In this article, we review the worst long-term care insurance companies in the United States.
Long-term care insurance (LTCI) is designed to help cover the costs of assisted living, nursing homes, and in-home care for individuals who can no longer perform daily activities on their own. While this type of coverage can provide financial relief for families facing steep care expenses, not all insurance providers deliver the same level of reliability or transparency.
Over the past decade, several long-term care insurance companies have earned reputations for poor customer service, excessive premium hikes, and difficult claims processes. Understanding which companies have struggled the most — and why — can help consumers make better-informed decisions about their coverage.
Common Complaints in the Long-Term Care Insurance Industry
Before naming specific companies, it’s important to understand the recurring issues that affect the industry as a whole. Many long-term care insurers miscalculated the costs of providing coverage when they first entered the market in the 1990s and early 2000s. They underestimated how long policyholders would live and overestimated how many people would drop their policies before needing benefits.
As a result, insurers were left paying out far more than they anticipated. To make up for those losses, many companies have sharply increased premiums — sometimes by over 100% — leaving long-time policyholders with difficult financial choices.
Other frequent complaints involve slow or denied claims, unclear policy wording, and customer service that is difficult to reach or unhelpful. These issues have led to a number of companies receiving low ratings from organizations like the Better Business Bureau (BBB) and state insurance departments.
Genworth Financial: Repeated Rate Hikes and Delays
Genworth Financial is one of the most recognized names in long-term care insurance, but it has also faced persistent criticism. Policyholders have reported repeated premium increases, sometimes rising multiple times within a few years. These hikes have left many seniors struggling to maintain coverage after paying into their policies for decades.
In addition to cost issues, Genworth has faced complaints about slow claims processing and difficulty communicating with customer service. The company’s financial challenges have also raised concerns about its long-term stability, though it remains in operation and continues to manage a large number of legacy LTCI policies.
Unum Group: Denied Claims and Legal Challenges
Unum Group, one of the largest disability and long-term care insurers in the United States, has been involved in several legal disputes over denied claims. In past years, the company faced regulatory scrutiny for allegedly using overly strict criteria to deny legitimate benefits.
While Unum has since implemented reforms, consumer advocacy groups continue to report higher-than-average complaint volumes compared to industry peers. Many policyholders claim that the claims process is unnecessarily burdensome and that required documentation can be excessive or confusing.
For customers with older policies, the company’s rate increases have also been a major source of frustration.
Conseco / CNO Financial: A Troubled History
CNO Financial Group, which previously operated under the Conseco brand, has a long history of financial struggles tied to its long-term care business. In the early 2000s, the company was near bankruptcy after its long-term care division, Conseco Senior Health Insurance, became overwhelmed by claims.
Although the firm later restructured, it still faces lingering reputation issues. Policyholders frequently complain about complicated claims processes, poor communication, and policy rate increases. Some states have even intervened to limit premium hikes due to concerns about fairness.
Penn Treaty and Its Collapse
One of the most infamous failures in the long-term care insurance market was Penn Treaty Network America Insurance Company. The company was placed into liquidation in 2017 after years of financial instability. Its collapse left policyholders uncertain about how much of their promised benefits they would ultimately receive.
Penn Treaty’s downfall highlighted the risks consumers face when purchasing LTCI from companies that may not have sufficient reserves to pay future claims. State guaranty associations stepped in to cover some losses, but the situation exposed major weaknesses in how the industry assesses and prices risk.
Smaller Insurers with Consistent Complaints
In addition to major players, several smaller or regional insurers have drawn criticism for poor customer service and delays in benefit payments. Policyholders have cited issues such as missing paperwork, long wait times, and frequent requests for additional documentation.
While these smaller companies may not make national headlines, their impact is often deeply felt by customers who rely on timely benefits to afford essential care.
What Consumers Should Watch Out For
When evaluating a long-term care insurance provider, consumers should pay attention to a few key factors:
-
Premium Stability: Look at the company’s history of rate increases. Frequent or steep hikes suggest pricing instability.
-
Financial Strength: Check the insurer’s credit ratings from agencies like AM Best or Moody’s to gauge its ability to pay future claims.
-
Claim Processing Reputation: Research customer reviews and complaint data from the National Association of Insurance Commissioners (NAIC).
-
Policy Flexibility: Ensure that the policy offers inflation protection and customizable benefit periods to fit long-term needs.
The Bottom Line on The Worst Long-Term Care Insurance Companies
Long-term care insurance can be a valuable tool for protecting assets and ensuring quality care later in life. However, consumers must be cautious when selecting a provider. Companies such as Genworth, Unum, and CNO Financial have faced significant criticism for their handling of claims and policy pricing.
While the industry as a whole has stabilized in recent years, the legacy of past mismanagement continues to shape its reputation. Careful research, comparison shopping, and professional guidance remain essential before purchasing a policy — especially given the long-term financial commitment involved.
