One of the first questions clients ask about long-term care insurance (LTCI) is, “How much does it cost?” As agents, you know there isn’t a simple one-size-fits-all answer, but understanding the cost drivers will help you guide your clients with confidence.
1. Average LTCI Premiums: What’s the Ballpark?
For traditional LTCI, a healthy 55-year-old couple can expect to pay around $2,000 annually (combined) with no inflation rider and $5,000 annually (combined) with 3% inflation for a moderate policy. Hybrid LTCI (life insurance with LTC benefits) typically costs more upfront but provides guaranteed premiums and a death benefit if care is never needed.
Key Takeaway: Clients often experience sticker shock, so it’s crucial to set expectations early and frame the value of coverage over decades, not just the annual premium.
2. What Impacts the Price of LTCI?
- Age at Time of Purchase: The younger the client, the lower the premium.
- Health Status: Pre-existing conditions or health concerns drive costs up.
- Benefit Amount & Duration: Higher daily/monthly benefit levels and longer benefit periods increase costs.
- Inflation Protection: Adding 3% or 5% compound inflation riders can nearly double the premium, but they’re essential for younger buyers.
3. Hybrid vs. Traditional LTCI Costs
Hybrid LTCI policies have gained popularity because many clients dislike “use it or lose it” plans. On average, a single premium of $100,000 can secure $450,000 in LTC benefits or a death benefit of $225,000 if LTC is not needed.
As an agent, you’ll want to illustrate both options. Hybrid plans resonate with clients who have assets earmarked for legacy or who are hesitant about traditional premiums that could rise in the future.
Read more: Traditional vs. Hybrid LTCI: How to Position Each with Confidence
4. Framing the LTCI Conversation
Rather than focusing solely on price, shift the conversation to value:
- The average cost of a nursing home stay is over $100,000/year (and rising).
- LTCI can preserve retirement assets, reduce family stress, and allow care to be delivered at home.
- Hybrid products ensure that premiums never feel “wasted.”
5. Show the Rising Cost of Care
Run side-by-side quotes using conservative inflation assumptions. Showing clients what care could cost in 20–30 years often reframes the long-term care insurance premium as a small fraction of potential expenses.
As agents, your job isn’t to “sell a price” but to educate clients on the true financial risk of long-term care. LTCI costs vary widely, but by explaining the key drivers and showing realistic projections, we can help clients feel confident in their decision.
For assistance with evaluating which LTCI product is best for your client, book a call with our team today.