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

Unum was one of the largest providers of group long-term care insurance in the United States, primarily selling LTC coverage through employers, labor unions, and public employee benefit programs. The company stopped selling new individual LTC policies in 2009, stopped writing new group LTC plans in 2012, and as of February 1, 2026, will no longer accept new enrollments into any existing Unum LTC group plan. If you hold a Unum LTC policy — whether obtained through an employer benefit or purchased individually — here is what the company's current status means for your coverage and what options are available when your next rate increase notice arrives.

Unum's LTC business: a group-focused carrier

Unlike Genworth, John Hancock, or Transamerica — whose LTC books were primarily individually purchased policies — Unum's LTC business was built primarily through the employer market. Unum sold group LTC insurance to corporations, hospital systems, universities, state and municipal government agencies, and labor unions, enrolling employees and their families at work-site rates and with simplified underwriting.

This means most Unum LTC policyholders obtained their coverage through an employer benefit program — not by purchasing directly from an agent. The practical implication: policy-specific details, benefit summaries, and rate increase notices typically come through your employer's benefit administrator or directly from Unum's group benefits division, rather than from an individual insurance agent. If you received a rate hike notice and are unsure which entity to contact, your HR department or former employer's benefits contact is often the right starting point alongside Unum directly.

Individual Unum LTC policies do exist, particularly from the 1990s and early 2000s when Unum also sold to individuals through insurance brokers. If you purchased a Unum LTC policy directly (not through an employer), your policy is administered by Unum's individual life and LTC division — the coverage terms and benefit designs are functionally similar to group policies but the administrative experience differs.

Why Unum exited new LTC sales

Unum's timeline mirrors the industry-wide structural failure that drove every major carrier out of the LTC market:

1. Policyholder longevity exceeded pricing assumptions. LTC policies sold in the 1990s were priced on mortality and utilization models that proved materially too optimistic. Policyholders lived longer and required care more frequently than original pricing assumed. Within group plans, healthy lower-risk participants who no longer needed the coverage disproportionately lapsed their policies, concentrating risk in the remaining pool — the adverse selection dynamic that accelerated every carrier's reserve shortfall.
2. Interest rates collapsed below the investment return assumptions embedded in original pricing. Group LTC reserves are held in investment-grade fixed income. Policies priced in the 1990s assumed portfolio yields of 7–8%. A decade of near-zero rates, followed by a higher-for-longer environment that arrived too late to recover prior losses, meant that investment income could not close the gap between premiums collected and claims paid. Every carrier with a large 1990s LTC in-force block faced this math regardless of how the portfolio was managed.
3. Claim costs for long-duration care exceeded projections. The worst-case LTC scenarios — dementia requiring 10+ years of memory care, couples where both spouses require simultaneous care — occurred at higher frequencies than actuarial models expected. Benefit designs sold in the 1990s, particularly unlimited benefit periods and 5% compound inflation riders, created multi-million-dollar claim exposures per policy that original pricing did not adequately reserve for.

Unum stopped writing new individual policies in 2009 and new group plans in 2012. The 2026 decision to stop accepting new enrollments into existing group plans — meaning current employers can no longer add newly eligible employees to Unum LTC plans — marks the final step in Unum's withdrawal from the LTC market as a seller.⁴

Unum LTC rate increase history

Unum's in-force LTC block has been subject to ongoing rate increases since the carrier closed to new business. The increases follow the same structural logic as Genworth, MetLife, John Hancock, and Transamerica: a closed block ages, claims accelerate, and the only mechanism to maintain actuarial balance — absent higher investment returns — is higher premiums on remaining policyholders.

• Cumulative increases in recent years: Reports from policyholders document significant cumulative increases. One Unum LTC policyholder who purchased coverage in 2013 reported a total premium increase from $1,214/year to $2,524/year as of 2026 — a cumulative increase of approximately 108% over 13 years.³ Another documented experience involved a 96% increase on a single-round filing.
• 2026 rate actions: Unum Plans 3 and 4 — policy series offered through certain group benefit programs, including public employee plans — implemented premium increases effective June 1, 2026 that more than doubled premium costs for affected policyholders.⁵
• State-by-state variation: As with all LTC carriers, Unum must file for and receive state regulatory approval for each rate increase. States vary in how quickly they process filings, whether they require phased implementation for increases above defined thresholds, and what benefit reduction alternatives must be offered alongside any increase. Policyholders in states with slower regulatory processes may have received prior approved increases later than policyholders in other states, meaning cumulative experienced increases vary geographically.

