There is no official consensus or universally agreed-upon list of the worst long term care insurance companies, since experiences differ so greatly according to policy type, year of purchase, and state regulations. That being said, a few insurers get knocked around on high premiums, many rate increases, or poor claims processing. For example, companies like Unum, Genworth Financial, Medico Insurance Company, and SILAC Insurance Company frequently come up in consumer conversations about claims disputes, making financial strength and policy specifics significantly more important than name recognition.

In it, we list the 10 worst long-term care insurance companies to avoid, explain why they receive negative ratings from consumers, and show how you can choose better, safer options that will actually protect your financial future.

Key Points;

• Over 50% of Americans aged 65 and older may require long-term assistance.
• High premiums and unfair claim denials are prevalent among some providers.
• Identifying long term care insurance companies to avoid is essential for future security.
• Consumer reports can provide valuable insights into the reputation and financial stability of insurers.
• Understanding the nuances of LTC policies can lead to better decision-making.

What is Long Term Care Insurance?

Long-term care insurance covers the costs of daily activities that become difficult as we age or have chronic conditions. These include bathing, dressing, and eating. It can also be used in the home, on assisted living and in nursing homes. You should know what your policy will and won’t cover.

Long-term care in the U.S. costs between $60,000 and $100,000 per year. Which goes to show how crucial it is to have good coverage. The benefits begin after a 90-day waiting period, so early planning is key. Premiums range from $1,650 to $3,690 a year for a 55-year-old male depending on the policy.

With such policies, most people’s premiums increase over time. The daily benefit is typically $100 to $200, and that matters in your budget. Inflation protection can add to the costs — 3 percent a year, at most.

Types of Long-Term Care Insurance Policies

Standalone Long-Term Care Insurance

Long-term care insurance, as a stand-alone product, is intended to cover services related to long-term care, such as home health or day care, assisted living, and nursing homes. It frequently begins with a lower price, and pricing is one catalyst that attracts many buyers. The most significant risk is that premiums are not guaranteed and may increase as policyholders get older. For some, the increases could make it difficult to retain a policy later in life.

Hybrid Long-Term Care Insurance

Hybrid long-term care insurance is a type of policy that combines long-term care benefits with either life insurance or an annuity. Premiums are typically set, and there are no unexpected spikes. If you do need long-term care, the policy pays for it. If not, beneficiaries receive a death benefit. This choice is attractive to individuals who are willing to trade some risk for the assurance that they will not pay for coverage they never use.

Life Insurance with Long-Term Care Riders

A life insurance policy with a long-term care rider allows you to access some of the value of your life insurance death benefit early in order to help pay for care. It’s easier than standalone insurance but generally provides less coverage. The availability to spend the benefit on care simply reduces the amount left for beneficiaries and makes it better suited to funding basic or brief care needs.

The Risks of High Costs in Long Term Care Insurance

The prices of long-term care insurance can have a bearing on the financial plans of many people. Healthcare costs keep going up. Long-term care insurance is purchased by 3% to 4% of Americans aged 50 and over. This indicates that few people are purchasing it, despite the fact that many will eventually need this type of insurance.

Before they die, most people 65 and older will require critical care. But not enough people have insurance to pay for this. This has people worrying if their coverage is enough.

Long-term care is quite expensive. Care in a facility can exceed $108,000 annually. In New York, it’s more than $159,000 a year for nursing home care.

High premiums are harming many Americans. Premiums can increase by 35 percent in a decade. These premiums would increase from $3,725 to $5,025 a year for the same policy. This can cause people to stop paying for insurance, again, just when they’re going to need it the most.

You definitely need to be cautious with long-term care insurance. The damages can be too great, and the benefits not enough to make it all worthwhile. That means people could be on the hook for a lot out of pocket. Before you purchase environmental insurance, consider the costs and whether this type of policy makes sense for you.

Why Some Insurers Are Known as the Worst Long Term Care Insurance Companies

Many people looking for long-term care insurance face big challenges. These come from high costs, slow claims, and strict rules. Some companies get a bad name because they often say no to claims, making things even harder for those who need help.

