Mass Mutual CareChoice Hybrid Life-Long Term Care Insurance
As an Independent Long Term Care Insurance Broker, we compare traditional, hybrid, and partnership-qualified policies across dozens of carriers to find the structure that actually fits your situation.
Mass Mutual CareChoice Hybrid Life-Long Term Care Insurance
Many hybrid long-term care policies give you a fixed pool of care benefits, and that pool can only grow if you pay extra for inflation protection. CareChoice Hybrid Life-Long Term Care Insurance, issued by Mass Mutual, works differently because it is built on participating whole life insurance. MassMutual has paid dividends to eligible participating policyowners every year for more than 150 years, and when CareChoice dividends are used to buy paid-up additions, they raise the death benefit, the surrender value, and the long-term care benefit pool, stretching coverage beyond its guaranteed 48-month minimum. Dividends are never guaranteed, but that potential for the care benefit to grow on its own is the heart of CareChoice, and everything else sits on top of it.
Jason Stolz, CLTC, CRPC, DIA, CAA, is Chief Underwriter at Diversified Insurance Brokers, and MassMutual CareChoice is one our office places regularly for savers who want their care planning backed by one of the most highly rated mutual insurers in the country. Because we work as an independent long-term care insurance broker with access to more than one hundred carriers, our office can show you how CareChoice One and CareChoice Select stack up against other hybrid and traditional policies before you commit to either one.
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CareChoice One and CareChoice Select Side by Side
| Feature | CareChoice One | CareChoice Select |
|---|---|---|
| Policy Type | Participating single premium whole life with a qualified LTC rider | Participating 10-pay whole life with qualified LTC riders |
| Premium Payment | One single premium; compare single-pay long-term care options | Level premiums for 10 years |
| Issue Ages | 35 to 69 (35 to 65 for tobacco users) | 35 to 69 (35 to 65 for tobacco users) |
| Minimum | $25,000 premium (varies in some states) | $40,000 face amount (varies in some states) |
| Maximum Face Amount | $720,000; size your benefit using the LTC insurance calculator | $720,000 |
| Dividend Options | Paid-up additions, cash, or accumulate at interest | Paid-up additions, reduce premiums, cash, or accumulate at interest |
| Guaranteed LTC Duration | At least 48 months at the maximum monthly benefit | At least 48 months at the maximum monthly benefit |
| Claim Type | Reimbursement | Reimbursement |
| Elimination Period | 90 days | 90 days |
| Funding Source | Non-qualified money only | Non-qualified money only |
Whole Life, Mutual Ownership, and Why It Matters Here
MassMutual describes CareChoice as participating whole life insurance with riders that provide long-term care benefits. Each policy delivers three guaranteed values: a pool of long-term care benefits, a death benefit for your beneficiaries, and a policy surrender value that increases over time. MassMutual’s own summary of the idea is simple: the policy provides value whether you need care, never need care, or decide to cancel. You can read MassMutual’s description on its MassMutual hybrid long-term care page.
The foundation matters. Whole life insurance carries guaranteed cash values and a guaranteed death benefit, with premiums that are fixed from the start. There are no crediting rates or policy charges to monitor from year to year, as there are with universal life, which makes CareChoice easier to understand and to hold with confidence for decades.
Ownership matters too. Massachusetts Mutual Life Insurance Company is a mutual company, which means it has no outside shareholders and operates for the benefit of its participating policyowners. That structure is what makes dividends possible. When the company’s mortality, expense, and investment experience is better than the conservative assumptions built into the guarantees, part of that surplus can be returned to participating policyowners. MassMutual points to the potential to earn dividends as the feature that sets CareChoice apart from competing products.
For a buyer, the practical result is a hybrid that pairs contractual guarantees with a potential upside that does not depend on stock market performance or on buying a separate inflation rider.
Four Years Is the Floor, Not the Limit
For a CareChoice policy without inflation protection, the guaranteed long-term care benefit pool equals the base policy’s face amount plus an equal amount of extended long-term care coverage. In other words, a policy’s total guaranteed care benefit is twice its face amount, and it is designed to last at least 48 months when the maximum monthly benefit is paid.
