Right now, fewer than 1 in 30 Americans own a long-term care (LTC) insurance policy, and only about 7 percent of adults over 50. The raw figure of 7.5 million insured has barely budged since 2008, despite an increasing aging population.

What are the odds of needing long-term care?

Someone turning 65 today has almost a 70% chance of needing some type of long-term care services and supports in their remaining years. 53% of women and 47% of men will need long term care in their lifetimes. Women need care longer (3.7 years) than men (2.2 years).

What’s the average cost of long term care insurance?

Price index data from 2020 published by the American Association for Long-Term Care Insurance found that the average annual premium for long-term care insurance is $1,700 for a single male aged 55 in good health and $2,675 for a single female aged 55 in good health.

How does long term health care insurance have a cash value?

You can buy life insurance that has the option to provide long term care. This policy will build up cash value with the condition that a portion of that cash value should be paid towards the insured’s long term care, if ever this is needed.

What are the pros and cons of long term care insurance?

Pro: Out of pocket costs for long term care are expensive: While costs vary widely, the U.S. Department of Health and Human Services, reports that the average cost of long term care is $225 a day or $6,844 per month for a semi-private room in a nursing home.

Where can I buy long term care insurance?

For a quick premium estimate to use as a reference point in your insurance shopping, you can check online long-term care insurance calculators from large insurance carriers like Genworth or Mutual of Omaha. Where to get a policy You can buy LTC policies from an insurance agent, financial planner or insurance broker.