Americans shopping for long-term care coverage this year are finding steeper price tags than they expected.
Premiums on new policies have risen sharply, and some of the biggest increases are hitting people who have held policies for years.
According to the American Association for Long-Term Care Insurance, a healthy 60-year-old couple can now expect to pay roughly $3,800 to $4,500 a year combined for a standard policy with inflation protection.
A solo 60-year-old man might pay around $1,500 to $2,000 annually, while a woman the same age typically pays more—often 30% to 50% higher—because insurers price in longer life expectancy and higher claim rates.
Insurers badly misjudged two things decades ago: how long policyholders would live and how long they would need care.
Low interest rates through the 2010s also crushed the investment returns insurers relied on to fund future payouts.
Many carriers exited the market entirely, leaving fewer than 15 major players writing new policies today.
Less competition means less pressure to keep prices down.
Major carriers including John Hancock and Genworth have won state-approved rate increases in recent years, some topping 50% on older blocks of business.
If you already own a policy, watch your mail carefully—insurers typically offer options like reducing your daily benefit or shortening your benefit period instead of paying the full increase.
Here's the math that makes the decision urgent.
Genworth's 2024 Cost of Care Survey puts the national median for a private room in a nursing home above $120,000 a year.
A home health aide runs about $75,000 annually for full-time care.
Medicare covers almost none of this—it pays for short skilled nursing stays, not extended custodial care.
Medicaid only kicks in after you've spent down most of your assets.
That gap is why the Department of Health and Human Services estimates roughly 70% of people turning 65 will need some form of long-term care, with the average need lasting about three years.
Women typically need longer, and the cost of waiting is brutal: premiums rise roughly 6% to 8% for every year you delay enrollment past 60.
There are alternatives worth pricing out.
Hybrid policies—life insurance with a long-term care rider—let you tap a death benefit for care, and if you never need it, your heirs still get paid.
They often require a single premium or a 10-year payment plan, but the money isn't gone if care never happens.
Short-term care policies, covering up to 12 months, cost far less and can bridge the gap between what Medicare pays and what you actually need.
For households that can't stomach the premiums, self-funding is the other road.
Setting aside a dedicated care fund—even $200 a month starting at 55—can build a meaningful cushion by your mid-70s.
The catch is discipline and the risk that a market downturn hits right when you need the money.
Before buying anything, check whether your state runs a Partnership program, which lets certain policies protect assets from Medicaid spend-down.
A handful of states also offer tax credits or deductions for premiums.
And always compare quotes from at least three carriers, since pricing for identical coverage can vary by thousands of dollars a year. **Our take:** Long-term care insurance isn't right for every household, but ignoring the risk doesn't make it cheaper.
The smartest move is to get quotes now, understand what you're actually buying, and decide with real numbers instead of fear.
Final Thoughts
Waiting another five years only hands the advantage to the insurer.