I still get coverage if I have diabetes?
It depends on severity. Well-controlled Type 2 diabetes without complications may not prevent approval. However, diabetes with kidney disease, nerve damage, or vision problems typically results in denial because these complications indicate disease progression toward long-term care needs.
Does long-term care insurance cover assisted living facilities?
Yes, typically. Most comprehensive policies including New York Life’s products cover assisted living, nursing homes, and home care. However, verify coverage details as some policies restrict assisted living benefits or classify it differently than nursing home care.
What is the average age when people first need long-term care?
No specific age applies universally. Long-term care needs vary widely, but the percentage needing care increases dramatically with age: 8% at ages 65-74, versus 40% at ages 85+. The average age of nursing home admission is approximately 80 years old.
Can insurance companies cancel my policy if I file a claim?
No. Federal law requires tax-qualified policies to be guaranteed renewable, meaning insurers cannot cancel coverage due to age, health deterioration, or claims history as long as you pay premiums. Companies can only terminate policies for nonpayment of premiums.
Should I buy coverage if my employer offers group long-term care insurance?
Not necessarily. Group policies often lack couples discounts, provide reduced home care benefits (50%-75% of facility benefit), and offer only future purchase option inflation. Individually underwritten policies frequently provide superior benefits for equal or lower cost, especially for married couples in preferred health.
What happens if New York Life stops selling long-term care insurance?
Your policy remains in force. Even if an insurer exits the long-term care market and stops selling new policies, existing policies remain guaranteed renewable and the company must continue servicing them and paying valid claims.
Is Medicaid better than private long-term care insurance?
No, but it differs. Medicaid provides unlimited nursing home coverage for eligible low-income individuals but requires spending down assets to $2,000 (or state limits), limits facility choices, and subjects estates to recovery. Private insurance protects assets, offers more choices, and covers home and assisted living care.
Can I buy long-term care insurance for my parents?
Yes, with conditions. Parents must apply themselves, undergo medical underwriting, and sign the application. You can pay premiums on their behalf, but the policy belongs to the insured parent, and they control all decisions about coverage.
What is the difference between skilled care and custodial care?
Yes, they differ significantly. Skilled care requires licensed medical professionals for rehabilitation or treatment Medicare may partially cover. Custodial care involves assistance with daily activities (bathing, dressing) that Medicare never covers but long-term care insurance does.
Will my adult children be legally required to pay for my long-term care?
No in most states. Filial responsibility laws exist in some states allowing nursing homes to pursue adult children for unpaid bills, but these laws are rarely enforced. However, children often pay voluntarily, spending an average of $7,200 annually on caregiving expenses.
Related reading
- Should I Buy Long-Term Care Insurance in My 40s? (w/Examples) + FAQs
- Is Nationwide Long-Term Care Insurance Worth It? (w/Examples) + FAQs
- Is Bankers Life Long-Term Care Insurance Worth It? (w/Examples) + FAQs
- Best 2026 Long-Term Care Insurance Policies (w/Examples) + FAQs
- Is USAA Long-Term Care Insurance Worth It? (w/Examples) + FAQs
- Is AARP Long-Term Care Insurance Worth It? (w/Examples) + FAQs