Long term care insurance premiums depend on your age when you buy, your health history, the daily benefit amount you choose, and how long you want the policy to cover

A healthy 55-year-old might pay $1,500 to $3,000 per year for a policy that covers $150 to $200 per day of care. A 65-year-old in the same health typically pays $2,500 to $5,000 annually for similar coverage. Someone who waits until 75 can expect $6,000 to $12,000 or more per year — if insurers will cover them at all. These ranges shift based on where you live, which insurance company you choose, and what specific benefits you add to the policy.

The cost matters because long term care itself is expensive: a semi-private nursing home room runs $100 to $150 per day in most states, and assisted living facilities average $50 to $100 daily. Home health aides cost $20 to $30 per hour. Insurance doesn't cover all of it, but it covers enough to keep a major illness or injury from wiping out your savings.

Key Takeaways

  • Premiums are lowest if you buy between ages 50 and 60, when you're still healthy enough to pass underwriting but old enough that the risk is real to you.
  • The daily benefit amount you choose — typically $100 to $300 per day — directly affects your premium; doubling the benefit roughly doubles the cost.
  • How long the policy covers matters: a three-year benefit period costs less than a five-year or lifetime benefit, but may not cover a serious stroke or dementia.
  • Health conditions like diabetes, heart disease, or cognitive decline can raise premiums by 25 to 100 percent or result in denial.
  • Some policies include inflation protection, which raises your daily benefit over time but adds 25 to 40 percent to the premium.

How age affects what you pay

Insurance companies price long term care based on how likely you are to use it and how soon. A 50-year-old has decades before needing care, so the company collects premiums for years. A 75-year-old might need care within five years, so the company charges more per year to recoup its risk faster.

The jump is steep. Between age 55 and 65, premiums typically double. Between 65 and 75, they often double again. After 80, many insurers stop selling new policies or charge rates so high that the math no longer works for most people. This is why financial advisors often recommend buying in your mid-50s: you're old enough to take the decision seriously, but young enough that the annual cost is manageable and you'll pay premiums for 20 or 30 years before using the benefit.

If you wait until you have a health problem — a cancer diagnosis, a heart attack, or early memory loss — you may not be able to buy a policy at all. Underwriting is strict. Insurers pull medical records, order lab work, and sometimes require a phone interview with a nurse.

What the daily benefit amount means for your bill

The daily benefit is how much the insurance will pay per day toward your care. You choose this amount when you buy the policy, and it's the single biggest driver of cost after your age.

A $100 daily benefit might cost $1,200 per year at age 55. A $200 daily benefit for the same person might cost $2,000 to $2,200. A $300 daily benefit could run $3,000 to $3,500. The relationship isn't perfectly linear — the first $100 of benefit costs more per dollar than the second $100 — but the pattern is clear: more coverage costs more.

The daily benefit should roughly match what care actually costs in your area. If a nursing home in your region costs $150 per day and you choose a $100 daily benefit, you're covering two-thirds of the cost and paying the rest yourself. If you choose $200, you're covering the full cost plus some of the non-medical expenses (meals at home, transportation, equipment). Most people choose $150 to $200 to balance affordability against the risk of running out of money.

How the benefit period changes your premium

The benefit period is how long the insurance will pay. Common options are three years, five years, or lifetime. A three-year benefit covers roughly 1,000 days of care. A five-year benefit covers roughly 1,800 days. Lifetime coverage has no limit.

A three-year benefit period costs the least — perhaps 30 to 40 percent less than a five-year period for the same daily amount. But three years may not be enough. A serious stroke, Alzheimer's disease, or Parkinson's can require care for a decade or more. If you exhaust your three-year benefit, you pay out of pocket for the rest.

A five-year benefit is the middle ground: it covers most scenarios that don't involve very long-term dementia, and it costs less than lifetime coverage. Lifetime coverage costs the most but removes the risk of running out of money. Many people choose five years as a compromise, or three years if they have other savings to fall back on.

Health conditions and underwriting costs

When you apply, the insurance company reviews your medical history and current health. If you have diabetes, high blood pressure, or high cholesterol but it's controlled with medication, you'll likely be approved at standard rates or with a modest increase — perhaps 10 to 25 percent higher premiums.

If you have a history of heart attack, stroke, or cancer, expect a 25 to 50 percent increase. If you have cognitive decline, memory problems, or a diagnosis of early dementia, you may be declined entirely. Some companies will cover you but at rates 50 to 100 percent higher than standard.

Lifestyle factors matter too. If you smoke, premiums are typically 15 to 25 percent higher. If you have a history of alcohol or drug use, you may be declined. The company is trying to predict how long you'll live and how healthy you'll be — not to judge you, but to price the risk accurately.

Inflation protection and optional add-ons

A policy you buy at age 55 will still be paying the same daily benefit at age 85 — unless you add inflation protection. This rider automatically increases your daily benefit by 3 percent per year (or sometimes 5 percent). Over 30 years, a $200 daily benefit grows to roughly $580 with 3 percent annual increases.

Inflation protection costs 25 to 40 percent more in premiums, but it's worth considering. Without it, a $200 daily benefit that seemed adequate in 2025 will cover only half the cost of care in 2050. Most financial advisors recommend buying it if you can afford the extra premium.

Other add-ons include a shorter waiting period before benefits start (usually 30, 60, or 90 days — shorter waits cost more), a return-of-premium rider (the company refunds your premiums if you never use the benefit, but this adds 50 to 100 percent to the cost), and shared benefits for couples (one spouse can use the other's unused benefit). Each adds to the premium.

How location affects pricing

Long term care costs vary by state and region. Nursing home care in New York or California is significantly more expensive than in rural areas of the South or Midwest. Insurance companies price policies to match local care costs, so your premium depends partly on where you live.

If you move after buying a policy, your rates usually don't change — the policy is locked in at the rates you bought it at. This is one reason to buy before you retire and move: you lock in rates based on where you currently live, not where you might retire.

Frequently Asked Questions

Do premiums ever go up after I buy the policy?

Yes. Insurance companies can request rate increases from state regulators, and if approved, all policyholders in your state may see their premiums rise. This happens occasionally, especially if the company underpriced policies years ago or if care costs in your region increased faster than expected. You can't be singled out for a rate increase based on your individual health.

What if I can't afford the premiums later?

You can reduce your benefit amount or shorten your benefit period to lower the premium. You can also let the policy lapse and stop paying, though you'll lose the coverage. Some policies have a non-forfeiture rider that converts your paid premiums into a smaller benefit if you stop paying — this costs extra upfront but protects you if finances get tight.

Is long term care insurance worth it if I'm healthy and have savings?

It depends on your savings and your family history. If you have $500,000 or more in liquid assets and no family history of dementia or stroke, you might self-insure. If you have $100,000 to $300,000 in savings and your parents needed long term care, insurance protects you from depleting those savings. A financial advisor can help you run the numbers for your situation.

Can I buy a policy through my employer?

Some employers offer group long term care insurance, which is usually cheaper than buying individually because the company negotiates rates for all employees. Group policies are often easier to may have access to for because underwriting is less strict. If your employer offers it, compare the group rate to individual quotes before deciding.

What happens to my premiums if I never use the policy?

You keep paying premiums for as long as you own the policy, even if you never need care. The money doesn't roll over or come back to you — it's insurance, not savings. If you want a refund of unused premiums, you need to buy a return-of-premium rider, which significantly increases the cost.