We Compare Multiple Long-Term Care Insurers to Find You the Best Coverage
Long-term care insurance protects you from the rising cost of extended care services like nursing homes, assisted living, and in-home care. The Annuity Expert is an independent long-term care insurance agency, which means we’re not tied to one company. Instead, we shop and compare policies from multiple top-rated insurers to find you the best coverage at the lowest possible price. Our goal is to help you buy a policy that fits your health, budget, and family needs—without overpaying or settling for limited options.
Why Long-Term Care Insurance Matters
The average cost of nursing home care is over $90,000 per year. Home health care, assisted living, and nursing homes can drain savings even faster. Medicare and regular health insurance don’t cover these long-term needs. Long-term care insurance shifts the financial risk to an insurance company, so your family and retirement savings aren’t left exposed.
Types of Long-Term Care Insurance We Sell
We provide access to multiple types of long-term care insurance so you can choose the policy that fits your needs and budget:
Traditional Long-Term Care Insurance
- How It Works: Standalone policy covering care costs for a set benefit period.
- Pros: Flexible coverage, lower initial premiums.
- Cons: Premiums can rise, “use it or lose it.”
- Best For: Buyers focused only on care coverage.
- How It Works: Combine life insurance or annuities with LTC benefits.
- Pros: If you never use care, heirs get a death benefit.
- Cons: Higher upfront cost.
- Best For: Those wanting care protection plus a legacy.
- How It Works: An annuity that multiplies your benefit for care.
- Pros: Easier approval for health issues, lifetime income options.
- Cons: Less flexible than traditional policies.
- Best For: People with assets who may have medical concerns.
- How It Works: An annuity that converts assets into an income stream to help meet Medicaid eligibility rules for long-term care.
- Pros: Can help protect a spouse from spending down all assets, useful for Medicaid planning.
- Cons: Strict rules, must be structured correctly, not a true long-term care insurance policy.
- Best For: People who need nursing home care soon and want to qualify for Medicaid while preserving income for a spouse.
Key Features to Compare
When shopping for long-term care insurance, pay close attention to the fine print. These features determine how much protection you really have:
- Daily/Monthly Benefit: The maximum the policy will pay toward your care. A higher benefit means better protection, but premiums will be higher. Many buyers choose a monthly benefit so they aren’t penalized if one week’s care is more expensive than another.
- Benefit Period: The length of time your benefits will last (commonly 2, 3, 5, or 6 years). Longer periods cost more but cover more of your lifetime risk. Some policies offer “shared care” between spouses, allowing benefits to be used flexibly.
- Inflation Protection: One of the most essential features. Care costs rise every year, so your benefit must grow to keep up. Options include 3% compound, 5% compound, or CPI-linked increases. Without this, a policy purchased today may not be enough in 20 years.
- Elimination Period: This is the waiting period before benefits start (often 90 days). A longer elimination period lowers premiums but requires you to self-pay for initial care. Buyers must weigh affordability against out-of-pocket risk.
- Indemnity vs. Reimbursement: Reimbursement policies require receipts and pay back the exact cost of care, up to your policy limit. Indemnity or cash policies pay a set benefit directly to you, no receipts needed. Indemnity offers more flexibility but usually comes with higher premiums.
- Waiver of Premium: Many policies stop charging premiums once you start receiving benefits, easing financial stress during care.
- Non-Forfeiture Options: Protects some value if you cancel or stop paying premiums. This feature prevents you from walking away with nothing after years of payments.
- Partnership Program Eligibility: Some policies qualify for state LTC Partnership Programs, meaning if you exhaust your benefits, you can keep more assets while qualifying for Medicaid.
Pros and Cons of Long-Term Care Insurance
Pros
- Protects retirement savings: LTC expenses can wipe out savings in a few years. Insurance shifts this risk to the insurer, ensuring your assets last longer.
- Guarantees access to better care: Having coverage gives you more choices, from in-home care to private facilities, instead of relying only on Medicaid-approved providers.
- Eases family burden: Without coverage, relatives may need to provide unpaid care or make difficult financial sacrifices. Insurance allows families to focus on support rather than costs.
- Flexible policy types: Hybrid and annuity-based policies ensure your premiums don’t go to waste if you never use care—your money still benefits you or your heirs.
- Tax advantages: Premiums may be deductible, and some policies integrate with state Partnership Programs, protecting more of your estate.
- Customizable: You can tailor benefits, inflation protection, and riders to fit your personal budget and goals.
Cons
- Premiums can be expensive: The younger you are when you buy, the more affordable it is. Waiting until your 60s or 70s can make premiums steep.
