As retirees in the USA approach or enter retirement, one of the biggest financial challenges they face is how to afford the rising cost of long-term care. Nursing homes, assisted living, and in-home care services can cost thousands of dollars every month, and Medicare does not cover most of these expenses. Without a proper plan in place, these costs can quickly drain retirement savings.
This is why long-term care insurance (LTCI) is so important for retirees. It provides financial protection and flexibility when you need care for chronic illnesses, disabilities, or age-related conditions.
In this detailed guide, we will cover the 10 best affordable long-term care insurance plans for retirees in the USA. You will learn about the coverage options, costs, benefit periods, and key features of each plan, plus tips on how to choose the best policy for your needs.
Why Retirees in the USA Need Long-Term Care Insurance
The cost of long-term care in the USA is high and continues to rise every year. According to Genworth’s Cost of Care Survey, the median monthly cost of a private room in a nursing home is over $9,000, while in-home care averages $27–$30 per hour.
Here are the key reasons retirees need long-term care insurance:
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Protect retirement savings: LTCI helps you avoid depleting your savings or relying on family members for financial support.
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Cover costs Medicare does not pay for: Medicare only covers limited skilled nursing care and rehabilitation services, not extended care.
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Choose where you receive care: Policies allow you to receive care at home, in assisted living, or nursing facilities.
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Preserve independence: You can choose your caregivers and living arrangements.
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Peace of mind: Knowing you are covered reduces stress for you and your loved ones.
What to Look for in Long-Term Care Insurance for Retirees in the USA
When choosing a policy, it’s important to focus on these key features:
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Affordable premiums: Monthly costs must fit into your retirement budget.
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Daily or monthly benefit amount: This is how much the policy will pay each day or month for care.
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Benefit period: Determines how long the policy will pay (2 years, 5 years, or lifetime).
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Waiting period (elimination period): The time you must wait before benefits begin.
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Inflation protection: Helps your benefits keep pace with rising care costs.
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Medical underwriting: Some policies require medical exams, while others offer simplified or guaranteed acceptance.
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Insurer reputation: Choose a company with strong financial ratings and a history of fair claim practices.
Summary Table: 10 Affordable Long-Term Care Insurance Plans for Retirees in the USA
| Insurance Company | Average Monthly Premium (Age 60–70) | Daily Benefit Amount | Benefit Period Options | Key Features |
|---|---|---|---|---|
| Mutual of Omaha | $110–$220 | $100–$300 | 2–5 years, lifetime | Inflation protection, strong financial ratings |
| New York Life | $120–$240 | $125–$350 | 3–5 years, lifetime | Customizable plans, strong cash value options |
| Northwestern Mutual | $115–$225 | $125–$300 | 2–6 years | Highly rated, flexible riders |
| Genworth Financial | $105–$210 | $100–$275 | 2–5 years | Affordable premiums, good care coordination benefits |
| Transamerica | $95–$205 | $100–$250 | 2–5 years | Good discounts, flexible elimination periods |
| MassMutual | $110–$220 | $125–$300 | 2–5 years, lifetime | Dividend options, strong customer service |
| Thrivent Financial | $90–$190 | $100–$250 | 2–5 years | Competitive premiums, Christian-based membership benefits |
| Nationwide | $115–$230 | $125–$325 | 3–6 years | Hybrid life + LTC plans available |
| Brighthouse Financial | $100–$210 | $100–$275 | 2–5 years | Affordable hybrid options, simplified underwriting |
| Lincoln Financial Group | $115–$225 | $125–$300 | 2–6 years | Hybrid life insurance + LTC benefits |
Premiums vary based on age, health, state, and selected benefit options.
Detailed Reviews: 10 Affordable Long-Term Care Insurance Plans in the USA
1. Mutual of Omaha
Mutual of Omaha is one of the most recognized long-term care insurance providers in the USA.
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Why it’s great: Offers flexible policies, strong financial ratings, and inflation protection.
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Coverage: Daily benefits of $100–$300.
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Premiums: Around $110–$220 per month for retirees aged 60–70.
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Benefit period: 2–5 years or lifetime coverage.
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Additional benefits: Couples’ discounts and optional return-of-premium rider.
This plan is ideal for retirees who want reliability and strong claim history.
2. New York Life
New York Life is known for its customizable plans and hybrid life + LTC options.
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Coverage: Daily benefit amounts from $125–$350.
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Premiums: $120–$240 monthly.
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Benefit period: Choose from 3–5 years or lifetime benefits.
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Key features: Policies can build cash value and offer optional inflation riders.
New York Life is great for retirees looking for flexibility and a company with excellent financial strength.
3. Northwestern Mutual
Northwestern Mutual offers strong traditional LTCI with options for flexible riders.
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Premiums: $115–$225 monthly.
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Coverage: Daily benefits of $125–$300.
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Benefit period: 2–6 years.
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Features: Offers return-of-premium and shared care riders for couples.
