How Much Does a Long Term Care Insurance Cost?

Preparing for old age is a wise move every person should consider. No matter how strong you are in your youth, you may suffer some conditions that may require care as you age. The said healthcare, of course, will cost you some money. And one way to make sure you’ll have some budget come that day is by having a long-term care insurance.

Long-term care insurance will cover the costs of healthcare you will need over an extended period of time during old age. That said, how much are long-term care insurance rates in the US?

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Average Long Term Insurance Cost

According to The Balance, the price range per year will change by age:

  • Age 55 (single individual): $1,325 to $2,550
  • Age 55 (couple, preferred health, shared policy): $2,085 to $3,970
  • Age 55 (couple, standard health): $1,985 to $3,970
  • Age 60 (couple, preferred health, shared policy): $2,605 to $4,935

For additional perspective, Kiplinger shows that a married couple aged 60 would have to pay $2,170 per year for $328,000 worth of coverage.

Elderly man on wheelchair

Factors That Matters

The long-term care insurance rates in the US vary based on a number of factors. For one, insurance companies differ when it comes to computing premiums. There are instances when the price difference reaches about $1,000 between policies.

Also, the older you are, the costlier the insurance will be. There are even cases, such as if you’re already in a serious health condition when you won’t be able to get a coverage.

Insurance Coverage

The total cost will further be influenced by what aspects you choose to be included in the coverage. Some of these include:

  • Nursing home care
  • Assisted living
  • Adult day care services
  • Home care
  • Home modification
  • Care coordination
  • Future service options

The aspects to be covered will vary depending on your selected policy. That said, you should consider what parts of it you will actually need when you reach old age. Doing so will prevent you from paying for services that you won’t need in the future.

Sample Plans

You can further understand the differences in policies by looking at coverages of several plans. For instance, Forbes says that Medicare does not cover nursing home care. That is, except for limited stays after a three-day hospital admission or more. It does not also pay for in-home care unless it’s skilled nursing care. Basically, Medicare does not pay for most of the expenses associated with old age.

As for Medicaid, the rules vary depending on the state. Note that it won’t cover assisted living, but will pay for home health care services. Note also that you first have to exhaust all your resources and fulfill other requirements before you can qualify for Medicaid.

Cost Considerations

Shopping for a policy can be difficult due to the number of plans available and the staggering costs of each. That said, you can make the selection easier by determining what will work best for you.

For instance, you have to consider your budget. Premiums can be as high as $8,000 in some places, but you don’t have to enroll in such a policy if your income is not enough to pay for it. According to the National Association of Insurance Commissioners (NAIC), you should not spend more than 7% of your income on premiums.

You also have to consider what your policy covers. Some companies may place qualifications or restrictions on facilities and programs. That said, you should determine clearly what facility, program, and service you want to enjoy later in life.

One way to determine what you need for long-term care is predicting what type of risks you want to cover. To do that, consider checking your health and hereditary conditions. You should also consider if there are family members who will take care of you in the future, as it may lessen the insurance charges.

Another thing you should consider is how you can allocate parts of your savings and investments for long-term care. You may ask a financial adviser or a lawyer about the best ways to save for the said future expenses.

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