Long-term care insurance costs vary widely, depending on factors like your age, health, condition, and the specific policies of your insurance carrier such as an inflation rider. That’s why it’s important to shop around to find the best rates and terms. It’s also important to speak with a financial advisor who can help you plan for the future.
Long-Term Care costs can add up over time and people rely on a variety of payment sources, including:
- Personal Funds
Including pensions, savings, and income from stocks
- Private Financing
Such as long-term care insurance
- Veteran’s Benefits
- Older Americans Act
Supports a range of home and community-based services, such as meals-on-wheels and other nutrition programs, in-home services, transportation, legal services, elder abuse prevention and caregiver’s support.
The cost of long-term care insurance can vary widely, depending on several key factors such as:
Some medical conditions will disqualify you from even being able to purchase a policy, including, including muscular dystrophy, cystic fibrosis, and dementia. That’s because insurers will likely lose money on those policies. Generally, the healthier you are, the less likely you’ll ever need to file a claim—and the lower your premium may be.
In general, you’ll pay more in long-term care insurance if you take out a policy when you’re older, since you’re probably less healthy and closer to needing the assistance the policy covers.
- Marital Status
When combined, premiums tend to be lower for married couples than they would be for individuals paying for a personal policy.
Because women tend to live longer than men and make claims more frequently than their male counter parts, women tend to pay more for insurance premiums.
- Carrier Standards
Each insurance carrier sets is own rates and underwriting standards. It’s important to gather quotes from various carriers or you can also work with an experienced long-term care insurance agent who can gather these for you and help you understand the differences between insurance policies. They can also help you determine the best coverage you’re likely to need.