Does a Long-Term Care Policy Have a Deductible?

Shawn Plummer

CEO, The Annuity Expert

Does a Long-Term Care Policy Have a Deductible?

No, Long-Term Care policies do not have deductibles.

Long-term care (LTC) insurance policies differ from traditional health insurance in their cost-sharing structure. Unlike health insurance, which typically involves deductibles and copayments, LTC insurance does not operate on a deductible basis.

How Long-Term Care Insurance Works

  • Fixed Payouts: LTC insurance provides predetermined benefits, usually a fixed daily or monthly amount.
  • Coverage: The payouts cover expenses for services like in-home care, nursing home care, or assisted living.
  • Budget Planning: Policyholders must plan their budgets to accommodate the fixed payout amount. If the long-term care costs exceed this amount, the policyholder is responsible for the difference.
  • Out-of-Pocket Costs: Any care costs exceeding the insurance payout must be covered out-of-pocket by the policy owner.


Imagine a policy with a $200 daily benefit. If the actual LTC cost is $250 per day, the policyholder must pay the additional $50 out of pocket.

Comparison of Long-Term Care Insurance vs. Traditional Health Insurance

FeatureLong-Term Care InsuranceTraditional Health Insurance
Payout StructureFixed daily/monthly benefitBased on deductible and copay
Cost CoverageSpecific to LTC servicesBroad medical expenses
Out-of-Pocket ExpensesExcess costs beyond payoutCosts up to deductible/copay limit


Long-term care insurance does not include a deductible but offers fixed payouts for specific LTC expenses. Policy owners should be prepared to manage any costs that exceed the insurance payout. This understanding is crucial for effective financial planning in the context of long-term care needs.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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