Long Term Care Insurance: Complete Guide

Updated: November 9, 2022
long term health insurance quotes

You have never considered long term care insurance in planning your finances, just like most people. But it’s crucial to consider these factors in advance so that when you need LTC insurance, you need not scramble and wait for a long time to get coverage in place! Hence, let’s talk about long-term care insurance and get a quote.

Long Term Care Health (LTC) Insurance: What Is It?

LTC insurance covers long term care needs caused by chronic diseases and can help you afford the costs of continued care if you need it.

Additionally, LTC insurance covers long term care needs, services, and support. In other words, it covers the cost of caregiving expenses brought on by a long-term health condition. Private insurance is insurance that individuals or families buy for themselves, such as health or life coverage. It is essential to note, however, that long term care insurance options are formulated and marketed specifically for use in groups.

Most plans cover therapy that is given in various places, such as:

  • Nursing Home
  • Adult Day Care
  • Home Health Care
  • Assisted Living Facility

Types of Long Term Medical Care Insurance Policies

To make the best decisions and provide you and your loved one peace of mind, you need to know which form of LTC policy is best for you.

Now we’ll discuss the two primary LTC insurance plans.

Stand-alone long term care insurance policies

Caregiving expenses, whether incurred in a residential care facility, home, or nursing home, can be partially covered by a typical long term care insurance policy.

This sort of plan typically gives you more leeway in deciding which treatments to pursue, where to get them, and for how long.

During the benefit period, policyholders who have purchased stand-alone long-term care insurance will receive monthly payments of the benefit amount. Payment of benefits is normally made after an elimination period of 30 days to 90 days, while the benefit period can last anywhere from two to five years.

To tailor your LTC policy to your needs, you can add “riders” or coverage extensions, such as inflation protection.

Hybrid long-term care insurance policies

Life insurance or a qualifying annuity with a long term care rider is a frequent hybrid policy.

A few of the many benefits of combined life and LTC insurance plan are as follows:

  • If the policyholder does not use LTC insurance coverage, the beneficiaries will get a death benefit.
  • Premiums won’t rise during the policy term.
  • Less stringent underwriting means potentially cheaper rates for female applicants.

However, there are certain disadvantages to hybrid LTC insurance policies:

  • Compared to the cost of LTC insurance purchased separately, premiums may be significantly higher.
  • Purchasing life insurance later in life is significantly more expensive than purchasing it earlier.

Your personal and financial circumstances should guide your decision between a stand-alone and hybrid policy. An insurance representative may be able to direct you toward the optimal choice.

Long Term Care Insurance: How Does It Work?

After being accepted for long term care, you start making premium payments.

Most policies for long term care will begin paying out when you can no longer perform two of six ADLs without assistance or when you develop dementia or another form of cognitive impairment.

Everyday tasks include:

  • Dressing
  • Transferring (going in and out of bed, sitting down, getting up)
  • Bathing
  • Grooming
  • Eating
  • Toileting (going on or off the toilet, cleaning)

When you’ve decided you need medical attention and have filed a claim, the insurance company will look over your medical records and potentially send a nurse to assess your condition.

You should submit a claim as soon as you or a loved one recognizes the need for medical attention. Elimination periods are common in insurance policies and involve a waiting time before coverage begins. Some policies require you to pay for up to 90 days of long-term care services in full before the insurer begins paying their share.

A “plan of care” must be approved by your insurer before they would pay out on a claim.

Call now to receive a free long term medical insurance quote within minutes.

Why should one plan for long term care?

As per Urban Institute and HHS research, most Americans (about 70%) who reach retirement age will require long term care throughout their remaining years. Men need care for 2.2 years, and women for 3.7.

Medical insurance doesn’t cover LTC. Also, Medicare won’t bail you out; it only pays for brief nursing home stays and limited home healthcare visits for those who need skilled nursing or rehabilitation. Custodial care, which entails monitoring and assisting with daily activities, is not covered.

Without insurance, most states force residents to pay for long term care. After spending most of your money, you may qualify for Medicaid, a low-income health insurance program.

People buy LTC insurance for two reasons.

  • To preserve savings
  • To provide you with more options for care.

Buying Long Term Care Insurance: Worth It?

LTC insurance may not be necessary for everyone in their golden years because not everyone may need assistance with daily activities. Consider purchasing long term care insurance if you wish to keep your savings and spend or leave them as you like throughout your lifetime or after death.

