There are a lot of aspects that affect the cost of a long term care insurance (LTCI) plan. Along with what features you actually apply for, your age, current health, relationship status, gender, and geographical location can all have an impact on the cost of LTCI.  We came up with a list of trade-offs to make long term care more affordable, strictly based on what benefits you apply for.

We have already determined that the “average” cost of LTCI can vary greatly, but for someone in their 50s the costs average between $100 and $180 per month.  This would typically be a policy with benefits around $4,500 per month, a 3 year duration and 3% compounding inflation.  Let’s take that “average” policy and adjust it a bit with some trade offs to make the price more affordable.

Short and Rich

One option would be to decrease your benefit duration from 3 years to 1-2 years, increase your monthly benefits to $7500 and select a future purchase option for your inflation.  Depending on the carrier, this would allow a smaller premium, but would still be a great option for coverage.

The Opposite of Short and Rich

Another option to reduce costs would be to increase your benefit duration from 3 years to 5 years, decrease your monthly benefits to $100 a month and keep your 3% compound.  While this policy may not be as rich, this could fulfill a “some is better than none” situation for people who just want a little extra help with costs.

There are other ways to save money on long term care insurance besides adjusting your benefits, as we have discussed in other posts.  Make sure to also compare companies, apply with a spouse or partner (if eligible), and apply while you’re healthy.  We also encourage you to play around with different benefits as we have outlined here using our Instant Quote Tool.  It is easy to use, there is no obligation, and it shops the top carriers in the industry.

LTC Consumer is an independent, free online service to help consumers understand what long term care insurance is, how it works, and how to evaluate coverage options. Our mission is to provide an educational, no-pressure resource for learning about long term care planning, with the opportunity to speak with specialists who can help them.