Pacific Life Long-Term Care Insurance: 2026 Guide for PremierCare Policyholders

Pacific Life was one of the most prominent hybrid long-term care insurance carriers in the United States, offering the PremierCare Choice and PremierCare Advantage product lines. The company announced on April 18, 2022 that it would stop accepting new applications for these products, with the last application date set for May 2, 2022. If you hold a Pacific Life PremierCare policy — or were recently quoted one and discovered it no longer exists — here is what the current situation means for your LTC plan.

Why Pacific Life's exit is different from the traditional LTC carrier exits

The exits of Genworth (2019), John Hancock (2016), and Transamerica (2021) from standalone LTC insurance all share a common cause: those companies sold traditional policies in the 1990s and 2000s on actuarial assumptions that proved materially wrong — underestimating claim duration, over-projecting investment returns, and misjudging lapse behavior. The result was massive actuarial losses that forced ongoing state-approved premium increases on existing policyholders, often cumulatively ranging from 50% to over 80% above original rates.

Pacific Life's situation is structurally different in three important ways:

1. PremierCare was a hybrid product, not traditional standalone LTC insurance. Hybrid products are funded by a lump-sum or limited-pay premium that purchases a life insurance policy with LTC benefits. The insurer's cost is determined at underwriting and policy issuance — there is no ongoing "pricing adequacy" question that requires future premium corrections. The premium Pacific Life quoted you in 2018 or 2020 is the same premium you'll pay in 2026 and beyond, because contractually guaranteed premiums are a defining feature of hybrid products.
2. Pacific Life's exit was strategic, not actuarial. The announcement did not cite reserve inadequacy, deteriorating claims experience, or investment shortfalls. Pacific Life declined to elaborate publicly on its reasoning, but the exit reflected a strategic portfolio decision — likely the increasing competitiveness of the hybrid LTC market, combined with the concentration of LTC risk in the carrier's product mix. This is categorically different from a carrier exiting because its policies are losing money.
3. Pacific Life's overall financial position remains strong. The A+ AM Best rating applies to Pacific Life Insurance Company as a whole. The company continues to sell life insurance, annuities, and other financial products in significant volume. The LTC exit was a product-line decision, not a company-level financial event.

How Pacific Life's PremierCare products worked

Pacific Life offered two main PremierCare product lines, each structured as a life insurance policy with long-term care benefits under IRC §7702B (qualifying them as dedicated LTC insurance with HIPAA-eligible benefits):

PremierCare Choice Max

The flagship product was a whole life insurance policy with LTC benefit riders. Core mechanics:

• Premium structure: Single pay, 5-pay, 10-pay, 15-pay, or 20-pay options. Premiums are contractually fixed — there is no scenario in which Pacific Life can request additional premium from existing policyholders.
• LTC benefit: Monthly benefit drawn from the death benefit face amount, structured as a percentage of the face amount per month. The policyholder elected a monthly benefit level at issue, which determined both the monthly payment and the total benefit pool.
• Benefit pool: Multiples of the base face amount were available, giving policyholders a total LTC pool that exceeded the death benefit. A $200,000 policy with a 2x benefit multiplier, for example, would have a $400,000 LTC benefit pool.
• Elimination period: Zero-day or 90-day elimination period options. The zero-day EP was a meaningful feature — care costs are covered from day one, with no out-of-pocket waiting period.
• Benefit triggers: IRC §7702B qualified triggers — inability to perform 2 of 6 activities of daily living (ADLs) expected to last at least 90 days, or certification of severe cognitive impairment. These are the same triggers as traditional LTC insurance.
• Death benefit: If LTC benefits are never accessed, the full death benefit passes to beneficiaries. If LTC benefits are partially drawn, the remaining death benefit passes to heirs. This resolves the "wasted premium" concern that deters buyers of traditional LTC insurance.
• Return of premium: A surrender provision allowed policyholders to recover their premium (typically on a modified basis) if they changed their mind — a feature not available on traditional LTC policies.

