Americans shopping for long-term care coverage this year are running into a number that keeps moving in the wrong direction.
Premiums on many new policies have climbed again, and some insurers are pushing annual increases onto existing policyholders that stretch into the double digits.
People are living longer, care costs are rising, and insurers badly misjudged decades ago how many claims they'd eventually pay.
Many of those older policies are now being repriced to stay solvent, and the bill lands on the people who bought them. **What you'd pay today** For a healthy 60-year-old couple, a common policy covering about $165,000 in future benefits often runs roughly $3,000 to $4,000 per person per year, according to industry cost surveys.
A single 60-year-old man buying similar coverage might pay around $2,000 to $2,500 annually, while a woman the same age typically pays more — sometimes 30% to 40% higher — because women file more claims and live longer.
The same coverage can cost 50% to 80% more per year simply because you're closer to needing it.
That's the trade-off: buying younger locks in lower rates but means decades of payments before you ever file a claim. **Why premiums keep rising** Three forces are squeezing buyers.
First, low interest rates through the 2010s meant insurers earned less on the money they held, so they raised prices.
Second, dementia and home care claims have run hotter than models predicted.
Third, a wave of carriers exited the market entirely, leaving fewer companies to shoulder the risk — and less competition to hold prices down.
Some states have approved rate increases of 20% to 60% on older blocks of policies.
If you already own coverage, read every letter your insurer sends.
You usually have options: accept the hike, reduce your daily benefit, shorten your benefit period, or drop inflation protection to lower the premium. **Cheaper ways to cover the risk** Traditional long-term care insurance isn't the only path.
Hybrid policies — a life insurance or annuity product with a long-term care rider — often let you pay a single lump sum or fixed premiums that can't be raised.
You get less coverage per dollar, but the price won't move.
A health savings account is another quiet tool.
Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified long-term care expenses are tax-free too.
Pairing an HSA with a smaller policy can stretch your protection without a massive premium.
Also check whether your state runs a Partnership program, which lets certain policies shield some of your assets from Medicaid spend-down rules.
And don't overlook unpaid family caregiving — it's the default plan for millions, even though it carries its own costs in lost wages and stress. **The takeaway** Before you sign anything, ask three questions: Can this premium increase?
And does the policy cover home care, which is where most people want to stay?
Getting those answers in writing matters more than the headline rate.
My honest read: long-term care insurance is neither a scam nor a slam dunk.
For people with savings to protect and family history of long illness, locking in coverage earlier usually beats waiting.
Final Thoughts
For everyone else, a hybrid policy or a well-funded HSA may deliver more certainty for less money — and certainty is the whole point.