The average long-term care insurance policy for a 60-year-old couple now runs roughly $3,900 to $5,000 a year for a combined benefit, according to industry pricing data — and that number has jumped sharply over the past decade.
Single men pay the least, single women pay the most, and anyone with a health history can expect to pay more or get turned down entirely.
The sticker shock is hitting at the worst possible time.
Nursing home care already averages over $100,000 a year in many states, and in-home care isn't far behind.
Medicare 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 long-term care insurance was built to fill — if you can still afford the premiums once you're older.
Low interest rates from the 2010s forced insurers to raise prices when their investment returns fell short of projections.
People are also living longer and claiming benefits for more years than the industry expected.
Several major carriers exited the market entirely, leaving fewer options and less competition.
Here's where it gets painful for existing policyholders.
Some older policies included rate-increase provisions, and a wave of carriers have used them.
It's not unusual for a policyholder to get a letter saying their premium is going up 40% to 90% with little warning.
You usually have three choices: pay more, reduce your benefits, or drop the coverage and lose what you've paid in.
First, shop before age 65 if you can — premiums rise steeply with each birthday, and health issues only accumulate.
Second, ask about a "shared care" rider for couples, which can stretch benefits across two people.
Third, consider hybrid policies that combine life insurance or an annuity with a long-term care benefit, since those typically have fixed premiums you can't lose.
If you're already facing a rate hike, call your state's insurance department before you cancel.
Many states have consumer advocates who can walk you through options, and some rate increases have been reduced or delayed after pushback.
Reducing your daily benefit or shortening the inflation rider is often smarter than walking away completely.
One more thing worth checking: some employers and professional associations offer group long-term care plans with simpler underwriting.
They're not always cheaper, but they can be easier to qualify for if your health isn't perfect.
The bottom line is that this is one of the few purchases where waiting costs you real money — but buying a policy you can't sustain for 20 years is worse than having no policy at all.
Run the numbers on what you could realistically pay through retirement before you sign anything, and get quotes from at least three carriers.
Final Thoughts
If the math doesn't work, a savings earmark or a hybrid product may serve you better.