What Does Long Term Care Insurance Cost?

Long term care insurance is not as expensive as many people think. Many options can be customized to fit your specific needs and budget. The actual cost of your coverage will depend on a number of factors including:

• Your age when you apply
• Your health
• The length of time during which covered benefits would be available
• Specific policy features and benefits you select
• Any discounts you are eligible for

The old saying, "you get what you pay for," applies here.  Long-term care insurance is the one insurance product that you do not necessarily want to get the best price on.  Most major, reputable carriers price their products in the same ballpark.  If you find a carrier charging considerably less, that should cause you some concern as to future premium stability.

The Cost of Waiting

Many people think that they will save money spent on premiums if they just wait to buy long-term care insurance.  This is absolutely untrue.  The longer you wait, the more you will pay in premiums over your lifetime.

Each year you wait:

• Increases the annual cost of the insurance because you have to buy a higher daily benefit due to the fact that the cost of long-term care has gone up
• You are a year older so your premiums will increase
• You are at risk in the event you have a health change and cannot qualify for coverage

Example:

In 2002 a policy offering a $150 per day long-term care benefit for four years, with a 90-day deductible, cost a 50-year-old a national average of $564 per year.  For someone who was 65 years old, the national average cost was $1,337, and for a 79-year-old, the national average cost was $5,330.  The same policy with an inflation protection feature cost, on average nationally, $1,134 at age 50, $2,346 at age 65, and $7,572 at age 79.  Please note that these are only national averages.
(Source:  Health Insurance Association of America)