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Posted by LTC Staff
LTC Staff
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on Tuesday, 15 October 2013
in LTC Insurance

Long Term Care Insurance Prices are Rising...But it's Worth it.

There is so much press right now about the rising cost of Long Term Care Insurance, so it is important to remember the reasons why Long Term Care insurance is needed in the first place. If we just focus on prices rising we'll make a big financial planning mistake.

People buy Long Term Care insurance because they cannot afford the cost of Long Term Care on their own, or don't want to deplete a significant portion of their savings. Home Health Care can cost anywhere from $40,000 - $80,000 + per year, and nursing homes can cost $50,000- $100,000+. For most people three to five years of paying these kinds of uninsured medical expenses will seriously disrupt their retirement plan if not cause it to fail all together. Paying a $200 per month insurance premium is much more manageable than paying $4,000- $8,000 per month out of pocket.

Our expectations have a huge impact on our emotions. If Long Term Care insurance was priced properly when it first came out we would not be having this discussion. Because LTC insurance was initially so much less expensive, and because there was an expectation that it would not go up, buyers have been discouraged. This is more of an emotional decision than a rational one.

Here are a few statistics about Long Term Care Insurance:

  • 8.1 Million Americans are protected with long-term care insurance.
  • 322,000 new Americans obtained LTC insurance coverage in 2012.
  • $6.6 Billion in LTC insurance claims paid (2012).
  • Over 264,000 individuals received LTC insurance benefits (2012).


Despite the negative press and increase in LTC insurance costs, people are still enrolling in policies. They simply choose a level of coverage they can afford. These policies still protect their assets and keep their families from being burdened with care.

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