Benefits are paid out in stages. MassMutual first pays long-term care benefits as an acceleration of the base policy death benefit over a minimum of 24 months. Once that is used, benefits continue from the extended long-term care coverage amount for at least another 24 months. If dividends have purchased paid-up additions, benefits then continue as an acceleration of the paid-up additions death benefit.
| Stage | Where Benefits Come From | Duration and Effect |
|---|---|---|
| Stage One | Acceleration of the base policy death benefit | At least 24 months; reduces the death benefit dollar for dollar and the cash surrender value proportionally |
| Stage Two | Extended long-term care coverage equal to the face amount | At least 24 more months |
| Stage Three | Acceleration of the paid-up additions death benefit, if any | Adds time beyond 48 months, depending on dividends credited |
Why does a four-year floor matter? Federal guidance on how long care needs last indicates that about one in five people turning 65 will need long-term care for more than five years. Its averages, roughly 3.7 years of care for women and 2.2 years for men, suggest that a guaranteed four-year pool runs longer than the average need, and the ability of paid-up additions to extend that pool addresses part of the risk of a longer need.
MassMutual’s client guide also refers to policies with and without inflation protection, so an inflation option may be available on some designs. The options and their cost should be confirmed in a current illustration for your state.
How Dividends Can Grow the Care Benefit
Dividends are the feature that most separates CareChoice from other hybrids, so it is worth understanding exactly how they work. Each year, MassMutual’s board may declare a dividend for eligible participating policies. The amount is never guaranteed and can change from year to year, but MassMutual has paid dividends to eligible participating policyowners every year for more than 150 consecutive years.
What you do with the dividend determines its effect. When dividends buy paid-up additions, which are small amounts of fully paid whole life insurance, the policy’s death benefit and policy surrender value rise. Because the long-term care benefit is tied to the death benefit, that additional death benefit also increases the long-term care benefit pool and extends the minimum benefit period beyond 48 months. Paid-up additions are themselves participating whole life insurance, so their effect can build over time.
The other dividend options work differently. CareChoice One owners can take dividends in cash or leave them to accumulate at interest. CareChoice Select owners have those choices plus the option to use dividends to reduce premiums during the 10-year payment period. Those options can be useful, but only the paid-up additions option grows the long-term care benefit, which is why it is the natural choice for buyers whose main goal is care protection.
The right way to view dividends is as a potential bonus on top of a guaranteed foundation. A sound CareChoice decision should rest on the guaranteed values alone, with dividends treated as upside. Jason can show you an illustration with guaranteed and non-guaranteed columns side by side, so you can see what the policy promises and what it may provide if dividends continue.
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Qualifying for Benefits and the 90-Day Wait
Two conditions open a CareChoice claim: the insured must be chronically ill, and covered services must be underway. MassMutual defines chronic illness in the standard way for tax-qualified coverage: needing assistance to perform at least two of six activities of daily living, which are bathing, continence, dressing, eating, toileting, and transferring, or having a severe cognitive impairment.
Once eligible, the insured must satisfy a 90-day elimination period before monthly benefits begin. Think of that waiting period as a deductible counted in days rather than dollars: the family covers those first three months of care before the policy begins reimbursing. Elimination periods vary in how they count days and whether they must be met only once, so those specific rules should be confirmed in the policy for your state. Our explainer on how LTC elimination periods work covers the variations to ask about.
One helpful detail: MassMutual states that its Care Coordination Services may begin before the elimination period is satisfied and do not reduce your long-term care benefits. That means a family can begin getting help with assessments and a plan of care during the waiting period, rather than facing those decisions alone.
Planning for the elimination period is part of designing any policy. For some families, three months of care costs can be covered from savings or an emergency fund, and a clear plan for that period prevents the need to draw on retirement accounts in a hurry. Jason can help estimate what those first 90 days might cost in your area and how to set aside funds for them.
