The price of long-term care coverage keeps moving in one direction, and it's not down.
A 65-year-old couple buying a typical policy today can expect to pay somewhere between $3,000 and $8,000 a year combined, depending on coverage levels, according to industry pricing data.
That's real money for households already stretched by groceries, rent, and rising insurance premiums of every kind.
Long-term care insurance isn't one product with one price.
A policy that covers $150 a day for three years costs a fraction of one that covers $300 a day for five years with inflation protection built in.
The gap between the cheapest and most generous plans can easily run five figures a year.
Why rates keep rising: insurers badly misjudged how long policyholders would live and how much care would cost.
Several major carriers exited the market entirely, leaving fewer options.
When claims run hot and competition thins, premiums go up.
Many existing policyholders have already absorbed double-digit increases, and more are likely coming.
Genworth's most recent Cost of Care survey puts the median annual cost of a private room in a nursing home above $110,000, with assisted living facilities averaging around $64,000.
Medicare generally doesn't cover extended custodial care, and Medicaid only kicks in after you've spent down most of your assets.
That gap is exactly what these policies are designed to fill.
First, get quotes from at least three carriers, because pricing varies wildly for identical coverage.
Second, look hard at the inflation rider.
Skipping it saves money now but can leave you with a benefit that's nearly worthless in 20 years.
Third, ask about shared care riders for couples, which let one spouse tap the other's benefits and often cost less than two separate policies.
Some employers offer group long-term care coverage at lower rates.
Hybrid policies, which combine life insurance with a long-term care benefit, let you walk away with a death benefit if you never need care.
They cost more upfront but eliminate the use-your-benefit-or-lose-it problem that frustrates many buyers.
Premiums are cheapest when you're healthy and in your 50s, but buying too early means paying for decades before you might need it.
Most advisors suggest shopping in your mid-50s to early 60s, while you can still pass underwriting.
Once a diagnosis like diabetes or early cognitive decline appears, coverage may be off the table entirely.
One more warning: if a policy sounds dramatically cheaper than every other quote, read the fine print.
Limited benefit periods, strict elimination periods, and no inflation protection are the usual reasons for a bargain price.
Also check the insurer's financial strength rating before signing anything — you're counting on this company paying claims 20 or 30 years from now.
Our take: long-term care insurance isn't right for everyone, and rising premiums make it a tougher sell than it was a decade ago.
But for households with savings worth protecting, doing nothing is also a decision — and usually the most expensive one.
Final Thoughts
Get quotes, compare the fine print, and decide while you still have options.