What Goes Into Long-Term Care Insurance Costs?
In addition to the provider, long-term care insurance prices depend on factors including health, age, marital status, gender, and policy type.
Most long-term care insurance policies require a medical exam. If you are in good health, then your premium likely will be lower. If you have a family history of chronic health conditions, then you will likely have a higher premium since it indicates to an insurer that there’s a greater chance you’ll need long-term care.
The earlier you purchase a long-term care insurance policy, the lower the premiums will be. If you purchase a policy when you’re older, then you are more likely to need the benefit to pay for care sooner, so premiums will be higher.
Studies show that married or partnered individuals have a lower risk of needing long-term care, so married people will have lower premiums. Couples can also bundle their policies together for a lower price.
Women tend to live longer than men and they make up nearly two-thirds of claims made on long-term care insurance policies, so women usually pay significantly more for long-term care insurance.
There are several types of long-term care insurance policies. Insurance carriers offer individual policies for purchase. They also may offer “hybrid” policies that combine life insurance with long-term care insurance, and some employers or associations offer group coverage that provides more benefits for lower premiums.