A Reimbursement Policy: What That Means in Practice
CareChoice pays benefits on a reimbursement basis. Rather than sending a fixed monthly check, the policy reimburses the cost of covered services up to the maximum monthly benefit. Covered services include nursing home care, assisted living, adult day care, home health care, homemaker care, and hospice care.
That list covers the full arc of care most people need. Home health care and homemaker care support someone who wants to remain at home, and our overview of in-home care services explains what those services typically include. Adult day care provides supervision and activities during the day while family caregivers work. Assisted living and skilled nursing facility care address needs that can no longer be met at home, and hospice care supports the final stage of life.
Reimbursement has trade-offs worth weighing carefully. On the positive side, benefits are matched to actual care costs, and in a month when the bill comes in under the maximum, the difference generally remains in the pool, which can stretch the benefit period. On the other side, reimbursement requires documentation of covered services, and it is less flexible than cash indemnity designs, which pay a set amount regardless of what care costs. Several of the other hybrids we review pay on an indemnity basis, and one lets you choose at the time of claim, so the payment method is a real point of comparison.
MassMutual’s Care Coordination Services include payment facilitation that works directly with service providers to simplify payment and speed up the reimbursement process. For families concerned about paperwork during a stressful time, that support can narrow the practical gap between reimbursement and indemnity.
Care Coordination Built Into the Policy
MassMutual provides Care Coordination Services at no additional cost with both CareChoice One and CareChoice Select. The services are built around a simple observation from MassMutual’s own material: the work of arranging care often falls on family members, and it can feel overwhelming even when they are not providing the care themselves.
| Service Area | What MassMutual Describes |
|---|---|
| Evaluation | In-person chronic illness assessments that evaluate cognitive status, activities of daily living, and dependencies, when approved through the claims department |
| Consultation | Developing and coordinating a plan of care, assessing home safety and recommending modifications, meeting with family, and periodic check-ins |
| Payment Facilitation | Working directly with service providers to simplify payment and speed up reimbursement |
| Advocacy | Monitoring and reassessing the plan of care, collaborating with health care providers, helping set up appointments, and connecting you to available services such as Medicaid |
| Education | Connecting you with a claims specialist, explaining your health condition, and discussing medications |
These services address the part of a claim that insurance dollars alone cannot solve: figuring out what kind of care is needed, finding providers, and keeping the plan current as needs change. Because the services may begin before the elimination period is met and do not draw down the benefit pool, they add value without reducing coverage.
Care coordination services differ considerably from one carrier to another. Some policies may offer limited referral help, while others provide in-person assessments and ongoing involvement. MassMutual’s description places CareChoice toward the fuller end of that range, with in-person evaluations when approved, home safety reviews, and periodic reassessment of the plan of care as needs change. MassMutual also notes that Care Coordination Services are included with the LTCAccess Rider available on certain MassMutual whole life policies, which reflects how central the service is to its long-term care approach. Our guide to LTC care coordination benefits explains what to look for when comparing policies.
A Walk Through a CareChoice Claim
Seeing the steps in order helps families understand what to expect. A claim generally begins with a call to MassMutual’s claims department when the insured starts needing help with daily activities or shows signs of significant cognitive decline. Through Care Coordination Services, a licensed health care professional can assess the insured’s needs, and in-person chronic illness assessments are available when approved through the claims department. Those assessments evaluate cognitive status and the activities of daily living, which are the same measures used to determine eligibility.
Once the insured is certified as chronically ill and receiving covered services, the 90-day elimination period begins. During that time, the care coordination team can help build a plan of care, review the home for safety risks, recommend modifications, and help the family locate appropriate providers. Those services do not reduce the benefit pool.
After the elimination period, MassMutual reimburses covered services up to the maximum monthly benefit. The payment facilitation service can work directly with providers to simplify billing, which reduces the paperwork a family has to manage. First-stage benefits come out of the base death benefit, so every dollar paid for care lowers the eventual death benefit by a dollar, and the cash surrender value falls in proportion. When that stage is complete, benefits continue from the extended coverage amount, and then from any paid-up additions.
