How Much Does Long-Term Care Insurance Cost?
Key Insights
- Annual premiums vary by age, health, and gender, averaging about $950 for men, $1,500 for women, and $2,080 for couples at age 55
- Women pay more because they live longer and are more likely to need care.
- Policy cost depends on age, health, coverage limits, inflation protection, and optional riders.
- Buying in your 50s typically secures lower premiums and better options.
- Compared to nursing home costs that can exceed $100,000 a year, LTCI offers strong financial protection.
If you’ve investigated long-term care insurance (LTCI), you’ve probably asked the big question: “How much does it actually cost?” The answer: It depends on your age, health, the type of policy, and how much coverage you want. Let’s unpack the real numbers and what factors drive them so you can make a smarter, more confident decision.
Average LTCI Costs: A Snapshot
According to the American Association for Long-Term Care Insurance, here’s what a 55-year-old might expect to pay (as of recent data):
- Single male, age 55: About $950/year
- Single female, age 55: About $1,500/year
- Married couple, both 55: Around $2,080/year total
These premiums assume healthy applicants, standard benefit levels (e.g., $4,500/month with $165,000 total benefit), and no special add-ons such as inflation riders.
Why do women pay more? You might notice women typically pay more, and that’s because they live longer and are more likely to need long-term care. Insurance companies price their policies accordingly.
Key Factors That Affect LTCI Cost
- Age at Purchase: The younger you are when you buy, the lower the premium because you’re healthier and statistically less likely to use the benefits soon.
- Health History: Healthier applicants qualify for discounts. If you wait too long and develop medical conditions, you could be charged more or denied coverage altogether.
- Amount of Coverage: The more you want the policy to pay out, the more you’ll pay. This includes higher daily/monthly benefit limit, longer benefit period (how long the policy will pay), shorter elimination period (like a deductible in days), and higher lifetime maximum.
- Inflation Protection: This is a must-have for many, especially younger buyers. But it adds cost. A policy that increases benefits by 3–5% annually will be pricier upfront but may be more valuable later.
- Optional Riders: These are add-ons like shared coverage between spouses, return of premium, or waiver of premium. They’re helpful but not free.
How to Save on LTCI
- Buy earlier (your 50s are often the sweet spot).
- Shop multiple carriers—prices vary a lot between insurers.
- Consider shared policies if you’re married.
- Work with a specialist who can tailor the right mix of benefits to your budget.
- Don’t over-insure—you don’t need to cover every dollar of future care.
The Cost of Waiting
Here’s the kicker: Every year you wait, premiums can increase—not just because you’re older, but because the industry can release a new product with new premium. Also, your health can change at any time, which may disqualify you for LTCI coverage.
Long-term care insurance isn’t just an expense—it’s a financial strategy. It helps protect your retirement savings, your family’s well-being, and your independence.
Yes, it’s a commitment. But compared to the $100,000+ per year cost of nursing home care, a well-structured LTCI policy can be a smart investment in your future peace of mind.
