How much does long term care insurance cost?

How Much Does Long Term Care Insurance Cost?

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

Hundreds of consumers call the Association offices each year and many ask similar questions: "How much does long-term care insurance cost?" "How do I know what to buy?" "What's the right age to buy?"

First, I am glad they call our staff. That is what we are here to do -- and you should feel free to call us at (818) 597-3227 to answer your questions. But, while we can offer general information, at the end of the day no two people (or couples)are the same ... no two financial situations exactly the same. And 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,
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.

Important Reading: Long-Term Care Insurance Cost

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

You may have noticed that 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's an important point because you want to start long-term care planning WHEN YOU HAVE THE MOST OPTIONS. 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 ages 52 and 64.

Here's why! Every year the American Association for Long-Term Care Insurance surveys insurers. In 2011, we gathered data on new policy applications based on over 150,000 people.

PERCENTAGE OF APPLICANTS DECLINED FOR COVERAGE
Below age 50: 11%
Ages 50-to-59: 17%
Ages 60-to-69: 24%
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!" That's why we recommend that planning start between ages 52 and 64.

back to top

The Latest 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 60-to-90 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 2011 Long-Term Care Insurance Price Index

Average price for a comprehensive long-term care insurance policy (100% home care benefit + skilled care coverage), 90-Day Elimination Period with Compound Inflation Protection Option (benefit increases 5% compounded annually). The average of rates from selected leading insurers.

Age 55 - Single Individual
$150 Maximum Daily Benefit x 3 Year Benefit Period
Current Value of Benefits: $169,000 -- Value of Benefits at age 75: $305,000
Cost: $1,480-per-year
Low Cost: $1,325
High Cost: $2,550
Individual Qualifies for Preferred Health and Spousal Discounts

Age 55 - Couple (both age 55 - Preferred Health - Shared Policy)
$150 Maximum Daily Benefit x 3 Year Benefit Period
Current Value of Benefits: $338,000 -- Value of Benefits at age 75: $610,000
Cost: $2,350-per-year
Low Cost: $2,085
High Cost: $3,970
Individual Qualifies for Preferred Health and Spousal Discounts, Includes Shared Care Option

Age 55 - Couple (both age 55 - Standard Health)
$150 Maximum Daily Benefit x 3 Year Benefit Period
Current Value of Benefits: $338,000 -- Value of Benefits at age 75: $610,000
Cost: $2,405-per-year
Low Cost: $1,985
High Cost: $3,970
Individual Qualifies for Standard Health and Spousal Discounts

Age 60 - Couple (both age 60- Preferred Health - Shared Policy)
$150 Maximum Daily Benefit x 3 Year Benefit Period
Current Value of Benefits: $338,000 -- Value of Benefits at age 75: $527,300
Cost: $2,970-per-year
Low Cost: $2,605
High Cost: $4,935
Individual Qualifies for Preferred Health and Spousal Discounts, Includes Shared Care Option

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.

back to top

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.

back to top

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.

back to top

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?

back to top

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.

GOOD NEWS: INSURERS OFFER DISCOUNTS TO APPLICANTS IN GOOD HEALTH
Percentage Qualifying For Good Health Discount (2011, AALTCI study)
Ages 40-to-49: 60%
Ages 50-to-59: 48%
Ages 60-to-69: 34%
Ages 70-to-79: 16%
All reasons why we state that the ideal age to start planning is when you not only can qualify for long-term care insurance, but when you are most likely to qualify for good health discounts THAT YOU DO NOT LOSE even if your health changes.

back to top

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.

back to top

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.