Throughout the claim, the care coordination team monitors and reassesses the plan of care, collaborates with the insured’s health care providers, and helps connect the family to other available resources. If a policy loan is outstanding, part of each accelerated claim payment goes toward reducing it. Jason can walk your family through these steps in advance, so the people who may someday file a claim on your behalf know how the process works.
Choosing Between a Single Premium and Ten Payments
CareChoice One and CareChoice Select provide the same kind of coverage, and the main difference is how you pay for it. CareChoice One is funded with a single premium, with a minimum of $25,000 in most states. It suits buyers who already have money set aside for a possible care need and want to reposition it into a policy that multiplies its value for care while keeping a death benefit and surrender value in place.
CareChoice Select is funded with level premiums over 10 years, with a minimum face amount of $40,000 in most states. It suits buyers who prefer to pay from income or who would rather not commit a large sum at once. Select also offers the option of using dividends to reduce premiums during the payment period, which can lower the out-of-pocket cost, although it gives up the benefit growth that paid-up additions provide.
Both versions are limited to non-qualified money, which means premiums cannot come directly from an IRA, 401(k), or other tax-qualified retirement account. Funds from savings, investment accounts, certificates of deposit, or existing life insurance are possible sources.
Tax treatment can also differ between the two. Under federal tax rules, a policy that is funded heavily in its early years can become a modified endowment contract. That status affects how lifetime loans and withdrawals are taxed, while leaving the treatment of the death benefit and qualified long-term care benefits unchanged. The illustration will show whether a given design is a modified endowment contract.
The right version depends on your cash flow, the assets you have available, and how you feel about committing a lump sum. Jason can illustrate both for the same benefit level so the difference in total cost and in potential dividend growth is clear.
Moving Existing Coverage Into CareChoice
Some people considering CareChoice already own life insurance they no longer need in its current form, such as a policy bought to protect a young family or cover a mortgage that has since been paid off. A 1035 exchange allows the value of an existing life insurance policy to be moved into a new policy without current income tax on any gain, and MassMutual permits 1035 exchanges into CareChoice from existing life insurance policies and from most hybrid life and long-term care policies.
There are conditions. Any existing policy carrying a loan is ineligible for exchange into CareChoice, so any loan has to be addressed first. For CareChoice Select, the amount exchanged cannot exceed the first-year premium, including the whole life policy, any waiver of premium rider where applicable, and the long-term care riders. Premiums after the first year would come from other funds.
An exchange is not automatically the right move. The existing policy may have guarantees, a death benefit, or a cash value growth rate that would be hard to replace, and surrender charges on newer policies can make an exchange expensive. For someone who already owns a hybrid policy, it is especially important to compare the benefit pool, benefit period, payment method, and guarantees on both policies before giving anything up.
Our office compares the existing policy and the proposed CareChoice design side by side before recommending any exchange, and Jason reviews the in-force illustration of the current policy so the decision rests on real numbers rather than assumptions. If keeping the existing coverage is the better choice, we will say so.
Streamlined Underwriting With No Substandard Classes
MassMutual uses a streamlined underwriting process for CareChoice. A paramedical exam is generally not needed, although one may be required in certain circumstances. A telephone interview is required for every applicant, and applicants age 64 and older complete an additional cognitive telephone interview.
The rate class structure is simple. CareChoice offers non-tobacco and tobacco classes, and substandard ratings are not available. That has an important consequence. With many policies, an applicant with a health history the insurer considers higher risk might be approved at a higher premium. With CareChoice, an applicant either qualifies for a standard class or is declined, with no middle ground.
For healthy applicants, that simplicity can be an advantage, because there is no chance of receiving an unexpected rated offer. For applicants with more complicated health histories, it raises the importance of preparation, because a decline becomes part of your application history and can make the next application harder. Our guide on who qualifies for LTC insurance explains the health factors carriers commonly consider.
