The High Costs of Nursing Homes: Why Care Is Becoming Unaffordable for Many and Some Solutions Part 3

Here’s a breakdown of what Long‑Term Care Insurance (LTC insurance) typically costs — and what drives those costs — in the United States today.

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💵 How much does LTC insurance cost?

Costs vary based on your age when you buy the policy, gender, coverage level, and whether the policy includes inflation protection. AALTCI+2Encyclopedia Britannica+2

Here are some recent typical premiums for a common LTC insurance policy (benefit pool: $165,000):

• Age 55: single male — about $950/yr; single female — about $1,500/yr. AALTCI+1
• Age 60: single male — about $1,200/yr; single female — about $1,900/yr. AALTCI+1
• Age 65: single male — about $1,750/yr; single female — about $2,700/yr. AALTCI+1
• For a couple (both 55): roughly $2,080/yr combined. AALTCI+1

If the policy includes inflation protection (so benefits grow over time), premiums are higher — sometimes significantly. Encyclopedia Britannica+1

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🔎 Why costs vary: What affects your premium

Your LTC insurance premium depends on several factors: ACL Administration for Community Living+2NAIC+2

• Age at purchase — younger buyers generally pay less. CBS News+1
• Gender — women tend to pay more because statistically they may live longer and need care longer. Forbes+1
• Coverage amount and benefit pool — larger benefit (e.g. more years of coverage, higher daily/weekly benefit) raises the premium. NAIC+1
• Inflation protection — adds cost but helps maintain benefit value over time. Insurance Business+1
• Type of care covered — home care, assisted living, nursing home care, etc.; more comprehensive coverage costs more. NAIC+1
• Policy design (waiting periods, benefit limits, riders) — more generous or flexible designs increase premiums. NAIC+1

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⚠️ What LTC insurance covers — and what it doesn’t

• LTC insurance is meant to help cover high costs of long-term care (e.g., nursing home stays, assisted living, at-home care), which — without insurance — can easily be many thousands of dollars per month. LTCFEDS+2ConsumerAffairs+2
• But having a policy doesn’t guarantee the same dollar-for-dollar coverage for life. Premiums may increase over time, and policies purchased later in life are often much more expensive. ACL Administration for Community Living+2NAIC+2
• Also: if you choose a policy with no “inflation protection,” benefits may lose value over decades — even though care costs keep rising. Insurance Business+1

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🎯 When it makes sense — and when it doesn’t

LTC insurance tends to make more sense if:

• You buy relatively young (50s or early 60s) and are in good health.
• You want to protect your savings and assets in case of long-term care needs later on.
• You want to avoid relying solely on personal savings, family help, or government assistance.

But it may be less attractive if:

• Premiums are high for your age/health (especially if you buy later) and may continue rising.
• You fear you may never need long-term care (so benefits are never used).
• You prefer other strategies: e.g., self-funding, hybrids (life insurance + LTC rider), or relying on family support.

 

To discuss Insurance Based, Asset Based or Medicaid Planning solutions call Frederick Orentlich at Senior Financial Services (800) 679-2858