Only 5% of people over 65 have long-term care insurance. This shows a big problem with not enough coverage. Also, many policies don’t cover home care or places like assisted living, which are often needed.

The financial health of an insurance company is important to knowing if it’s good. Companies with high ratings are more likely to help their customers. But, those with low ratings can make people doubt them. It’s important to look at these ratings and compare them to the rising cost of care, which is now over $94,170 a year for private nursing home rooms.

Some companies might focus more on making money than on making customers happy. People often feel unhappy because their policies change without warning or don’t cover what was promised. This makes the worst ltc insurance providers even worse in the eyes of customers. Companies that don’t care about their customers can hurt their insurance company reputation, which affects trust.

10 Worst long term care insurance companies to Avoid Based on Consumer Reports

Selecting a long-term care insurance company is, indeed, a long-term decision and missteps can be very expensive. There’s no official list of the “worst” LTC insurers, though consumer complaints, regulatory actions and financial trouble paint a pretty clear picture that buyers can be wary of.

According to industry reviews, complaint history, and policyholders’ experiences, these companies are commonly criticized for rate hikes and claims processing problems or being financially weak — particularly in older LTC policies.

Important note:

And many of these problems are associated with legacy policies that were sold years ago, not necessarily every product now available. Still, such histories matter when assessing risk.

1.Genworth Financial

Genworth long term care insurance complaints Genworth is one of the most recognizable names on long term care insurance complaints lists. Policyholders often complain of large premium increases later on, which may force them to cut back benefits or even call off coverage. In addition, Genworth’s financial position as well as its credit ratings have been deteriorating, generating questions about the stability of longer-term claims. Customer service complaints commonly refer to slow response times and confusing claims demands.

2.Conseco (CNO Financial Group)

Long-term care insurance policies from Conseco have attracted a large number of consumer complaints with claim denials and communication problems at the center of most disputes. The company has been criticized over claims handling in the past, which has fueled continuing suspicion among policyholders relying on these benefits later in life.

3.Bankers Life & Casualty

Bankers Life has come under fire for an above-average complaint index, compared with its size. Policyholders frequently report struggles to get clear answers, slow processing of their claims and confusion over what services are even covered. These are difficult when there is a medical event.

4.Penn Treaty American

Penn Treaty is a lesson in long-term care insurance. The carrier was deemed insolvent, and many policyholders were left without insurance coverage and instead had to rely on state guaranty funds. What should also be taken away from this case is that you need to look at the financial health of the LTC insurer as much, if not more than, benefits.

5.Unum

Unum in particular has come under scrutiny for extremely tight claims adjudications, particularly in the cases of long-term care and disability related policies. Complaints frequently center around denied or delayed claims, onerous documentation requirements and battles over eligibility. Regulatory decisions and lawsuits have already tarnished consumer confidence.

6.Transamerica Life Insurance Company

Transamerica has also been in the hot seat a bit as of late due to premium increases and claim stalls (especially in their Legacy LTC policies.) Consumer complaint indices point to a pattern of dissatisfaction with customer service and transparency, especially as it relates to claims handling.

7.Medico Insurance Company

Medico insureds often complain about poor customer service response and challenge in getting clear information on a policy. Claims disputes and appeals are also issues making the experience frustrating for both long-term care recipients and their families.

8.SILAC Insurance Company

SILAC has been also noted high complaint index, which suggests that the penis enlargement product had more consumers who were dissatisfied with it than would normally be expected for its market share. News organizations frequently cite spikes in premiums, ambiguous terms for coverage and tangled claims processes as evidence of consumers running into dead-ends.

9. RiverSource Life Insurance Company

RiverSource has been reviewed poorly for delays in handling claims and communication, as well as significant increases in premiums. Policyholders commonly report confusion over coverage specifics that can be the foundation of disputes when care is sought.

10. Ability Insurance Company

Ability Insurance is distinguished by its astronomically high complaint index, which suggests that a significant number of policyholders are not satisfied. Issues many users encounter range from being rejected claims, inability to connect with support and lack of transparency -all signs that things you may want to remain a distant memory.