Unum does not publish a cumulative nominal-basis rate increase figure in its financial disclosures the way Genworth Financial does in quarterly earnings filings. The practical experience for individual policyholders varies materially by plan series, policy generation, original benefit design, and state. Policyholders with richer 1990s-era benefit designs — compound inflation riders, extended or unlimited benefit periods — have typically absorbed the largest increases, because those policies were priced most aggressively relative to eventual claims exposure.

What the Fortitude Re reinsurance deal means for policyholders

In July 2025, Unum Group completed a $3.4 billion long-term care reinsurance transaction with Fortitude Reinsurance Company Ltd., a subsidiary of Fortitude Re (a large Bermuda-based run-off reinsurer).² Under the transaction, Unum America ceded to Fortitude Re approximately 19% of its individual LTC insurance reserves. Fortitude Re then retroceded the biometric risk to a highly rated global reinsurer.

This is a financial-management and capital-relief transaction. For existing Unum policyholders, the practical implications are:

• Your policy contract is unchanged. The reinsurance arrangement is between Unum and Fortitude Re — you are not a party to it. Your benefits, benefit triggers, elimination period, inflation protection, and all other policy terms remain as written in your original certificate or policy document.
• Unum remains the claims-paying entity. Despite the reinsurance, claims are still paid by Unum under your original policy. Fortitude Re provides capital support to Unum through the reinsurance arrangement; they are not your insurer and do not process your claims.
• The transaction reduces Unum's reserve exposure. By ceding 19% of its individual LTC reserves, Unum reduced its capital requirement associated with that portion of the block and generated an estimated $100 million capital benefit. This strengthens Unum's financial position on the remaining block — which is a positive indicator for long-term claims-paying capacity.
• It does not indicate distress. Run-off LTC reinsurance transactions are a normal financial-management tool for carriers seeking to reduce their LTC balance sheet exposure. Genworth, Transamerica, and other carriers have explored or executed similar arrangements. Completion of the transaction at a major reinsurer indicates the LTC block was valued — not offloaded in distress.

If you have received any communication suggesting that your Unum policy has been "transferred" or that Fortitude Re is your new insurer, that framing is misleading. Reinsurance is a capital-sharing arrangement between carriers; your policy contract is with Unum. Verify the status of your specific policy by contacting Unum's policyholder service line directly.

Unum's financial strength in 2026

Unum Life Insurance Company of America carries an AM Best Financial Strength Rating of A (Excellent) with a stable outlook, affirmed September 2025.¹ Unum Group (NYSE: UNM) is a U.S. publicly traded company headquartered in Chattanooga, Tennessee — the same domestic regulatory jurisdiction as your policy.

The A (Excellent) AM Best rating is meaningfully stronger than Genworth Financial's B++ (Good) rating and comparable to Transamerica's A (Excellent) rating. It reflects AM Best's assessment of Unum's balance sheet strength and ability to meet ongoing policyholder obligations. Financial strength does not indicate that the rate increase cycle is complete — the actuarial math on closed LTC blocks operates independently of carrier financial health, and a financially strong carrier can simultaneously operate an underpriced in-force block requiring ongoing premium increases.

For Unum LTC policyholders evaluating long-horizon carrier risk, the A (Excellent) AM Best rating and the Fortitude Re reinsurance transaction (which reduced the LTC block's capital burden) are both positive indicators. The primary risk for long-term holders is continued premium increases — not claims payment failure.

Is Unum selling new LTC policies in 2026?

No. Unum stopped accepting new individual LTC applications in 2009, stopped writing new group LTC plans in 2012, and as of February 1, 2026, no longer accepts new enrollments into any existing Unum group LTC plan — meaning employees who become newly eligible for coverage at a company with an existing Unum LTC benefit can no longer enroll.⁴

Unum has not launched a re-entry LTC product of any kind. There is no Unum equivalent of Genworth's CareScout Care Assurance (a limited traditional-style product in 37 states), John Hancock's LifeCare hybrid (an IUL-based product offering LTC benefits), or any hybrid life+LTC replacement product from Unum. If you are looking for new LTC coverage, you will need to evaluate independent carriers: see our LTC insurance companies guide for the full active carrier landscape and our hybrid LTC insurance guide for alternatives to traditional standalone policies.

Your options as a current Unum LTC policyholder

When you receive a rate increase notice from Unum — or have already received one — you typically have four options. The right choice depends on your policy's current benefit design, how much inflation protection has accrued, your age and health, and your overall financial position. Our LTC insurance premium increase guide covers the full decision framework; the considerations below apply specifically to Unum policies.

Option 1: Pay the increased premium and maintain benefits

For policyholders who purchased Unum LTC coverage in the 1990s or early 2000s with compound inflation protection, paying the increased premium is frequently the right choice. The reason: compound inflation riders on policies issued 20–25 years ago have significantly grown the nominal benefit value. A policy issued in 2001 with a $150/day benefit and 5% compound inflation has grown to approximately $430–$475/day in 2026 — coverage that is simply unavailable in today's market at any price because no carrier is selling new traditional LTC policies with those terms.

