Long Term Care Insurance

Many people need long-term care as they grow older. While some people require care for many years, it’s very expensive — averaging $140,000 per year if you pay out of pocket. This includes nursing home costs, assisted living, or in-home care. Unfortunately, many retirement nest eggs will be conquered by these costs, and Medicare only covers limited costs for brief nursing home stays and small amounts of skilled nursing or rehabilitation services. However, long-term care (LTC) insurance can help you cover these expenses in the future.

What Long-Term Care Insurance Covers

LTC insurance normally covers services that regular health insurance does not. This may include help with completing the activities of daily living (ADLs), like bathing, eating, getting dressed, and moving around. 

Long-term health insurance policies typically would repay you for these services in your home, an adult daycare center, assisted living facility, or a nursing home. Some policies also pay for care related to Alzheimer’s disease and other chronic conditions. 

Remember, every carrier sets rules for what types of illnesses LTC insurance will cover. These are general statements, not industry standards.

How Does it Work?

After applying, the insurers may ask for your medical records and inquire about your health. You can select the kind of coverage you want, but you must get approved by the insurer. When they issue you a policy, you start paying premiums each year. 

Once you’re eligible for benefits, which is usually determined by not being able to perform a certain number of ADLs, and the waiting period has passed, you may file a claim. Then, the insurer reviews your medical records and might send a nurse to do an evaluation before affirming a payout. Once you’re approved, you’ll be compensated for paid services, up to policy limits.

Cost of Long-Term Care Insurance

These days, the average 65-year-old has roughly a 70% chance of needing some type of long-term care (eventually). While there’s no way to predict how much or how long you’ll need care, it would be wise to prepare for this heavy cost. 

According to smartasset.com, the annual premium estimates are as follows:

  • Single male, age 55 — $1,700 
  • Single female, age 55 — $2,675
  • Couple, age 55 — $3,050 (combined cost)

Many couples can get discounts. Also, those who meet certain income thresholds may be able to get tax relief for LTC premiums. Some or all of the premiums paid may be tax deductible at the state and federal level. 

How to Buy LTC Insurance

You can purchase LTC insurance directly from carriers or through an independent agency like InvoBH. We can help you understand how these policies work and what they offer, as well as shop for comparable rates.

You might also be able to get this insurance through your employer. However, you may be able to find better rates for more suitable coverage elsewhere.


Long-term care insurance is not for everybody. If you have substantial savings, you can likely pay the fees out of pocket. Additionally, some universal life insurance plans allow you to withdraw the cash value and put it towards long-term care. This may be more expensive, but if you wanted to hit two birds with one stone by being covered for life insurance and using that policy for long-term care, you could save some money. 

Also, depending on your needs, know that Medicare Part A will cover:

  • Inpatient hospital stays
  • Skilled Nursing Facility Care
  • Hospice Care
  • Some Home Health Care (not to be confused with long-term care!)

Don’t Settle For Anything Less.

Get The Coverage You Deserve!

Contact a Licensed Insurance Agent

Thinking about paying for long-term care can be overwhelming. Our licensed insurance agents are here when you need us. We’ll help you construct an LTC insurance plan and determine how you’ll pay for it. So don’t wait — contact InvoBH today.