Long-Term Care Insurance Cost Calculator

AALTCI 2024: a healthy couple age 55 pays around $2,080/year combined for $165,000 of initial benefit (3% inflation rider). At age 65 the same coverage costs roughly $3,750/year combined. Hybrid life/LTC policies cost more upfront but return premiums if unused.

Breakeven typically occurs after 2-3 years of claims. With nursing home costs at $116,800/year, even a single year of care often exceeds 20+ years of premiums. The risk is paying premiums for decades and never needing care.

Traditional LTC has the lowest premium cost but "use it or lose it." Hybrid (life insurance + LTC rider) costs 2-4x more but pays a death benefit if you don't use the LTC. AALTCI reports hybrid sales now exceed traditional LTC by 5:1.

Yes. Traditional LTC insurers have filed rate increases of 30% to 100% on in-force policies over the past 15 years. Hybrid life/LTC policies tend to have more stable premiums in exchange for a higher upfront cost.

The 50 to 60 window is the sweet spot. Before 50, premiums are cheap but you pay for many more years. After 65, premiums climb sharply and many applicants are declined for health reasons.

It is the deductible measured in days: the number of days you pay out of pocket before benefits begin. Common periods are 30, 60, 90, or 180 days. A longer elimination period reduces the premium substantially.

Critical. Without an inflation rider, a $200 daily benefit today falls short of care costs 25 years from now. A 3% compound inflation rider often adds 50% to 80% to the premium but keeps the benefit useful over time.

Partially. Premiums on tax-qualified policies count as medical expenses subject to the 7.5% of AGI threshold. Self-employed filers can deduct more generously. Check with your accountant.