State Farm Long-Term Care Insurance Review

State Farm is one of the most well-known insurance companies in the United States. The company is the largest property and casualty insurer in the United States, as well as the largest auto insurer. The company is ranked 42nd in the 2022 Fortune 500, which ranks American businesses according to revenue.

The company's financial strength is outstanding, with excellent ratings from A.M. Best and Standard and Poors. 

State Farm Discontinued Long-Term Care Insurance

State Farm discontinued Long-Term Care Insurance sales in May 2018. Their products offered comprehensive features and benefits that most specialists recommend. However, despite no longer offering LTC Insurance today, State Farm will still provide service and pay claims on existing policies that were issued in the past.

Long-Term Care Insurance is guaranteed renewable, so an insurance company can never cancel the policy as long as the premium continues to be paid. 

State Farm does offer a chronic illness rider on its universal life insurance plan. Chronic illness riders are NOT Long-Term Care Insurance and do not meet federal guidelines under Section 7702(b).

Other Options to Consider

State Farm no longer offers traditional or hybrid Long-Term Care Insurance. There are several top-rated insurance companies that offer both traditional and partnership-certified plans. The following are the top insurance companies for traditional Long-Term Care Insurance:

• Mutual of Omaha

• Thrivent Financial

• National Guardian Life

• New York Life

• Northwestern Mutual

The top insurance companies for hybrid plans that combine life insurance or an annuity with a qualified rider (those meeting federal guidelines) for long-term health care include:

• Nationwide

• One America

• Brighthouse

• Lincoln Financial

• Securian Financial 

Partnership 

Existing State Farm Long-Term Care Insurance policies were never certified as partnership plans. As a result, they will not qualify for the additional asset protection that Partnership Long-Term Care Insurance offers today.

You can learn more about the federal/state partnership program - What is a Long-Term Care Partnership Policy?

Federal Regulation and Consumer Protections

IRS Regulation 7702(b) governs all Long-Term Care Insurance contracts. Long-Term Care Insurance is defined as any insurance contract that meets the Internal Revenue Service's guidelines under these regulations. Consumer protections, regulated benefit triggers, and tax advantages are included in all insurance products that meet these federal guidelines.

State Farm's traditional Long-Term Care Insurance products meet federal guidelines. 

Claims

If you own a State Farm Long-Term Care policy and seek help submitting a claim, LTC NEWS offers free - no-obligation assistance - including help finding quality caregivers and facilities. 

Since most agents have little or no experience in this area, this assistance can be helpful for the entire family - Filing a Long-Term Care Insurance Claim.

Underwriting

Long-Term Care Insurance, including hybrids, is medically underwritten, with each company having its own set of rules that determine insurability and rate class. When assisting you in selecting the best company and policy options, an experienced Long-Term Care Insurance specialist will understand these underwriting rules.

What is Underwriting? How Does Current Health Impact Ability to Obtain Long-Term Care Insurance?

Discuss your health in detail with a Long-Term Care Insurance specialist before applying if you have several pre-existing health issues. 

Find State-Specific Information

Each state has a state-specific page that includes the current and future cost of long-term care services, available tax incentives, information on care providers, and other important information - LTC NEWS Cost of Care Calculator.

Shopping for Long-Term Care Insurance?

When looking for Long-Term Care Insurance, keep in mind that many state and federal regulations affect Long-Term Care Insurance. Each state's insurance department regulates products and premiums.

Because of regulation, an insurance agent, agency, or financial advisor cannot give a consumer a special discount that is not available otherwise. Use all the tools and resources available on LTC NEWS to help you in your research - Resources for Long-Term Care Planning.

When it comes to features and benefits, there are more similarities than differences. However, options and benefits differ from company to company, and premiums can differ by more than 100% when comparing equal benefits.

Comparing LTC Insurance Products

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 Insurance specialist will ask several questions about your health to provide 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.

When comparing Long-Term Care Insurance, you should understand the differences between the various companies. 

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. 

State variations may apply.