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  • Writer's pictureChristian Turnbaugh

What is Long-Term Care Insurance and Is It Right For Me?


Long-term care is not any one thing. It is any personal assistance that you need to maintain your quality of life as you get older. More than likely, you will need long-term care at some point in your life. Long-Term care insurance is essential for you to have the flexibility and choice you want and the quality of life that you want in your golden years.

Long-Term care insurance covers a myriad of different services and can help pay for not limited to home health care services, nursing home costs, and adult daycare. These are just a few of the many different services available.

How Much Does Long-Term Insurance Cost?

Like all insurance, when it comes to the cost, it will vary on various factors, and Long-Term care insurance is no different. The type & quality of care you are looking for, your age, and what policy you would like to name a few. That is why it is essential to work with an agent who understands your needs to guide you to the correct policy that fits your needs.

What does Long-Term care insurance cover?

Below, you will find a list of the most used services that Long-Term care can help cover.

  • Home health care

  • Nursing home costs

  • Assisted living facilities

  • Adult daycare

  • Home modifications that help for accessibility purposes

  • Care coordination

Long-Term Care Average Cost 2021

Purchaser Age Premium Estimates

Single Male 55 $950

Single Female 55 $1,500

Couple 55 $2,080 - Combined

Single Male 65 $1,700

Single Female 65 $2,700

Couple 65 $3,750 - Combined

While the costs above are the average of 2021, it is crucial to keep in mind that the price of your policy could vary based on your age, gender, health, policies, and benefits that you are requesting.

Tax Advantages of Long-Term Care Insurance

2021 Federal Tax Deductible limits for Long-Term Care Insurance

Age at the end of the year Maximum Deductible Premium

40 or under $450

41 to 50 $850

51 to 60 $1,690

61 to 70 $4,520

71 and Over $5640

*IRS Revenue Procedure 2020-45

Not all policies will meet the federal standards to be tax-qualified medical expenses. It is best to talk to a qualified advisor if you are unsure.

How Does the Cost of Long Term Insurance Change with Age?

As with all insurance, age will impact the cost of your Long-Term care policy premium. Generally, the premium is lower the earlier you start, for example, people in their late 40's versus those in their mid 60's. Therefore, the AALTCI recommends that you begin your research into Long-Term care policies and companies between 50 and 65. This will give you more options, and in turn, you will likely receive a better rate due to you being farther away from needing assistance, such as staying at a nursing home.

What are the Pros and Cons of Long Term Care Insurance?

Deciding on whether you should purchase a Long-Term Care insurance policy, it is essential to weigh the pros and cons of the policy. Below are a few options of both pros and negatives.

The Pros of Long-Term Care Insurance:

  • Preserves your assets and net worth you have accrued for your loved ones.

  • Provides the ability for numerous options of care.

  • Coverage is either temporary or permanent.

The Cons of Long-Term Care Insurance:

  • More than most insurance policies, the risk is greater in you do not know what your needs will be in the future. You could purchase too much and not need all that you have purchased. Or buy too little and dip into your assets to keep your quality of life.

  • Long-Term care policies include an "Elimination Period" that works like a deductible of sorts, which is the number of days you pay for care before the policy pays out, typically 90 days.

  • Having your application accepted is not a guarantee. Companies accept only 75-80% of applications. Many companies require you to pass a routine physical before your application is accepted.

Is Long-Term Care Insurance Right For You?

Deciding if Long-Term care insurance is right for you is a personal decision and depends on your unique situation. While there are a myriad of factors to consider, such as your health, age, and any conditions in your family tree, to name a few. Talking with a qualified Advisor can help with any confusion or stress around the topic and guide you to the best decision for your unique retirement future.

Kansas Preferred Insurance Group is licensed with many of the top companies in the Long-Term care sector and would be happy to help you plan for your future needs in your golden years. To learn more, contact one of our qualified advisors.

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