For group plan policyholders specifically: if your Unum LTC coverage was obtained through an employer at group pricing (typically 15–30% lower than comparable individual coverage), the effective premium you're paying at the new rate is often still below what equivalent individual market coverage would have cost at your current age — assuming you could still qualify medically for new coverage, which becomes less certain with age.

Option 2: Reduce benefits to hold the premium flat

Unum, like all closed-block carriers, is required to offer benefit reduction options when sending rate increase notices. Common options include reducing the daily benefit amount, shortening the benefit period, modifying or removing the inflation protection rider, or extending the elimination period.

Critical sequencing rule: protect compound inflation before shortening the benefit period. If you must reduce benefits to hold premiums manageable, reduce the benefit period first — not the inflation rider. A Unum 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 2040 and the inflation rider has been removed, you'll collect in 2026-era dollars while actual memory care costs run at $8,000–$12,000+/month. Shortening from a lifetime benefit to a 4-year benefit period still provides meaningful protection while preserving the inflation engine that makes the policy valuable. See our inflation protection guide for the compounding math over a 20+ year horizon.

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

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

The limitation: a §1035 exchange requires existing cash value in an eligible life insurance or annuity contract. It is not funded by paying ongoing premiums from current income. If you don't hold a qualifying asset with embedded gains, this pathway is not available. 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 Unum policy lapse may be appropriate if: you have sufficient liquid assets to genuinely self-fund care costs ($1.5M–$2M+ for singles, $2M–$3M+ for most couples), or the policy's remaining benefit pool has been reduced through prior modifications to the point where the remaining protection is minimal relative to actual care costs in your area.

Important timing note: If you are facing a specific Unum rate increase effective date, do not cancel before the increase takes effect. Under NAIC model regulation, a significant premium increase may trigger your contingent non-forfeiture (CNF) right — allowing you to stop paying premiums and convert to a reduced paid-up policy with no future premium obligation, based on premiums already paid. To preserve the CNF election window (typically 120 days from trigger notification), your policy must still be in-force when the qualifying increase takes effect. Canceling before the increase effective date may forfeit this right.⁶

If you decide to drop the policy, also verify whether your Unum certificate includes a standard non-forfeiture benefit provision separate from contingent non-forfeiture. Group LTC certificates varied in whether they included non-forfeiture options; individual Unum policies typically did. Contacting Unum's policyholder service before canceling to understand your options takes 15 minutes and may preserve meaningful benefit value you've paid for over years or decades.

Comparing Unum to other closed-block LTC carriers

Unum shares the fundamental closed-block situation with Genworth, MetLife, John Hancock, and Transamerica, but with meaningful differences in financial strength, parent structure, policy type mix, and re-entry strategy:

Unum's distinctive position: it was primarily a group (employer) LTC carrier while most of the other major exited carriers focused on individual policies. This means Unum policyholders often have less direct relationship with an insurance agent and may first learn of rate changes through HR or benefit administrator communications. The employer-plan context also means some Unum group certificates may have different benefit reduction options than individually purchased policies — verify the specific options available under your certificate with Unum directly.

For Genworth-specific guidance, see our Genworth LTC guide. For John Hancock, see our John Hancock LTC guide. For Transamerica, see our Transamerica LTC guide. For MetLife, see our MetLife 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 Unum LTC policy

The core question for any Unum policyholder facing a rate increase is the same as for any closed-block carrier: given what you've paid, what you'd pay at the new rate, and what you'd likely receive, does this policy still fit your financial plan? For group LTC policyholders specifically, the analysis is complicated by the employer context — you may have paid years of group-rate premiums that are not recoverable if you cancel — and by the fact that replacement coverage requires individual underwriting at your current age and health.

A fee-only advisor's analysis typically includes:

• Calculating the 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 area
• Projecting total lifetime premiums at the new rate against expected benefit payout across claim probability and duration scenarios, using gender-specific claim probability data (51% for women, 39% for men)⁷
• Modeling the self-fund crossover: how much in liquid reserves would produce equivalent LTC protection without the Unum 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 the contingent non-forfeiture option under your specific Unum certificate produces a meaningful benefit pool worth preserving before cancellation

A commissioned agent earns first-year compensation from a new product sale and earns nothing from recommending you keep the Unum policy. That structural conflict applies regardless of how ethical the individual agent is — the economics create a systematic bias toward replacement. A fee-only advisor charges for the analysis itself and earns the same fee regardless of whether the recommendation is to keep the Unum policy, reduce benefits, or replace it entirely.