Prudential Long-Term Care Insurance: What Existing Policyholders Need to Know in 2026

Prudential Insurance Company of America stopped selling new individual long-term care insurance policies effective April 1, 2012, and stopped writing new group LTC plans effective August 2012 in all but a small number of states. The company administers a significant closed in-force block — both individual policies sold through brokers and group LTC certificates sold through employers, unions, and public-sector benefit programs. If you hold a Prudential LTC policy or certificate, here is what the company's current status means for your coverage and what options are available when your next rate increase notice arrives.

Prudential's LTC business: individual and group

Prudential sold long-term care insurance through two distinct channels. Understanding which type of policy you hold shapes where you go for information and what benefit reduction options are available to you.

Individual LTC policies

Prudential sold individual long-term care insurance through independent and career insurance brokers from the 1990s through early 2012. Individual policies were issued directly to the policyholder — not through an employer — and came with benefit designs common in that era: daily or monthly benefit amounts, benefit periods ranging from 2 years to lifetime, elimination periods typically 30–90 days, and optional inflation protection riders including 5% compound and CPI-linked options.

Individual Prudential LTC policyholders manage their policies through PrudentialPeak.com (formerly PrudentialLTC.com) or by calling Prudential's LTC service line at 1-800-732-0416. Rate increase notices and benefit modification options come directly from Prudential, not through an intermediary.

Group LTC certificates

Prudential also operated a substantial group LTC business, selling employer-sponsored LTC benefit programs to corporations, universities, hospital systems, government agencies, and labor unions. Employees enrolled in these programs received group LTC certificates — not individual policies — under a master group plan held by their employer or plan sponsor.

Group LTC certificates typically offered simplified underwriting during open enrollment periods (often with no medical questions for employees enrolling within the first eligibility window), group pricing that was typically lower than individual market rates, and benefit designs similar to individual policies but specified in the certificate terms rather than a standalone policy document.

If you enrolled in LTC insurance through your employer and it was provided through Prudential, you hold a group certificate. Administrative contacts for rate increases and benefit modification requests typically flow through your former employer's HR or benefits administrator, or directly through Prudential's group benefits division. The policy series designations in state regulatory filings include GLTC2, GLTC3, and GLTC4 — which correspond to different generations of Prudential's group LTC products.⁴

Why Prudential exited LTC sales in 2012

Prudential's 2012 exit was among the earlier major carrier departures — preceding Genworth's 2019 exit, MetLife's 2012 exit (announced the same year), John Hancock's 2016 exit, and Transamerica's 2021 exit. The company's announcement cited "challenging economics" in the LTC market, a phrase that described a structural pricing failure common to the entire industry:⁵

1. Policyholder longevity exceeded original pricing assumptions. LTC policies sold in the 1990s and early 2000s were priced on mortality tables and voluntary lapse assumptions that proved too optimistic. Policyholders lived longer, used care more, and lapsed policies at lower rates than actuaries projected. Healthier individuals who no longer needed coverage disproportionately exited; sicker individuals who anticipated future claims retained coverage — a classic adverse selection dynamic that concentrated risk in the remaining pool.
2. Interest rates collapsed below assumed investment returns. LTC reserves are held primarily in investment-grade fixed income. Policies priced in the 1990s assumed portfolio yields of 6–8%. The sustained low-rate environment following 2008 — and yields that never fully recovered to 1990s levels — meant that investment income could not bridge the gap between premiums collected and liabilities accruing on in-force blocks.
3. Worst-case care scenarios occurred more frequently than modeled. Unlimited benefit periods, 5% compound inflation riders, and dementia-driven long-duration claims created policy exposures that original pricing substantially underestimated. Policies sold in the early 2000s with unlimited benefit periods and 5% compound inflation can produce multi-million-dollar lifetime exposures per policy — a liability that was not adequately reserved for when the policies were priced and sold.

Prudential exited cleanly in the sense that it did not face the financial distress Genworth experienced as a standalone LTC-heavy carrier. The strength of Prudential Financial as a diversified financial services holding company — with large life insurance, annuity, and asset management businesses — has meant that the LTC closed block has been administered from a position of financial strength, not urgency. The in-force block's economics require ongoing rate increases regardless of the parent company's strength; the rate increases are driven by actuarial math on the closed block, not corporate financial problems.

