Long-term Care Premiums Going Up and Down in 2018

Generally, 2018 long-term care insurance costs are going up, but some policies are going down.  These trends were reported in the 2018 Long Term Care Insurance Price Index, an annual report from the American Association for Long-Term Care Insurance (AALTCI), an industry group.

Premiums That Are Going Down

A married couple who are both 60 years old would pay an average of $3,490 a year combined, less than the 2017 average of $3,790.   By the time they reach age 85, they will have paid a total of $333,000 of long-term care insurance coverage.

Premiums That Are Going Up

However, rates for single men and women have gone up in 2018. A single 55-year-old man can expect to pay an average of $1,870 a year for $164,000 worth of coverage, up from $1,665 in 2017. The same policy for a single woman averages $2,965 a year, up from $2,600 in 2017. Overall, women still pay more than men do.

Some people think these increases seem extreme and consider foregoing the expense of long-term care insurance. However, we recommend that our clients reconsider long-term care insurance because it can save money.

Alabama Nursing Home Care Costs

In Alabama, the average cost of nursing home care is $6,500 per month and can be as high as $12,000 per month.  When considering paying $78,000 to $144,000 for room and board in a nursing home for one year, the annual premium of $1,870 – $2,965 for long-term care insurance looks extremely economical even if you pay it for quite a few years.

One thing that remains the same year to year is the importance of shopping around. The survey shows that costs for virtually identical policy coverage vary significantly from one insurer to the next.

For the association’s 2018 index showing average prices for common scenarios, click here.