The price of long-term care coverage keeps marching upward, and it's catching many older Americans off guard.
According to the American Association for Long-Term Care Insurance, a healthy 60-year-old couple can now expect to pay well over $3,000 a year combined for a solid policy — and that's before any rate hikes down the road.
For singles, the numbers bite even harder.
A 60-year-old man shopping for $165,000 in total benefits might see quotes near $1,000 a year, while a woman the same age often pays significantly more.
Insurers price women higher because they tend to live longer and file more claims.
Low interest rates over the past decade squeezed the returns insurers earn on premiums, and rising care costs — from home aides to nursing facilities — pushed projected payouts higher.
Many carriers responded by raising rates on existing policyholders, not just new customers.
That history matters when you're budgeting.
A policy that looks affordable today can come with increases later, so it's smart to ask whether the price is guaranteed or adjustable.
Most traditional policies are not locked in forever.
Choosing a longer waiting period before benefits kick in, say 90 days instead of 30, can trim premiums noticeably.
So can opting for a smaller daily benefit or a shared-care rider for couples, which lets partners tap each other's pool.
Some buyers are turning to hybrid policies instead — life insurance or annuities with a long-term care rider.
These often cost more upfront but come with fixed premiums and a death benefit for heirs if care is never needed.
That trade-off appeals to people who hate the idea of paying premiums for years and getting nothing back.
Shopping around remains the single biggest money-saver.
Quotes for identical coverage can vary by thousands of dollars a year between carriers.
Working with an independent broker who represents multiple companies beats calling one insurer directly.
Premiums jump with age, and a health issue can make you uninsurable overnight.
That's why many advisors suggest starting the conversation in your mid-50s, even if you don't buy right away.
It's also worth checking what your state's Medicaid program covers, since long-term care is the rare expense that can wipe out a retirement nest egg.
Medicare generally does not pay for extended custodial care, a point that surprises plenty of families.
Before signing anything, read the rate-increase history of the carrier you're considering.
Some companies have a rockier record than others, and that track record can hint at what your future bills might look like.
Our take: long-term care insurance isn't right for everyone, and rising prices make it a tougher sell than it was a decade ago.
But for people with meaningful savings to protect, locking in coverage earlier — or at least getting quotes to see real numbers — beats guessing.
Final Thoughts
Do the math with a broker before the decision makes itself for you.