Prudential LTC rate increase history

Prudential's in-force LTC block has been subject to premium increases for more than a decade. The structural reason is identical to every other closed-block carrier: as the pool ages, claims accelerate, and without the dilutive effect of younger policyholders entering the pool, the only mechanism to maintain actuarial adequacy is higher premiums from the remaining in-force policyholders.

Key data points on the rate increase history:

• Historical California filings (2008–2014): California Department of Insurance rate filings document multiple Prudential LTC policy form series with approved increases ranging from approximately 18–28% in the 2008–2009 period and continuing through the 2014 period.⁶ California generally requires regulatory approval of LTC rate increases before implementation and maintains a public record of approved filings.
• Group policy increases (2024): For group GLTCI certificates, Prudential implemented premium increases effective May 1, 2024 for policyholders on payroll or pension deduction, and on the next modal premium due date for those remitting premiums directly.⁷
• Ongoing state filings (2025–2026): Maryland Insurance Administration records show active rate revision filings for Prudential's GLTC3 and GLTC4 group policy series, with actuarial memoranda dated 2025 supporting rate revisions for these product lines.⁴ State-by-state variation in regulatory approval timelines means the same actuarial-driven increase request may be approved and implemented at different times in different states.

The Hagens Berman investigation (2023)

In December 2023, plaintiff's attorneys at Hagens Berman announced an investigation into Prudential's LTC rate increase practices, alleging that Prudential increased premiums for some policyholders without applying the same increase uniformly to others in the same policyholder class or age category — a potential deviation from the class-based rate increase methodology required under state insurance regulations.²

The investigation is a pre-litigation inquiry; as of mid-2026 no class-action complaint had been publicly certified. The standard for LTC rate increases under state insurance law requires that increases apply on a class-wide basis — not selectively to individual policyholders — and must be approved by state regulators before implementation. If you have received LTC premium notices from Prudential that appear inconsistent with what others holding the same policy series have reported, the Hagens Berman FAQ page provides contact information for the investigation.²

Managing your Prudential LTC policy: PrudentialPeak.com

Prudential migrated its LTC policyholder self-service platform from PrudentialLTC.com to PrudentialPeak.com. The new platform is described as a "one-stop shop" for policy management and also offers well-being services and solutions alongside the standard account management functions.³

On PrudentialPeak.com, existing policyholders can access:

• Current policy documents and benefit summaries
• Premium payment history and current billing
• Benefit change and rate increase correspondence
• Claims initiation for policyholders who are at or approaching benefit eligibility

For policyholders who received paper correspondence during the PrudentialLTC.com era, your account credentials may need to be re-established on PrudentialPeak.com. Prudential's LTC customer service phone number is 1-800-732-0416. If you are having difficulty locating your policy documents — particularly for older group certificates obtained through an employer from the 1990s or early 2000s — your former employer's HR or benefits department is typically a starting point, as the group plan administrator may hold records that individual policy records may not immediately surface.

Prudential's financial strength in 2026

Prudential Insurance Company of America carries an AM Best Financial Strength Rating of A+ (Superior) with a stable outlook, affirmed in early 2026.¹ Prudential Financial, Inc. (NYSE: PRU) is a U.S.-domiciled publicly traded holding company headquartered in Newark, New Jersey. Its principal life insurance subsidiary — Prudential Insurance Company of America, the entity that issued most LTC policies — carries the A+ rating.

A+ (Superior) is AM Best's second-highest rating tier, one notch below A++ (Exceptional). It is meaningfully stronger than Genworth Financial's B++ (Good) rating. Among closed-block LTC carriers, Prudential's A+ is comparable to John Hancock's A+ rating and is the same tier as Nationwide (an active hybrid carrier). Among all carriers in the LTC market, only New York Life (A++) and Thrivent (A++) hold higher AM Best Financial Strength Ratings.

The A+ rating reflects AM Best's assessment of Prudential's balance sheet strength, operating performance across its diversified business lines, and claims-paying capacity. An important distinction: the rating assesses the ability to pay claims, not whether the LTC block requires ongoing premium increases. A financially strong carrier can simultaneously operate an underpriced in-force block that requires actuarial correction through rate increases — these are separate questions. Prudential's financial strength is a positive indicator for long-horizon claims-paying capacity; it does not indicate the rate increase cycle has concluded.

