LTC Price Index

Costs for long-term care insurance have risen slightly for couples, and increased more significantly for single women, but have actually decreased for men according to a 2014 report by the American Association for Long-Term Care Insurance (AALTCI). A 55-year-old single man can expect to pay $925-per-year for $164,000 of long-term care insurance benefits according to the AALTCI report. He’ll pay $1,765 for coverage that increases the benefit pool to $365,000 at age 85, a 14.5% decline from last year’s average.

Jesse Slome, director of the national trade group said, “We advocate a good, better, best approach to long-term care planning for those in their 50s and 60s. Good coverage provides $164,000 of available benefits for each spouse. Better coverage includes an option to add future coverage. The Best option, also the most costly, includes an automatic inflation growth feature.” Today’s average cost is $3,840-per-year for best coverage for a 60-year-old couple each purchasing $164,000 of immediate coverage, growing to a combined benefit pool of $730,000 ($365,000 each) at age 85. “That’s a three percent increase from the 2012 average ($3,725) and 4.8% higher than 2012 ($3,663),” Slome said.

Single women face the greatest cost increase compared to last year. Slome explains, “Last year, leading insurers began charging women higher premiums. Women accounted for two-thirds of the $6.6 billion in long-term care insurance claim benefits paid out.” A 55-year-old single woman would pay an average of $1,225-per-year for the same level of benefits available to a single man for $925 according to AALTCI. The typical single woman will pay an average of 12% more than in 2013. The Association study continues to reveal a significant spread between rates charged by insurers. “No one insurance company is always the least or the most expensive. One insurer will literally charge more than double for virtually the same level of benefits,” Slome notes. The AALTCI study reported differences that ranged from 31% to as much as 114%. For more information, visit AALTCI.org.

Last Updated 10/21/2020

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