What Determines Your Long-Term Care Insurance Premium?
Your premium is based on your age when you apply, your sex, tobacco use, and health, plus the coverage you choose: how much the policy pays, for how long, whether benefits grow with inflation, how you pay, and whether you buy individual or joint coverage.
The NAIC’s consumer guide says premiums vary with your age and health when you buy, and with the level of coverage, benefits, and options you choose. (NAIC Shopper’s Guide)
Which factors are about you?
Age when you apply. Premiums generally increase with age.
Sex. It’s one of the factors insurers use to set price.
Tobacco use.
Health. Underwriting places you in a pricing class based on your health history. See What to Expect in Long-Term Care Insurance Underwriting.
Which factors do you choose?
Monthly benefit amount
Benefit period
Inflation protection
Premium schedule
Individual or joint coverage
See How Much Long-Term Care Insurance Do I Need?.
The NAIC also notes that a longer elimination period lowers the premium, and that inflation protection and nonforfeiture benefits can significantly raise it. (NAIC Shopper’s Guide)
Can your premium go up after you buy?
Premiums on many traditional policies can increase over time. With the coverage we offer, premiums are guaranteed not to increase, as long as they’re paid as scheduled and you take no loans or withdrawals.
How can you manage the cost?
Cover a portion of expected care costs rather than all of them
Choose a shorter benefit period
Compare payment schedules
Apply earlier, while age and health work in your favor. See When Should You Buy Long-Term Care Insurance?.
Staying Power is a licensed insurance agency that shows people coverage options across a range.
The fastest way to get a real number is to answer a few questions and talk with a licensed agent.
Frequently asked questions
Why does tobacco use affect my premium?
Insurers price tobacco use as a higher risk, as with most types of insurance.
Are long-term care insurance premiums tax-deductible?
They may be partly deductible as a medical expense, subject to age-based limits. Talk with a tax advisor. See What Is a Tax-Qualified Long-Term Care Policy?.
Will my premium change if my health changes after I buy?
With the coverage we offer, no. Premiums are guaranteed not to increase as long as they’re paid as scheduled and you take no loans or withdrawals.
