How to Spot a Bad Long-Term Care Insurance Company (2026 Guide)

Not all long-term care insurance companies are equal. Learn the warning signs, how to check rate increase history and ratings, and what to do instead.

Quick Summary

Choosing among long-term care insurance companies is difficult because you pay premiums for decades before you may ever file a claim. A weak insurer can raise rates sharply, delay claims, or struggle financially just when you need care. 

This guide does not rank companies by name. It shows you how to check any insurer yourself: its rate increase history, its financial strength rating, and its complaint record. It also explains why premiums rise, what to do if yours does, and which alternatives to traditional coverage are worth a look.

Table of Contents

1. Why Premiums Rise on Long-Term Care Policies

Long-term care insurance has one of the most unstable pricing histories in personal insurance. According to the National Association of Insurance Commissioners (NAIC), older policies were priced before insurers had enough experience. Claim incidence and claim duration were understated, and fewer policyholders let their coverage lapse than insurers expected. Insurers then raised rates to protect their ability to pay future claims.

The Connecticut Insurance Department describes the same pattern. Policies from the 1980s were priced using general population and nursing home studies because no claims history existed yet, and claims later came in much higher than expected as people lived longer with illnesses that require care. 

The department also notes that the number of carriers offering long-term care plans fell from more than 100 to about six, and that a company selling only long-term care insurance cannot cover a shortfall with profits from other lines of business.

The NAIC adds that analysis of older policies has helped insurers price newer ones more accurately, so later increases are described as far less likely and of a lesser magnitude. That is encouraging, but it is not a guarantee, which is why checking each company’s record matters.

It also helps to keep in mind that long-term care insurance is a separate product from health insurance, with its own rules, pricing, and insurers. If you are still sorting out your basic health coverage, our guide on Is It Illegal to Not Have Health Insurance? explains where that coverage stands before you start comparing long-term care policies. 

2. Red Flags in Long-Term Care Insurance Companies

A History of Frequent or Large Rate Increases

A long-term care insurance company that has raised rates repeatedly on past policies is more likely to do so again. This is the single most useful warning sign, and it is public information in many states.

Weak Financial Strength

A low financial strength rating means one of these long-term care insurance companies may struggle to pay claims decades from now. AM Best describes ratings of B and below as vulnerable to adverse changes in underwriting and economic conditions.

A Pattern of Complaints About Claims

Occasional complaints happen at every large insurer, including the best long-term care insurance companies. A pattern of complaints about delayed approvals, repeated requests for the same paperwork, or disputes over whether you meet the benefit trigger is a different matter. Check complaint data before you buy, not after you file.

High-Pressure Sales Tactics

The NAIC advises consumers to be wary of celebrity endorsements and mailings that look like government documents, and notes that Medicare does not endorse or sell long-term care policies. Any seller of long-term care insurance who rushes you to sign should be treated with caution.

Vague Answers About Past Rate Increases

When you ask one of the long-term care insurance companies or its agent about its rate increase history, you should get a direct answer. The NAIC specifically recommends asking whether the company has raised rates on its long-term care policies.

3. How to Check Any Long-Term Care Insurance Company

Step 1: Confirm the Company Is Licensed

Start with your state insurance department to confirm the insurer is licensed in your state, since only licensed long-term care insurance companies can legally sell you a policy. The NAIC’s Consumer Insurance Search lets you look up a company and see its complaint information.

Step 2: Check the Rate Increase History

Ask the agent and the long-term care insurance company for the full rate increase history on the specific product you are considering. Some states publish this data. California, for example, offers a Long-Term Care Rate History Application showing rate history for policy forms over the past 10 years, for both active and inactive companies.

Step 3: Check the Financial Strength Rating

AM Best groups its financial strength ratings into Superior (A++, A+), Excellent (A, A-), Good (B++, B+), Fair (B, B-), Marginal (C++, C+), Weak (C, C-), and Poor (D). The F designation is not a rating but marks an insurer placed in liquidation by court order. When comparing long-term care insurance companies for a product you may rely on for 20 or 30 years, many consumers prefer insurers rated in the A range.

Step 4: Review the Complaint Record

Use the NAIC complaint index, where 1.0 represents the average for a company of similar size. A score well above 1.0 means more complaints than expected. Review it alongside the rating rather than instead of it.

Step 5: Read the Outline of Coverage

Look at the elimination period, daily benefit, benefit period, inflation protection, and exclusions. The NAIC notes that policies may exclude benefits for a pre-existing condition for a period, usually six months, and that limits vary by company.

4. What to Do If Your Premium Goes Up

A rate increase on an existing policy is stressful, but you usually have options before you cancel.

1. Ask for a reduced benefit option. Many insurers let you keep the policy at a lower premium by reducing the daily benefit, shortening the benefit period, or lowering inflation protection. The NAIC adopted guidance in 2020 on how insurers should evaluate and communicate these options.
2. Ask your state insurance department to review the increase. In California, for instance, policyholders can contact the department’s Consumer Hotline at 1-800-927-4357.
3. Get independent advice. The Connecticut Insurance Department recommends speaking with a financial advisor about the best option for your situation.
4. Compare before you drop coverage. Cancelling after years of premiums can mean losing everything you paid in. Weigh the options with a licensed professional first.

5. Alternatives to Traditional Long-Term Care Insurance

If the pricing record of some long-term care insurance companies concerns you, other approaches exist, each with trade-offs.

1. Hybrid life insurance with a long-term care rider. These combine a death benefit with long-term care benefits, and many have premiums that are fixed when you buy.
2. Annuities with long-term care features. Some annuities increase their payout if you need care.
3. Short-term care insurance. These policies pay for a limited period, usually a year or less, and typically cost less.
4. Self-funding. Households with significant assets may choose to plan for care costs directly.

6. Frequently Asked Questions

Which long-term care insurance companies are the worst? 

No single list is reliable for every policy. Performance varies by company, product line, and the year a policy was issued. Checking each insurer’s rate increase history, AM Best rating, and complaint record is more dependable than any ranking.

Why do long-term care insurance companies keep raising premiums? 

Older policies were priced before insurers had enough claims data, and claims and policy duration turned out to be higher than expected. Insurers have raised rates to rebuild reserves and stay solvent.

Can an insurer raise my long-term care premium? 

Yes, generally with state approval. A company cannot usually raise rates for one policyholder alone. Increases apply to a class of policies, and they are reviewed by state regulators.

How many long-term care insurance companies are there? 

The NAIC cites LongTermCare.gov in noting that about 100 long-term care insurance companies offer long-term care insurance nationally, but only 15 to 20 insurers sell most policies.

Is a low AM Best rating a reason to avoid an insurer? 

It is a reason for caution. AM Best describes ratings in the B range and below as vulnerable to adverse changes, which matters for a product you may rely on decades from now.

Does Medicare cover long-term care? 

Medicare does not endorse or sell long-term care policies, according to the NAIC. Review your options with a licensed professional and see our 2026 Health Insurance Guide: Common Coverage Mistakes to Avoid for how different coverage types fit together.

7. Conclusion

The best protection when shopping among long-term care insurance companies is your own research, because no ranking of long-term care insurance companies fits every policy. Check the rate increase history, confirm a strong financial strength rating, review the complaint record, and read the outline of coverage before you sign. If you already own a policy and your premium rises, ask about reduced benefit options and your state insurance department’s role before you cancel.

Disclaimer: This information is provided for general educational purposes only and does not constitute professional insurance, legal, or financial advice. Policy terms, availability, and pricing vary by insurer and state and change over time. Always consult a licensed insurance professional before making coverage decisions.