Long Term Care Insurance Cost – How Much Does It Cost?

long term care insurance cost

Long term care insurance costs may seem high at first, but its peace of mind often outweighs its price. Finding an affordable policy should be easy once you consult with a specialist; their multiple providers should offer options that suit both your goals and budget.

Your choice of policy also plays a part in how much you’ll pay, with some policies covering expenses while others offering cash benefits that can be spent however you like. When purchasing, consider how your health impacts its price as some carriers only issue coverage to individuals meeting certain criteria – for instance, smokers and those with certain family medical histories may incur higher premiums.

Age plays a large part in policy costs. As we age, the likelihood of needing long-term care services increases significantly and this can become costly. A man buying a $165,000 policy at age 55 would pay approximately $79 monthly premiums but after 65 this figure will skyrocket to around $142.

Not only can your age impact how much a long-term care policy costs, but the type of policy and riders you select also have an effect. For instance, some insurers offer inflation riders that increase daily benefit amounts based on an inflated percentage each year while other policies enable you to extend the elimination period before your benefits kick in. Some even come equipped with home care options which offer similar levels of service while minimizing out-of-pocket expenses.

An effective strategy for lowering long-term care insurance costs is purchasing a hybrid policy that combines life or annuity coverage with long-term care benefits. Some individuals also use their home equity or reverse mortgage as payment. At this stage, it may also be worthwhile considering Medicaid, which is a joint federal and state public insurance program created to assist low-income Americans cover some of their long-term care costs. To get an accurate quote for long-term care insurance policies, speak to a specialist. NerdWallet writers are subject matter experts who rely on primary, trusted sources such as peer-reviewed studies, government websites and academic research for their content creation. All content produced for NerdWallet is fact checked for accuracy, timeliness and relevancy before going live.