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How Much is Long Term Care vs Long Term Care Insurance Cost?

Fact Checked by Jason Herring & Barry Brooksby
Licensed Agents & Life Insurance Experts.
Insurance and Estates, a strategic life insurance provider composed of life insurance professionals, is committed to integrity in our editorial standards and transparency in how we receive compensation from our insurance partners.
cost long term care

At I&E, we are equally concerned with wealth preservation as we are with wealth creation.

After all, what is the point of spending your lifetime creating wealth only to see it evaporate due to long-term care costs.

And with rising health insurance rates and the limitations of medicaid, we believe it is important for many to hedge their current lifestyle with some long-term care insurance, particularly if you believe you may be susceptible to serious health or cognitive issues in the future.

This article covers both how much long term care costs and how much long term care insurance costs.

Let’s begin with…

How Much Does Long-Term Care Insurance Cost?

At I&E, we work with many of the best long-term care insurance companies in the nation. Each long-term care insurance company is different. Our goal is to help craft a Long-term care insurance (LTCI) policy that fits your specific need, goals and objectives, including your budget.

It should also be noted that your LTC insurance plan may also qualify for certain tax incentives. You should be aware of the benefits of long-term care partnership plans and the potential tax deductions on long-term care insurance premiums.

The following sample long-term care insurance quotes are based on a male with a non-tobacco rate class applying for an individual policy with a 90-day elimination period.

Premiums are approximate and are for informational purposes only, are subject to change and must be qualified for. Your personal LTC premiums may be lower or higher.

60 Month Benefit Period

AgeDaily Benefit AmountBenefit PeriodAnnual Premium
45$30060 Months$3,520
45$20060 Months$2,345
50$30060 Months$3,760
50$20060 Months$2,505
55$30060 Months$4,150
55$20060 Months$2,755
60$30060 Months$4,890
60$20060 Months$3,260
65$30060 Months$6,785
65$20060 Months$4,525
70$30060 Months$11,950
70$20060 Months$7,960

36 Month Benefit Period

AgeDaily Benefit AmountBenefit PeriodAnnual Premium
45$30036 Months$3,200
45$20036 Months$2,135
50$30036 Months$3,250
50$20036 Months$2,140
55$30036 Months$3,450
55$20036 Months$2,300
60$30036 Months$3,755
60$20036 Months$2,500
65$30036 Months$5,450
65$20036 Months$3,630
70$30036 Months$9,328
70$20036 Months$6,215

Hybrid Long-Term Care Life Insurance Costs 

The following sample combination long-term care life insurance quotes are based on a male with a non-tobacco rate class applying for an individual policy.

Premiums are approximate and are for informational purposes only, are subject to change and must be qualified for. Your personal LTC premiums may be lower or higher.

25 Month Benefit Period

AgeMonthly LTC BenefitInitial Death BenefitAnnual Premium

Long-Term Care Insurance Quotes

In order to qualify for the best long-term care insurance quotes you need to choose an agency that can “shop” for you. Our method is simple, we ask the right questions to determine what you need, we then find the insurance companies that best meet your need and tailor a policy to fit your goals and budget. We represent both traditional and hybrid long-term care insurance providers.

If you are interested in seeing your own long-term care insurance quotes, please give us a call or enter your information in our quote request form below. We can run some illustrations for you, so you can get a better idea of what long-term care insurance costs for you, based on your unique health and lifestyle profile.

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How Much Does Long Term Care Cost?

The costs associated with long-term care and services seem to increase every year. And industry experts do not see this trend reversing anytime soon.

The Top 15 Most Expensive States For Long Term Care in 2019

  1. Alaska
  2. Massachusetts
  3. District of Colombia
  4. Connecticut
  5. Hawaii
  6. Vermont
  7. New Jersey
  8. New York
  9. Nevada
  10. North Dakota
  11. Delaware
  12. Maine
  13. Minnesota
  14. Rhode Island
  15. Oregon

Source: Think Advisor

With the rising cost of long term care it is tough to plan for retirement. However, the good news is many insurance companies are creating better long-term care planning models that provide more stability to price over the long term.

The following table provides current estimated, as well as potential future costs for long-term care services.

YearHome Health CareAssisted Living FacilityNursing Home (Private)

How Do I Qualify for Long-Term Care Benefits?

In order to qualify for long-term care benefits you must be diagnosed as chronically ill for the last 90 days. LTC policies have specific requirements that must be met in order to be considered chronically ill for eligibility purposes. For example, you must be certified by a Licensed Health Care Practitioner as either:

(1) being unable to perform 2 of 6 Activities of Daily Living (ADLs). (Most states and companies do not require that the condition be permanent in order to qualify for LTC benefits, but some do); or

(2) due to cognitive impairment you require substantial supervision to protect you from threats to your health and safety.

Activities of Daily Living (ADLs)
  1. Bathing – washing oneself and getting in or out of the tub or shower.
  2. Continence – the ability to maintain control of bowel and bladder function.
  3. Dressing – putting on and taking clothing, including braces, fasteners, or artificial limbs.
  4. Eating – putting food into your body from a receptacle or feeding tube or intravenously.
  5. Toileting – being able to get to and from the toilet and get on and off the toilet.
  6. Transferring – moving in and out of a bed, chair, or wheelchair.
Cognitive Impairment

Long-term care insurance policies will define cognitive impairment. Cognitive impairment can take several forms. The most prevalent cognitive impairments are Alzheimer’s Disease, Parkinson’s Disease and Dementia.

What Is Long-Term Care Insurance?

A long-term care insurance policy is a contract between the insured and the insurer. The insured agree to pay monthly, semi-annual or annual premiums in return for the insurer providing coverage that pays for the costs associated with long-term care.

