Les Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before cove.
Les Masterson Deputy Editor, InsuranceLes Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before cove.
Written By Les Masterson Deputy Editor, InsuranceLes Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before cove.
Les Masterson Deputy Editor, InsuranceLes Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before cove.
Deputy Editor, Insurance Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
| Lead Editor, Insurance
Updated: Aug 5, 2024, 2:22pm
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Long-term care (LTC) insurance helps pay for long-term care like nursing homes, hospice care, adult day care and getting assistance with activities of daily living, such as bathing, dressing and eating.
Long-term care insurance costs differ based on multiple factors. LTC rates aren’t set and can increase as you age. People with pre-existing conditions or health problems may have trouble finding long-term care insurance or face hefty long-term care insurance costs.
FEATURED PARTNER OFFERThe average cost of long-term care insurance is $1,200 a year for a 60-year-old man for $165,000 coverage, according to the American Association for Long-term Care Insurance (AALCI). The average long-term care insurance cost for a 60-year-old woman is $1,960 for the same coverage.
Married couples can buy a more affordable joint policy. For instance, married couples who are 60 years old pay $2,550 annually on average for a joint policy with $165,000 coverage, but that comes with a combined coverage limit rather than two separate limits.
LTC costs increase over the years. Long-term care insurance policies can factor in future inflation costs, such as adding 1% to 5% to the benefits each year. Adding that provision increases your LTC rates, but provides a bumper to help offset inflation growth.
Buying a long-term care insurance policy doesn’t mean that’s the rate you will pay for the next 20 or 30 years, though. LTC insurance costs may increase over the years and rate hikes can be significant.
Long-term care insurance can be expensive, but that’s because long-term care, like nursing homes and assisted living, can be pricey.
The federal government’s Administration for Community Living says the exact cost of long-term care varies by the duration and type of care, the providers and where you live. Other factors that influence costs include the time of day when home health and home care services are needed.
Semi-private room in a nursing home $6,844 per month Private room in a nursing home $7,698 per month Assisted living facility, one bedroom $3,628 per month Health aide $20.50 an hour Homemaker services $20 an hour Adult day care center $68 per day Source: Administration for Community Living. See More See LessIt’s wise to buy long-term care insurance before your 50s, so you can have it in place if you need long-term care.
The bulk of long-term care insurance claims happens after a person turns 75. The AALTCI says only 19% of LTC insurance claims begin before a person is 75 years old.
69 and under 95 and over Source: American Association for Long-Term Care Insurance. See More See LessLong-term care insurance can play an important role in your long-range financial plan, but long-term coverage isn’t cheap.
A sudden long-term care insurance cost increase can leave you scrambling to find money to pay for coverage, but there are ways to keep your policy and not pay the full rate hike.
The National Association of Insurance Commissioners offered solutions that can soften the blow:
If you’re wondering how save for long-term care without LTC insurance, consider these options:
Shop among multiple companies with help from LTC Consumer's licensed specialists.
Long-term care insurance can be an excellent investment if you’re worried about potentially needing to pay for long-term care. Nursing home and assisted living care can be expensive and long-term care coverage can lessen your family’s financial burden and offer you peace of mind.
Long-term care insurance can be excellent coverage if you’re concerned about paying for long-term care down the road. It can protect your family’s financial well-being and prevent exhausting your savings. An alternative to long-term care insurance is hybrid life insurance, which lets you use LTC benefits in the policy while guaranteeing a death benefit for your beneficiaries when you pass away. You can also buy a long-term care life insurance rider, which lets you tap into your life insurance policy’s death benefits to pay for qualifying long-term care costs while you’re still alive.
You should pay no more than 7% of your household income on long-term insurance, recommends the National Association of Insurance Commissioners. If you find LTC insurance premiums exceed that percentage, you could look into a hybrid life insurance policy, which provides long-term care benefits as part of your life coverage.
Long-term care insurance, which you can use to pay for nursing home care, costs $100 monthly on average for a 60-year-old man for $165,000 coverage, $163 monthly for a 60-year-old woman and $213 for a couple with joint coverage. The exact costs differ by age, gender, health, amount of coverage, policy riders and the insurance company.
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Deputy Editor, InsuranceLes Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before covering insurance, Les was a news editor and reporter for Patch and Community Newspaper Company and also covered health care, mortgages, credit cards and personal loans for multiple websites.
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