That is where working with an experienced underwriter matters. Before any CareChoice application is submitted, Jason reviews the applicant’s medical history, prescriptions, and recent treatment to judge whether MassMutual is likely to approve the application at a standard class or whether another carrier is a better starting point. Our step-by-step guide to finding and applying for LTC coverage outlines what to expect.
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If You Never Need Care or Change Your Mind
A CareChoice policy delivers value even if long-term care is never needed. Any portion of the guaranteed death benefit that has not been accelerated to pay long-term care benefits is paid to your beneficiaries at death and is generally received income tax-free. If dividends have purchased paid-up additions, their death benefit is added as well.
If your plans change, you can cancel the coverage at any time and receive the policy surrender value, which increases over time and accumulates on a tax-deferred basis. The policy surrender value includes the whole life policy’s cash surrender value along with a partial return of the premium paid for the long-term care riders. That combination provides an exit route that traditional long-term care insurance generally does not offer.
Policy loans are available against the life policy’s cash value at any time, but they come with important effects. Loans reduce the death benefit and the long-term care benefits available. If a loan is outstanding when long-term care benefits are being paid, each claim payment made as an acceleration of the death benefit is reduced by an amount applied to pay down the loan, in proportion to the reduction in cash value. The partial return of long-term care rider premium cannot be used to secure a loan. MassMutual also notes that loans increase the chance the policy will lapse and may result in a tax liability.
CareChoice rewards patience: the premium should be money you expect to leave untouched. The surrender value and loan provisions provide flexibility for real emergencies, but the policy’s greatest value comes from keeping it in force.
Tax Treatment of Premiums, Benefits, and Surrender Value
The long-term care riders on CareChoice are intended to be a federally tax-qualified long-term care insurance contract under Section 7702B(b) of the Internal Revenue Code. Long-term care benefits paid under the riders are generally received income tax-free, and because CareChoice reimburses actual covered expenses, the per diem limits that can affect some indemnity policies are less likely to come into play.
MassMutual notes that the portion of the premium paid for the long-term care riders may be deductible from gross income. Deductibility for individuals generally depends on age-based federal limits and on whether total medical expenses exceed the threshold for itemized deductions, while owners of certain businesses may be able to treat the premium differently based on their entity type. Your tax professional can tell you whether any deduction applies to you.
On the life insurance side, the death benefit is generally received income tax-free, and the policy surrender value accumulates tax-deferred. Distributions are generally not taxed up to the amount paid into the policy, known as the cost basis, unless the policy is a modified endowment contract, in which case different rules apply to loans and withdrawals. Our article on the tax benefits of hybrid LTC policies explains these rules in more detail.
Because tax outcomes depend on your full financial picture, every CareChoice recommendation from our office should be reviewed with your tax advisor before you apply, particularly if you plan to fund the policy through a 1035 exchange or a single premium.
MassMutual’s Financial Strength
For a policy that may need to pay benefits decades from now, the strength of the insurer is not a side issue. Massachusetts Mutual Life Insurance Company was founded more than 170 years ago and ranks among the strongest life insurers in the United States. According to MassMutual’s most recent results announcement, its financial strength ratings are A++ (Superior) from AM Best, AA+ (Very Strong) from Fitch, Aa3 (High Quality) from Moody’s, and AA+ (Very Strong) from S&P Global Ratings. Ratings are subject to change and should be confirmed when you apply.
Those ratings place MassMutual alongside the most highly rated carriers in our long-term care series. AM Best’s A++ is its top rating, AA+ from Fitch and S&P is one step below those agencies’ highest rating, and Aa3 falls within Moody’s second-highest rating category.
Strength matters more for CareChoice than for many products because of dividends. Dividends depend on the company’s ongoing financial experience, and a long record of consistent payments reflects the financial consistency that supports them. Guarantees, including the long-term care benefit pool and the death benefit, remain subject to MassMutual’s claims-paying ability.