Company Profiles: High Costs vs. Industry Benchmarks

The world of long term care insurance is complex. It shows big differences between what companies offer and what the industry standard is. Looking at how much companies charge and how often they deny claims helps people make smart choices. Also, hearing from other customers about service issues is key to figuring out if a company is worth it, given the rise in complaints.

A Comparison of Claim Denials: The Statistics

Claim denial statistics show important patterns and trends in long term care insurance. Almost 50% of people over 70 are turned down for coverage. This is a big challenge for older folks trying to get insurance.

In 2023, different companies had different denial rates. For example, UnitedHealthcare says no to about 33% of claims. Molina denies 26%. Anthem and Medica deny 23%, showing how insurers can vary.

The denial rate for in-network claims is now 19%. Kaiser Permanente has the lowest rate at 6%. Aetna has a high rate of 22%, which is worrying for consumers.

The main reasons for denials are clear. Lack of prior authorization is the top reason, at 48%. Billing errors cause 42% of denials. And, 35% of claims are denied because they’re late.

Hidden Fees and Their Impact on Payouts

Many people with long-term care insurance face hidden fees that cut down their expected payouts. These hidden fees in long term care insurance can include costs for inflation riders, policy cancellations, and waiting periods. These fees can reduce the value of the insurance policy without being clearly shown upfront.

About 70% of people who turn 65 will need long-term care, making it important to plan ahead. In big cities, nursing home costs can reach $100,000 a year. This shows how vital it is to know all the financial details of long term care insurance.

Insurance companies often set a cap on coverage or have a 90-day waiting period. This makes it harder for people to get their money when they need it. The impact of fees on payouts can change how much money people have, as many policies only start paying after a lot of hardship.

If hidden costs are not clear, people might not have enough money for long-term care. This can lead to big financial problems during important times.

Real Life Cases: Denied Claims and Their Consequences

Real-world examples show the big denied claims consequences for policyholders. Many insurance providers deny long-term care benefits for lack of proof or documents. This hurts people who need care, like those with dementia, where costs go up a lot. For example, a private room in a nursing home costs about $83,950 a year.

Policyholders often get stuck in long claims processes. This leads to sad results. A case shows a person was denied benefits because they didn’t send the right invoices. This not only hurts financially but also damages trust between people and insurance companies.

Statistics show a worrying trend: in 2025, 17% of health claims were denied, with some insurers denying up to 80%. This makes it hard for people to trust that their insurance will help when they need it most.

In short, long term care insurance consumer experiences show the harsh truth of denied claims. Just having coverage doesn’t mean you get the care you need. This raises big questions about policy clarity and strict claims rules.

Top Rated Alternatives: Comparing Against the Worst

Looking for the best long term care insurance means finding quality and reliability. Companies like Mutual of Omaha and Genworth are top choices. They are known for being financially stable and having happy customers.

These companies offer policies that fit your needs and budget. A 55-year-old man might pay about $2,000 a year for a policy. Mutual of Omaha is popular because it tailors benefits to each person’s needs.

It’s also important to know about the elimination period and total benefits. Policies with a calendar-day elimination period are usually better. This gives you more financial security when you need it most.

Companies that adjust benefits annually for inflation are also key. This helps keep up with rising long-term care costs.

Company	Annual Premium	Elimination Period	Daily Benefit	COLA
Mutual of Omaha	$2,000	90 days	$200	5% Compound
Genworth	$2,300	90 days	$250	3% Simple

Choosing these top companies means you get good coverage and care. They focus on making customers happy and handling claims well. This is a big difference from the companies that didn’t do well.

How to Choose a Long Term Care Insurance Company Wisely

Choosing a long term care insurer needs careful thought. Look at the company’s financial health, reputation, and what they offer. Start by evaluating financial ratings. High ratings mean lower risk of the company not paying out.

Check the premium costs. Premiums can be $3,000 to $5,000 a year. This adds up to $45,000 over time, even if you don’t use the benefits. Compare these costs to find the best deal.

