Americans shopping for long-term care coverage this year are running into a number that keeps moving in the wrong direction.
Premiums on new policies have jumped roughly 10% to 20% depending on the insurer and the buyer's age, according to industry pricing data, and some carriers have pushed through increases on existing policyholders as well.
A healthy 60-year-old couple buying a shared-benefit policy can now expect to pay somewhere between $3,500 and $5,500 a year combined, up from roughly $3,000 to $4,500 just a few years ago.
A single 65-year-old man might see quotes near $1,800 annually, while a woman the same age often faces $2,800 or more — insurers price women higher because they tend to live longer and file more claims.
Nursing home and home-health aide wages keep rising faster than general inflation.
Low interest rates in prior years starved insurers of the investment returns they counted on to fund future payouts.
And more policyholders than expected are actually using their benefits, which is good news for families but bad news for the math behind older policies.
The result is a market that looks very different than it did a decade ago.
Several big carriers have exited long-term care entirely, leaving fewer choices.
The policies that remain often cap benefit periods at three to five years rather than paying for life, and many come with smaller inflation riders than consumers once expected.
That said, the alternative is a bigger bill.
Genworth's most recent Cost of Care survey pegs the median annual cost of a private nursing home room above $120,000, with assisted living near $70,000 and a home health aide around $75,000 for full-time care.
Medicare generally does not cover these services beyond short rehab stays, and Medicaid only kicks in after most assets are spent down — a detail that surprises many families too late.
First, get quotes from at least three carriers, because pricing for identical coverage can vary by 40% or more.
Second, consider a hybrid policy — a life insurance or annuity product with a long-term care rider — which lets you walk away with something if you never need care.
Third, ask about shorter benefit periods paired with a robust inflation rider; a three-year policy that grows with costs often beats a five-year policy that doesn't.
Employer-sponsored options deserve a second look too.
A growing number of companies offer group long-term care or critical illness coverage at rates below what individuals can find on the open market, and some let you keep the policy after you leave the job.
One more reality check: buying earlier is cheaper, but not always better.
A 55-year-old may lock in lower rates but end up paying premiums for 25 years before any claim.
A 65-year-old pays more monthly but faces fewer total years of payments.
Run the total-cost math, not just the monthly quote.
The uncomfortable truth is that long-term care insurance has become a middle-class squeeze: expensive enough to strain a budget, but still cheaper than self-funding a prolonged care event for many households.
Final Thoughts
Delaying the decision doesn't make it cheaper — it just shrinks your options.