If you have a long-term care insurance policy, the buyer pays a pre-set premium. The policy then pays for the services you need, when you need them (up to its coverage limits). On occasion, if the assumptions used to price the policy prove wrong, the insurance company can increase your premiums beyond the pre-set amount. Typically, you are not expected to pay premiums while you receive long-term care.

The cost of a long-term care policy varies greatly based on:

• Your age at the time of purchase
• The policy type
• The coverage you select

In 2007, the average long-term care insurance policy:

• Cost about $2,207/year
• Covered 4.8 years of benefits, excluding the 20 percent of people who elected lifetime coverage
• Had a daily benefit amount of $160
• Was a comprehensive policy covering both facility and at-home care
• Included some form of automatic inflation protection

Go to this page to work out your savings: http://longtermcare.gov/savings-calculator/

Source: U.S. Department of Health and Human Services, “Long Term Health Insurance Costs” http://longtermcare.gov website. Accessed November 30, 2015. http://longtermcare.gov/costs-how-to-pay/what-is-long-term-care-insurance/long-term-care-insurance-costs/

© Copyright 2016. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.