A 55-year-old individual considering long term care insurance protection can expect to pay $665 a year if married or $1,075 if single, according to a new report.
A 65-year-old purchasing comparable coverage would pay $1,292 if married or $1,923 if single.
The American Association for Long Term Care Insurance, Westlake Village, Calif., has published those figures in the 2007 Long Term Care Insurance Price Index.
The costs are about the same as the costs the AALTCI was reporting in 2006.
The annual index measures current costs for top-selling LTC policies that offer the ability to receive care either at home or in a skilled care facility.
In the past year, some carriers introduced new policies that provide lower-cost coverage for younger individuals who are in good health as well as for nonsmokers, individuals who are married or residing with a partner, says Jesse Slome, executive director of the AALTCI.
Consumers can reduce premiums about 9% by paying premiums annually rather than monthly, and 8% by being accepted for coverage before their next birthday, Slome says.
The study compares costs for plans that provide benefits for 3 years.
The study priced plans that provide $100 in benefits per day, or $110,000 over 3 years, and $150 in daily benefits, or $172,000 over 3 years, for a 55-year-old insured.
If benefits increased 5% compounded annually, the actual benefits would grow to $390,000 for the policy with the $100 daily benefit by the time the insured reached age 80, and to $585,000 for the policy with the $150 daily benefit, Slome says.
In 10 years, if prices rose 5% per year, an individual would need a $240 daily benefit to equal the coverage provided by a $150 daily benefit today.
The average cost of a $240-per-day benefit would range from $3,272 to $4,823, according to the AALTCI.
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