How CareChoice Fits Among the Hybrids We Review
Every hybrid in our long-term care series takes a different approach, and CareChoice’s position is easiest to see in comparison. Securian’s SecureCare hybrid policy is also whole life based but pays cash indemnity benefits. Nationwide’s CareMatters hybrid pays cash indemnity as well. Lincoln’s MoneyGuard hybrid policy lets you choose reimbursement or indemnity at the time of claim. Brighthouse SmartCare hybrid coverage uses indexed universal life with an option for index-linked benefit growth. And the OneAmerica Asset Care and Annuity Care designs include an optional rider that keeps benefits going for life.
Against that field, CareChoice’s strengths are its participating whole life foundation, its potential for dividend-driven growth in the benefit pool, MassMutual’s top-tier ratings, and its built-in care coordination. Its limitations are its reimbursement-only claim type, a maximum issue age of 69, a guaranteed benefit period that starts at four years, and the absence of substandard rate classes.
Which trade-offs matter most depends on the buyer. A healthy 55-year-old who values carrier strength and wants a benefit with growth potential may find CareChoice a strong candidate. A 72-year-old is outside its issue ages, and someone who wants a fixed cash benefit to pay a family caregiver may be better served by an indemnity design. Pricing the same benefit amount across several carriers shows the real cost of each approach.
When a Traditional Policy May Serve You Better
Hybrids are not the only way to protect against long-term care costs. Traditional long-term care insurance, such as Thrivent’s traditional LTC policy or MutualCare from Mutual of Omaha, is built entirely around the care benefit. Because no premium goes toward a death benefit or cash value, a traditional policy can often provide a larger care benefit for the same premium, and it can offer longer benefit periods and more inflation options.
The trade-offs run the other way as well. Traditional premiums are generally not guaranteed and can be increased for a class of policyholders with regulatory approval, and if care is never needed, the premiums do not come back. CareChoice’s premiums are fixed, its benefits are guaranteed, and the policy returns value through a death benefit or surrender value whether or not care is used.
The right answer often depends on budget and priorities. Buyers who want the most care coverage for the lowest ongoing cost may start with traditional coverage. Buyers who have assets to reposition and dislike the idea of premiums that could rise or be lost may prefer a hybrid. Seeing both types priced for the same benefit makes the choice concrete, and it is a comparison our office can prepare for you.
Limits and Trade-Offs to Weigh
No policy is right for everyone, and CareChoice has limits that should be considered alongside its strengths. The first is the payment method. CareChoice reimburses covered services rather than paying a fixed cash benefit, so it may be less flexible for families who expect to rely on informal caregivers, and whether care from an informal caregiver would qualify should be confirmed in the policy. The second is issue age. Applicants must be 69 or younger, or 65 or younger for tobacco users, which rules out many people who begin planning later in retirement.
The third is underwriting. With no substandard classes, applicants with certain health histories may be declined rather than offered coverage at a higher rate. The fourth is funding. Only non-qualified money can be used, so buyers whose savings are mostly in retirement accounts would need to take taxable distributions to fund a policy.
The fifth is the role of dividends. The potential for dividends to grow the benefit pool is a key reason to consider CareChoice, but dividends are not guaranteed. A buyer who needs certainty about the exact benefit in twenty years should focus on the guaranteed values and treat dividend growth as a potential bonus. Finally, specific features, including inflation options and state-specific minimums and rules, vary by state and should be confirmed in a current illustration.
None of these limits makes CareChoice a weak product. They define who it serves best, and they are the reason a side-by-side comparison with other carriers is worth doing before you apply.
Details to Confirm in Your Illustration
Product summaries leave some questions open, and a few of them can change how well CareChoice fits your plans. The first is inflation protection. MassMutual’s client guide refers to policies with and without it, so ask whether an inflation option is available in your state, how it would change the benefit pool over time, and what it adds to the premium. For buyers in their fifties, that answer can matter as much as the dividend illustration.
The second is how the 90-day elimination period is counted, including whether days must be consecutive, whether days of care must be paid, and whether it needs to be met only once. The third is whether care from an informal or family caregiver can qualify for reimbursement, which matters for families who expect to rely on relatives. The fourth, for CareChoice Select, is whether a waiver of premium rider is available and what it would cost.
