Long Term Care Insurance (LTC) pays for quality nursing home, assisted living or in‑home care if you need it.
When you consider that an average private nursing home room can cost about $99,736 per year, you see how important an LTC policy is for your peace of mind. It also protects financial assets that would otherwise pay for your care. Before you purchase this coverage, learn more about the factors that affect your policy’s premium cost.
Age
Your age at the time you purchase a policy affects the premium cost. Your rate can increase by three to five percent each year you wait to buy coverage, so earlier purchase often reduces lifetime premiums. Don’t rush the decision, though—take time to compare plans and terms.
Health
You’ll generally get lower rates if you buy a policy while you’re healthy. Premiums increase if you develop health conditions or require multiple prescription medications, and some conditions can affect eligibility.
Coverage
An average policy includes benefits such as waiver of premium, alternate care, equipment and home modifications, bed reservation, and homemaker and chore services.
- Inflation protection
- Restoration of benefits
- Survivorship benefit
- Waiver of Home Health Care Elimination Period
- Return of Premium
- Nonforfeiture benefit
Each rider typically increases total cost by roughly five to 75 percent, so balance expected needs against your budget when selecting riders. For options that emphasize in‑home services, see Long-Term Home Care Insurance.
Discounts
You may qualify for preferred health or marriage discounts. Ask your agent about available savings and whether bundling or employer groups apply.
Waiting
Delaying purchase can raise lifetime costs. For example, at age 50 John buys a policy with a $4,500 monthly benefit, a four‑year benefit period, a 90‑day elimination period, and three percent inflation protection; his premium is $2,707 per year and his total premiums paid by age 85 equal $94,745. If he waits until age 55 for the same coverage, his premium rises to about $3,589 per year and his total premiums paid reach roughly $107,670. Buying earlier in many cases can save thousands over a lifetime.
Afford the long‑term coverage that gives you peace of mind by considering these factors. For a clear overview of what these policies cover and how they work, see What is Long Term Care Insurance?
Discuss your specific needs and budget and talk to your agent as you choose the right policy for you.
Frequently Asked Questions
When is the best time to buy a policy?
Buying earlier—while you are younger and healthier—typically lowers premiums and improves underwriting options.
What is an elimination period?
The elimination period is the waiting time after you qualify for benefits before payments begin; longer periods lower premiums but increase out‑of‑pocket risk.
Do these policies cover in‑home care?
Many policies include in‑home care or allow it as an option, but coverage depends on the specific policy language and chosen riders.
Can premiums increase after I buy a policy?
Yes, some policies have the potential for premium increases; review rate history and insurer disclosures before purchasing.