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How Much does Long-Term Care Insurance Cost?

The cost of long-term care insurance can vary dramatically, depending on what company you choose and what state you live in (laws vary a bit from state to state). It also depends on whether you choose a standalone policy or a hybrid policy (permanent life insurance combined with long-term care benefits). Let’s take a look and compare prices. 

How Much does Traditional Long-Term Care Insurance Cost?

Traditional long-term care insurance is only offered by a handful companies right now. If you buy long-term care insurance and it turns out that you never need long-term care, all the money you spent on premiums is kept by the insurance company and you don’t get anything. It’s the same principle as car insurance: you wouldn’t say you wasted your money if you never get into an accident, but some people are uncomfortable with this. 

Average annual cost of traditional long-term care insurance

MaleFemale
age 55$875 (no inflation)$2,588
age 60$1,400$3,137
age 70$ 3,640$6,196

If you choose to add inflation protection, costs are even higher. And if you wait too long to apply for long-term care insurance, you face the possibility of being turned down. According to the Long-Term Care Association, 25% of those 60-69 are denied coverage, and 44% of those 70-79 are rejected. 

These rates are only estimates as rates vary depending on what state you live in, whether or not you’re in good health, how much monthly long-term care benefits you want, and for how many years. Different companies also provide different rates, so if you’re interested in traditional long-term care insurance, be sure to shop around. 

Compare long-term care insurance quotes

From 10+ top rated companies of both traditional and hybrid long-term insurance policies

>>MORE: The 5 Best Traditional Long-Term Care Insurance Companies

How Much does Hybrid Long-Term Care Insurance Cost?

If the thought of paying hundreds of dollars in premiums to an insurance company and possibly getting nothing in return makes you shudder, then consider a hybrid long-term care insurance policy. These are more expensive that traditional long-term care policies, but if you never need long-term care insurance, then your heirs get a nice tax-free death benefit. You can also ask for return of premiums as well.

Generally, these policies require either a lump sum payment or up to a ten year pay. Another great benefit of the hybrid long-term care insurance is that premiums never increases. We got a quote from Securian for a 50-year old female to illustrate the cost of hybrid policies. Its hybrid long-term care insurance product is called SecureCare. See our full review of this product.

  • Premium: $79,520 over ten years or $7,952 a year
  • Annual: $7,952
  • Death benefit: $144,000
  • Benefit duration: 4 years
  • Long-term care benefits: $288,000 or $6,000 a month

It should be noted that this is a cash indemnity plan, which means that you get a monthly check for long-term care, in this case, $6,000 and you can spend the money however you see fit. Plans based on  a reimbursement model may be less expensive, but you’ll have to submit receipts every month. 

Rates vary according to how much life insurance you purchase, how old you are when you apply, and what state you live in. You’ll also choose whether or not you want inflation protection, although it’s probably worth it because the cost of health care keeps going up every year. However, one advantage of a hybrid policy is that the premiums are locked in, unlike traditional long-term care insurance. Some people have reported rate increases of over 150% on their traditional long-term care insurance premiums, leaving some with the difficult choice of either ponying up the extra money or letting the insurance lapse. 

Again, be sure to shop around to find the best rates for your case.

>>MORE: The 5 Best Hybrid Long-Term Care Insurance Companies

Compare long-term care insurance quotes

From 10+ top rated companies of both traditional and hybrid long-term insurance policies

Last Thoughts

The most important thing you can do to get the best rates for either traditional or hybrid long-term care insurance is to shop around, no matter which route you take. Be sure to get quotes from at least three different companies to determine which policy is right for you.

>>MORE: Compare Long-Term Care Insurance Quotes Online

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