How much does long term care insurance cost?

How Much Does Long Term Care Insurance Cost?
Here Are Costs For 2015 for Leading Long-Term Care Insurers.

A MESSAGE FROM JESSE SLOME, Director
American Association for Long-Term Care Insurance

Most people want a simple answer to the question, "how much does long term care insurance cost?"

Unfortunately, there is no simple answer. But we will do our best to give you meaningful information on this webpage.

Here are a few key things I feel you should know.
1. Each insurance company sets their own rates. They can vary significantly for virtually identical coverage.
2. Different insurers offer different discounts.
3. Different insurers offer different options -- some of which can really help you reduce the cost.
4. If you take prescription medications (as most of us do) or have existing health conditions, that can impact your cost.

Let me give you just ONE example. This is from the Association's 2015 Long-Term Care Insurance Price Index (more examples are shown below).
Single Female, Age 55: $164,000 Benefit
Company A: $890-per-year
Company B: $1,829-per-year -- a 119% DIFFERENCE!
THIS IS WHY WE BELIEVE IT IS VITAL FOR YOU TO GET COMPARISONS.

If you have questions or would like to be connected with one (JUST ONE) designated long-term care insurance professional who can compare the leading insurers, call our offices at (818) 597-3227. We can offer general information. But no two people (or couples) are the same ... and no two financial situations exactly the same. Your long-term care plan must meet your needs and budget.

So the short answer to "How much does long-term care insurance cost?" is "It depends!" It depends on how much protection you buy. It depends on the age when you apply and your health when you apply. It even depends on which insurance company you get rates from.

If you don't want to keep reading, we also posted 3 brief informative videos worth watching.
Get no-obligation and free rates and quotes for long-term care insurance from a designated Association member. Click here to complete our simple online questionnaire or call the Association offices at 818-597-3227.

Three Brief Videos For Consumers


Click the ARROW. Click the FULL SCREEN button to enlarge. Click ESC button to shrink.

Find The Best Cost For Long-Term Care Insurance     (7m 28sec)


For Women Who Are Single, Some Important Information (9m 56s)


Quick Tips To Compare Long Term Care Insurance Policies (1m 41s)

Long-Term Care Insurance Costs - 2015 Long Term Care Insurance Costs

2015 Long-Term Care Insurance Price Index

Every year the American Association for Long-Term Care Insurance surveys leading insurers to prepare a national Price Index.

Few consumers are aware of three important facts.
1. Each long-term care insurance company sets its own rates. When we compare virtually identical policies, we find that rates can vary by as much as 40-to-120 percent.
2. Rates can also vary depending on the State you live in. If you have two residences, it's worth mentioning to your agent (assuming he or she is licensed in both states).
3. Each insurance company also offers different discounts and ways you can significantly reduce the cost.

So while I wish comparing long-term care insurance was as simple as comparing life insurance, it isn't. A reason you should be working with a knowledgeable and experienced expert.

Here are findings from our 2015 Long-Term Care Insurance Price Index

"GOOD" LONG-TERM CARE INSURANCE - $164,000 Immediate Coverage

Single MALE - Age 55, preferred health rating
Average Cost: $1,060/year
Lowest available cost: $890/year
Highest cost: $1,531/year

Single FEMALE - Age 55, preferred health rating
Average Cost: $1,390/year
Lowest available cost: $890/year
Highest cost: $1,829/year

COUPLE both Age 60, standard health rating
Average Cost: $2,170/year (combined cost for BOTH)
Lowest available cost: $1,685/year (combined cost for BOTH)
Highest cost: $2,813/year (combined cost for BOTH)


"BETTER" LONG-TERM CARE INSURANCE
$164,000 Immediate Coverage That Can Be Added To In Future Years

Single MALE - Age 55, preferred health rating
Average Cost: $1,198/year
Lowest available cost: $925/year
Highest cost: $1,526/year

Single FEMALE - Age 55, preferred health rating
Average Cost: $1,350/year
Lowest available cost: $873/year
Highest cost: $1,915/year

COUPLE both Age 60, standard health rating
Average Cost: $2,239/year (combined cost for BOTH)
Lowest available cost: $1,735/year (combined cost for BOTH)
Highest cost: $2,743/year (combined cost for BOTH)


"BEST" LONG-TERM CARE INSURANCE
$164,000 Immediate Coverage at age 60, $365,000 at Age 85 For Each Person

