Understanding average long-term care insurance (LTCI) costs helps set realistic expectations—but premiums vary widely depending on your choices and circumstances. Below, we break down national averages, coverage-level comparisons, and real-world examples to give you a clearer picture.
National Averages by Age Group
Insurers price policies based on age at enrollment. Here’s what you can expect annually for a typical policy:
| Age | Average Annual Premium |
|---|---|
| 55 | 1,500–1,500–2,500 |
| 65 | 2,700–2,700–4,200 |
| 75 | 6,000–6,000–9,000+ |
Assumes: $150/day benefit, 3-year benefit period, 90-day elimination period, 3% inflation protection, and good health.
Why the jump at 75? Older applicants face higher risk of needing care soon, so premiums spike dramatically. For every decade you delay, costs roughly double.
Premiums Based on Coverage Levels
Your benefit choices significantly impact costs. Below compares annual premiums for a 65-year-old in average health:
| Coverage Feature | Lower-Cost Plan | Mid-Range Plan | Comprehensive Plan |
|---|---|---|---|
| Daily Benefit | $100/day | $200/day | $300/day |
| Benefit Duration | 2 years | 3 years | Lifetime |
| Inflation Protection | None | 3% compound | 5% compound |
| Elimination Period | 180 days | 90 days | 30 days |
| Annual Premium | $1,800 | $3,600 | $7,200+ |
Key takeaway: Doubling your daily benefit or opting for lifetime coverage can triple your premiums.
Real-World Examples of Policy Costs
Here’s how premiums shake out in real-life scenarios:
Example 1: Healthy 55-Year-Old in Texas
- Coverage: $150/day, 3-year benefit, 3% inflation, 90-day wait
- Annual premium: $1,450
- Why it’s affordable: Younger age, no health issues, and low-cost state.
Example 2: 65-Year-Old Couple in Florida (Joint Policy)
- Coverage: $200/day each, 5-year benefit, 3% inflation, 90-day wait
- Combined annual premium: $5,200
- Discount: Insurers often offer 15-30% off for couples.
Example 3: 70-Year-Old with Hypertension in California
- Coverage: $250/day, 3-year benefit, no inflation, 180-day wait
- Annual premium: $5,800
- Cost drivers: Age, health condition, and high-cost state offset by longer elimination period and no inflation protection.
How Costs Compare to Actual Care Expenses
LTCI premiums may seem steep—until you compare them to the out-of-pocket costs of care:
- 2024 national averages:
- Nursing home: $115,000/year
- In-home care: $65,000/year
- With LTCI: A 3,600 annual premium over 20 years totals 72,000—far less than even one year of nursing home costs.
The Bottom Line
While averages provide a starting point, your actual premium will depend on:
- How early you enroll
- Your health history
- Coverage “extras” like inflation protection
- State-specific pricing