The price of long-term care coverage is rising again this year, and the increases are landing hardest on people in their 60s and 70s.
Insurers blame higher care costs, longer lifespans, and stubbornly low interest rates from years past.
For anyone who bought a policy a decade ago, the renewal notice in the mailbox may be the most expensive piece of mail they open all year.
A recent industry survey found that a 60-year-old couple can expect to pay roughly $3,800 to $4,500 a year combined for a policy covering both partners.
Wait until 65, and that same couple may pay closer to $5,500.
Buy as a single 65-year-old man and the average premium runs about $1,700 to $2,000 a year; a woman the same age often pays $2,700 to $3,100, because women statistically live longer and file more claims.
A diagnosis of diabetes, a past stroke, or even a treated cancer can push you into a higher rate class or get you declined outright.
That's why financial planners keep repeating the same line: the cheapest time to buy long-term care insurance is before you need it, and the second cheapest time is today.
The sticker shock doesn't stop at the premium.
Many older policies came with lifetime benefits and 5% compound inflation riders that insurers now say they underpriced.
Companies like Genworth, John Hancock, and others have won repeated rate increases in dozens of states, some topping 50% over a few years.
Regulators rarely block them when the math supports the request.
First, read every renewal letter and don't ignore a rate hike hoping it goes away.
Second, ask your insurer about lowering the daily benefit, shortening the benefit period, or dropping an inflation rider to keep the premium flat.
Third, compare a traditional policy against a hybrid life insurance plan with a long-term care rider, which locks in your premium but usually requires a large upfront payment.
Some families are skipping insurance altogether and self-funding instead.
A private nursing home room now averages over $110,000 a year nationally, and in-home care runs about $60,000 for 40 hours a week.
Setting aside even $200 a month in a dedicated savings account won't cover everything, but it can cover the first months of care while family members sort out Medicaid rules for their state.
One more warning worth repeating: be skeptical of any agent who promises a policy will never raise its rates.
Ask for the company's rate increase history in your state before you sign anything.
My take: long-term care insurance is neither a scam nor a magic bullet, and the rising prices reflect real math rather than greed alone.
If you're in your 50s or early 60s, get a few quotes this year while your health still works in your favor.
Final Thoughts
If the premiums feel impossible, build a savings cushion and talk with your family about who would do what, because that conversation costs nothing and is worth more than most riders.