What is Long Term Care Insurance and Is It Worth it?

May 23, 2022

Long-term care is any personal assistance you need to maintain your quality of life as you get older. There is a good chance that you will need long-term care at some point in your life. Long-term care insurance can be important to help you have more choice and flexibility, as well as the type of quality care you want.

Long-term care insurance can cover a variety of different services and be used to help pay for home health care, nursing home costs, adult daycare, and other qualifying services.

How Much does Long Term Insurance Cost?

When it comes to long-term insurance costs, it will vary depending on what type of care you are looking for, your age, what type of insurance policy you would like, etc. A Nationwide agent can help you evaluate long-term care insurance costs and if it makes sense to bring long-term care coverage into your life insurance policy.

What does long term care insurance cover?

Long-term care insurance can help cover a variety of different expenses. Below are some of what long-term care insurance can be used for.

  • Home health care
  • Nursing home costs
  • Assisted living facilities
  • Adult daycare
  • Home modifications that help for accessibility purposes
  • Care coordination

Estimate Annual Premiums

Purchaser StatusAgePremium Estimates
Single Male55$2,220
Single Female55$3,700
Source:  https://smartasset.com/insurance/how-much-does-long-term-care-insurance-cost

The American Association of Long-Term Care Insurance (AALTCI) estimates the annual premiums based on their 2022 study of long-term care insurers. These are just the average costs though, so it is important to keep in mind that the overall annual cost could vary greatly based on age, gender, marital status, health, and what type of overall policy you are looking for.

How Does the Cost of Long Term Insurance Change with Age?

Age can impact long-term care costs and how much you will be paying for insurance. Premiums are generally lower for people in their 40’s and 50’s than for those over 65. The AALTCI recommends beginning to shop for insurance between the ages of 52 and 64.1 There is a greater chance that you will be able to receive a better rate on your long-term care insurance when you are younger, due to you most likely being healthier and farther away from the age when you’d need the assistance.

What are Pros and Cons of Long Term Care Insurance?

When deciding whether long-term care insurance is right for you, it is important to think through the potential pros and cons of a policy. We break down some of each below for you.

The benefits of Long Term Care Insurance

  • Preserve assets and income for your loved ones
  • Protect the physical and emotional health of family caregivers
  • Ensure flexible options for the type of care you want
  • Receive coverage for temporary and permanent needs
  • Provide a legacy for your family or favorite charity2

The cons of Long Term Care Insurance

  • Purchasing long-term care insurance can be risky, as you don’t know how much of it you will need. If you buy too little coverage, you might need more and not be fully covered. If you buy too much coverage and don’t need it all, then you paid more than you needed to
  • Your benefits may not be given out as you need them, due to an elimination period, which is the period from which the injury or health episode happened and when the benefits are paid out
  • Up to 15-20% of applicants are denied coverage for long-term care, as many long-term care insurers require you to pass a physical before they will insure you.3

Is Long Term Care Insurance Worth it?

Long-term care insurance is a highly personal decision and if it’s “worth it” depends on your unique individual situation. There are a variety of factors to take into account such as your age, health conditions, pre-existing conditions in your family, cost, and so much more. Working with a highly trained financial professional can help ease some of the stress and confusion around the topic to help you make the best decision for your financial future in retirement.

Nationwide provides several long-term care solutions to help you plan for your future needs. Learn more about the solutions we offer and if they make sense to include when you are planning for your retirement.


1https://smartasset.com/insurance/how-much-does-long-term-care-insurance-cost, Accessed May 2022.
2https://www.nationwide.com/cps/ltcbasics.htm, Accessed May 2022.
3https://www.newretirement.com/retirement/is-long-term-care-insurance-worth-it-explore-the-pros-and-cons/, Accessed May 2022.
Disclaimer: The information included is designed for informational purposes only. It is not legal, tax, financial or any other sort of advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts. It is the reader’s responsibility to comply with any applicable local, state, or federal regulations. Nationwide Mutual Insurance Company, its affiliates and their employees make no warranties about the information nor guarantee of results, and they assume no liability in connection with the information provided. Nationwide, Nationwide is on your side, and the Nationwide N and Eagle are services marks of Nationwide Mutual Insurance Company. © 2022 Nationwide.


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