After years of steady increases, premiums on traditional long-term care insurance policies declined in 2017, according to the American Association for Long-Term Care Insurance. A couple in their 60s today can expect to pay $3,490 annually for policies that will pay $666,000 in benefits at age 85.
According to the 2018 LTC Price Index, the average premium for a 60-year-old couple was $3,490 annually. The Association’s 2017 study reported the average premium was $3,790. “There are a number of reasons for the change,” Slome shares. “There are fewer insurers offering traditional long-term care insurance policies currently and some of the higher priced insurers sell so few policies that we excluded them from this years study as they really were not representative of the market conditions.”
A single 55 year old male could expect to pay $1,870 annually for benefits that would grow to be worth $386,500 when the policyholder turned age 85. Slome noted that the typical individual needs long-term care at older ages, with most claims starting when policyholders are in their 80s.