How Much Does Long Term Care Insurance Cost?

Long term care insurance is essential if you want to protect both your retirement savings and family from future care expenses. But how much coverage you require may differ, depending on the type of policy purchased; rates should be compared and features like inflation protection and waiver of premium riders considered; use an online calculator or ask family and friends what their cost was for their policies for an approximate estimate.

When selecting insurers, take note of their financial strength ratings, customer service reviews and complaint index from the National Association of Insurance Commissioners. Also obtain quotes for similar policies so you can make an unbiased comparison; be sure to include money you may receive from Social Security or pension plans which might reduce coverage costs.

Long-term care costs are high, often surpassing most household budgets and wiping out retirement savings in many instances. And with more people living longer lives and thus needing such costly long-term care increasing. Most costs may be covered by long-term care insurance but premium payments for such policies may be substantial.

Your state may provide tax deductions on long-term care premiums you pay, depending on when and how you purchase them. Your exact rate depends on a variety of factors such as when and how soon you enroll – for instance, single men purchasing policies with $165,000 level benefits at age 55 can expect annual payments as little as $79; once they turn 60 they could expect up to $2,150 annually according to American Association for Long-Term Care Insurance data.

Long-term care insurance costs can increase over time as medical costs increase, but some insurance companies offer optional inflation protection that raises benefits by a set percentage each year – typically 1-5 percent depending on your policy’s costs, yet helps safeguard you against future price rises in care costs.

Hybrid policies offer another solution for financing long-term care costs: they combine life insurance with an investment account that pays out as a benefit should long-term care become necessary. Though more costly than traditional policies, hybrid policies might be worth exploring if both life and long-term care coverage are essential – particularly if traditional options don’t apply.