Long-Term Care Insurance Cost: The Comprehensive Guide

Shawn Plummer

CEO, The Annuity Expert

Ensuring your twilight years are comfortable and stress-free is a goal many strive to achieve. A vital part of this plan is long-term care insurance. However, we often wonder about the cost of long-term care insurance premiums. In this guide, we dive deep into understanding the various long-term care insurance cost aspects. We aim to answer your pressing questions and help you make a well-informed decision.

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How Much Does Long-Term Care Insurance Cost?

The cost of long-term care insurance depends on multiple factors. The policy type, coverage, age, health status, and even the insurance company can play a role in determining the premium. The average monthly cost of long-term care insurance may range from $200 to $700. However, the price can significantly vary depending on your situation and the specific policy chosen.

Example: If you’re a 55-year-old woman in good health, you may pay around $2,650 per year for a typical long-term care insurance policy. That translates to roughly $220 per month.

Cost of Long-Term Care Insurance at Different Ages

The policyholder’s age is crucial in determining the average monthly cost of long-term care insurance. Generally, the younger you are when you purchase the policy, the lower your premium.

Long-Term Care Insurance Cost

Cost of Long-Term Care Insurance at Age 60

At age 60, assuming you’re in good health, you might pay around $3,000 per year or $250 per month.

Cost of Long-Term Care Insurance at Age 77

At age 77, long-term care insurance costs are higher due to the increased risk associated with age. Premiums can reach up to $6,000 per year, equivalent to $500 monthly.

Federal Long-Term Care Insurance Cost

The Federal Long-Term Care Insurance Program (FLTCIP) covers federal employees and their families. The cost of this insurance depends on your age and the amount of coverage you choose. However, as a general guideline, the monthly cost can range from $100 to $400.

Example: A 75-year-old individual may expect to pay around $300 monthly for federal long-term care insurance.

How Much Is Long-Term Care Insurance For A 75 Year-Old

Premium Increments

Do long-term care insurance premiums increase? The answer is, unfortunately, yes. Insurance companies can increase premiums due to higher-than-expected claims or lower-than-expected investment returns.

Ways to Lower Premium Costs

What decreases the premium for a long-term care policy? Many factors can lead to lower premium costs, such as purchasing the policy at a younger age, maintaining a healthy lifestyle, or choosing a more extended elimination period (the time before the policy starts paying benefits).

Example: If you choose an elimination period of 90 days instead of 30, you could reduce your premium by up to 20%.

How Much Does Long Term Care Insurance Cost

Next Steps

Understanding long-term care insurance costs involves considering factors such as age, policy type, and coverage level. It’s crucial to remember that the costs can vary significantly based on individual circumstances. While premiums might increase over time, there are strategies you can employ to manage and potentially reduce your costs.

As you plan for your future, consider this investment in your peace of mind. Long-term care insurance premiums may seem high, but their protection and assurance often outweigh the cost. It’s about ensuring that you and your loved ones are cared for, no matter what the future holds.

Long-Term Care Insurance Cost By Age

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

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

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