PremierCare Advantage

The Advantage series used a universal life chassis rather than whole life. The LTC benefit mechanics were similar, but the universal life structure provided some cash value flexibility not available in the fixed-premium whole life version. PremierCare Advantage was discontinued in California through a separate regulatory filing before the nationwide announcement.

A critical limitation: inflation protection

Unlike traditional LTC insurance policies with compound inflation riders, PremierCare products offered limited inflation protection options. The LTC benefit pool was denominated in a fixed dollar amount at policy issue. If you purchased a policy in 2015 with a $300/day benefit, that benefit in nominal terms is the same $300/day in 2026 — while care costs have increased materially. This is a common limitation of hybrid LTC products, not unique to Pacific Life. Policyholders who bought PremierCare at age 55–60 with a long time horizon before likely care need may find their coverage has lost ground to inflation and should model whether supplemental coverage makes sense. See our inflation protection guide for the compounding math.

Pacific Life's financial strength in 2026

AM Best rates Pacific Life Insurance Company at A+ (Superior), the second-highest rating AM Best assigns (only A++ "Exceptional" ranks higher).² This rating reflects AM Best's assessment that Pacific Life has an excellent ability to meet its ongoing insurance obligations across its entire book of business — life insurance, annuities, and in-force LTC policies.

Pacific Life is organized as a mutual holding company structure (Pacific Mutual Holding Company), with no publicly traded shares. This mutual structure is significant for LTC planning purposes: the company has no obligation to maximize short-term returns for public shareholders, which reduces the pressure to underprice in competitive phases and then increase premiums to manage investor expectations. Other mutual insurers with strong LTC track records — notably New York Life (A++) and Thrivent (A++) — share this structural characteristic.

The A+ rating places Pacific Life ahead of Genworth Life Insurance Company (B++) and at the same tier as John Hancock Life and Health Insurance Company (A+). The A+ rating is not a guarantee of claims-paying continuity for the next 30 years, but it is the most objective publicly available financial strength signal for any insurance carrier. For PremierCare policyholders, the rating matters most as a claims-paying-capacity indicator — and on that dimension, Pacific Life's current position is strong.

Is Pacific Life selling new long-term care insurance in 2026?

No. Pacific Life stopped accepting new applications for PremierCare Choice and PremierCare Advantage products on May 2, 2022.¹ If an agent presents a "Pacific Life LTC quote" for a new dedicated long-term care insurance product, they are working with outdated information — the product no longer exists for new applicants.

Pacific Life continues to offer life insurance and annuity products, some of which include accelerated death benefit riders for chronic illness under IRC §101(g). These are not long-term care insurance as defined under IRC §7702B and do not have the same benefit trigger structure. The §101(g) chronic illness riders require that the insured's condition be certified as permanent and non-recoverable — a higher bar than the §7702B standard, which only requires that an ADL limitation be expected to last at least 90 days. A hip fracture requiring rehabilitation care, for example, would trigger a §7702B LTC policy but might not trigger a §101(g) chronic illness rider because recovery is expected. See our chronic illness rider vs. LTC insurance guide for the full comparison.

What existing PremierCare policyholders should know

If you hold a Pacific Life PremierCare policy, the bottom-line message is reassuring: your policy is with a financially strong carrier, your premiums are contractually fixed, and Pacific Life's exit from new sales does not affect the obligations it has to you as an in-force policyholder. The company stated explicitly at the time of the 2022 announcement that all in-force policies would continue to be serviced with no changes.¹

The practical questions for existing policyholders are different from the rate-hike crisis facing Genworth and Transamerica policyholders. The more relevant questions are:

