Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Benjamin Carr was a licensed insurance agent in Georgia and has two years' experience in life, health, property and casualty coverage. He has worked with State Farm and other risk management firms. He is also a strategic writer and editor with a background in branding, marketing, and quality assurance. He has been in military newsrooms — literally on the frontline of journalism.

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Reviewed by Benji Carr
Former Licensed Life Insurance Agent

UPDATED: Sep 14, 2021

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The Facts of Life

  • Long-term care options can help pay for medical care as you age.
  • Some companies provide very flexible policies that allow you to choose how you can use your long-term care option.
  • Even if you do not use your long-term care option, your beneficiary will still receive the death benefit.

Many life insurance companies today offer life insurance with long-term care options, also known as a long-term care riders. These can be an incredibly helpful tool to have in your financial toolbox as health care for older individuals can become quite expensive over time.

How can a person determine how much coverage they’ll need for their long-term care?

Thankfully, most insurance companies have a free long-term care insurance cost calculator available so you can get an idea of how much coverage you’ll need as you age.

What’s even more exciting is that you can find affordable life insurance companies that allow long-term care withdrawals. In today’s world, most insurance companies share quite a lot of information about themselves online.

Enter your ZIP code to get free quotes from life insurance companies that allow long-term care withdrawals today.

The Best Hybrid Long-Term Care Life Insurance Policies

A hybrid long-term care policy provides you with many advantages.

You will have at your disposal long-term care insurance benefits if you should ever need them, a death benefit for your loved ones if you never need long-term care, and you always have access to the cash value that’s been built up during the policy’s tenure.

Another major benefit of hybrid long-term care policies is that your premiums will not increase, unlike traditional long-term care policies.

Take a look at this list, which contains insurance companies that offer the best permanent life insurance with a long-term care rider:

  • American General
  • OneAmerica
  • Mutual of Omaha

Each of these companies provides strong policies, though each brings its own unique approach.

Long-Term Care Coverage With American General

American General, a company given an A rating by A.M Best, offer’s the Accelerated Access Solution. This provides a policyholder with income benefits that are sluiced from the policy’s death benefit.

American General’s policies are often sold at a lower rate than what most typical long-term care insurance options can offer. Applicants can potentially get life insurance for only $11 per month, but that rate will of course vary from person to person.

After the elimination period, which typically runs for about 90 days, your benefits are available to you. If you cannot perform two of the ADLs due to a chronic illness or mental impairment, the Accelerated Access Solution rider on your policy will become active.

With such a rider you can access 2%-4% of your death benefit with a $360 daily or $10,950 monthly limit as per IRS stipulations. There’s no need to hang on to every bill when you activate this rider, as you can use the tax-free income benefit in any manner you would like.

Even if you do not meet the policy requirements for a chronic illness, when you pass away, your beneficiary will still receive the death benefit from your policy.

Long-Term Care Coverage With OneAmerica

OneAmerica’s Asset Care is a very popular hybrid long-term care insurance policy. With this type of coverage, you would be reimbursed for any qualified expenses incurred by nursing home care, assisted living, in-home care, and even adult daycare.

Asset Care also covers the cost of caregiver training, supportive equipment, and care coordination. OneAmerica’s Asset Care is unique in its field because of these three features:

  • It offers an unlimited long-term care benefit period
  • It is the only hybrid long-term care policy that can be issued on a joint life basis
  • It will accept qualified retirement funds like IRA or 401(k) rollovers

OneAmerica is an A+ rated company by A.M. Best and is certainly a strong contender if you are looking for a policy that allows you to take advantage of all a hybrid life insurance policy has to offer.

While policy rates for OneAmerica are not shared online, the average life insurance policy goes for about $26 per month, which you can use as a starting block to calculate how it would fit into your budget.

Of course, you can always request a free quote from OneAmerica to get a more accurate figure of what a policy would cost.

Long-Term Care Coverage With Mutual of Omaha

Another excellent company for providing long-term care benefits is Mutual of Omaha. The two types of long-term care insurance policies it offers are:

  • Secure Solution
  • Custom Solution

When it comes to flexibility, Mutual of Omaha is at the top of its class.

As you browse through how this company protects against inflation, its options for the elimination and benefit period, you’ll see that Mutual of Omaha can be configured to fit your specific needs in a way that not many other companies can match.

For example, the elimination period for a policy through Mutual of Omaha is satisfied once a set number of calendar days has expired from the date your claim was opened. This is a refreshingly straightforward approach not seen that often in the competition.

But that’s not all this company has to offer.

With a Mutual of Omaha Secure Solution policy, you can look forward to flexible strategies like being given the choice between a 100% Home Care Monthly Reimbursement benefit and a Cash Alternative Monthly Home Care benefit of 30%.

If you were to purchase a Custom Solution policy, you would be able to access a 40% Cash Alternative Benefit.

This feature allows you to use your policy in ways that best suit your needs. Now let’s say you find you are in need of some type of care, but family members have offered to help, so you do not yet require assistance in the form of licensed caregivers.

In such a scenario, you may still need to purchase medical equipment for yourself.

If you’ve purchased a $6,000 per month benefit, you could contact Mutual of Omaha and, through the Cash Alternative Benefit, request that you be sent $1,800 per month. Even better, you won’t have to send in any receipts for your purchases.

Mutual of Omaha has an A.M. Best rating of A+, and applicants have the potential to obtain life insurance for as little as $21.29 per month.

Enter your ZIP code below to compare cheap life insurance rates.

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What can a long-term care rider provide for policyholders?

If you don’t already have a financial plan for your end-of-life care or even a life insurance company, life insurance companies that allow long-term care withdrawals could be excellent for you to look into.

Before you rush off to purchase a policy, you should know about what you’re buying. Companies that allow long-term care withdrawals will have a long-term care option or rider available.

This is a feature that enables you to utilize a percentage of your death benefit while you’re still living to cover the costs of long-term care. Missing out on such a helpful benefit could prove to be quite costly.

This rider is not to be confused with the accelerated death benefit which comes with many life insurance policies. An accelerated death benefit typically requires that you be diagnosed with a terminal illness before it can be activated.

A long-term rider, on the other hand, can be activated if, as the Insurance Information Institute describes, you are diagnosed with a condition that renders you incapable of at least two of the following Activities of Daily Living (ADLs) by yourself:

  • Eating
  • Bathing
  • Dressing
  • Going to the bathroom
  • Getting out of a chair or bed by yourself

You can usually only attach a long-term care rider to universal or whole life insurance policies, and any riders you add to your policy will cause your rates to rise.

If you purchase a life insurance policy with a (typically free) accelerated death benefit rider, you can withdraw money from your policy to pay for nursing home care or in-home care, but your total death benefit will be reduced.

A life insurance policy that has a long-term care rider, added at the policyholder’s expense, will have long-term benefits built into it. These benefits will of course vary from insurance company to insurance company.

Bear in mind that if you are about to buy life insurance, life insurance companies that don’t allow long-term care withdrawals will not have a long-term option or rider available.

Life Insurance Companies That Allow Long-Term Care Withdrawals: The Bottom Line

If you’re worried about life insurance rates, life insurance companies that allow long-term care withdrawals can have policies available for as low as $11 per month, and having a long-term care option can potentially help you afford the care you’ll need as you grow older.

When you shop online for insurance companies that offer long-term care options, be sure to request quotes from at least three different companies. Make sure that your insurance policy is suited for your particular needs.

You can start preparing for your future with ease and in the comfort of your own home.

Simply enter your ZIP code to start comparing free rates from life insurance companies that allow long-term care withdrawals.