The price of long-term care coverage keeps moving in one direction, and it isn't down.
A policy that might have cost a 60-year-old couple around $3,000 a year a decade ago can now run $5,000 or more for the same couple, according to industry pricing data tracked by the American Association for Long-Term Care Insurance.
Insurers blame stubbornly low interest rates from earlier years, rising claims as the population ages, and the simple math of people living longer than actuaries once expected.
The timing stings because nursing home and home health costs are rising right alongside premiums.
Genworth's annual Cost of Care survey puts a private room in a nursing home above $115,000 a year nationally, with assisted living averaging north of $60,000.
In expensive states like Connecticut, Massachusetts, and Alaska, those numbers climb much higher.
Medicare generally doesn't cover long-term custodial care, and Medicaid only kicks in after you've spent down most of your assets.
Here's where it gets tricky for shoppers.
Premiums aren't just higher — they're also more likely to increase after you buy.
Several major insurers won rate hikes in recent years, and regulators have approved double-digit increases in many states.
That means the quote you get today isn't necessarily the bill you'll pay in ten years.
If you're budgeting, build in room for increases rather than assuming the first number is locked forever.
Couples can buy shared-care policies that let one partner use the other's unused benefits.
Choosing a longer elimination period — the waiting time before benefits start — lowers premiums.
Some buyers opt for a smaller daily benefit and plan to cover the gap out of pocket.
Others skip traditional policies entirely and set aside money in a dedicated savings or investment account, sometimes called a self-funding approach.
If you do shop, compare at least three carriers and check each one's rate-increase history, not just the starting price.
Best and other rating agencies publish financial strength scores, and your state insurance department can tell you how often a company has raised rates.
Also ask whether the policy covers home care, adult day care, and assisted living, not just nursing homes — most people would rather stay home, and the coverage should match that preference.
One more thing worth knowing: many employers and some professional associations offer group long-term care plans with simpler underwriting.
The trade-off is usually fewer customization options, but for people with health issues that would trigger a denial on the individual market, a group plan can be the only realistic path in.
Open enrollment windows for these plans are often short, so it pays to watch for them.
For anyone in their 50s or early 60s, the decision usually comes down to three questions: Can you afford the premium now and likely increases later?
Do you have assets worth protecting from a Medicaid spend-down?
And would you rather pay for certainty or keep the money invested and hope you never need it?
Answering those honestly matters more than chasing the cheapest quote. **The bottom line:** Long-term care insurance isn't for everyone, and the rising price tag makes that clearer every year.
Final Thoughts
But going in with realistic numbers — and a cushion for future hikes — beats getting blindsided by a bill you didn't plan for.