How much does long-term care insurance cost per month?

There are numerous types of insurance that become more important as we age. For example, you may decide it’s crucial to invest in a life insurance policy to help protect your family from financial disaster. Or, if you’re at retirement age, a Medicare supplemental insurance plan may be a priority to help fill in the healthcare coverage gaps leftover from your Original Medicare policy. 

But one type of insurance you may not have considered yet is long-term care insurance. This type of insurance is an important financial tool that can help protect your assets and provide peace of mind as you age. It’s designed to cover the costs associated with long-term care services, such as nursing home care, assisted living and in-home care, which can be expensive and are often not covered by health insurance or Medicare. 

As with any type of insurance, though, it’s important to weight the cost of long-term care insurance to determine whether a policy makes sense for you. And, while the cost of long-term care insurance can vary significantly depending on several factors, knowing the average monthly price plan can give you a good idea of what you may pay for coverage.

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How much does long-term care insurance cost per month?

Long-term care insurance premiums are primarily influenced by two factors: your age and gender. As you age, the risk of needing long-term care increases, and insurance companies adjust their premiums accordingly. Additionally, women typically pay higher premiums than men because they statistically live longer and are more likely to need long-term care.

Let’s break down the monthly costs for a policy with $165,000 in level benefits based on age using the 2022 rate data from the American Association for Long-Term Care Insurance:

Age 55

• Single male, age 55: $79.16 per month
• Single female, age 55: $125 per month
• Couple, both age 55: $173.33

Age 60

• Single male, age 60: $97.91 per month
• Single female, age 60: $158.33 per month
• Couple, both age 60: $216.66 per month

Age 65

• Single male, age 65: $141.66 per month
• Single female, age 65: $225 per month
• Couple, both age 65: $312.50

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Understanding the costs

It’s important to take into consideration the following factors, all of which can impact how long-term care insurance is priced:

Age

The cost of long-term care insurance increases as you get older. This is because older individuals are more likely to require long-term care services, making the insurance riskier for the company.

Gender 

Women tend to pay higher premiums than men, primarily due to the fact that women generally live longer, which increases their chances of needing long-term care for a longer time frame.

Level of benefits

The monthly premiums are based on the level of benefits you choose. In the above example, we used a policy with $165,000 in benefits. You can adjust this amount based on your specific needs and budget.

Health and other factors 

Your health, family history and location can also impact your long-term care insurance premiums. Some policies offer discounts for good health or for couples purchasing coverage together.

If you want to get the best price possible on your long-term care insurance policy, it’s essential to shop around and compare quotes from different insurance companies. Prices can vary significantly, so it’s worth getting multiple quotes to find the best deal.

The bottom line

While it can be helpful to consider the average costs of long-term care insurance, remember that the cost of long-term care insurance varies based on your age, gender and other factors. In most cases, your cost per month will likely differ from those averages based on the above factors. But while long-term care insurance can be a significant expense, it’s an investment in your future well-being and financial security. Planning ahead with this type of coverage can help you maintain control over your finances and ensure that you receive the care you deserve in your later years.