Single MALE - Age 55, preferred health rating
Average Cost: $2,075/year
Lowest available cost: $1,613/year
Highest cost: $3,150/year

Single FEMALE - Age 55, preferred health rating
Average Cost: $2,411/year
Lowest available cost: $1,700/year
Highest cost: $3,150/year

COUPLE both Age 60, standard health rating
Average Cost: $3,930/year (combined cost for BOTH)
Lowest available cost: $3,549/year (combined cost for BOTH)
Highest cost: $4,746/year (combined cost for BOTH)

Request a no-obligation, cost comparison from ONE long-term care insurance professional.
Get rates and quotes for long-term care insurance from a designated Association member. Click here to complete our simple online questionnaire or call the Association offices at 818-597-3227.

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What's The Best Age To Start Long-Term Care Planning?

The word "insurance" is missing from the headline above. That's because everyone needs to do some long-term care planning. BUT, NOT EVERYONE can buy long-term care insurance.

That is an important point few people know. Insurance companies will NOT accept all applicants. Unlike health insurance today, you must meet requirements to obtain long-term care insurance protection. The standards will vary from one insurer to the next. Because of the need to "health qualify" for long-term care insurance,you need to start planning when you are still in relatively good health.

The ideal time to start planning is between mid-50s and mid-60s.

Here's why! Every year the American Association for Long-Term Care Insurance surveys insurers. In 2015, we gathered data on new policy applications based on over 85,000 newly insured individuals (2014).

PERCENTAGE OF APPLICANTS DECLINED FOR LTC INSURANCE COVERAGE
Below age 50: 14%
Ages 50-to-59: 21%
Ages 60-to-69: 27%
Ages 70-to-79: 45%
Keep in mind, these are people who the insurance agent felt might have a chance of qualifying. They filled out a lengthy application only to be rejected.

There is a great saying: "When it comes to long-term care insurance, you money pays for it ... but YOUR HEALTH Buys it!"

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What's "Good, Better, Best" Long-Term Care Insurance Planning Mean?

When you purchase an airline ticket, you have a choice in where you sit. Everyone arrives at the same time. But some people pay to fly First Class, some fly Business Class and most of us fly coach.

Many insurance agents start off selling what we'd call FIRST CLASS long-term care insurance coverage. If you can afford it, that's great. But many people can't or simply do NOT want to pay that much.

"GOOD" COVERAGE
Good coverage means a predetermined amount of long-term care insurance protection. The examples we show above are based on $164,000 (which is basically $150-per-day x 3 years). Please note that benefits do not end after 3 years ... they end when the $164,000 has been paid out!

FOR MANY PEOPLE GOOD COVERAGE IS ALL THEY WILL NEED!

Most long-term care insurance claims begin and end with care in your own home. $164,000 will pay for an awful lot of home care. Most long-term care insurance claims end within 1 year. So, GOOD COVERAGE MAY JUST BE ENOUGH. But, here is one thing that is ALWAYS TRUE: SOME LONG-TERM CARE INSURANCE WILL ALWAYS BE BETTER THAN NONE.

GOOD COVERAGE is a predetermined amount of long-term care insurance protection. The examples above are based on $164,000 (which is basically $150-per-day x 3 years). Please note that benefits do not end after 3 years ... they end when the $164,000 has been paid out!

FOR MANY PEOPLE GOOD COVERAGE IS ALL THEY WILL NEED!

Most long-term care insurance claims begin and end with care in your own home. $164,000 will pay for an awful lot of home care. Most long-term care insurance claims end within 1 year. So, GOOD COVERAGE MAY JUST BE ENOUGH.

But, here is one thing that is ALWAYS TRUE: SOME LONG-TERM CARE INSURANCE WILL ALWAYS BE BETTER THAN NONE. There is nothing wrong with buying a "Good" plan of long-term care insurance coverage.

"BETTER" COVERAGE
Better coverage means starting with a predetermined amount of long-term care insurance protection AND ADDING a special option that allows you to INCREASE the amount of coverage in future years (without having to meet new health qualifications). This is called a "Future Purchase Option" or a "Guaranteed Purchase Option".

NOT ALL INSURANCE COMPANIES OFFER THIS OPTION and they all vary.

