Understanding the Cost of Long Term Care Insurance by Age

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Long Term Care Insurance rates are based on your age, gender, health, and marital status. With each year that goes by, the cost of obtaining coverage gets higher. That’s why it’s important to consider your options and apply for coverage before your next birthday.

In recent years, carriers can now price coverage based on gender. Women are statistically more likely to use their coverage and for longer periods of time. This makes coverage for women more expensive than men.

The good news is discounts are available based on your health and marital status. Preferred health status could save you up to 15% on your insurance premiums and having a spouse or partner may save you an additional 15%. If you’re married or in a domestic partnership and apply for coverage with your spouse/partner and both are approved, you may increase your marital discount to 30%.

Long Term Care Insurance: Premium Price Summary

To give you an idea of the cost of Long Term Care Insurance by age, consider the following example of a male and female applying individually for coverage in Michigan. Each pays a monthly premium for a $4,500 monthly benefit, 3-year benefit period, 90-day elimination, 3% compound inflation, and a 15% spouse/partner discount is applied.

Product Male LTCI Age-Based Premiums
45 50 55 60 65
Mutual of Omaha Secure $112.36 $123.80 $137.97 $159.01 $199.56
Transamerica Transcare III* $136.36 $140.39 $143.10 $165.71 $215.73
Genworth PC Flex III Enhanced $124.35 $132.46 $140.89 $165.09 $202.56

 

Product Female LTCI Age-Based Premiums
45 50 55 60 65
Mutual of Omaha Secure $177.64 $197.18 $222.75 $260.25 $320.86
Transamerica Transcare III* $207.76 $213.97 $218.10 $252.51 $328.78
Genworth PC Flex III Enhanced $189.23 $204.07 $217.13 $255.69 $317.02

*Rates based on Transamerica’s Tailored Inflation

In the examples above, a man age 55 would pay an average monthly total of $140. Women of the same age would pay an average of $220 per month. Fast forward 10 years to age 65, a woman would pay $100 more per month for the same coverage and a man would pay $60-$70 more per month (at current premiums).

Both men and women will pay more for coverage with each passing year. In addition, as you age, you risk a decline in health which could make you ineligible for coverage. Buying coverage while you’re young and healthy is the best way to lock in the lowest premium possible. With LTCI carriers coming out with new products at increased rates every couple years, premiums will only continue to rise.

Discover the Cost of LTCI for You

To find out the cost of LTCI at your age, use our online cost of care calculator to choose a plan in your state and play with the plan design options. Don’t wait until it’s too late to apply for coverage. You’ll save each month and each year by applying for LTCI before your next birthday.

Please note: these rates are based on first year premiums and are for illustrative purposes only.  The rates above are not and cannot be deemed or considered an offer for an insurance policy or contract.  Your actual rate may vary based upon the terms and conditions each insurance company offers as a result of your application.  Rates and eligibility are determined solely by the insurance company and are based up their discounts, underwriting rules, and practices.

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