The fifth is tax classification. Ask whether the proposed design is a modified endowment contract, since that affects how loans and withdrawals would be taxed. The sixth is the growth of the policy surrender value, including how much of it comes from the partial return of long-term care rider premium in the early years. Finally, confirm the state-specific rules that apply where you live, because minimum amounts and some policy provisions vary by state, and New York versions have their own requirements.
Our office gathers those answers as part of preparing an illustration, so the design you review reflects the version of CareChoice that can actually be issued to you.
Who CareChoice Serves Best
CareChoice tends to fit healthy buyers between 35 and 69 who have non-qualified savings they want to protect from long-term care costs, and who value guarantees and carrier strength above all else. It is a natural choice for people who are drawn to whole life insurance and understand the long-term value of dividends, and for those who want a care benefit with the potential to grow without being tied to market performance.
It suits buyers who expect to use professional care services, such as home health agencies, assisted living, or nursing home care, where reimbursement works well. It also appeals to families who want support navigating a claim, since the built-in care coordination services help with assessments, planning, and payment.
CareChoice One suits someone with a lump sum set aside for care, such as funds in savings or an existing life insurance policy that can be exchanged. CareChoice Select suits someone who would rather spread the cost over ten years. In both cases, the buyer should be comfortable leaving the money in place, since the policy’s greatest value comes from keeping it in force.
Timing also matters. Because issue ages end at 69, or 65 for tobacco users, and because applicants 64 and older complete an added cognitive interview, the window for CareChoice is narrower than for some competing policies. Applying earlier also gives dividends more years to purchase paid-up additions, which is the mechanism that grows the benefit pool over time. For someone in their late fifties or early sixties who is already leaning toward a hybrid, that combination of a closing window and a longer runway for dividends is a practical reason not to wait for a perfect moment.
How Our Office Works With CareChoice Buyers
Every CareChoice conversation with our office starts with your goals rather than with the product. Jason will ask what level of care you would want funded, whether a death benefit matters to your family, what assets you would use to fund the policy, and how you feel about committing money for the long term. From there, we can illustrate CareChoice One and Select at the benefit level you choose and set them beside competing hybrid and traditional designs built to the same benefit level.
Because CareChoice offers no substandard classes, a careful health review before applying is especially valuable. Jason looks at your medical history and prescriptions to judge whether MassMutual is the right carrier to approach first, which protects you from an avoidable decline. If you are exchanging an existing policy, we review that policy in detail before recommending any change.
As an independent office, we do not work for MassMutual or any single carrier. When CareChoice comes out ahead, we handle the application with you and go over the finished policy together once MassMutual issues it. If another carrier suits your health, budget, or goals better, we will recommend that instead.
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Frequently Asked Questions
Are CareChoice dividends guaranteed?
No. Dividends are declared each year and are never guaranteed, although MassMutual has paid dividends to eligible participating policyowners every year for more than 150 years. The long-term care pool, death benefit, and surrender value are guaranteed on their own, and dividends used to buy paid-up additions can add to all three. For background on how these policies combine coverage, see our overview of hybrid life insurance with LTC benefits.
Which is better for me, CareChoice One or CareChoice Select?
It depends mostly on how you want to pay. CareChoice One uses a single premium, which suits someone repositioning savings already earmarked for care. CareChoice Select spreads level premiums over 10 years and adds the option of using dividends to reduce premiums. The coverage structure is otherwise similar. For more ways to keep premiums manageable, read about affordable hybrid long-term care policies.
What happens if I need care for longer than four years?
The guaranteed pool lasts at least 48 months at the maximum monthly benefit. It can last longer if care costs less than the maximum, and paid-up additions purchased with dividends extend the benefit period further. The CareChoice materials we reviewed do not describe a lifetime benefit option, so buyers worried about very long care needs should compare other designs. Our page on LTC coverage with lifetime benefits explains those options.
Why can’t I use my IRA to buy CareChoice?
