Long-Term Care Insurance Cost Estimator
Estimate your annual long-term care (LTC) insurance premium based on your age, health status, desired daily benefit, benefit period, elimination period, and inflation protection option.
Typical range: $100–$300/day
Formula
Annual Premium = Base Premium × Age Factor × Gender Factor × Health Factor × Daily Benefit Factor × Benefit Period Factor × Elimination Period Factor × Inflation Factor × Marital Factor
- Base Premium: $1,700/year — AALTCI 2023 reference rate for a 55-year-old male, good health, $100/day benefit, 90-day elimination, 3-year benefit, 3% compound inflation.
- Age Factor: 2(age − 55) / 10 — premiums roughly double every 10 years.
- Gender Factor: Female = 1.30; Male = 1.00 (women pay ~30% more due to longer life expectancy and higher LTC utilization).
- Health Factor: Excellent = 0.90; Good = 1.00; Fair = 1.25.
- Daily Benefit Factor: Daily Benefit ÷ $100 (linear scaling from reference).
- Benefit Period Factor: 2yr = 0.70; 3yr = 1.00; 4yr = 1.25; 5yr = 1.50; 6yr = 1.80.
- Elimination Period Factor: 30d = 1.20; 60d = 1.10; 90d = 1.00; 180d = 0.85.
- Inflation Factor: None = 0.60; 3% Simple = 0.85; 3% Compound = 1.00; 5% Compound = 1.40.
- Marital Factor: Married = 0.80 (20% couples discount); Single = 1.00.
- Benefit Pool: Daily Benefit × Benefit Days (365 × years; unlimited ≈ 1,825 days).
- Lifetime Premiums: Annual Premium × max(0, 79 − current age) — average LTC claim onset age is 79 (AALTCI).
Assumptions & References
- Base rate sourced from the American Association for Long-Term Care Insurance (AALTCI) 2023 Price Index.
- Average age of first LTC claim is 79 years old (AALTCI / HHS data).
- Women statistically use LTC services more frequently and for longer durations, justifying the gender loading (AALTCI).
- The 90-day elimination period is the most common policy structure in the U.S. market.
- 3% compound inflation protection is the industry standard recommendation to keep pace with rising care costs.
- Couples discount (15–30%) is offered by most major carriers when both spouses apply simultaneously; 20% used here.
- Premiums are not guaranteed and may increase over the policy lifetime subject to state insurance department approval.
- This tool does not account for state-specific rate filings, hybrid LTC/life policies, or short-term care policies.
- Applicants with pre-existing conditions (e.g., Alzheimer's, Parkinson's, stroke history) may be declined or rated higher.
- References: AALTCI (aaltci.org), U.S. Dept. of Health & Human Services LongTermCare.gov, NAIC Long-Term Care Insurance Model Regulation.