Highest-Rated Single-Pay Policy

Seniors have the same health care and financial concerns as the rest of the population. While Social Security or IRA distributions can help seniors cover monthly bills and care costs, medical costs remain a burden that can keep many from fully enjoying retirement.

Long-term care plans allow seniors to pay toward coverage that they may need in the future, such as staying in a nursing home or assisted living community. In our study, we found that MassMutual offers a unique range of products for seniors, including a rare single-premium insurance option, where seniors pay their whole premium upfront. For this reason, and because MassMutual is known as a financially stable provider, we have voted MassMutual as having the highest-rated single-pay policy.

Overview of MassMutual

MassMutual is a well-established financial management company that offers life insurance products and senior-focused retirement plans such as annuities, IRAs and long-term care policies. The company was established in Massachusetts in 1851; it has $895 billion of insurance coverage in force, including money invested in the company’s unique hybrid long-term care policy.

Policy Types

Hybrid

Number of Policies Offered

1

Reimbursement or Indemnity?

Reimbursement

Issue Ages

35-69 

A.M. Best Company Rating 

A++

How Much Does MassMutual Charge for Long-Term Care Insurance? 

The cost of a long-term care insurance policy through MassMutual varies widely but can fall anywhere between $300 and $1,000+ per month for a hybrid policy. This range is 
highly simplified since LTC plans are usually customized based on demographic and personal information provided by clients. The cost of a care plan varies by state, the age of the covered individual and how much coverage the person requires.

Policy riders such as inflation protection, waiver/return of premium and shared care can increase the premium amount. The addition of a longer elimination period, which can range from 0 to 180 days, can serve to reduce the cost. Finally, MassMutual allows seniors to choose from a basic services plan and a comprehensive plan, and they can also add extra features onto their plans, including a personal care advisor and a care coordination option. All of these riders, discounts and plan options influence the total cost that seniors pay for coverage. 

Eligibility, Plan Details and Other Information

MassMutual offers seniors a number of retirement options, including hybrid policies that bundle together whole life and long-term care insurance. It also has the option of purchasing a life insurance policy with an LTC rider.

Policy Name

CareChoice One

CareChoice Select

Premium payments

upfront

over 12 years

Amount of premium payments

minimum $25,000

varies

Benefit pool

~$50,000+

varies

Benefit period

4+ years

4+ years

Eligibility

Because MassMutual’s Long-Term Care plan doubles as a life insurance policy, seniors may need to submit to a brief paramedical exam before they can be approved for coverage. There’s a balancing act involved in obtaining an LTC plan. Seniors must be certified by a health care practitioner as unable to perform two out of six activities of daily living to qualify, but those who are already in poor health may have more difficulty obtaining insurance. The Long-Term Care plan is no longer offered in most states except New York and California. 

Excellent Financial Strength Ratings

MassMutual has more than a century of experience in the life insurance business and a total invested assets value of $235 billion. It’s also a Fortune 500 company with a high ratings value from each of the four industry rating agencies. Seniors who choose to invest in a life insurance policy from MassMutual can rest easy knowing their money is in the hands of a financially strong company. 

One-Premium Pay Option

It can be difficult to find a long-term care policy that offers a one-premium payment option. Seniors who choose a MassMutual LTC policy can purchase a CareChoice One plan that allows them to pay the policy premium all at once. This is a hybrid policy with a minimum premium of $25,000, translating to a benefit pool of approximately $50,000 over a minimum of 4 years.  

Sense of Partnership and Connection

As a mutual company, MassMutual shows its dedication to its customers in many ways. The company pays dividends to its clients each year based on how much it makes in profits. Additionally, the company provides online policy management, allowing seniors to take care of all of their insurance needs in one location using a convenient dashboard that links customers to their policy and payment information. MassMutual is dedicated to maintaining an online presence that’s accessible to all customers. Visitors to the website or mobile app can enlarge text or use visual information as a text alternative to make it easier to interact with the application. 

Multiple Coverage Options

MassMutual offers a variety of flexible coverage options, including the one-premium and leveled-premium options. The company has discarded its traditional long-term care policy in favor of a hybrid version that serves as a long-term and whole life plan. With a hybrid plan, seniors benefit from long-term funding and a death benefit. The policy surrender value increases over time if the long-term care benefit isn’t used. 

Who Should Consider a MassMutual Long-Term Care Policy? 

Seniors With Financial Liquidity

MassMutual is one of the only companies in the insurance industry that allows seniors to pay for a policy upfront. With an investment as low as $25,000, seniors can obtain a long-term care policy and almost double their investment. In addition, these seniors are still eligible to receive dividends if the company makes a profit, thereby reducing their total premium.

Seniors Who Require Multiple Financial Options

MassMutual’s long-term care plan has features that integrate life insurance and health insurance, giving seniors more flexibility to dictate their future care options. The company also offers a full range of other financial retirement products, including annuities, IRAs and whole life policies without long-term care.

 What Are People Saying About MassMutual?

Customers of MassMutual appreciate the company’s diverse range of retirement products, particularly the flexible payment options and the ability to combine the benefits of whole life and long-term care insurance. This feature allows them to feel secure in their investments, knowing that even if they don’t utilize the long-term care portion of the plan, they still have funds to work with through MassMutual’s plan riders and accelerated death benefits.

Seniors aren’t pleased with recent increases in premium costs and the discarding of the traditional LTC plan, but they seem to agree that such changes are often necessary for the company to remain stable. Policyholders also recognize the financial strength of MassMutual as a company, making it easier for seniors to trust the company. The regular dividend disbursements also help to bring seniors some peace of mind. 

Frequently Asked Questions


What Is Long-Term Care Insurance?



Long-term care insurance is a health insurance policy that helps seniors pay for non-medical care not typically covered by government-funded programs such as Medicare and Medicaid. This includes in-home care services and care provided in an assisted living community or nursing home. Click here for our full answer to this question.


What Does Long-Term Care Insurance Cover?



Long-term care policies vary by company and state of issuance, but most offer a choice of comprehensive coverage that includes at-home care, nursing home and assisted living care, and adult day care. Most LTC policies also cover the cost of physical or occupational therapy and assistance with daily living tasks such as bathing and grooming. Click here for our full answer to this question. 


At What Age Should You Get Long-Term Care Insurance?

Many long-term care insurance companies recommend that adults start to think about a long-term policy while they’re still young. Most companies allow adults to purchase a long-term policy  if they’re between the ages of 30 and 65, although each company differs, so it’s important to contact the company’s financial advisors to double check. Many LTC companies won’t accept applicants who are already ill or over the age of 70. Click here for our full answer to this question. 


Who Should Consider Long-Term Care Insurance?



Long-term care insurance is one way to ensure that adults have the money to pay for the care they need as they get older, so most seniors will benefit from obtaining a long-term care policy. It’s especially important for those who have a chronic or progressive illness or a family history of heart disease and other debilitating conditions; they can lock in a policy rate before their condition worsens and they can no longer qualify for a health insurance policy. Click here for our full answer to this question.


Does Long-Term Care Insurance Cover Nursing Home Costs?



Long-term care insurance plans are designed to pay for the costs that Medicare/Medicaid and other government programs don’t typically cover. This includes the cost of a room and board in a nursing home or other long-term care facility. Click here for our full answer to this question.