MassMutual accepts only non-qualified money for CareChoice, so premiums cannot be paid directly from an IRA, 401(k), or other tax-qualified retirement plan. You could take a distribution and use it to pay the premium, but the distribution would generally be taxable and could carry a penalty if taken early. Our article on qualified funds and LTC insurance covers strategies for retirement money.
What if my health history isn’t perfect?
CareChoice offers only non-tobacco and tobacco classes, with no substandard ratings, so applicants either qualify at a standard class or are declined. Underwriting is streamlined, with a required telephone interview and an added cognitive interview at age 64 and older. A review of your records before applying can show whether MassMutual is the right carrier to approach. Our guide to LTC coverage with preexisting conditions covers other options.
Does CareChoice cover assisted living as well as nursing homes?
Yes. Covered services include nursing home care, assisted living, adult day care, home health care, homemaker care, and hospice care, reimbursed up to the monthly maximum after benefit eligibility is established and the 90-day waiting period has passed. That range lets the benefit follow care from home to a facility. Our comparison of long-term care versus assisted living coverage explains how these settings differ.
Can I trade an older hybrid policy for CareChoice?
Often, yes. MassMutual accepts 1035 exchanges from existing life insurance and from most hybrid life and long-term care policies, as long as the existing policy has no outstanding loan. The existing policy’s benefits and guarantees should be compared carefully first, because an exchange cannot be undone. Our office can review what you own now and provide a second opinion on your LTC coverage before you decide.
What does a CareChoice policy cost?
Premiums depend on your age, gender, tobacco status, face amount, the version you choose, and any optional features such as inflation protection where available. CareChoice One requires a single premium of at least $25,000 in most states, and CareChoice Select requires a face amount of at least $40,000. A personalized illustration shows the exact figures. Our overview of what long-term care insurance costs puts those numbers in context.
Does using long-term care benefits reduce what my beneficiaries receive?
Yes. Benefits paid as an acceleration of the death benefit reduce the death benefit dollar for dollar and reduce the cash surrender value proportionally. Any portion of the guaranteed death benefit not used for care is paid to beneficiaries at death, generally income tax-free, along with any remaining paid-up additions death benefit. Policy loans also reduce both the death benefit and the long-term care benefits available.
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Jason Stolz, CLTC, CRPC, DIA, CAA and Chief Underwriter at Diversified Insurance Brokers (NPN 20471358), is a senior insurance and retirement professional with more than 25 years of real-world experience helping individuals, families, and business owners protect their income, assets, and long-term financial stability. As a long-time partner of the nationally licensed independent agency Diversified Insurance Brokers, Jason provides trusted guidance across multiple specialties—including fixed and indexed annuities, long-term care planning, personal and business disability insurance, life insurance solutions, Group Health, Travel Medical and Evacuation Insurance, and short-term health coverage. Diversified Insurance Brokers maintains active contracts with over 100 highly rated insurance carriers, ensuring clients have access to a broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as VoyageATL, and contributions from his agency featured in Kiplinger and GoBankingRates— highlighting his commitment to financial clarity and client-focused planning. Drawing on deep product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers, compare strategies, and build retirement and protection plans that are both secure and cost-efficient. Visitors who want to explore current annuity rates and compare options across multiple insurers can also use this annuity quote and comparison tool.
Explore More Long Term Care Insurance Options: Browse our complete guide to Hybrid & Annuity LTC Policies — covering hybrid life insurance, annuities with LTC benefits & linked benefit policies from top carriers.
Last Reviewed: September 29, 2026 |
Reviewed by: Jason Stolz, CLTC, CRPC, DIA, CAA
Chief Underwriter, Diversified Insurance Brokers, Inc. | NPN: 20471358 | Diversified Insurance Brokers, Inc. — Licensed in all 50 states
Fact Checked by: Tonia Pettitt, CMIP©
Medicare Specialist, Diversified Insurance Brokers, Inc. | NPN: 14374308 | Diversified Insurance Brokers, Inc. — Licensed in all 50 states
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