A new report from the American Association of Long-Term Care Insurance shows what people are paying for coverage. Over one-third of Americans pay $1,499 or less annually for long-term care insurance.
"Individuals mistakenly have been led to believe that long-term care insurance costs thousands of dollars," states Jesse Slome, AALTCI's executive director. "A significant number of individuals today pay between $10 and $20 a week. That's a highly affordable way to protect $150,000 to $250,000 of future care."
Among policy holders between 61 and 75, most people are paying between $1,500 and $2,499 (31.6 percent). Younger policy holders pay much less; 28 percent pay less than $1,000 per year for coverage, although 24 percent pay between $1,500 and $2,499.
Prices increase dramatically for older policy holders. While 28 percent of those younger than 61 pay less than $1,000 for coverage, the same percentage of policy holders 76 or older are paying more than $4,000. Over 19 percent pay between $1,500 and $2,499 and 24 percent pay between $2,500 and $3,499.
According to the Department of Health and Human Services, 70 percent of people over 65 will need long-term care.