Banker’s Life Long-Term Care Insurance Review

Bankers Life, formally known as Bankers Life and Casualty Company, has offered Long-Term Care Insurance products for decades. The company offers comprehensive LTC Insurance benefits and various options for consumers to choose from.

Bankers Life was established in 1932 as a mutual life insurance company. They're currently headquartered in Chicago, Illinois, and well known for their insurance offerings.

In 1992, the company became a subsidiary of Conseco (CNO Financial Group). However, Bankers Life and its parent company have faced financial difficulties in the past.

Financial ratings are important. They can help policyholders and consumers determine how stable a company is before purchasing a policy. However, financial stability does not necessarily correlate to product quality.

Bankers Life ratings have improved over the past few years; here are the current stats:

• A from A.M. Best Company, Inc.
• A3 from Moody's Investors Service
• A- from S&P Global
• A from Fitch Ratings

Long-Term Care Insurance with Bankers Life

Bankers Life has been in the LTC Insurance industry for decades, but experience doesn’t equal financial stability. The company and its parent company have faced trouble in the past. 

For this reason, LTC News does not recommend Bankers Life as a good option for coverage in our annual Long-Term Care Insurance review. 

Financial Instability 

Financial ratings help consumers determine an insurance company's stability. A company with a poor financial rating may struggle to meet the demands of claims. However, since LTC Insurance is highly regulated, poor financial stability does not necessarily equate to poor product quality.

It's recommended that consumers look at companies with an A rating or better individual rating companies. Many experts look at a Comdex rating.

A Comdex ranking is a composite score averaging the ratings of the major insurance rating organizations, including AM Best, Fitch, Moody's, and Standard and Poors. 100 is the top score, and Bankers Life's score is 73.

However, Bankers Life has significantly progressed in the past few years, improving its score by 11 points. Experts expect financial stability to continue, which could change future ratings and recommendations. 

Key Features & Benefits 

Despite the financial uncertainty of the past, Bankers Life offers comprehensive Long-Term Care Insurance policies with many benefits:

• Partnership certified policies. The Long-Term Care Insurance Partnership Program provides dollar-for-dollar asset protection. This means that if you use all the benefits from your Long-Term Care Insurance policy, you can qualify for Medicaid without having to spend down your savings or assets. Additionally, it helps protect your estate from being seized during Medicaid's estate recovery process.
• Daily benefits only, between $40 to $400 per day.
• Several inflation options, including 2%, 3%, 4%, and 5%, compounded inflation.
• Shared care benefit. This benefit allows couples to share LTC Insurance benefits. If either or both spouses use up all the benefits in their individual policies, they can access the shared benefits, which will help extend the policy's lifespan.
• Cash benefits. Policyholders can receive cash benefits directly rather than having the benefits go to care providers. This can be a useful way to pay family members or other informal caregivers.
• Elimination period options from 0, 15, 30, 60, 90, 180, and 365 days
• Non-tax-qualified option.
• Return of premium. This insurance rider returns paid premiums to the policyholder's estate if the policyholder does not require care or use their LTC Insurance benefits.
• Restoration of benefits allows policyholders to restore their used benefits if they demonstrate their condition is stable and they do not require long-term care for a prolonged period of time.
• Dual waiver of premium. This is when a couple has LTC Insurance, and both spouses' premiums are temporarily waived if one or both of the spouses are receiving care and Long-Term Care insurance benefits. This can help reduce costs and let couples focus on care instead of finances.

How Hard Is It to Qualify for a Policy with Bankers Life?

Qualifying for a new policy with Bankers Life will depend on three main factors:

• Need for long-term care: Individuals in need of long-term care cannot be approved for a new LTC Insurance policy.
• Pre-existing conditions: Specific health conditions can make it harder to qualify for a new policy. In most cases, pre-existing conditions will only increase the cost of the policy; however, specific conditions like dementia can render someone uninsurable.
• Age: Adults 84 years or older are not considered for new coverage with Bankers Life. This number is actually relatively high compared to other LTC Insurance providers, as most companies cut off at age 79. It's generally harder to qualify for new coverage as you age, as health often declines with age, creating more risk for insurers.

All Long-Term Care Insurance providers use a practice called underwriting to determine the risk of insuring a new applicant.

Applicants who pose too high of a risk are denied, while approved applicants are sorted into rate classes, which will determine premium prices.

Bankers Life has more lenient underwriting standards than other insurers. This means qualifying for coverage with Bankers Life may be easier than another option.

A Long-Term Care Insurance specialist can help you determine if Bankers Life is a good option for you. Specialists will work with you to choose the best provider based on your needs, budget, and benefit preferences.

Specialists aren't committed to any particular insurer; since they work with all providers, they can recommend a company most likely to insure you at the best price.

Filing a Claim with Bankers Life

If you have a policy with Bankers Life and need help filing a claim, LTC News is here to help. Filing a claim by yourself can feel overwhelming, especially if you're trying to coordinate care in the meantime.

LTC News and Amada Senior Care, a leading in-home healthcare agency, have partnered to offer free, no-obligation help with LTC Insurance claims. This assistance may also include help finding quality caregivers, facilities, and providers near you or your loved one, regardless of the level of care needed.

Is Long-Term Care Insurance with Bankers Life Safe?

Bankers Life has experienced significant backlash and complaints, according to the Better Business Bureau. The most common complaints and concerns involved difficulty filing claims and aggressive sales tactics used by insurance agents.

It's assumed that the complaints about aggressive sales tactics come from captive agents. These agents are known to make misleading statements and pressure consumers into policies that are not always in the best interest of consumers.

This is why it's so important to work with an LTC Insurance specialist; a specialist can help you avoid these misleading claims and get coverage that's tailored to your needs and budget.

All Long-Term Care Insurance policies in the U.S. are regulated under IRS regulation Section 7702(b). Every LTC Insurance policy must meet stringent requirements, which help ensure:

• Regulated benefit triggers.
• Tax advantages.
• Protection against excessive premium increase.
• Clear coverage expectations.

Bankers Life Long-Term Care Insurance products meet federal guidelines.

It's worth mentioning that Bankers Life also sells short-term insurance and limited-duration products; these products are not Long-Term Care Insurance and do not meet federal guidelines.

Be sure to determine if your selected policy is qualified as Long-Term care Insurance so you can be sure that it has all the required consumer protection and is free of misleading statements. 

Shopping for Long-Term Care Insurance: What Are Your Best Options for Coverage?

The best Long-Term Care Insurance options for you or your loved one depend on your needs, budget, preferences, and your ability to qualify for new coverage. No two providers are the same, and while one provider might work great for someone else, you may need a different one.

Bankers Life offers comprehensive LTC Insurance benefits; however, customer complaints and financial instability make Bankers Life a less-than-recommended choice for coverage.

Bankers Life's ratings are steadily improving, and its standing history in the industry helps. LTC News does not recommend Bankers Life at this time; however, this could change in the future if the company continues to demonstrate financial stability.

LTC News and Amada Senior Care can help you file a Long-Term Care Insurance claim. Amada's team of experts offers cost-free, obligation-free help filing claims and finding high-quality, cost-effective long-term care.

LTC News also has a Cost of Care Calculator with the current and projected care costs for various types of long-term care. This tool can help you estimate your future care expenses and choose the right amount of Long-Term Care Insurance benefits to protect your estate from the cost of care.

In addition, LTC News has a Care Directory with thousands of high-quality long-term care providers nationwide. This tool can help you compare and select the best provider close to home.