Key Points
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The younger and healthier you are when you purchase a long-term care policy, the lower the premiums are likely to be.
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Paying today for a long-term policy can help preserve wealth later in life.
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The cost of long-term care for women tends to be higher than the cost for men due to life expectancy.
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Determining whether $2,200 is too expensive for long-term care insurance depends on six primary factors, each specific to your situation. Here, we break down each of these factors to help you determine whether it makes sense to pay $2,200 annually for future care.
1. Coverage amount
Long-term care policies come in all shapes and sizes. The price point is, in part, determined by factors like benefit amount, how long the benefits are set to last, and whether the policy covers assisted living, nursing facilities, or home care.
For example, you can’t compare the price of a long-term policy with all the bells and whistles to a policy with limited coverage.
2. Age and health
Generally, the younger and healthier you are when you purchase a policy significantly impacts the premiums. If you and an older friend each applied for a long-term policy at the same time, you’d automatically have a leg up because you’re younger.
But what if you’ve had serious health concerns and your friend has never been sick a day in their life? Chances are that they would lower their quoted premium.
Like all insurance companies, long-term insurers are in the business of making money. Premiums are closely tied to whether they believe they’ll ever have to pay out.
3. Gender
Let’s say a man and woman are the same age and apply for a long-term policy at the same time. The average life expectancy in the U.S. in 2025 is 79.40 years. While the gap has closed quite a bit, women are typically expected to live longer than men and are more likely to require long-term care. For that reason, women often end up paying more for a long-term care policy.
It all goes back to the risk an insurer feels it’s taking by writing a policy.
4. Inflation protection
Some policies include inflation protection, a feature that increases benefits over time to keep pace with rising costs. It may or may not include an increase in premiums. However, if the policy you’re looking at includes inflation protection, it’s likely to carry a higher price tag.
5. Comparative costs in your area
The cost of long-term policies can vary dramatically based on where you live, who’s underwriting the policy, and the specifics. The best way to know if you’re overpaying is to policy shop. That means calling a handful of insurance companies and comparing their quotes to the quote you’ve already received.
When policy shopping, it’s important to compare apples to apples. That means requesting a quote for policies that, line by line, match the policy you already have a quote for.
6. Your personal financial situation
Simply put, if paying $2,200 a year for a long-term care policy stretches your finances or will make it difficult to cover your other financial obligations, you may need to look for a more basic policy or check with other companies to see if they can beat the $2,200 price.
The potential benefit of having long-term care
Depending on your age, it may be difficult to imagine yourself ever needing long-term care. However, according to Consumer Affairs, 56% of Americans turning 65 today will develop a health condition serious enough to require some level of long-term care.
If the idea of wiping out your life savings to pay for care bothers you, you may want to consider the $2,200 premiums an investment in your future.
The decision to drop $2,200 a year for a policy you may never need or use is a huge one. However, once you determine whether it’s a fair price for the coverage provided, it’s time to decide if it’s an expense worth taking on. And don’t forget, the younger you are when you purchase a policy, the lower your annual premium is likely to be.
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