People anticipating long term care needs may benefit from investing in LTC insurance. Although this is possible, most people in their 80s require more support than their families can supply. Consider LTC insurance if you have a family history of long-term illness or incapacity.

Get affordable long term medical insurance quotes from NewHealthInsurance.com now.

long term health insurance quotes

What Does LTC Insurance Help Pay For?

LTC Insurance covers both formal and informal care, including:

  • Assisted Living Facilities
  • Custodial Care
  • Adult Day Care
  • Skilled Care
  • Intermediate Care
  • Residential Care Homes
  • Continuing Care Retirement Communities
  • Respite Care
  • Home Health Care

How Much Does Long-Term Health Insurance Cost?

Costs for LTC insurance in 2022 will range from $79 to $533 per month. However, these costs might fluctuate widely depending on factors such as the policy’s coverage, the insured’s age and gender, and overall health.

Shopping around for long term care insurance is crucial because premiums vary widely between companies.

2022 Annual Premium Estimates

A policy with a $165,000 benefit and recommended by the American Association for LTC Insurance can be expected to cost around these amounts per year:

Person Age Monthly Premium
Single male 55 $185
Single female 55 $308
Couple 55 $418.75
Single male 65 $261.25
Single female 65 $438.75
Couple 65 $595.83

The monthly cost of providing LTC is estimated to be several thousand dollars, yet LTC insurance policies can be expensive. Those who anticipate a healthcare need will find the premiums well worth the cost.

Get affordable long term medical insurance quotes now!

Costs of LTC Without Insurance

The price of LTC can add up quickly if you aren’t covered by insurance. The following are estimated monthly expenses for 2022:

  • A home health aide will cost you $5,148 per month.
  • The cost of adult day care is $1,690 per week.
  • A monthly cost of $4,500 for assisted living
  • An average semi-private nursing home room costs $7,908.
  • A private nursing home room costs $9,034.

Even though people aged 65 and over have a 70% lifetime probability of requiring some form of LTC services, only 11% buy long term care insurance. The remaining people are left trying to find money to pay for everything when the time arrives.

The Top Long Term Care Insurance Companies for 2022

Some of the best LTC Health insurance companies are:

  • Lincoln Financial Group is the top for no waiting period.
  • New York Life is the best overall.
  • Brighthouse Financial Is top for Benefits Payout.
  • Mutual of Omaha is great for discounts.

How Do I Buy Long Term Care Insurance?

Since LTC insurance is based on a person’s medical history, some people with certain health conditions can’t buy it. When compared to medical insurance, this is one key distinction.

You must work exclusively with a licensed life and health insurance agent or broker in your state. Get in touch with your state’s insurance division to verify licensing. Agents and brokers selling long-term care insurance are often required by law to complete additional training. Therefore, you should inquire as to whether or not the broker or agent you intend to hire is up-to-date on their continuing education requirements, including those related to LTC insurance.

Morbidity, or the likelihood of contracting a severely disabling disease or medical condition, is the primary factor when pricing LTC insurance. Contrast it with life insurance, which is underwritten based on mortality. Life insurance policyholders may be eligible for LTC insurance but be denied coverage.

Get cheap long term health insurance quotes now from NewHealthInsurance.com.

What factors can disqualify an applicant for LTC insurance?

Due to differences in risk pricing, certain insurance providers may be more tolerant than others in approving policies for specific high-risk situations. In general, when considering your application for LTC insurance, the company will look closely at your health and family history for signs of potentially disabling conditions.

It may be more challenging to gain approval for coverage or to qualify for lower premiums if you are sick or disabled and need help with regular tasks.

Do You Have to Pay Taxes on Long-Term Care Benefits?

This question is somewhat simpler to answer. No matter the policy’s structure or the sort of coverage it offers, long term care benefits are never tax deductible. This is because LTC benefits are not deducted from income. After all, they are considered personal spending.

There you have it. Several factors determine whether or not premiums and benefits from LTC insurance are tax-deductible. You should consult an expert if you need help figuring out your taxes.

Alternate Options to Long-Term Care Insurance

Consider some of our top alternatives to LTC insurance if you don’t want to pay the high monthly premiums. They range significantly in price, coverage, and adaptability.

Lifetime deferred annuities

An annuity is a financial contract in which a person pays a sizable sum of money to an insurance company for investment. A certain sum will be distributed to you in equal installments over a predetermined time frame. With a deferred annuity, you can wait longer before receiving payments from your initial investment, allowing it to grow in the market.