- Rates may increase: Some traditional LTC policies allow insurers to raise rates, which can make long-term affordability uncertain.
- Strict medical underwriting: If you already have health issues, you may be denied or face higher premiums. Hybrid or annuity-based options may be alternatives, but they often cost more.
- Complex policy design: Understanding elimination periods, inflation riders, and reimbursement rules can be overwhelming without professional help.
- Use-it-or-lose-it risk: Traditional policies provide no benefit if you never require care. Only hybrids or annuity-based plans solve this problem.
- Not right for everyone: Low-income households may be better off relying on Medicaid, while high-net-worth families may be able to self-insure.
Who Needs It (and Who Doesn’t)
- Needs it: Middle- to high-income individuals who want to preserve assets and independence.
- Might not need it: Low-income households likely to qualify for Medicaid, or wealthy households who can self-fund care.
Related Insurance to Consider
- Life insurance with LTC riders: Provides both care coverage and a legacy.
- Disability insurance: Protects income before retirement.
- Annuities with LTC benefits: Add income guarantees with extra funds for care.
Smart Ways to Save Money
- Buy younger to lock in lower premiums.
- When purchasing with a spouse, shared care riders reduce costs.
- Deduct premiums within IRS limits.
- Use a 1035 exchange from an existing annuity or life policy for tax-free funding.
- Compare quotes from multiple carriers—rates vary widely.
Sample Cost by Age
Premiums rise significantly the longer you wait to buy:
Age 50
- Estimated Monthly Premium: ~$95–$120
- Notes: Health is typically best, premiums lowest.
Age 60
- Estimated Monthly Premium: ~$125–$165
- Notes: Still affordable, but approvals start tightening.
Age 70
- Estimated Monthly Premium: ~$200–$300+
- Notes: High cost, harder to qualify due to health issues.
(Estimates based on a healthy individual buying a $5,000/month benefit for 3 years with inflation protection. Actual costs vary by state, health, and insurer.)
Your Next Steps to Buy Coverage
- Decide how much monthly benefit you’ll need.
- Compare quotes from multiple insurers.
- Work with a licensed agent to choose the best value and avoid costly mistakes.
📞 Contact The Annuity Expert for free quotes to buy long-term care insurance.
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Glossary of Key Terms
- Activities of Daily Living (ADLs): Tasks like bathing, dressing, eating, toileting, continence, and mobility. Needing help with at least two often triggers benefits.
- Elimination Period: The waiting time before policy benefits begin once care starts.
- Inflation Protection: A rider that increases benefit amounts each year to offset rising care costs.
- Benefit Period: The maximum length of time or dollar pool your policy will cover.
- Shared Care Rider: Allows couples to share coverage between two policies.
- Hybrid Policy: A life insurance or annuity policy that includes LTC benefits.
Questions From Our Readers
What is the best elimination period for long-term care Insurance?
According to industry experts, the best elimination period for LTCI is typically between 90 and 180 days. This time allows the policyholder to receive the maximum benefits from their policy while still having the lowest possible premiums.
What happens if you run out of money for long-term care insurance?
A few options are available if you run out of money for LTCI. First, you may be eligible for government programs such as Medicaid, which can help offset long-term care costs. Additionally, you can look into other forms of financing, such as reverse mortgages, life settlements, insurance policy loans, or other private funding options.
What does long-term care insurance not cover?
Long-term care coverage does not apply to care provided by family members, medical care costs, daily benefit amounts, regular health insurance costs, home care-only services, activities of daily living, homemaker services, or policies based on health history. In addition, LTCI does not cover end-of-life expenses, including hospice or burial costs.
Do long-term care insurance premiums increase as you age?
Yes, premiums generally increase as you age. When purchasing a policy, younger individuals typically pay lower rates since insurers consider them lower risk. As you age, the risk of requiring long-term care services increases, leading to higher premiums. Other factors that impact monthly premiums are age, gender, marital status, and health.
Is long-term care insurance worth it?
The Federal Government predicts that 7 out of 10 retirees above 65 will need some long-term care in their lifetime. Unfortunately, long-term care is not covered by regular health insurance. Medicare will not help either. Covered care only includes short stays in nursing homes or rehab, not custodial care.
Does long-term care insurance cover hospice?
Yes, LTCI typically covers hospice care. Hospice care provides comfort and support for terminally ill patients. Coverage specifics vary by policy, so reviewing individual policy details is essential to determine the extent of hospice care coverage.
Does long-term care insurance cover in-home care?
Yes, LTCI often covers in-home care. This allows policyholders to receive care in the comfort of their homes. However, coverage details can vary, so checking individual policy terms is crucial to understanding the in-home care benefits provided.
