How Much Does Long-Term Care Insurance Cost?
What care actually costs in 2026, what a policy costs, and the factors that move your premium the most.
Two different costs to plan for
When people ask what long-term care ‘costs,’ they are really asking two questions. First: what does care itself cost if you need it? Second: what does an insurance policy cost to cover that care? Both numbers have climbed sharply, and Medicare does not cover the custodial care most people end up needing. Here is where each number stands in 2026.
What care costs (2024 national medians)
These are national median figures from the Genworth and CareScout 2024 Cost of Care Survey, the most widely cited source in the industry. Costs vary widely by state and metro, but the direction is clear: care is expensive and rising.
| Type of care | Annual median cost |
|---|---|
| Home health aide | $77,792 |
| Assisted living facility | $70,800 |
| Nursing home (private room) | $127,750 |
Nursing-home costs rose about 9% in a single year. A few years in a private room can run past a quarter-million dollars, money that comes straight out of the retirement savings and pension you spent a career building, unless you have planned for it.
What a policy costs (2024 price index)
Now the insurance side. The American Association for Long-Term Care Insurance (AALTCI) publishes an annual price index. For a couple where both partners are age 55 buying an initial $165,000 benefit pool:
- No inflation protection: about $2,080 per year combined.
- With 3% compound inflation growth: about $5,025 per year, the benefit keeps pace with rising care costs.
- With 5% compound inflation growth: close to $8,600 per year.
Inflation protection is the single biggest driver of premium, and, given how fast care costs are climbing, often the most important feature to keep.
What moves your premium the most
- Your age when you buy. Premiums rise steeply with age. Buying in your mid-50s typically costs far less than waiting until your 60s, if you can still qualify medically.
- Your health. Long-term care insurance is medically underwritten. Existing conditions can raise the price or make you ineligible, which is why waiting is risky.
- Benefit amount and duration. A larger daily benefit or a longer benefit period (3 years vs. lifetime) raises the cost.
- Inflation rider. As shown above, adding 3% or 5% compound growth can double or triple the premium. But protects the benefit’s real value.
- Traditional vs. hybrid. Hybrid policies that combine LTC with life insurance are priced differently and avoid the ‘use it or lose it’ problem of traditional LTC.
When to buy
The sweet spot for most educators is the mid-50s to early 60s, while you are still healthy enough to qualify and young enough to lock in a lower premium. Wait too long and you risk being declined or priced out. The right structure, traditional or hybrid, how much inflation protection, how long a benefit period, depends on your retirement savings, your pension, and your family health history.
Keep reading
Hybrid vs traditional LTC
How hybrid policies fix the ‘use it or lose it’ problem of traditional long-term care insurance.
Read more →Long-term care for educators
Why Medicare won’t cover custodial care, and how to plan early.
Read more →Retirement calculator
See how a few years of care costs would hit your retirement income.
Read more →Frequently Asked Questions
How much does long-term care insurance cost?
Per the AALTCI 2024 price index, a couple both age 55 buying a $165,000 benefit pool pays roughly $2,080 per year combined with no inflation protection, about $5,025 per year with 3% compound inflation growth, and close to $8,600 per year with 5% growth. Your actual premium depends on your age, health, benefit amount, benefit period, and inflation rider.
How much does long-term care itself cost?
According to the Genworth and CareScout 2024 Cost of Care Survey, national median annual costs are about $77,792 for a home health aide, $70,800 for assisted living, and $127,750 for a private room in a nursing home. Costs vary by state and have been rising: nursing-home costs rose roughly 9% in one year.
Does Medicare pay for long-term care?
Generally no. Medicare covers limited short-term skilled nursing after a hospital stay, but it does not pay for the ongoing custodial care, help with bathing, dressing, and daily living, that most long-term care involves. That cost falls to you, your savings, or a long-term care policy.
When is the best time to buy a long-term care policy?
Most people get the best combination of price and eligibility by buying in their mid-50s to early 60s, while still healthy enough to qualify medically and young enough to lock in lower premiums. Long-term care insurance is medically underwritten, so waiting risks being declined or priced out.
Sources
- Genworth & CareScout, 2024 Cost of Care Survey (national median annual care costs).
- American Association for Long-Term Care Insurance, 2024 Long-Term Care Insurance Price Index (premium ranges by inflation option).
- See also: Hybrid vs traditional long-term care.
Reviewed by the Life Gateway advisory team · licensed specialists for K-12 educators · Last reviewed June 2026. This page is educational information, not individualized financial, tax, insurance, or legal advice. Coverage terms, costs, and tax treatment vary by carrier and state, confirm specifics with a licensed agent. Verify any advisor at FINRA BrokerCheck.