The average annual premium for a long term care policy now runs roughly $1,700 to $2,600 for a 60-year-old couple buying coverage together, depending on the benefit amount and waiting period.
For single buyers in their mid-50s, quotes commonly land between $1,200 and $2,800.
Those numbers are up sharply from a decade ago, and insurers keep filing for more.
Care costs have risen faster than premiums, and low interest rates through the 2010s made it harder for insurers to earn the returns they counted on to pay future claims.
A private room in a nursing home now averages well over $100,000 a year nationally, and in high-cost states like Connecticut, Massachusetts, and Alaska it can exceed $150,000.
Assisted living runs $60,000 to $70,000 in many metros.
Home health aide rates have climbed past $30 an hour in most markets.
Medicare does not cover long term custodial care, which is the part most families eventually need.
That gap is why the product exists, and also why it keeps getting more expensive.
A 55-year-old in good health buying a $150,000 pool of benefits with a 90-day waiting period might pay $1,400 a year.
Bump that to $300,000 with inflation protection and the same person could pay $3,500 or more.
Couples who share benefits often pay less per person than two singles.
Inflation protection is the single biggest cost driver.
A 3% compound growth rider can double or triple a premium compared to a policy with no growth.
It also determines whether the benefit still covers anything 25 years from now.
Insurers have also raised rates on existing policyholders.
Several major carriers won approval for increases of 20% to 60% on legacy blocks of policies in recent years, and more requests are pending in state insurance departments.
Those hikes hit people who bought decades ago and assumed their premium was fixed.
That history is why some buyers now look at hybrid policies, which combine life insurance or an annuity with a long term care benefit.
They cost more upfront, often $75,000 to $150,000 as a single premium, but the premium is locked and heirs get a death benefit if care is never needed.
State partnership programs are another route.
In roughly 40 states, buying a qualifying policy lets you protect an equal amount of assets from Medicaid spend-down.
That can matter more than the policy payout for middle-income households.
Before buying, check the insurer's rate increase history, not just the quote.
Ask whether the policy covers home care, adult day care, and assisted living, or only nursing homes.
Look at the elimination period, which works like a deductible in days, and confirm whether it is calendar days or days of actual care.
The financial planning rule of thumb has shifted too.
Many advisors now suggest spending no more than 5% to 7% of retirement income on premiums, and only if you have assets worth protecting.
If your savings are modest, Medicaid planning may matter more than a policy.
Shopping in your mid-50s usually beats waiting until your 60s, because health underwriting gets stricter with every diagnosis.
A single rejection for a knee replacement, diabetes, or a past cancer diagnosis can end the process entirely.
The closing takeaway: long term care coverage is not a bargain in any year, but the alternative, paying out of pocket at $100,000-plus a year, is worse for many families.
Get quotes from at least three carriers, read the rate history, and decide based on your assets, not on fear.
Final Thoughts
The right answer differs for a retired teacher with a pension and a self-employed contractor with a brokerage account, and pretending otherwise is how people overpay.