There are various factors that play into the cost of long-term care insurance, with age and health being of particular significance in its calculation. Coverage factors also vary by insurer; whether an elimination period policy (in which care must be paid before coverage begins) may also impact costs; as do premium rates – so be sure to shop around to get the best rates!
Typically speaking, when enrolling at a younger age, your premiums will be lower as insurers assume you pose less of a risk of needing long-term care in the future. On the flipside, older enrollees tend to see their premiums increase accordingly.
Some insurance companies provide specialty and catastrophic policies designed specifically for people living with chronic or debilitating health conditions that may cost more than traditional policies; this coverage should be discussed with an agent before purchasing it to make sure it fits your specific needs.
An additional factor influencing the cost of long term care insurance is your family situation and health status. If family can assist in caring for you, long-term care insurance may not be necessary; if not or you wish to safeguard your assets from its costs, an outpatient plan may be essential.
Marriage may allow couples to save on premiums when applying for joint long-term care insurance policies; many insurance providers provide discounts when two apply together, and you should inquire if there are additional discounts for good health, paying annually and membership of particular organizations.
An important decision for long-term care insurance policy selection is choosing your policy type. Traditional long-term care policies usually consist of daily benefits that can be used over several days, months or years; some companies offer lifetime benefits that cover you for as long as you live – these options tend to be more costly, so it is advisable to research all available providers or policies prior to making any decisions or commitments.
According to American Association for Long Term Care Insurance (AALTCI) data, an individual aged 55 purchasing $165,000 of long-term care insurance in 2022 typically paid an annual premium of $2,220; married couples could expect to pay around $2,550. These figures do not include linked benefit policies – hybrid policies which combine benefits from long-term care with whole life – that offer premium pricing information on linked benefit pricing indices such as AALTCI’s Linked Benefit Pricing Index page as well as how much different insurers charge in premium charges using SmartAsset Long Term Care Insurance Rate Comparison tool.