FREE Ebook: Next Stop: Nursing Home Get My Copy Now!

Schedule Your Consultation Today!
Call Us 24 Hours a Day / 7 Days a Week

(407) 574-8125
(407) 574-8125
(407) 574-8125

Long-Term Care Costs on the Rise

Get The Legal Help You Need

Long-Term Care Costs on the Rise

February 14, 2017
Geoff Hoatson

In a report that demonstrates the importance of proper planning, a recent industry analysis shows that the already exhorbent long-term care costs are actually continuing to rise

A couple who are both age 60 and who purchase new long-term care insurance coverage can expect to pay between 6 and 9 percent more compared to a year ago according to the 2017 Long Term Care Insurance Price Index, an annual report from the American Association for Long-Term Care Insurance, an industry group. But rates for single men and women remained fairly level or, in some instances, actually declined compared to 2016, reports the association.

A married couple both age 60 would pay $2,200 a year combined for a total of $328,000 of long-term care insurance coverage. This represents a 9 percent increase from 2016, when the association reported that a couple could expect to pay $2,010. Adding an inflation growth option that builds the couple's benefit pool to a combined $660,000 at age 85 would cost an average of $3,790 a year, 6 percent higher than last year.

Rates for single men and women remained fairly level or, in some instances, went down compared to 2016. A single man could expect to pay an average of $1,050 a year for $164,000 worth of coverage, a 3 percent increase over last year, although the same policy with inflation protection is now 20 percent cheaper, at $1,665 a year. The same two policies for single women average $1,600 and $2,600 a year, respectively, essentially the same as 2016.

But the association points out that costs for virtually identical policy coverage still varies significantly from one insurer to the next. Its analysis found rates varied by as much as 70 percent for the same coverage. For example, a 55-year-old single woman could pay as little as $1,450 a year or as much as $2,650, depending on which insurer she buys from. "You generally only buy long-term care insurance once, so it's important to do it correctly the first time," said Jesse Slome, the association’s director.

As last year, this year’s index compares policies sold in Tennessee, which is viewed as a representative state. The survey was sconducted in January 2017.

For the association's one-page 2017 index showing average prices for common scenarios, including comparisons to 2016 prices, click here.

Call us at 407-574-8125 to learn how we can help you avoid going broke due to long-term care costs.

Copyright © 2024. Family First Firm - Medicaid & Elder Law Attorneys. All rights reserved.
The information in this blog post (“post”) is provided for general informational purposes only and may not reflect the current law in your jurisdiction. No information in this post should be construed as legal advice from the individual author or the law firm, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting based on any information included in or accessible through this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country, or other appropriate licensing jurisdiction.
Family First Firm – Medicaid & Elder Law Attorneys
(407) 574-8125
https://familyfirstfirm.com
Share This Blog

Our Locations

Winter Park Office

Family First Firm - Medicaid & Elder Law Attorneys

1030 W Canton Avenue, Suite 102,
Winter Park, FL 32789

(407) 574-8125Get Directions

Altamonte Springs Office

Family First Firm - Medicaid & Elder Law Attorneys
By Appointment Only

715 Douglas Ave Suite# 40,
Altamonte Springs, FL 32714

(407) 315-2251Get Directions

Get free legal advice sent to your inbox

Name(Required)

Download Our Free Guide on How to Save Your Assets

How to Save Your Assets Form