Frequently Asked Questions
How much does long-term insurance cost?
The price of long-term care insurance policies vary greatly, and depend on your age and health at time of purchase, and the policy and coverage you select. According to the national government, the average annual premium cost for a policy bought in 2007 by individual buyers was $2,207. This chart show a breakdown of average annual premiums for policies bought by different age groups:
| Age |
Average Annual Premium amounts paid in 2007 – averaged for all ages and for specific age groups. (2008 LIMRA International, Inc.) |
| All ages | $2,207 |
| Under age 40 | $ 881 |
| 40 to 49 | $1,781 |
| 50 to 59 | $1,982 |
| 60 to 64 | $2,249 |
| 65 to 69 | $2,539 |
| Age 70 and older | $3,026 |
What will my long-term care insurance cover?
Before you buy your policy, make sure you understand exactly what disabilities it will and will not cover. That said, long-term care insurance will generally begin paying for services when you cannot perform certain activities of daily living, or when a cognitive impairment prevents independent functioning. Most policies cover payments for skilled, intermediate, and custodial care in state-licensed nursing homes. Policies also cover payment for home care services such as skilled and nonskilled nursing, physical therapy, homemakers, and home health aides provided by state-licensed and/or Medicare-certified home health agencies. Additionally, many policies cover assisted living, adult daycare, and respite care for informal caregivers.
Can the insurance company cancel my long-term care policy?
No. Your policy is renewable for life. The policy can only end if your maximum amount of benefits is used up or you fail to pay your premium.
Does long-term care insurance cover preexisting conditions?
If the insurance company accepts your application for long-term care insurance, it must cover preexisting conditions. Some insurance companies have a preexisting condition waiting period of up to six months, and after that six months, they will pay your benefit. The insurance companies, however, are not required to accept any long-term care insurance application, so if you have a preexisting condition, they may not accept you.
Can the insurance company increase long-term care insurance premiums?
Yes. They cannot be increased, however, if the premium is based on age issue, and all individuals under the same policy are not increased. If premiums are based on attained age, premiums will increase as you age.
