The cost of long-term care insurance varies greatly, depending upon your age, the type of insurance you choose, how long you are willing to wait before eligible for coverage, where you live, and whether or not you opt for inflation coverage.
For example, let’s compare a policy that looks like the following:
- Four year benefit period (meaning the insurance will cover up to four years of long-term care costs
- $150 per day benefit
- Covers all levels of care (skilled nursing, custodial and home companion services)
- Covers all settings (nursing home, assisted living facility or home health care)
- No elimination period
A 40-year-old would pay $680 per year as an annual premium with no inflation coverage. With inflation coverage the same person would pay $1,297.
A 50-year-old would pay $835 per year as an annual premium with no inflation coverage. With inflation coverage the same person would pay $1,600.
A 60-year-old would pay $1,316 per year as an annual premium with no inflation coverage. With inflation coverage the same person would pay $2,355.
A 70-year-old would pay $2,790 per year as an annual premium with no inflation coverage. With inflation coverage the same person would pay $4,350.
These costs are just an example based on a national average, and actual costs may be higher, depending on what area you live in. These rates are also based on the age you are at the time you buy the policy. The good news is that the vast majority of polices will not have premium increases based on age.
It is wise to enlist the help of an elder law attorney or other licensed expert before choosing a long-term care policy. Shopping without the help of a professional may cost your family when the time for long-term care needs arrives.
