Americans shopping for long-term care coverage are running into a hard truth in 2025: the price keeps moving up.
Premiums for new policies have climbed steadily over the past several years, driven by rising care costs, longer lifespans, and insurers correcting for decades of underpriced policies.
A 60-year-old couple can now expect to pay well over $3,000 a year combined for a modest policy, and the number climbs sharply with age.
Nursing home care now averages over $100,000 a year in many states, and in-home care isn't cheap either.
Insurers that misjudged how long people would live and how much care would cost have spent years raising rates on existing customers—some seeing increases of 50% or more on policies they bought decades ago.
Regulators in most states have to approve those hikes, but approval is common when the insurer can show its books are bleeding.
For buyers today, the sticker shock is real.
A healthy 55-year-old man might pay around $1,700 a year for a policy with a $165,000 benefit pool.
Wait until 65 and that same coverage can run $3,000 or more.
Women pay more because they tend to live longer and file more claims.
Couples often get a discount, but only if both qualify.
There's also a hidden trap many shoppers miss: buying a policy doesn't lock in your premium forever.
Unlike term life insurance, long-term care premiums can be raised on a whole class of policyholders if the insurer's assumptions go wrong.
That's not a scam—it's written into most contracts—but it catches people off guard when a $200 monthly bill suddenly becomes $340.
Some workers are turning to hybrid policies that combine life insurance with a long-term care rider.
You pay a lump sum or fixed premiums, and if you never need care, your heirs get a death benefit.
These cost more upfront but come with predictable pricing.
Others are self-funding through a health savings account or a dedicated savings bucket, betting they can cover a few years of care on their own.
Employers are also getting into the game.
A growing number of companies offer long-term care coverage as a voluntary benefit, letting workers buy in at group rates that are often cheaper than individual policies.
If your job offers it, it's worth a look during open enrollment—you can usually keep the policy even after you leave.
The bottom line for anyone weighing coverage: start the conversation earlier than feels comfortable.
Premiums rise fast with age, and a health issue like diabetes or a past stroke can make you uninsurable overnight.
Comparing quotes from at least three carriers, and reading the fine print on rate-increase provisions, matters more than chasing the lowest premium.
Our take: long-term care insurance isn't right for everyone, and the rising costs make that truer every year.
But ignoring the question entirely is its own kind of gamble—one that often lands on family members instead of an insurer.
Final Thoughts
If you're in your 50s, get a quote now, even if you decide to wait.