Long-term care insurance (LTCI) is one of the most effective ways to prepare for a potential extended care need as you age. While pricing can vary, many individuals find that the cost of a policy is reasonable, especially when weighed against the significant financial burden of long-term care services without coverage.

Factors That Influence the Cost of LTCI

Your LTCI premium is based on several factors, including:

• Your age when you apply
• Your health status and medical history
• The type of policy you choose (traditional or hybrid)
• The amount of coverage (benefit amount, duration, and inflation protection)

Applying for an LTCI policy while you’re younger and in good health generally results in lower premiums and more options.

Traditional vs. Hybrid Policies

Traditional LTCI typically offers the most flexible benefits and lower initial premiums. You pay ongoing premiums, and the policy provides coverage strictly for long-term care needs.

Asset-based or hybrid LTCI combines long-term care benefits with life insurance or an annuity. These policies often involve a single premium or fixed payments over a set period and may include a death benefit if care is never needed.

Both types of LTCI provide a valuable safety net, but they differ in structure, cost, and how benefits are used.

The Cost of Long-Term Care Without Insurance

Long-term care is expensive, and costs will only continue to rise. Without insurance, you could be paying several thousand dollars per month for at-home care or assisted living, and even more for skilled nursing care, depending on your level of need.

On the other hand, long-term care insurance can help you protect your retirement savings, preserve your family’s financial stability, and gain greater control over where and how you receive care.

Is LTCI Worth It?

LTCI isn’t just about protecting your money—it’s about preserving your choice, dignity, and independence. With the right policy, you can:

• Stay in your home longer and maintain a level of independence
• Avoid relying on family for caregiving
• Prevent your estate from being spent down or lost to nursing home bills

Want to see what your LTCI policy might cost?

If you’re curious about what a policy might look like for your unique situation, we’re here to help. Our LTC Advocates offer free, no-obligation consultations to help you understand your options and make an informed decision.