Is Long Term Care Insurance Worth It? 

For many families, the real cost of Long-Term Care comes as a surprise, as does the limited role Medicare plays in covering its costs. As care needs rise with age, Long-Term Care (LTC) insurance is a financial planning option that can help protect your savings and expand your senior living and care choices. 

But is Long-Term Care insurance worth it for you or your loved one? 

MorseLife Health System has proudly helped Palm Beach County families navigate senior living and care planning for more than 42 years. In this article, we’ll weigh the pros and cons of Long-Term Care insurance to help you confidently decide if it’s the right option to support your needs and offer you greater peace of mind. 

Fast facts about Long-Term Care insurance  

Here are important statistics as we dive into understanding Long-Term Care insurance. 

  • Only 3–4% of adults in the United States over the age of 50 carry traditional Long-Tern Care insurance, yet insurers paid out a record $14.1 billion in benefits in 2023. (per AALTCI)  
  • The average lifetime benefit payment per claimant is around $170,000. This amount is enough to cover a year of nursing home care or several years of Home Health Care or Assisted Living. (per AHIP) 

What does Long-Term Care cost?  

It’s important to get clear on the costs of Long-Term Care to determine if Long-Term Care insurance is the right decision for you.  

According to the Genworth Cost of Care Survey national medians for common types of Long-Term Care in 2024 were:  

  • Home health aide (44 hrs/week): $77,792 per year 
  • Assisted living facility: $70,800 per year 
  • Nursing home private room: $127,750 per year 

In southern Florida, where MorseLife is based, monthly Assisted Living costs average from $4,000 to more than $6,500.  

Long-Term Care costs often increase for residents needing services like medication management, memory support, and mobility assistance. Monthly costs are also higher for specialized care services, such as Skilled Nursing. 

The truth is: many adults require Long-Term Care services at some point in their lives, but are unprepared for its costs. Long-Term Care insurance can help bridge this gap, ensuring you can access the care you need when you need it.  

Getting clarity on your actual costs can help you create a senior living budget that works for you. MorseLife also combats senior living cost confusion with our transparent rates.  

Our Tradition and Resnick Assisted Living communities feature tiered pricing to allow families to customize the care services they need. With no entry fee to join our communities, we also show our commitment to keeping your costs controlled and clear.  

How much do Long-Term Care insurance policies pay?  

Next, let’s explore what LTC insurance help looks like for families.  

The average lifetime benefit per claimant is around $170,000, though some policies pay out significantly more. Lifetime benefit amounts vary widely, based on individual circumstances, the duration and type of care, and your chosen policy.  

Most LTC insurance policies have a lifetime or maximum benefit amount limit. It’s important to know this as you assess which policy is right for you.  

LTC insurance typically covers: 

  • Assisted Living and Memory Care 
  • Home Health Care (aides, nurses, therapy) 
  • Adult Day programs 
  • Skilled Nursing and Long-Term Care 
  • Hospice and Palliative Care services, depending on policy terms 

How do LTC insurance benefits work? 

Let’s review how LTC insurance benefits are typically received.  

  • Your policy benefits trigger when an assessment determines help is required with two or more activities of daily living (ADLs) or a cognitive impairment exists.  
  • Your chosen insurance company then approves a plan of care to address these needs. An elimination period of 30 to 90 days occurs between your benefits trigger and when payments begin. During this time, families need to cover the cost of any services received.  
  • Claims often take weeks to months to process and require detailed documentation like physician notes and care invoices. 
  • Once your benefits begin, many policies cover up to a pre-set daily limit until your lifetime maximum is reached.  

MorseLife partners with many families using LTC benefits to help cover transitions to Assisted Living, Memory Care, or Long-Term Care. Reach out anytime for our support.  

The real cost of Long-Term Care insurance premiums  

What you’ll pay for your LTC insurance depends on your age, health, gender, and desired coverage level.  

According to 2024 NCOA and AALTCI data, average LTC insurance premiums are: 

  • Single male, age 60: around $1,200/year 
  • Single female, age 60: around $1,900/year 
  • Senior couples: around $2,600/year  

These benefits reflect policies in 2024 offering $165,000 level benefits. Other options are available that grow by a set yearly percentage.  

Women generally pay more for LTC insurance coverage because they statistically live longer and use more Long-Term Care services. Premiums are also higher for policies with inflation protection, shorter elimination periods, or longer benefit durations. 

Alternatives to LTC insurance and hybrid options  

Uncertain if Long-Term Care insurance is the ideal option for you or interested in looking beyond traditional LTC coverage?  

There are other methods to fund senior living and Long-Term Care, as well as ways to leverage the benefits of LTC insurance in conjunction with other funding methods.  

In fact, hybrid life/LTC policies now outsell older models, offering care benefits and legacy value if unused. This means heirs can be refunded if LTC policy benefits aren’t needed.  

Additional senior living funding options include:  

  • VA Aid & Attendance Benefit, which provides monthly support to eligible veterans or spouses. This benefit is usable for in-home and senior living care.  
  • Medicaid planning or waivers can help with Assisted Living costs for qualified individuals. 

These options can work alone or in combination with LTC insurance to offer families enhanced flexibility and peace of mind.  

Your Long-Term Care insurance decision checklist  

The following questions and considerations can help you determine if Long-Term Care insurance is your optimal choice.  

  • Does the policy’s daily/monthly benefit align with local care fees? 
  • Is the elimination period manageable for your financial situation? 
  • Can you cover the waiting period expenses without draining your savings? 
  • Is inflation protection included? 
  • Without it, your benefits may lag behind rising care costs over time. 
  • Are your policy premiums likely to rise? 
  • Have you included hybrid or alternative plans in your strategy? 
  • Consider: A mix of self-funding, VA benefits, and hybrid LTC. This approach may offer broader protection to meet your goals.  
  • Does the policy truly cover Assisted Living or Memory Care? 
  • Confirm if claims apply to custodial care or only Skilled Nursing stays. 

Answering these questions will help you assess if Long-Term Care insurance or another funding model fits your family’s financial and care goals.  

MorseLife’s experienced advisors are also available to guide you as you make your senior living funding decisions. Reach out to us anytime.  

MorseLife is here to support you  

Many families appreciate that Long-Term Care insurance offers greater freedom of choice, eases care transitions, reduces caregiver stress, and helps protect retirement savings.  

Determining if LTC insurance is right for you is a personal choice. It’s also one you don’t need to face alone.  

With our four decades of trusted service and full continuum of care, MorseLife is uniquely equipped to help families navigate all your senior living and care decisions with compassion, expertise, and continuity.