It’s a great choice for retirees who value customer service and top financial ratings.
4. Genworth Financial
Genworth is one of the pioneers of LTCI in the USA and offers affordable premiums.
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Premiums: Around $105–$210 monthly.
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Coverage: Daily benefits from $100–$275.
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Benefit period: 2–5 years.
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Features: Strong care coordination services and flexible elimination periods.
Genworth is ideal for retirees who want affordable coverage with robust support.
5. Transamerica
Transamerica provides cost-effective policies with flexible elimination periods.
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Premiums: $95–$205 monthly.
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Coverage: Daily benefits of $100–$250.
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Benefit period: 2–5 years.
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Features: Discounts for couples and multiple inflation protection options.
Transamerica is a good choice for retirees seeking low-cost policies with flexibility.
6. MassMutual
MassMutual’s long-term care insurance is well known for stability and dividends.
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Premiums: $110–$220 monthly.
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Coverage: Daily benefits from $125–$300.
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Benefit period: 2–5 years or lifetime coverage.
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Features: Offers hybrid life insurance + LTC options and strong customer service.
MassMutual is ideal for retirees looking for financially strong insurers.
7. Thrivent Financial
Thrivent offers affordable long-term care coverage with unique membership perks.
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Premiums: $90–$190 monthly.
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Coverage: Daily benefits of $100–$250.
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Benefit period: 2–5 years.
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Features: Christian-based membership benefits and simplified underwriting.
This is a great choice for retirees seeking community-driven support.
8. Nationwide
Nationwide’s long-term care policies are customizable and can be bundled with life insurance.
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Premiums: $115–$230 monthly.
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Coverage: Daily benefit amounts of $125–$325.
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Benefit period: 3–6 years.
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Features: Hybrid life insurance + LTC policies and cash benefit options.
Nationwide is ideal for retirees who want to protect both long-term care and legacy planning.
9. Brighthouse Financial
Brighthouse specializes in hybrid life insurance with long-term care riders.
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Premiums: $100–$210 monthly.
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Coverage: Daily benefit amounts from $100–$275.
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Benefit period: 2–5 years.
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Features: Simplified underwriting and lower-cost hybrid options.
Brighthouse is suitable for retirees who want flexibility with minimal medical requirements.
10. Lincoln Financial Group
Lincoln Financial Group provides hybrid plans combining life insurance and LTC benefits.
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Premiums: Around $115–$225 monthly.
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Coverage: Daily benefits from $125–$300.
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Benefit period: 2–6 years.
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Features: Offers a cash indemnity option and flexible payment schedules.
Lincoln Financial Group is perfect for retirees seeking high-value hybrid plans.
Tips to Get the Best Long-Term Care Insurance Rates in the USA
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Apply as early as possible: Premiums increase sharply with age and health issues.
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Compare quotes from multiple insurers: Rates and benefits vary widely.
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Select the right daily benefit: Avoid buying more coverage than you realistically need.
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Choose an appropriate elimination period: A longer waiting period can lower your premiums.
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Ask about discounts: Couples and non-smokers often get lower rates.
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Consider hybrid policies: These combine life insurance with LTC coverage and can provide better value.
FAQs: Long-Term Care Insurance for Retirees in the USA
1. Is long-term care insurance worth it for retirees?
Yes, it protects your retirement savings from being consumed by expensive care costs.
2. What does LTCI cover?
It covers services such as nursing homes, assisted living, adult daycare, and in-home personal care.
3. Can retirees over 70 still get coverage?
Yes, but premiums will be higher, and some insurers may require medical underwriting.
4. Does Medicare cover long-term care?
No, Medicare only pays for short-term skilled nursing or rehabilitation, not ongoing care.
5. What is the average cost of long-term care insurance?
Premiums typically range from $90–$250 per month depending on age, health, and coverage.
6. What is a waiting (elimination) period?
This is the period you must wait after qualifying for benefits before the insurer starts paying.
7. Can I buy joint policies with my spouse?
Yes, many companies offer shared care riders that allow spouses to pool their benefits.
8. Are premiums tax-deductible?
In many cases, LTCI premiums qualify for a tax deduction if they meet IRS guidelines.
9. What happens if I never use my policy?
Hybrid plans allow your premiums to be returned as a life insurance death benefit if you never use LTC benefits.
10. Which companies have the best claim reputation?
Mutual of Omaha, New York Life, and Northwestern Mutual are consistently rated high for claims service.
Conclusion
Long-term care insurance is an essential financial tool for retirees in the USA. It ensures you can access quality care without exhausting your retirement savings or placing a financial burden on loved ones.
The 10 affordable long-term care insurance plans reviewed in this guide—from companies like Mutual of Omaha, New York Life, and Genworth offer strong options for retirees.
If you are in or nearing retirement, start comparing quotes today. The earlier you act, the lower your premiums and the greater your chances of securing comprehensive coverage for the future.