How Much Is Long-Term Care Insurance for a 75-Year-Old?

Long-term care insurance (LTCi) is a financial product covering services that assist with daily living activities when individuals can no longer perform them independently due to aging, illness, or cognitive impairment. These services, typically not covered by standard health insurance or Medicare, include assistance with bathing, dressing, eating, toileting, and transferring. LTCi policies can provide financial support for care in various settings, such as the policyholder’s home, assisted living facilities, adult day care centers, and nursing homes. For individuals around age 75, understanding the cost of long-term care insurance is relevant as the likelihood of needing such care increases with age. Nearly 70% of people turning 65 today will require some form of long-term care in their lifetime, making planning for these potential expenses an important aspect of financial security.

Factors Determining Premiums

Several elements influence the cost of long-term care insurance premiums. The applicant’s age is a primary factor, with premiums rising considerably as one gets older due to the increased risk of needing care. For a 75-year-old, premiums will be higher than for someone purchasing coverage at a younger age.

Health status also plays a major role in determining both eligibility and premium cost. Insurers conduct thorough underwriting, reviewing medical history, pre-existing conditions, and current health to assess risk. Certain health conditions or a history of specific diagnoses, especially those related to cognitive impairment like Alzheimer’s or dementia, can lead to higher premiums or even disqualification from coverage.

The chosen daily or monthly benefit amount impacts the premium; a higher payout for care services translates to a higher cost. Similarly, the benefit period, which is the duration of coverage (e.g., two years, five years, or a lifetime), affects premiums; longer benefit periods result in increased costs. While a benefit period is often expressed in years, it typically represents a total “pool of money” from which daily or monthly benefits are drawn, meaning the coverage could last longer if the full daily benefit is not utilized.

The elimination period, also known as the waiting period, is another important factor. It is the time between when care is needed and when the policy begins paying benefits. Common elimination periods range from 0 to 180 days, with 30, 60, or 90 days being typical options. A longer elimination period generally leads to lower premiums because the policyholder is responsible for a greater initial portion of the care costs.

Adding inflation protection to a policy helps benefits keep pace with the rising costs of care over time, but it also increases the premium. This rider ensures that the benefit amount grows annually, often by a simple or compound percentage, such as 3% or 5%. Optional riders, such as shared care benefits for couples or non-forfeiture benefits, can customize a policy but will add to the overall premium.

Understanding Average Costs at Age 75

The cost of long-term care insurance for a 75-year-old can vary widely based on policy features and individual circumstances. For a 75-year-old single male, annual premiums can range from approximately $3,600 to $7,825. A single female at age 75 might face higher annual premiums, typically between $6,600 and $12,375, reflecting the statistical likelihood of women living longer and needing care for extended periods.

For couples, a joint policy at age 75 could cost anywhere from $8,575 to $16,075 per year. For instance, a 75-year-old male might pay around $4,052 annually for $165,000 in level benefits with a 90-day elimination period and a $4,500 maximum monthly benefit, assuming good health and a married status.

Actual costs depend on the interplay of various factors. For example, a healthy 75-year-old seeking modest coverage with a longer elimination period might pay on the lower end of the spectrum. Conversely, a 75-year-old with some health concerns or desiring a comprehensive policy with inflation protection and a shorter elimination period would likely see premiums at the higher end. For tax-qualified long-term care insurance policies, individuals aged 71 or older may be able to deduct up to $6,020 of their premiums as medical expenses in 2025, provided they itemize deductions and their total medical expenses exceed 7.5% of their adjusted gross income.

Types of Long-Term Care Policies

When considering long-term care coverage, individuals typically encounter two main policy structures: traditional and hybrid. Each type offers distinct features that impact premiums and overall financial planning.

Traditional long-term care insurance is a standalone policy. Policyholders pay regular premiums for the duration the policy is in force. If care is never needed, the premiums paid are generally not recoverable, similar to auto or home insurance. While initial premiums for traditional policies can be lower than hybrid options, they are not guaranteed and may increase over time with regulatory approval.

Hybrid, or asset-based, long-term care policies combine long-term care benefits with another financial product, most commonly life insurance or an annuity. If long-term care is needed, a portion of the death benefit or annuity value is used to cover care expenses. If long-term care is never utilized, a death benefit is paid to beneficiaries, addressing the “use it or lose it” concern of traditional policies. Hybrid policies often require a single lump-sum premium payment or a limited number of scheduled payments (e.g., 5, 10, or 20 years), after which no further premiums are required. This structure provides guaranteed premiums, offering predictability and protection against future rate increases.

While hybrid policies have higher initial premiums compared to traditional policies, they offer advantages such as a death benefit payout if long-term care is not used, and potential tax benefits for the long-term care portion. The tax deductibility of hybrid policy premiums may differ from traditional policies. The choice between traditional and hybrid policies depends on individual financial goals, including estate planning objectives and a preference for premium stability versus potentially lower initial costs.

How to Get a Personalized Quote

Obtaining a personalized long-term care insurance quote involves a structured process. The first step is to gather personal and financial information that insurers require for an accurate assessment. This includes:

• Detailed health history
• Current medications
• Any pre-existing conditions
• Desired coverage amounts (daily benefit)
• Preferred benefit period
• The length of the elimination period

Individuals can seek quotes through various avenues. Independent insurance agents specializing in long-term care insurance can provide quotes from multiple carriers. Directly contacting specific insurance companies is another approach, or individuals can utilize online comparison tools, although a direct conversation with an agent is often recommended for complex products like long-term care insurance.

After providing the initial information, the application process involves a health assessment. This may include a telephone health interview, a review of medical records, and potentially a cognitive assessment or a face-to-face evaluation by a nurse, particularly for older applicants or those with health concerns. The underwriting process, which determines eligibility and final premium rates, takes several weeks.

Upon receiving quotes, interpret the figures in relation to the selected policy features. The quote will detail the premium amount, the daily or monthly benefit, the benefit period, the elimination period, and any included riders like inflation protection. Understanding how these components contribute to the overall cost is important for making an informed decision about the most suitable long-term care insurance policy.