Is Prudential selling new LTC policies in 2026?

No. Prudential stopped accepting new individual LTC applications effective April 1, 2012, and stopped writing new group LTC plans effective August 2012 in all but a small number of states. The remaining states were exited shortly thereafter. Prudential is not selling any new long-term care insurance products of any type as of 2026.

Prudential has not launched a re-entry LTC product of any kind. There is no Prudential equivalent of Genworth's CareScout Care Assurance (a limited traditional product in 37 states), John Hancock's LifeCare hybrid (an IUL-based product with LTC benefits), or any hybrid life+LTC re-entry product from Prudential. Prudential does offer life insurance and annuity products through its active channels; these are distinct from LTC coverage and do not replace a lapsed LTC policy for most planning purposes.

If you need new LTC coverage, you will need to evaluate carriers currently in the market: see our LTC insurance companies guide for the active carrier landscape, and our hybrid LTC insurance guide for life+LTC products that may be accessible if you can no longer qualify for traditional standalone coverage.

Your options as a current Prudential LTC policyholder

When you receive a rate increase notice from Prudential — or are evaluating a recent one — the decision framework is the same as for any closed-block carrier. The right choice depends on your policy's current benefit value, how much inflation protection has accumulated, your age and health, and your broader financial position. Our LTC insurance premium increase guide covers the full framework; the considerations below apply specifically to Prudential policies.

Option 1: Pay the increased premium and maintain benefits

For policyholders who purchased Prudential LTC coverage in the 1990s or early 2000s with compound inflation protection, paying the increased premium is frequently the right choice — even at a materially higher rate.

A Prudential policy issued in 2000 with a $150/day benefit and 5% compound inflation has grown to approximately $430–$475/day in 2026 — 26 years of compounding at 5% multiplies the original benefit by roughly 3.5×. That level of coverage is simply not available in today's market at any price: no carrier is currently writing new traditional LTC policies with unlimited or long benefit periods and 5% compound inflation. The replacement cost of equivalent coverage — if you could qualify medically for a new policy — would far exceed the current premium at the new rate.

For group certificate holders specifically: if your Prudential coverage was obtained through an employer at group pricing with simplified underwriting, the effective cost at the new rate is often still below what equivalent individual market coverage would cost at your current age — if you could qualify at all. Older policyholders face AALTCI-documented decline rates approaching 50% at age 70 and above; the policy you hold may be irreplaceable on the open market.

Option 2: Reduce benefits to hold premiums manageable

Prudential is required to offer benefit reduction alternatives when sending rate increase notices. Common options include reducing the daily or monthly benefit amount, shortening the benefit period, modifying or eliminating the inflation protection rider, or extending the elimination period from a shorter window to 90 or 180 days.

Protect inflation protection before shortening the benefit period. If you must reduce benefits to manage the new premium, reduce the benefit period first. A Prudential policy issued in 2000 with 5% compound inflation has been growing for 26 years; eliminating the inflation rider freezes your benefit at the current nominal amount. If you claim in 2038 and the inflation rider has been removed, you'll collect in 2026-era dollars while actual memory care costs run at $10,000–$15,000+/month in most markets. Shortening from a 5-year or lifetime benefit to a 3-year benefit period still provides meaningful protection while preserving the inflation engine that has made the policy valuable. See our inflation protection guide for the compounding math over a 20+ year horizon.

For group certificate holders: the specific benefit modification options available under your Prudential group certificate depend on the plan series (GLTC2, GLTC3, GLTC4) and the terms of your employer's group plan. Verify the available options directly with Prudential's group benefits division rather than assuming they mirror individual policy options.

Option 3: Execute a §1035 exchange into a hybrid product

If you hold a non-qualified annuity or whole life insurance policy with substantial embedded gains, a §1035 exchange allows you to transfer those funds tax-free into a hybrid life+LTC product — such as Lincoln Financial MoneyGuard, OneAmerica Asset-Care, or Nationwide CareMatters — without triggering income tax on the gain. The hybrid product replaces your rate-hike-exposed Prudential policy with contractually guaranteed premiums and a death benefit that passes to heirs if care is never needed.