Think about the benefits you get. Policies with cash benefits cost more than those that reimburse. Also, if you worry about inflation, look for policies with compound interest. These offer better protection but might be pricier.

Look at how long claims last and the benefit periods. Claims over a year usually need three years of benefits. Knowing this helps pick the right policy for you.

Don’t forget about riders like the restoration of benefits. These can restart coverage under certain conditions. With these tips, you can choose the right insurance company for your needs.

Worst Long Term Care Insurance Companies: Consumer Feedback

Consumer feedback shows what people really think about long-term care insurance. Many are unhappy with the service and how much they pay. For example, Genworth has raised premiums by up to 500%.

People feel misled because of wrong pricing guesses.

Reviews often talk about denied claims and bad communication. Conseco gets a lot of complaints, 29%, because of how it handles claims. Some companies, like Farmers and Cigna, have low satisfaction scores. Farmers, for instance, has a score of 75, the same as last year.

Many have trouble with claims, leading to negative reviews. The growth of the market hasn’t led to better service, making people unhappy.

It’s clear that some providers get a lot of bad feedback. This shows why it’s important to do your homework before choosing a long-term care insurance company. Reading reviews can help you make a better choice and avoid problems.

Legal Insights on Claims and Denials

Knowing the legal side of insurance claims is key for those facing long-term care insurance issues. Laws and rules shape how insurers handle claims and disputes. Many claims are denied, often because of pre-existing conditions.

Legal help is vital in the claims process. Many don’t know missing deadlines can lead to denial. A lot of valid claims are first rejected, leading to legal battles. Lawyers help gather evidence and fight for policyholders.

Courts have made big decisions on claims handling. For example, Transamerica Life Insurance won a case against a Kansas-wide class action lawsuit. Genworth Life Insurance also had a ruling overturned, showing changes in insurance law.

Keeping up with legal changes is important. Policies need solid evidence, making claims hard. Lawyers are key in fighting denied claims and protecting rights.

Knowing these details helps consumers deal better with insurers. It leads to a smoother claims process and understanding of rights.

Industry Recommendations for Better Long Term Care Coverage

Experts say it’s key to know about long-term care insurance. This is because the number of Americans over 65 will grow by about 50% by 2050. With costs for care going up, like an in-home aide costing about $52,000 a year for five days a week in 2019, it’s important to be careful.

Insurance experts suggest buying a long-term care policy at 50 years old. This can help get better rates. New policies offer more realistic benefits and rates from the start. This makes sure the coverage fits as you get older. With over 95% of care facilities facing staffing shortages, look for policies that cover home care well.

When choosing, pick a policy that stays affordable, even if rates go up. The long-term care field has big challenges ahead. The number of people aged 85 and older will almost triple by 2050. This means more people will need good long-term care solutions.

Conclusion

Understanding long-term care insurance is key to protecting your money and health later in life. With 70% of 65-year-olds needing care, it’s vital to pick the right insurance. Look for top brands like Thrivent Financial, which has a high rating and offers many policy options.

Knowing the costs, like $7,698 a month for nursing care, helps you make smart choices. When looking at insurance, focus on the best plans for you. This way, you get the protection you need as you age and face future health needs.

FAQ

What is the biggest drawback of long-term care insurance?

The biggest drawback of long-term care insurance is its unpredictability in cost over time, particularly rate hikes on older policies that can make coverage unaffordable just when people are most likely to need it.

What insurance company denies the most claims?

No single insurance company has ever been proved to reject the most long-term care claims, because denial rates depend on the type of policy purchased, when it was issued and state rules, among other factors. But some insurers draw more scrutiny for disputed claims than others, making policy details more important than brand names.

What does Suze Orman think of long-term care insurance?

While Suze Orman is generally supportive of long-term care planning, she has warned that traditional long-term care insurance can be risky because of premium increases and encouraged people to take a look at hybrid policies or other strategies rather than the older standalone plans.

What percentage of people with long-term care insurance actually use it?

Though hard numbers vary, a significant share of policyholders do ultimately use their long-term care insurance, particularly those who keep coverage into later years; most everyone 65 and older ultimately requires some type of long-term care help.