LTC Insurance Premium Increases
Why should I consider
Even in the face of premium increases, long term care insurance can offer value to those who made the decision to purchase such policies. We see this every day when we pay out claims to our customers when they need us most. There are a number of factors that affect the possibility that you will need care such as age, gender, disability, health status and living arrangements. For details go to: LongTermCare.govopens in new window. As you evaluate what is best for you, we encourage you to review the current and projected cost of care in your area. For current cost of care information specific to your area, please visit our Cost of Care website.
Cost of Long Term Care Services
Shown below is the national annual median cost for long term care services. As you think about your coverage, consider publicly available resources regarding current costs of long term care. For example, the national accounting firm PwC prepared an industry study1 that indicates:
- The average duration for a long term care event was about three years and,
- Approximately 75% to 80% of long term care events will cost less than $250,0002
These figures are averages and approximations and your actual results may be different. The U.S. Dept. of Health and Human Services also has information on cost of care at longtermcare.acl.gov opens in new window
Annual Median Cost of Long Term Care Services3
|Home Health Aide||$61,776|
|Adult Day Health Care||$20,280|
|Assisted Living Facility||$54,000|
|Nursing Home (Semi-Private Room)||$94,900|
|Nursing Home (Private Room)||$108,405|
1 The formal cost of long-term care services: How can society meet a growing need? was initially made available in 2016. The portion of the study relating to the cost of long-term care events was updated in 2021.
2 The cost of a long term care event includes the policyholder’s out of pocket expenses and payments made by the insurance company.
3Genworth Cost of Care Survey, conducted by CareScout, November, 2021. Adult Day Health Care based on 5 days per week by 52 weeks. Home Health Care based on 44 hours per week by 52 weeks. Assisted Living Facility based on 12 months of care, private, one bedroom. Nursing Home Care based on 365 days of care.
Value of Long Term Care Insurance
Policyholders have access to long term care benefits far in excess of the premiums they pay.
Funds available to pay for Long Term Care (LTC) services:
This is a hypothetical example for illustrative purposes only. This example assumes a 56 Year-Old-Male, with a Genworth Privileged Choice® policy that was issued in the state VA with standard underwriting, a $4,500 Monthly Benefit, a four year Benefit Coverage Period, a 90 day Elimination Period, a 5% Inflation Protection, and no claims were incurred for 20 years. For simplicity, it also assumes premium did not change over the life of the policy. All values rounded to the nearest dollar. Premiums are not guaranteed. Payment of benefits is subject to all policy limitations and exclusions, including Daily/Monthly Benefit Maximums.
Differences between available benefits and premium paid will vary over the life of the policy. Also, even a slight change in the assumptions used could result in significantly different outcomes. If you own a long term care insurance policy, you should refer to your policy to understand your long term care coverage benefits.
Coverage Needs Estimator
Login/Register to access the Coverage Needs Estimator on the new Coverage & Care page.
*The Coverage Needs Estimator is not available for all policy forms.
Do you need help or have specific questions regarding your policy?
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We look forward to assisting you.