You are typically eligible for long-term care insurance benefits upon being diagnosed as chronically ill or having a substantial cognitive impairment. Upon filing a claim and waiting the required elimination period, you can start receiving your reimbursement or cash indemnity benefits.

A long-term care insurance policy provides coverage for reimbursement or cash indemnity income benefits of various care and services, including in-home care, or a long-term care facility, such as an assisted-living facility or a nursing home.

Additional LTC benefits and services are available, such as adult day care services, care coordination and home modifications.

Hybrid Long-Term Care Life Insurance

In addition to traditional long-term care insurance plans you can also choose a combination long-term care life insurance policy.  Asset based long term care insurance coverage provides a guaranteed death benefit, long-term care coverage, cash value accumulation and potential return of premium.

Many people are choosing this type of life insurance with long-term care rider because it provides coverage for LTC and a lump sum death benefit. That way, even if you never have to use your long-term care coverage, your beneficiary will still receive a death benefit. In addition, you can use the cash value through withdrawals or life insurance loans.

Which is better, a stand-alone LTC policy or a hybrid long-term care life insurance policy?

That is not an easy question to answer and will depend on many factors. Using traditional long-term care insurance planning typically provides coverage at a lower cost than hybrid policies.

However, a hybrid long-term care policy provides guaranteed fixed premium payments for life. And limited pay life insurance plans are available.

The good news is that we can provide you with quotes from both traditional and hybrid long-term care insurance companies so you can make the decision on what LTC coverage is best for you.

Here are a few of our current favorite LTCI Companies.

LTCi CompaniesCompany Ratings (as of November 2017)Type of LTCi
AXAA.M. Best rating: A
S&P rating: A+
Fitch rating: A+
Moody's rating: A1
LTC Services rider
GenworthA.M. Best rating: B
S&P rating: B+
Fitch rating: BB
Moody's rating: B2
Pure LTCi
GuardianA.M. Best rating: A++
S&P rating: AA+
Fitch rating: AA+
Moody's rating: Aa2
LTC rider
Lincoln NationalA.M. Best rating: A+
S&P rating: AA-
Fitch rating: A+
Moody's rating: A1
Hybrid LTCi
A.M. Best rating: A++
S&P rating: AA+
Fitch rating: AA+
Moody's rating: Aa2
LTCi Rider
Pure LTCi
Minnesota Life
A.M. Best rating: A+
S&P rating: A+
Fitch rating: AA
Moody's rating: Aa3
Hybrid LTCi
Mutual of OmahaA.M. Best rating: A+
S&P rating: AA-
Fitch rating: NR
Moody's rating: A1
Pure LTCi
NationwideA.M. Best rating: A+
S&P rating: A+
Fitch rating: NR
Moody's rating: A1
LTC rider
OneAmericaA.M. Best rating: A+
S&P rating: AA-
Fitch rating: NR
Moody's rating: NR
Hybrid LTCi
Pacific LifeA.M. Best rating: A+
S&P rating: AA-
Fitch rating: A+
Moody's rating: A1
Hybrid LTCi

Long-Term Care Insurance Premiums

Your long-term care insurance premiums are determined by a number of factors, including

  • Age
  • Gender
  • Health and Lifestyle
  • Benefit Amount
  • Benefit Period
  • Elimination Period
  • Inflation Protection Benefit

One of the primary factors that determines your long-term care insurance premium is your age. The older you are, the more likely you will need some type of long-term care service.

Another factor affecting your premium is your gender. Women live longer than men. So there is a greater chance of a long-term care insurance claim among women than men. As a result, women will typical pay more than men for LTC insurance.

Your health and lifestyle are other factors that the LTC policy underwriter will take into account when determining your long-term care insurance rates. If you have pre-existing health conditions or if you are a tobacco user you will most likely pay higher premium rates for your LTCI than someone who does not use tobacco or have pre-existing medical conditions.

Other factors that go into your final LTCI premiums are the policy’s benefit amount, the benefit multiplier and the elimination period.

Your benefit amount is your daily or monthly maximum income benefit. The lower your benefit amount, the lower your rate.

The benefit multiplier, also known as the benefit period, is how many years you can receive your maximum income benefit for. The shorter your income benefit period, the lower your premium will be. Alternatively, the more years your benefit period extends, the higher your LTCI premiums will be.

In addition, the policy’s elimination period can also influence your LTCI rate. The longer your elimination period, the more affordable long-term care insurance will be. Elimination periods vary. You can typically choose elimination periods of 30, 60, 90, 180 or 365 days.

You can also add additional riders to your policy to further enhance the benefits. For example, one of the best long-term care insurance riders is the inflation protection benefit.  The income protection benefit is a rider that protects your LTCI benefit from inflation. Different insurance companies provide different options, such as 3%, 4% or 5% compound interest growth or 3%, 4% or 5% simple interest growth.

Inflation protection benefits are important if you plan on getting a policy that fulfills the requirements of your State’s Long-Term Care Partnership Program.

Next Steps

If you are interested in a long term care insurance policy illustration or have any additional questions, please give us a call or send us a note through our contact page today. We would love to speak with you about your wealth preservation goals and offer any insights we may have.

2 comments… add one
  • WILLIAM A KYLANDER November 16, 2019, 9:45 am

    Need options available for long term care for us who are both 77 years of age.


    Bill Kylander

    • Insurance&Estates November 16, 2019, 12:13 pm

      Hello William, thank you for your interest and comment. I’ve asked Jason Herring to reach out to you about long term care insurance options.


      Steve Gibbs for I&E

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