How Much Does Long-Term Care Insurance Cost?

The cost of a long-term care insurance policy is determined by several factors, including: • The age of the person covered (the older the person, the more expensive) • The amount of the benefit • How long the benefit is to be paid • The types of care covered • The health status of the beneficiary when signing up for the policy • Whether the policy includes inflation protection • The cost of long-term care in the state where the beneficiary lives For example, in 2005, a typical low-end long-term insurance policy cost $1,877 per year for a 55-year-old, $2,000 per year for a 65-year-old, $2,600 for a 75-year-old, and more than $5,000 for an 80-year-old, according to the U.S. Department of Health and Human Services. These figures are higher today.  more

The premiums charged for tax-qualified Long-Term Care Insurance Policies are treated as medical expenses under Federal tax law which may also qualify you for a more favorable outcome on your tax return. You should check with the insurance carrier to determine if your plan is tax-qualified and consult with an attorney, accountant or tax advisor regarding the tax implications of purchasing a tax-qualified policy.  more