There are variations between the policy language and benefits between the many companies that offer Long-Term Care Insurance; however, the primary features and benefit choices are comparable from company to company. Premiums and underwriting criteria vary dramatically between insurance companies.
New York Life has multiple product offerings, and the AARP endorses one.
When comparing long-term care insurance, you should recognize the differences between New York Life plan and other companies.
The AARP endorsed New York Life Long-Term Care Insurance plan is available to AARP members who are health eligible for the program. New York Life pays a royalty fee to AARP for the use of its intellectual property. These fees are used for the general purposes of AARP.
New York Life has one of the most expensive Long-Term Care Insurance options available. While they offer the possibility of earning plan dividends, it is unlikely to offset the high cost of the premium. Otherwise, the policy features and benefits compare well with all the leading companies. Plus, New York Life is a highly rated and well-respected insurance company.
Premiums are calculated based on the benefits and options you select at the time of application. This calculation also includes your age, health, gender, tobacco use, and other factors.
New York Life is certified as a partnership policy in most states if you have the state required inflation option. You can get the current and future cost of long-term care services where you live, along with the availability of partnership plans and tax incentives by clicking here.
Special Note about Washington State
New York Life has discontinued selling Long-Term Care Insurance in the State of Washington for people unde the age of 40 until Novemeber, 2021.
Features available with New York Life Long-Term Care
- Daily Benefits from $50 to $400 a day
- Option for Monthly Home Care Benefit
- Shared Care Benefit featuring a third pool of money
- Return of Premium Minus Claims
- Five different Inflation options including 3% simple, 3% compound, 5% compound, CPI, and options to buy additional benefit based on CPI
- Three elimination periods – 90, 180, or 365 days
- Caregiver training
- Home modifications
"My Care" is New York Life's third traditional Long-Term Care product. The two significant differences in this product are the use of "deductibles" instead of elimination period days and an 80/20 co-insurance built-in.
Most Long-Term Care Insurance policies use "elimination periods," which are once-in-a-lifetime deductibles based on days, not dollars. Many companies use calendar days, not dates of service, so that you would be eating your deductible days with little or no costs in some situations. However, with "My Care," there are no elimination periods, but there are cash deductibles. Deductibles range from $4,500 to $21,000 of incurred costs. The deductible also GROWS with inflation.
The 80/20 co-insurance means the policy pays only 80 percent up to the monthly benefit.
For example, you have a $5000 a month benefit, and your bills are $5000 – the policy will pay $4000 after the deductible.
It is typically sold without guaranteed inflation (like 3% compounded) but rather with future purchase options since the price is much lower without guaranteed inflation benefits. However, options stop at age 70 and are not available at the time of claim. Plus, NY Life charges for the extra purchased benefit at your attained age – so the premium increases each time you purchase and gets more expensive over time.
Every company has its own underwriting rules which determine insurability and rate class. An experienced Long-Term Care Insurance specialist will understand these underwriting rules when helping you select the best company and policy options.
You can find a trusted and qualified specialist representing the major insurance companies that offer these products by clicking here.
Keep in mind, numerous state and federal regulations impact Long-Term Care Insurance. Each state's department of insurance regulates premiums. Because of regulation, an insurance agent or financial advisor cannot give a consumer a special discount which is not available otherwise.
There are more similarities than differences when it comes to features and benefits. However, options and benefits do vary from company to company. Premiums can vary between companies by over 100% when comparing equal benefits.
Be sure to seek the assistance of a qualified Long-Term Care Specialist to compare the features, benefits, and costs of each policy.
Since your health is a primary consideration in determining your eligibility for coverage, it is always best to start planning before retirement when health is usually better. An experienced Long-Term Care Specialist will ask you several questions about your health to provide you with accurate quotes and professional recommendations.
Please note: Since every company has different underwriting rules, you could be eligible for coverage with one company and not another.
Because Long-Term Care Insurance is custom-designed, you can design the plan to fit your specific needs, concerns, and budget. A specialist will help you develop your plan to address your concerns. Generally, you can design a plan to meet some or all of these common goals:
- Safeguard income and savings
- Protect the lifestyle of your spouse/partner
- Provide options for quality care
- Reduce the stress and burdens otherwise placed on family members
- Give your adult children time to be family
- Provide a legacy for loved ones
State variations may apply.