• Is my benefit pool still sized correctly? If you purchased a PremierCare policy 10–15 years ago with a fixed benefit amount, inflation has eroded the real value of that coverage. National median assisted living costs have increased roughly 3–4% annually; a $200/day benefit from 2010 has effectively declined in real purchasing power to somewhere below $130/day in 2026 dollars. Policyholders who purchased without inflation riders should model whether their benefit pool covers realistic care costs today — and whether supplementing with traditional LTC, self-fund reserve, or additional hybrid coverage makes sense.
• Does my benefit period cover the realistic care scenario? PremierCare benefit periods were determined at purchase by the monthly benefit election. Policyholders who elected a higher monthly benefit percentage to maximize daily coverage may have a shorter total benefit duration than those who elected a lower percentage for a longer pool. Know your benefit period: it appears on your policy declaration page or in your in-force illustration.
• Is my elimination period working the way I expect? PremierCare offered a zero-day elimination period option. If you selected it, care costs are covered from day one. If you selected the 90-day option, you are responsible for approximately $25,000–$30,000 in care costs (at current rates) before benefits begin — plan your liquid reserves accordingly. See our elimination period guide for the mechanics.
• Have I documented my policy and benefit triggers for my family? Many LTC claims are initiated by adult children who don't know the policy exists or how to file. Store your PremierCare policy documents somewhere accessible to your health care proxy or power of attorney, along with Pacific Life's claims contact information (1-888-595-6996 for individual life/LTC policyholders).

Your options as a current PremierCare policyholder

Because hybrid products have guaranteed premiums, the typical "what do I do about the rate hike?" framework doesn't apply to PremierCare policyholders. The relevant decision framework is about adequacy, not affordability:

Option 1: Keep the policy as primary LTC coverage

For most PremierCare policyholders, this is the right starting point. The policy provides guaranteed benefits from an A+ carrier with no future premium risk. If your benefit pool was appropriately sized at issue and your care cost assumptions haven't dramatically changed, the policy continues to function as intended.

The main caveat is inflation: PremierCare's fixed benefit structure means real coverage has eroded over time for policyholders who didn't select inflation options. If your daily benefit is $300 or below and you're still 10+ years from likely care need, run the numbers on whether your benefit covers projected care costs at realistic inflation assumptions — or accept that the policy covers a portion of cost rather than the full amount.

Option 2: Supplement with a second layer of coverage

If your PremierCare benefit pool is undersized relative to projected care costs, adding a second layer of coverage is cleaner than replacing the PremierCare policy. Your options include:

• Traditional LTC insurance: A shorter-benefit-period traditional policy from Mutual of Omaha, Thrivent, New York Life, or NGL can add daily benefit coverage or benefit duration without replacing the hybrid structure. Adding a traditional policy with compound inflation protection onto a fixed-benefit hybrid addresses the inflation erosion problem directly.
• Self-fund reserve: Designate a portion of your investment portfolio as a dedicated LTC reserve to cover costs beyond what PremierCare pays. The LTC self-fund vs. insure calculator models this tradeoff at your asset level and benefit assumptions.
• Short-term care bridge: If your PremierCare policy has a 90-day elimination period, a short-term care policy can cover that out-of-pocket gap without requiring full LTC underwriting.

Option 3: Use a 1035 exchange if you have other eligible assets

A §1035 exchange transfers the cash value of a qualifying non-qualified annuity or paid-up life insurance policy into a hybrid LTC product — without triggering income tax on the gain. This is not a replacement of your PremierCare policy; rather, it's a way to convert other financial assets (an old annuity with gains, a paid-up whole life policy) into additional LTC coverage. If you have such assets, this can be a tax-efficient way to increase your LTC benefit pool without paying out-of-pocket premiums.

Option 4: Model the self-fund crossover

For households with $2M+ in liquid assets, the relevant question may not be "what additional coverage do I need?" but "at what point does self-funding make more sense than layering more insurance?" The PremierCare policy provides a base layer of guaranteed benefits; the question is whether additional insurance makes better use of capital than a dedicated portfolio reserve. A fee-only advisor can model the crossover point at your specific asset level, projected care costs, and estate planning goals. Read our self-fund LTC guide for the framework.

How PremierCare compares to other carriers that exited standalone LTC

The key insight from this comparison: PremierCare policyholders are in a fundamentally better position than traditional LTC policyholders at closed-block carriers. The absence of rate hike risk is the dominant differentiator. The trade-off — as the table shows — is limited inflation protection, which is the main planning gap for long-tenured PremierCare policyholders.

