What factors affect the cost of long-term care insurance?
Long-term care insurance costs depend most on the following factors:
– age
– gender
– current health & health history
– the amount of coverage your purchase
LTCI costs more the older you get, and also if you have existing health conditions. Some carriers consider whether you have a family history of Alzheimer’s or dementia. Coverage for women can cost up to 40-80% more than for men, due to their longer lifespans and higher likelihood of requiring care.
How do long-term care costs differ for someone with versus without insurance? Is it ever more cost-effective to go without insurance?
The actual costs of long-term care services aren’t affected by whether you have long-term care insurance or not. In other words, it’s not like health insurance where you’d pay a pre-negotiated rate. Rather, long-term care insurance exists to help offset long-term care costs, giving you more options about what care you can afford. This is important because regular health insurance and Medicare generally don’t offer coverage for long-term care services.
What are the pros and cons of long-term care insurance?
Long-term care insurance is one way of mitigating the high costs of long-term care, in the event you need it. Individuals with LTCI policies gain peace of mind that they won’t burden their family members with caregiving duties, that they will more readily be able to afford long-term care services, and that they will be able to preserve their retirement savings. The biggest con of long-term care insurance is the price. The coverage can be expensive, or individuals might not qualify at all due to their age or health history. With certain policies, premiums are not guaranteed and may increase in the future.
Do you recommend most people get long-term care insurance? If so, when is the right time to buy it?
Long-term care insurance makes the most sense for people who are broadly in the middle class and upper middle class. The wealthy are more likely to be able to self-fund their care, and the poor can rely on Medicaid as a last-resort measure. For everyone else, long-term care expenses can quickly drain even a robust retirement nest egg. That’s where long-term care insurance can help. The best time to buy LTCI is generally between ages 50-60. The cost goes up the longer you wait, but the bigger risk is that your health might change and you will no longer qualify.
Compare your long term care insurance options
Are you looking for the best long term care coverage at the lowest cost, that fits your specific needs?
Our brokerage is family-run with a combined 41 years of experience in the insurance industry. As independent brokers, we offer customized advice and recommendations, and can direct you to the best option among the many carriers we represent: Brighthouse Financial, OneAmerica, Mutual of Omaha, National Guardian Life, Lincoln Financial Group and Securian.
It will be our pleasure to help you navigate your options.
For comparative long term care quotes, please contact us at 1-866-LTC-BROKERS. Or simply fill out our quote request form and we will reply shortly.
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