But, here's why this can be a "Better" choice. Say you buy your long-term care insurance at age 60. Things change. Your long-term care insurance can change as your income, investments and other costs change. At 65, you'll qualify for Medicare (and hopefully save on health insurance). You might decide at that point to increase your long-term care insurance.

And, with this option, you can. EVEN IF your health has changed. You are LOCKING IN YOUR ABILITY TO BUY MORE COVERAGE AT A FUTURE DATE.

Your life changes. Your investments change. BETTER LONG-TERM CARE INSURANCE allows you to have the choice to add to your coverage down the road. The cost is nominal to add this option. That's why we call it better.

"BEST" COVERAGE
Best coverage means starting with a predetermined amount of long-term care insurance protection AND HAVING IT GROW EVERY YEAR BY A PRE-DETERMINED AMOUNT. This is called an "Inflation Growth Option" and while many articles make it seem like something every policy includes; it is an option you chose to buy or NOT buy.

ADDING A 3% COMPOUND INFLATION OPTION will about DOUBLE the base cost for long-term care insurance.

"Best" coverage for someone age 60 provides them with an immediate available benefit of $164,000 (each person if it is a couple). The benefits available grow each year. If you add a three (3) percent compound inflation growth options -- the one we used -- each person will have $365,000 of available benefits at age 85.

MORE CAN ALWAYS BE BETTER - IF THAT'S YOUR CHOICE AND WHAT YOU CAN AFFORD

In today's low interest rate environment, the compound inflation growth option is costly. But if it fits your needs and budget, it's certainly an excellent choice.

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The Cost Difference Between An Agent And A Broker

Here's a fact consumers often don't know.

Some insurance agents only represent one insurance company . They are "agents" of that particular company, such as New York Life, Northwestern Mutual, State Farm or Bankers Life and Casualty. As such, they may only be able to offer you one company's policy. Now, it may indeed be the best protection for the best cost -- but you'll have to do the comparison shopping yourself.

Insurance brokers represent multiple companies and those who regularly sell long-term care insurance will be able to compare prices and benefits from multiple insurance companies. Simply stated, they will do the shopping and comparison for you. A good broker will help you get the best rate (or cost) for the best available coverage.

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Are There Ways To Reduce The Cost?

Yes, there are many discounts available that you can benefit from.

And, guess what. The discounts vary from one insurer to another. One more reason it pays (or saves) to work with a knowledgeable long-term care insurance professional who knows more than one insurance company's rules.

We have a great guide on our website that highlights various discounts.
Click here now read the free guide.

If you don't want to keep reading,
Get no-obligation and free rates and quotes for long-term care insurance from a designated Association member. Click here to complete our simple online questionnaire or call the Association offices at 818-597-3227.

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What Questions Should I Ask During My First Call With An Agent?

Here are a basic questions to ask when screening a potential insurance professional.

How many years have you been licensed to sell long-term care insurance?
How many long-term care insurance companies are you appointed with?
Are any of your clients receiving benefits from their long-term care insurance policy?
Will you tell me rates even I decide not to buy?
Which insurance company did you use for your last two policy sales and can you tell me why you recommended that company?

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What If I Have Some Health Conditions Or Take Some Medications

After age 50, most men and women have some health conditions and take one or more common prescription medications. If you are in perfect health, every insurer will be very glad to offer you coverage with preferred health discounts (only available for non tobacco users).

But if you have some health conditions or take common prescription medications, you'll want to speak with that knowledgeable long-term care insurance professional. Because each company sets their own acceptable health conditions. You want your insurance broker to "shop your health" to get you the best coverage for the best cost.

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Connect With The Association's Designated Long-Term Care Insurance Professionals

If you have a relationship with a financial planner or other insurance professional, you can ask them to compare the group or employer long-term care insurance program with individual long-term care insurance. There should be no charge for this comparison.

Or, if you prefer, a designated member of the American Association for Long-Term Care Insurance will gladly do a comparison of benefits and costs for you.

Call or Use The Association's Online Request-A-Quote Form
Call the Association offices at (818) 597-3227 and our staff will gladly assist, or,
Complete our online free request for a rate quote. There's never any obligation. Click here now to start the process.

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Long-Term Care Insurance Company Ratings

Check the American Association for Long-Term Care Insurance's current listing and ratings for leading long-term care insurance companies.   Click here to see ratings for leading long-term care insurance companies   Important information in your decision-making process.