Current hybrid LTC alternatives for new coverage in 2026

If you are looking to purchase new hybrid LTC coverage — either as a supplement to an existing PremierCare policy or because you never had LTC coverage — the active hybrid market in 2026 includes four primary carriers with §7702B-qualified benefit design:

• Lincoln Financial — MoneyGuard Fixed Advantage (2025): A (Excellent) AM Best. The longest-running hybrid LTC product in the market (launched 1989). Flexible pay options including single, 5-year, and 10-year pay; no elimination period; reimbursement or 80% cash indemnity at claim. See our Lincoln MoneyGuard review.
• OneAmerica Financial — Asset-Care: A+ AM Best. The only hybrid product offering a lifetime/unlimited benefit period option. Also the only hybrid offered on a joint-life basis with separate benefit pools per spouse (not a shared pool). Available in single, 5-pay, 10-pay, 20-pay, and to-age-95 configurations. See our OneAmerica Asset-Care review.
• Nationwide — CareMatters II: A+ AM Best. 100% cash indemnity — no receipts required — with an informal caregiver benefit (family members and friends can provide care). Benefit periods 2–7 years. 90-day retroactive elimination period. See our Nationwide CareMatters review.
• New York Life — Asset Flex: A++ AM Best (highest possible). Zero-day elimination period for home care. Guaranteed premiums. Distributed through New York Life's career-agent system — not available through independent brokers. See our New York Life LTC review.

For a full side-by-side of these carriers and their products — including when each is the right fit versus when traditional LTC or self-funding is a better answer — see our hybrid LTC insurance guide.

What a fee-only advisor does with a PremierCare policy

Most PremierCare policyholders don't need dramatic action — they need clarity on whether their existing coverage is adequate and whether any gaps require attention. A fee-only review addresses:

• Benefit adequacy: What does your daily benefit cover today at current care costs? How far will the benefit pool stretch if care is needed for 3, 5, or 10 years? If your policy was issued in the 2010s with a fixed daily benefit and no inflation rider, the gap between benefit and cost may be larger than you expect.
• Self-fund crossover: At your current asset level, does the PremierCare policy — possibly supplemented by a small self-fund reserve — provide adequate protection without additional insurance? Or is the gap significant enough to warrant supplemental coverage?
• Estate plan coordination: Your PremierCare death benefit has estate planning value. If you're unlikely to need LTC (very healthy, short family longevity history), the policy functions partly as a life insurance asset. A fee-only advisor can incorporate that into your broader estate plan rather than treating the policy only as an LTC tool.
• Tax positioning: PremierCare premiums may qualify for HIPAA deductibility at your age-based limit ($500–$6,200/year for 2026, depending on age).³ If you haven't been capturing this deduction, your tax advisor should be aware.

1. Pacific Life PremierCare discontinuation: BusinessWire, April 18, 2022 — Pacific Life announced discontinuation of Pacific PremierCare Choice and Pacific PremierCare Advantage products effective May 2, 2022 (last day to accept new applications). Pacific Life stated it would continue to service all in-force policies with no changes to existing policyholders. businesswire.com
2. Pacific Life AM Best rating: AM Best rates Pacific Life Insurance Company at A+ (Superior), Financial Strength Rating, affirmed December 2025. Verify current rating at ambest.com
3. HIPAA eligible premium deductibility limits (2026): IRS Rev. Proc. 2025-28 — age 40 or under: $500; age 41–50: $930; age 51–60: $1,860; age 61–70: $4,960; age 71 or older: $6,200. Qualified LTC contracts must meet IRC §7702B requirements. irs.gov
4. IRC §7702B — LTC insurance benefit triggers: Internal Revenue Code §7702B defines a qualified long-term care insurance contract and specifies the 2-of-6 ADL trigger and cognitive impairment trigger. law.cornell.edu
5. IRC §101(g) — chronic illness accelerated death benefits: Internal Revenue Code §101(g) covers accelerated death benefits for chronically ill individuals; requires permanent impairment certification — stricter trigger than §7702B's 90-day expected standard. law.cornell.edu

AM Best rating and product details verified as of June 2026. Insurance product availability and carrier ratings are subject to change; verify current carrier status before making coverage decisions.