Cost of Long Term Care Insurance

Long Term Care Insurance Cost

How Much Does LTC Insurance Cost?

If you need long term care, paying out of pocket for your care is often devastatingly expensive (as outlined in Genworth’s annual Cost of Care analysis). As such, long term care insurance offers a much less costly solution for your required care.

To help you better understand how policies are written, the cost of long term care insurance is determined by a number of factors, including:

ltc-insurance-cost

  • Age: How old you are when your policy is issued. The sooner in life that you purchase your policy, the lower the insurance premium you will lock in and less expensive your policy will be.
  • Health: It pays to be in good health; applicants with preferred health status may be eligible for discounts upwards of 8-10%.
  • Your Specific Plan: LTC insurance is highly-customizable, so the more comprehensive the policy benefits and plan you and your LTC broker select, the higher the overall insurance policy cost.
  • Relationship Status: If you are married or have a partner, you may be eligible for discounts if you apply jointly.
  • Group Policies: Applying as part of a larger group may enable you to qualify for special long term care policy discounts, so be sure to ask your employer or any professional groups/associations you may belong to about their long term care planning.

Once these factors are accounted for, policies are then designed around four primary components:

  1. Monthly Benefit: The amount you would like to receive each month.
  2. Duration of Benefit: The amount of time your monthly benefits will be paid out.
  3. Elimination Period: The amount of time you are willing to wait before your monthly benefits begin.
  4. Inflation Protection: The growth rate of your benefits over time.

Ballpark Costs of Long Term Care Insurance

The following long term care insurance rates will help give you a ballpark of the premium you can expect from a LTC policy. As mentioned earlier, it’s important to remember that LTC policies are highly customizable, so it’s best to speak to an insurance professional for a more accurate quote.*

Single Female

Age Annual Premium Estimate
45 $1,099
55 $1,457
65 $2,615

Single Male

Age Annual Premium Estimate
45 $733
55 $965
65 $1,728

Married Female

Age Annual Premium Estimate
45 $956
55 $1,268
65 $2,275

Married Male

Age Annual Premium Estimate
45 $637
55 $839
65 $1,503

*Policy assumes $5000 monthly maximum and 3 year benefit multiplier for all estimates. Premium estimates for Married Female and Married Male included shared benefits. 

 

 

Ready to Learn The Exact Cost of LTC Insurance?

Contact Schneider & Shulman Associates today for a custom long term care insurance quote. Our long term care insurance experts will be happy to walk you through all available LTC insurance plans to make sure you get the benefits you need at a cost you are comfortable with.