A 55-year-old individual considering long-term care insurance protection can expect to pay $709 a year if married or $1,095 if single, according to the 2008 Long-Term Care Insurance Price Index, an annual report from the American Association for Long-Term Care Insurance, an industry group.
A 65-year-old purchasing comparable coverage will pay $1,342 (married) or $1,999 (single) according to the report. Costs for coverage increased about 4 percent over 2007.
The annual index measures current costs for top-selling long-term care insurance policies that offer consumers approximately $115,000 in current benefits (base-level coverage), with protection increasing yearly as the individual ages. “That coverage will grow in value to over $305,000 of protection in 20 years,” explains Jesse Slome, the association’s executive director. The study compares costs for plans that provide benefits for three years or longer with an annual compound inflation option that increases the available insurance benefits by five percent compounded each year.
Below is the 2008 price index:
2008 National LTCi Price Index
Average price for a comprehensive long-term care insurance policy (100% home care benefit + skilled care coverage) 90-Day Elimination Period with 5% Compound Inflation Protection Option
Age 55
$100 Maximum Daily Benefit x 3 Year Benefit Period Cost: $709-per-year Individual Qualifies for Preferred Health and Spousal Discounts
Age 55
$100 Maximum Daily Benefit x 3 Year Benefit Period Cost: $1,095-per-year Individual is single (preferred health discount)
Age 55
$150 Maximum Daily Benefit x 3 Year Benefit Period Cost: $1,064-per-year Individual Qualifies for Preferred Health and Spousal Discounts
Age 55
$150 Maximum Daily Benefit x 3 Year Benefit Period Cost: $1,578-per-year Individual is single (preferred health discount)
Age 65
$100 Maximum Daily Benefit x 3 Year Benefit Period Cost: $1,342-per-year Individual Qualifies for Spousal Discounts (standard health)
Age 65
$100 Maximum Daily Benefit x 3 Year Benefit Period Cost: $1,999-per-year Individual is single (standard health)
Age 65
$150 Maximum Daily Benefit x 3 Year Benefit Period Cost: $2,013-per-year Individual Qualifies for Spousal Discounts (standard health)
Age 65
$150 Maximum Daily Benefit x 3 Year Benefit Period Cost: $2,998-per-year Individual is single (standard health)
Age 65
$240 Maximum Daily Benefit x 3 Year Benefit Period Cost: $3,221-per-year Individual Qualifies for Spousal Discounts (standard health)
Age 65
$240 Maximum Daily Benefit x 3 Year Benefit Period Cost: $4,729-per-year Individual is single (standard health)