When an elderly person chooses payments that will continue for the rest of their life, it is called a lifetime deferred annuity. Guaranteed income is a viable alternative for retirees and those saving for long-term care costs. This form of payment best covers long-term care expenses.

When purchasing a delayed lifetime annuity for the first time, you usually have the option of choosing a future date on which you’d prefer to begin receiving the guaranteed income. There are currently no caps on contributions to deferred lifetime annuities.

A hybrid policy for life insurance

Hybrid insurance covers long-term care. It’s a combination of life insurance and LTC coverage. LTC insurance pays death payments regardless of whether the insured needs long term care.

Home equity

LTC costs can be covered, in part, by the equity in your home if you are the current owner. Lines of credit and home equity loans can be used to borrow the money necessary to cover the cost of LTC. By doing so, you would be using the value of your property as collateral to secure a loan for use in meeting specific financial obligations.


Medicaid can help pay for in-home and facility-based long term care. It can also help pay for a nursing home or facility for the elderly or disabled. Medicaid won’t pay all hospital expenditures.

Reverse mortgages

Without selling your home, you can access a portion of your home’s equity with a reverse mortgage. This may be a viable choice for retirees or those needing help covering the cost of LTC. The Federal Housing Administration (FHA) is the only source for the Home Equity Conversion Mortgage, the only reverse mortgage currently backed by the federal government.

Insurance for short-term care

Short-term care insurance is available, like long term care. It covers home and institutional care. Specifically, this policy only covers you for a year. If you’re planning on moving into a senior care facility, this may not be your best option. However, it can be quite helpful for individuals who are recovering from surgery or an injury.

Bottom Line

Finding long term care insurance might be an intimidating task. Individuals unable to do daily living activities are covered by LTC insurance. It provides healthcare benefits that Social Security and Medicare do not. Additionally, because long-term care is medically underwritten, individuals with preexisting problems may not qualify. In addition, the cost of a policy relies on various variables, including the duration of the elimination period, policy restrictions, and your age and health.

Contact Newhealthinsurance today to get long term health insurance quotes for free!


Does Medicare pay for services for long term care?

Medicare does not cover LTC costs. As an alternative, Medicare is meant to cover emergency medical care costs. This temporary medical coverage extends to hospitalization, medical, Medigap, and Part D prescription drug plans.

Who governs long term care (LTC) insurance?

The LTC industry is governed by the NAIC and individual state insurance departments.

Do I need and can I afford LTC insurance?

Age, health, retirement goals, income, and assets affect whether you get long-term care insurance. LTC insurance may be too expensive for folks on Social Security or SSI. You may protect some of your wealth with long-term care insurance. You should only purchase a policy if you are confident in your ability to pay the premium and any potential rate changes.

Who pays health insurance while on long-term disability?

The maximum Social Security Disability benefit in 2022 is $3,345, up from $3,148 in 2021, as reported by the Social Security Administration (SSA). This is also the highest amount a person can get each month as a Social Security retirement payment once they reach full retirement age.

How is long term disability insurance different from health insurance?

If you become disabled and cannot work due to a sickness or injury, long-term disability insurance can help restore some of your lost income. It’s a replacement for lost wages. The expense of a nursing home or a home health aide can be substantially reduced with long-term care insurance. It helps cover the costs of medical centers essential to providing adequate care.

How much is long term health insurance?

Long-term care insurance for a single 55-year-old male costs about $950 annually as of the current year (2022). A 55-year-old single woman in 2021 will pay $1,500 more for the same coverage amount of $165,000.

How long is short term health insurance?

Short-term health insurance, commonly known as “Term Insurance,” is an option for those in need of medical coverage for a shorter period. Policies typically last anywhere from a few months to a year. Several companies now offer short-term health insurance to help fill the coverage gap between longer-term policies.

How much does long term health insurance cost?

Long-term insurance costs an average of $1,325 to $2,550 a year for an individual aged 55, $2,085 to $3,970 for a couple aged 55 with preferred health and a shared policy, and $1,985 to $3,970 for a couple aged 60 with standard health, as reported by The Balance.

Is long term medical insurance good?

Not everyone requires long-term care as they age, so getting insurance for it may not be necessary.

If you want to maintain your savings for yourself or your family after your death, you may want to buy long-term care insurance.

Investing in long-term care insurance may be worthwhile for those who anticipate a need for long-term care services.

While this is possible, many people need extra help in their 80s that their families can’t afford.

Consider long-term care insurance if you have a family history of long-term illness or incapacity.

Get A Free Affordable Health Insurance Quote