Can a long-term care insurance policy cover both my spouse and me?
Yes, many providers offer “shared care” policies. These allow couples to share a combined pool of benefits, covering both spouses under one policy. This policy can provide flexibility in how the benefits are used between the two individuals.
Does long-term care insurance cover independent living?
Typically, long-term care insurance does not cover the costs of independent living or retirement communities. However, it can cover services received within those settings if they qualify as long-term care, like home health care. Policies vary, so it’s essential to review your policy’s specifics.
Does long-term care insurance cover assisted living?
Yes, most policies cover assisted living facilities, as they fall under the category of long-term care services. The amount and duration of coverage depend on the policy’s specifics. Always review your policy details to understand the extent of coverage.
What are the advantages and disadvantages of long-term care?
The advantages include comprehensive coverage for various care services, inflation protection, and potential tax benefits. The disadvantages include potentially rising premiums over time, a “use-it-or-lose-it” policy where unclaimed premiums are forfeited, and sometimes limited coverage on certain services.
Why might a younger person buy long-term care insurance?
Purchasing long-term-care insurance at a younger age can be a savvy financial decision. Premiums tend to be lower, allowing younger individuals to lock in favorable rates.
Is there an age limit to purchasing long-term care insurance?
Many insurance companies have age limits for new long-term care policies, typically around 75-85. However, some providers may make exceptions based on an individual’s health and lifestyle.
What is the best time to buy long-term care insurance?
The age factor plays a vital role in the cost. Generally, younger buyers can secure more favorable rates. However, according to industry experts, the best time to buy long-term care insurance typically lies in your mid-50s to mid-60s.
What triggers a long-term care insurance policy?
Many long-term care policies have a “loss of independence” trigger. Your policy benefits will be activated if you require assistance with a specified number of ADLs. Some policies include a specific cognitive impairment trigger, such as a diagnosis of dementia or Alzheimer’s disease. Once this trigger is met, the policy benefits kick in. A common requirement is a physician’s certification stating that you need long-term care due to a chronic illness or disability. This certification is often necessary to initiate the benefits.
What is the federal long-term care insurance program?
The United States Federal Long-Term Care Insurance Program (FLTCIP) is a voluntary insurance program available to federal employees, including uniformed service members and qualified relatives. The program provides an essential safety net that helps cover the costs of long-term care services.
Does long-term care insurance pay family caregivers?
The answer varies depending on the policy. Some policies cover care that family members provide, although typically with certain restrictions and conditions. For instance, the family member may need to be a licensed caregiver, or there may be limits on the compensation amount.
Who are the best candidates for self-funding long-term care costs?
Individuals with significant savings or assets, a stable income, and limited reliance on government assistance are the best candidates for self-funding long-term care costs.
What’s the 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.
How much does long-term care insurance cost for a 65-year-old?
The cost of long-term care insurance for a 65-year-old varies depending on several factors, including their health, the coverage amount, and the duration. On average, premiums can range from $2,000 to $5,000 annually. It is recommended for individuals to obtain personalized quotes from insurance providers to get an accurate estimate.
How much is long-term care insurance for a 75-year-old?
The cost of long-term care insurance for a 75-year-old varies depending on factors like health, coverage amount, and policy options. A 75-year-old can expect to pay around $5,000 to $10,000 annually for long-term care insurance. However, getting personalized quotes from insurers is recommended for an accurate estimate.
What’s the cost of long-term care insurance at age 77?
Long-term care insurance costs are higher at age 77 due to the increased risk associated with age. Premiums can reach up to $6,000 per year, equivalent to $500 monthly.
What is the average cost of long-term care insurance?
The average cost of long-term care insurance varies depending on several factors, including the insured’s age, health, and desired level of coverage. However, on average, the annual premium can range from $1,500 to $3,500.
Is it too late for my wife’s aunt, who is 89 and on the border between assisted living and nursing care, to buy long-term care insurance?
Generally, it is too late to purchase long-term care insurance at the age of 89, especially if she is already in need of assisted living or nursing care. Most long-term care insurance policies have age limits, often around 85, and require underwriting based on health status. Additionally, pre-existing conditions and the current need for long-term care services usually disqualify individuals from obtaining new policies.
Can I purchase long-term care insurance for someone who is 83 years old?
Options are minimal. However, you can purchase a single-premium simplified-issue life insurance policy with a long-term care benefit.
What is the difference between reimbursement and indemnity long-term care insurance?
