Long-Term Care Insurance: What It Really Costs

If there’s one thing everyone knows about long-term care insurance (LTCI), it’s that it’s horrendously expensive and will cost thousands every year. Right?

Not necessarily. According to a new report from the American Association for Long-Term Care Insurance (AALTCI), more than a quarter of Americans under age 61 who purchased coverage in the first half of 2010 pay less than $1,000 a year.

Jesse Slome, executive director of AALTCI, said in a statement, “The single greatest misconception held by consumers is the actual cost of coverage.” He went on to explain, “Most people perceive the cost is actually quite a bit higher than the real amounts paid by large percentages of those purchasing coverage.” He attributes this to studies that average out the costs of policies and report on the results. Older consumers do pay considerably more for coverage than younger ones, as do those with health concerns, so their premiums can boost the average considerably.