Since it was founded in 1897, CNA Insurance has been offering innovative care products and services to individuals and businesses. Today, it is among the top ten largest commercial insurance providers in the United States and one of the top 15 largest property and casualty insurers in the United States. The company is known for providing insurance protection to more than one million users – both individuals and businesses.
CNA offers its coverage nationwide, meaning they are highly accessible in time of need wherever you are in the United States.
With an annual income of more than $900 million, CNA is one of the financially strongest insurance providers around, also as shown by its financial strength score of A+.
CNA Long-Term Care Insurance
CNA long-term care does not require minimum participation and is eligible to active employees, spouses of active employees, grandparents, and grandparents-in-law under the age of 80, parents, and in-laws of active employees.
Long-term care provided by CNA intends to protect active employees’ retirement plans against the extreme costs of custodial care associated with age-related conditions such as strokes, Alzheimer’s disease as well as other wide range of chronic conditions.
How long-term care insurance functions
At its core, the idea of long-term care insurance is providing access to a pool of money whenever care is needed. In this model, buyers decide how big the pool of money is as week as to whether the pool of money will increase automatically over time in order to keep up with inflation.
Types of long-term care insurance provided by CNA Insurance
There are two main types of long-term care insurance provided by CNA insurance – standalone health-based long-term care insurance and group life insurance. These two plans don’t work the same, and it is important as a customer, that you understand the differences between them.
The benefit you receive as a policyholder is usually tax-free and both policies allow you to receive care at home.
However, the difference between the two plans is that the one that includes life insurance will pay you long-term care benefits and other perks by allowing for early access to your death benefits.
Both standalone and group life insurance have their unique benefits and drawbacks.
When it comes to standalone long-term care:
- You get the best value for your dollar in pure long-term benefit
- Comes with an inflation protection option designed to keep up with the rising cost of care
- Features more coverage options either a percentage of the care cost or full cost
- It is Health Savings Accounts compatible
However, that is not to say that it doesn’t come with negative things. For instance, when you sign up for standalone long-term care, there is no return of cash value or premium, thus you either use it or lose it.
Additionally, it has a limited carrier option due to its traditionally low-interest rates as well as rampant pricing errors on policies that have caused carriers to exit the market.
Another negative thing about standalone long-term care is that it is not for everyone thanks to its average premium of $1,200 per year that makes it appealing to customers of 45 to 65 years with a household income of over $100k.
Also, this plan requires some form of medical underwriting to avoid mistakes. As a result, there isn’t a Guarantee Issue option when it comes to standalone long-term care.
If you opt for group life insurance, you can enjoy benefits such as:
- Benefits guaranteed either in the form of the death benefit or long-term care benefits as long as you maintain your coverage
- You will be allowed to cover two risks with a single policy in form of long-term care and life insurance
- Affordable plans thanks to its comprehensive range of premiums and benefits that fit any needs and budget
- Guarantee issue underwriting
However, this plan has limited inflation coverage options and if you are a smoker you will get higher rates compared to non-smokers.
CNA case management
When it comes to case management in CNA long-term care, the company uses a clear and easy-to-understand process.
These are the steps followed by CNA insurance in case management.
- The initial assessment is done to determine the correct level as well as most cost-effective care
- Development of an ongoing care plan
- Monitor care plan
CNA covers a wide range of facilities, including skilled nursing facility, community-based care – adult daycare, home health care, adult foster care, and assisted living care – and hospice.
Factors to consider before signing up for CNA long-term care
There are a few things you need to keep in mind before agreeing on whichever plan you decide to go for, and below I have discussed them in detail.
Your health and age
The number one thing you need to keep in mind when shopping for the best CNA long-term insurance plan is your health and age.
Traditionally, policies will cost less if you are in good health and younger and cost more if you have serious health issues and older. In some instances, you may not even be allowed coverage.
An equally important factor to consider is your income. If you struggle to pay your bills or feel like you will struggle to pay them in the future, spending thousands of dollars annually for a long-term care policy will not be a sensible idea.
But that doesn’t mean you don’t have other options. If you have low income and few assets, you can opt for Medicaid, which pays for at-home care as well as nursing home care.
Ask yourself this, will you manage to pay the premiums – currently and in the years to come- without having to break your budget? As you ponder through that, note that premiums also tend to increase as you get older and become prone to illness and in most cases, your income will go the other way.
If you can’t afford the premiums now, and you don’t see your income increasing in the future, there is no need to buy expensive long-term care insurance.