The main difference between reimbursement and indemnity long-term care insurance is their benefit payout methods. Reimbursement policies cover the actual costs of eligible long-term care services, reimbursing you for expenses up to a specific limit based on submitted receipts. In contrast, indemnity policies pay out a predetermined daily or monthly benefit directly to you, regardless of the actual expenses, offering more flexibility in how the funds are used.
Are long-term care (LTC) benefits that exceed the expenses incurred considered taxable income?
Typically, long-term care insurance policies are structured on a reimbursement basis, meaning they reimburse for actual expenses incurred up to a specific limit, which helps prevent receiving excess benefits. In this typical arrangement, there wouldn’t be excess benefits over the cost of care. However, the excess amount may be taxable if your LTC benefits exceed this cap.
Why might choosing private long-term care insurance be preferable over employer-provided one?
The main advantage of private long-term care insurance is its portability. A private policy remains in effect regardless of your employment status or changes in your career. This means that if you switch jobs, retire, or become unemployed, your coverage continues uninterrupted as long as you pay the premiums. In contrast, employer-provided long-term care insurance typically ends when you leave the company.
My husband and I are 74 and 73, respectively, and are in excellent health. We both have State Teachers Retirement, and the healthcare is excellent, but we are worried about long-term care. Is that available as a hybrid to our existing healthcare policy?
As retirees with excellent health coverage through State Teachers Retirement, you might consider hybrid long-term care insurance. Hybrid policies combine long-term care benefits with life insurance or annuities, providing financial flexibility and ensuring you receive benefits even if long-term care is unnecessary. Check with your existing healthcare provider to see if they offer hybrid long-term care options, or consult an independent insurance agent for tailored advice.
Are long-term care benefits taxable?
Long-term care insurance premiums may be tax-deductible if they exceed a certain percentage of your adjusted gross income (AGI) and you itemize deductions. The deductible amount varies based on age and is subject to IRS limits.
Can I get long-term care insurance without a medical exam?
Yes, through long-term care annuities and hybrid life insurance policies. These options typically require only a phone interview and a medical history review.
What happens if you cancel long-term care insurance?
If you cancel long-term care insurance, you lose coverage and won’t receive any benefits if care is needed. Additionally, you may forfeit any premiums paid unless your policy has a return-of-premium feature, which is rare.
How long is the typical free look period for long-term care insurance policies?
The typical free look period for long-term care insurance policies is 30 days. This allows you to review the policy and cancel it for a full refund if you are unsatisfied.
Can you lower long-term care insurance premiums?
Yes, you can lower long-term care insurance premiums by adjusting the coverage amount, choosing a more extended elimination period, selecting a shorter benefit period, opting for a shared care rider, or qualifying for good health discounts.
Can you buy long-term care insurance with a lump sum of money?
Yes, you can buy long-term care insurance with a lump sum of money through single-premium policies or long-term care annuities, which provide benefits for care expenses without ongoing premiums.
Do I need long-term care insurance if I’m wealthy?
Even if you’re wealthy, long-term care insurance can help protect your assets, provide financial flexibility, and ensure high-quality care without depleting your estate. It can also relieve the financial burden on family members and offer peace of mind.
Where is the best place to purchase long-term care insurance?
The best place to purchase long-term care insurance is through independent agents. They offer various options from multiple insurers, provide unbiased advice, and tailor solutions to your needs and budget.
What is the most affordable way to buy long-term care insurance?
The most affordable way is to purchase a policy at a younger age, typically in your mid-50s to early 60s. Opt for a policy with a longer elimination period, shorter benefit period, and lower daily benefit amount. Consider hybrid policies or annuities with long-term care riders for more cost-effective coverage.
What disqualifies someone from long-term care insurance?
Pre-existing conditions like Alzheimer’s, dementia, or severe mobility issues can disqualify someone from long-term care (LTC) insurance. Additionally, advanced age and current dependence on long-term care services may also lead to disqualification.
Does long-term care insurance accumulate cash value
Traditional long-term care policies do not have cash value, while hybrid policies can offer a form of cash value.
Does Medicare cover long-term care?
No. Medicare only pays for short-term skilled care, not ongoing custodial care like nursing homes or in-home assistance.
Are premiums guaranteed?
Some policies allow increases, while many hybrid policies guarantee premiums. Always ask if rates can change.
What happens if I never use my policy?
Standalone LTC insurance provides no payout if unused. Hybrid policies return value through death benefits or annuity cash value.
Can couples share coverage?
Yes. Many policies offer shared care riders that let one spouse use unused benefits from the other.
What happens if I move states?
Most LTC policies remain valid nationwide, though benefit amounts are tied to care costs in your new state.