The limitation: a §1035 exchange requires existing qualifying cash value. It is not funded by ongoing premium payments from current income. If you do not hold a qualifying life insurance or annuity contract with embedded gains, this option is not available regardless of how attractive the hybrid carrier's product looks. See our hybrid LTC insurance comparison for a full side-by-side of the four major hybrid carriers.

Option 4: Cancel the policy — but check CNF timing first

Letting the Prudential policy lapse may be appropriate if: you have genuine self-fund capacity ($1.5M–$2M+ liquid for singles; $2M–$3M+ for most couples), or the policy's benefit pool has been reduced through prior modification requests to the point where remaining protection is minimal relative to actual care costs in your area. See our self-fund strategy guide for how to model the crossover.

Critical timing note before canceling: Do not cancel before a pending rate increase takes effect. Under NAIC model regulation, a qualifying premium increase may trigger your contingent non-forfeiture (CNF) right — allowing you to stop paying premiums and convert to a reduced paid-up policy based on premiums already paid, with no future premium obligation. The CNF election window is typically 120 days from the qualifying trigger notification. Canceling before the increase takes effect may forfeit this right permanently.⁸

If you are evaluating a lapse, also verify whether your Prudential policy includes a standard non-forfeiture benefit provision. Contacting PrudentialPeak.com or calling 1-800-732-0416 before canceling takes 15 minutes and may preserve benefit value you have paid for over decades. For group certificate holders, the non-forfeiture terms may differ from individual policy standards — check your certificate's specific language.

Comparing Prudential to other closed-block LTC carriers

Prudential's closed-block situation shares the same structural drivers as Genworth, MetLife, John Hancock, Transamerica, and Unum — but with meaningful differences in financial strength, exit timing, policy type mix, and re-entry strategy:

Prudential's distinguishing position in the closed-block carrier landscape: the combination of a strong parent holding company (Prudential Financial, NYSE: PRU), a diversified business far beyond LTC insurance, and an A+ AM Best rating on the insurance subsidiary provides a meaningfully stronger financial foundation than Genworth — the carrier whose financial pressures are most publicly documented. The rate increase dynamic is structurally similar across all carriers, but the financial security behind the claims-paying entity differs materially.

For Genworth-specific guidance, see our Genworth LTC guide. For John Hancock, see our John Hancock LTC guide. For MetLife, see our MetLife LTC guide. For Unum, see our Unum LTC guide. For an overview of all carriers still writing new policies in 2026, see our LTC insurance companies guide.

What a fee-only advisor does with a Prudential LTC policy

The core question for any Prudential policyholder facing a rate increase is: given what you've paid, what you'd pay going forward at the new rate, and what you'd likely receive, does this policy still fit your financial plan? That analysis requires modeling your specific policy — not a generic framework — because the benefit value of a 25-year-old policy with compound inflation is radically different from a policy purchased in 2010 with no inflation protection.

A fee-only advisor's analysis typically includes:

• Calculating your current inflation-adjusted benefit value — what your daily or monthly benefit has grown to after years of compound inflation, and what that coverage is worth relative to current and projected care costs in your geographic area
• Projecting total lifetime premiums at the new rate against expected benefit payout across claim probability scenarios — using gender-specific actuarial data (51% of women, 39% of men who purchase LTC insurance eventually file a claim, per AALTCI 2025)⁹
• Modeling the self-fund crossover: what liquid reserve would produce equivalent LTC protection without the Prudential policy?
• Evaluating hybrid alternatives at your current age and health: what does Lincoln MoneyGuard, OneAmerica Asset-Care, or Nationwide CareMatters cost now — and do you still qualify medically?
• Assessing whether contingent non-forfeiture under your specific policy or certificate produces a meaningful benefit pool worth preserving before any cancellation decision

A commissioned agent earns compensation from a new product sale and earns nothing from recommending you keep the Prudential policy. That economic structure creates a systematic bias toward replacement — regardless of how ethical the individual agent is. A fee-only advisor charges for the analysis and earns the same fee whether the recommendation is to keep the Prudential policy, reduce benefits, or replace it entirely. When you've paid into a policy for 15–25 years, that policy deserves objective analysis — not a recommendation shaped by commission economics.