Q:

How do you find the best long-term care insurance providers?

A:

Quick Answer

Financially strong long-term care insurance providers can be identified by searching websites such as the American Association for Long-Term Care Insurance, according to its website. The Independent Insurance Agent Brokers of America website lists local brokers who provide quotes from multiple highly rated insurance carriers, explains Consumer Reports.

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Full Answer

Consumers should ask brokers to obtain quotes from four to five carriers that have strong financial ratings from respected ratings agencies, such as A.M. Best, Fitch Ratings, Moody's, Standard & Poor's and TheStreet, notes Consumer Reports.

Before purchasing a policy, it is critical for consumers to evaluate both their need for long-term care insurance and their ability to afford premiums over the long term, Consumer Reports explains. To calculate need, consumers tabulate their income and assets, which includes all savings, retirement funds, pensions, Social Security and investments. This figure represents how much money the consumer has to pay out-of-pocket costs for living expenses and long-term care if they do not have a long-term care policy. Those with $2.5 million or more in liquid assets generally are able to pay for long-term care out-of-pocket, while those with less than $500,000 in liquid assets are unlikely to be able to afford long-term care policy premiums, explains financial planner Ken Weingarten for Consumer Reports. Consumers with assets between $500,000 and $2.5 million are prime candidates for a long-term care policy.

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