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What Does Long Term Care Insurance Cost?

by Jack Lenenberg

Long Term Care Insurance Costs and Rates Long Term Care Insurance Costs

The number one question we receive every day is, "How much does long term care insurance cost?"

This is somewhat of a tricky question because unlike the cost of, say, a term life insurance policy or a Medicare supplement insurance policy, long term care insurance policies are not "cookie cutter." 

For instance, with a Medicare supplement policy, one company's Plan F policy provides the exact same benefits for you as another company's Plan F policy.  With a life insurance policy, a $1,000,000 twenty year term policy is the same with one company as it is with another company. 

With long term care insurance, no 2 policies are exactly alike.  Contactual language will vary.   And the cost of your policy will depend upon many factors.  The most important factor, of course is:  How much coverage do you wish to buy?

Comparing long term care insurance quotes can definitely be tricky for you.

What factors comprise the cost of a long term care insurance policy?

The cost of your long term care policy will depend upon:

  1. Amount of coverage you elect to buy
  2. Your age
  3. Your health history including medications currently prescribed
  4. Discounts available for being married or partnered; or in good health
  5. The company your policy is with

Amount of coverage

There are 4 key components that comprise your long term care insurance coverage:

  • Monthly Benefit
  • Benefit Period
  • Inflation Protection
  • Waiting Period

Because there are 4 "moving parts" to a long term care policy, your long term care insurance premium can vary widely depending upon your choices. 

A policy with a $200.00 daily benefit will cost twice as much as a policy with a $100 daily benefit.  A policy that includes 5% automatic compound inflation will cost you more premium than a policy that only includes a 3% compound inflation factor. A policy with a 5 year benefit period will cost more than a policy with a 3 year benefit period.

Age and Health

The younger you are when you apply for long term care insurance, the lower your premium will be.  The healthier you are when you apply for long term care insurance, the lower your premium will be.

Preferred health discounts of about 15-20% are generally available to you if you are in good health.  If you are like a lot of our clients and are only prescribed routine maintenance medications to treat cholesterol, high blood pressure, thyroid, etc., you will probably be eligible to receive a Preferred health discount.

Couples Discount

A very valuable discount is applying for coverage with another individual.  Companies typically offer discounts of 30% or more for being married or partnered and applying together. 

The Company You Apply To

It also goes without saying that different companies will offer different costs for the same benefits.  Long term care insurance premiums by company can vary by 80% or more for the exact same benefits. 

Thus, my best advice is for you to work with an independent and experienced long term care insurance agency.  A truly independent agency should be able to provide you the costs of long term care insurance with every company in your State.  Not just 2-3 companies that the agent may represent. 

So, What Does Long Term Care Insurance Cost?

Below are sample annual premiums based upon some of the factors discussed above so you can have an idea what the cost of a long term care insurance policy might be for you.

Inflation Protection Purchase Option 3% Compound 5% Compound
Age 55 $360 $533 $763
Age 60 $467 $692 $925
Age 65 $692 $965 $1238
Age 70 $1181 $1494 $1840
Age 75 $2112 $2495 $3085

Married or Partnered Applicant Applying Together, $100.00 Daily Benefit, 3 Year Benefit Period, 100% Home Care, 90 Day Waiting Period, Preferred Health Discount

Inflation Protection Purchase Option 3% Compound 5% Compound
Age 55 $577 $853 $1220
Age 60 $748 $1107 $1481
Age 65 $1107 $1544 $1981
Age 70 $1890 $2390 $2994
Age 75 $3380 $3992 $4936

Single Applicant, $100.00 Daily Benefit, 3 year Benefit Period, 100% Home Care, 90 day Waiting Period, Preferred Health Discount

We hope these tables can give you an idea of the cost of a long term care insurance policy. 

Get Customized Long Term Care Insurance Costs

Please keep in mind that costs of a long term care insurance policy will vary from State to State.  To receive accurate long term care insurance quotes based upon your specific situation please feel free to give us a call at (800) 891-5824. 

We represent many of the top-rated long term care insurance companies nationwide and can provide you quotes for long term care insurance companies such as Genworth, Mass Mutual, Mutual of Omaha, United of Omaha, John Hancock, Transamerica, Lincoln Financial MoneyGuard, Pacific Life and more.

Simply fill out our long term care insurance quote request form or call us direct at 800-891-5824.  Thank you for reading our blog.

Signature Ltc

Jack Lenenberg

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