Long-Term Care Insurance Costs Remain Relatively Level for 2024
Summary
“The declines were minimal and there were a few instances where costs rose but again the increases were nominal.”According to the organization’s 2024 Price Index report, a couple, both age 55, who each obtain long-term care protection valued at $800,000 (total) for their needs at age 85 can expect to pay around $5,000 annually.“This couple could pay as little as $2,080 combined if they opted for policies that did not include any future growth of benefits,” Slome acknowledges. Selecting coverage that will grow at 5 percent annually increases their cost to almost $8,600 annually.”While prices for traditional long-term care insurance offerings remained relatively level, the same was not true for linked benefit policies.“Costs for linked benefit products are substantially lower compared to a year ago,” reports the long-term care insurance expert. Rising interest rates provided them with an opportunity to offer reduced premium costs,” Slome explains.According to the 2024 Long-Term Care Insurance Price Index, a single 55-year-old male purchasing a life plus LTC policy providing around $520,000 of potential long-term care benefits at age 90 could expect to pay $5,022 in annual premiums. Access the 2023 LTC Price Index at https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2023.php.The American Association for Long-Term Care Insurance (https://www.aaltci.org) advocates for the importance of planning and supports insurance professionals who market both traditional and hybrid LTC solutions. To learn more or to connect long-term care insurance specialists visit the organization’s website or call 818-597-3227.