Long-Term Care Insurance
Long-term care insurance pays for the kind of daily help Medicare will not cover. Here is how it works, what it costs at different ages, and how to get a long-term care insurance quote from someone who can walk you through it.
Get a Long-Term Care Insurance Quote →Last updated: September 2026
What Is Long-Term Care Insurance?
Long-term care insurance is a private policy that helps pay for the day-to-day help you may need later in life: bathing, dressing, eating, or getting around the house safely. It exists specifically to cover the kind of ongoing personal care that other insurance was never built to pay for.
That includes Medicare. If you are hoping Medicare will step in and cover this instead, it will not. Our guide on whether Medicare covers long-term care walks through exactly where that coverage stops and why. For the full picture of what Medicare does pay for, see our Medicare Parts Explained guide.
Long-term care insurance fills that specific gap. You pay premiums while you are healthy, and if you later need help with daily tasks, the policy pays toward the cost of that care, whether it happens at home, in an assisted living community, or in a nursing home.
How the Coverage Works
A long-term care insurance policy pays out once you meet its benefit trigger, not the moment you buy it. According to a National Association of Insurance Commissioners (NAIC) shopper’s guide, most policies trigger benefits when you need hands-on or stand-by help with at least two of six basic tasks: bathing, dressing, eating, toileting, transferring, and continence. A separate trigger covers needing supervision because of a cognitive condition like dementia.
Before benefits start, you typically wait out an elimination period, a stretch of time you cover the cost yourself first. NAIC notes this usually runs 20 to 100 days, depending on the policy. Shorter waiting periods mean a higher premium. Longer ones lower your premium but raise your own out-of-pocket exposure first.
Once benefits start, the policy pays in one of a few ways: reimbursing your actual care expenses, sending you a fixed monthly amount regardless of your bills, or paying a set daily benefit once you qualify. Every policy also caps how much it will ever pay out, either as a dollar amount or a number of years of coverage.
How Much Does Long-Term Care Insurance Cost?
Cost depends heavily on your age, sex, and whether you buy inflation protection. According to the American Association for Long-Term Care Insurance (AALTCI), a healthy 55-year-old buying a $165,000 benefit today pays far less than someone who waits.
| Buyer Profile | Level Premium (No Inflation Growth) | With 3% Compound Inflation Growth |
|---|---|---|
| Age 55, single male | $950/year | $2,200/year |
| Age 55, single female | $1,500/year | $3,750/year |
| Age 55, couple (both insured) | $2,080/year combined | $5,050/year combined |
| Age 60, single woman | Not reported | $4,450/year |
| Age 65, couple (both insured) | Not reported | $7,030/year combined |
Notice how much the cost jumps between age 55 and age 65, even with the same inflation option. That gap is not a coincidence. It is the clearest argument for buying earlier rather than later, before your premium doubles and before a new diagnosis has the chance to disqualify you.
Is Long-Term Care Insurance Worth It?
It depends on your health, your family history, and what you already have saved. Ramsey Solutions, the financial advice company built around Dave Ramsey, comes down firmly on the side of buying it. Ramsey Solutions recommends buying at age 60, reasoning that your odds of needing care before then are low, and you are still likely to qualify for coverage at that point.
There is a real case on the other side too. Premiums are not always guaranteed to stay flat. Some insurers have raised rates on existing policyholders over the years, and there is no way to know in advance whether you will use the coverage you paid for. Those are legitimate reasons some people choose to self-insure instead, setting money aside rather than buying a policy.
You do not have to weigh this alone. A licensed health insurance broker can walk through your health history, your budget, and what coverage would cost you right now, at no charge. Brokers are paid by the insurance companies, not by you.
Get a Long-Term Care Insurance Quote →Picture the version of this where you already decided. The policy is in place, the premium is locked in at a younger, healthier rate, and if the day ever comes when you need help, your family is dealing with your care, not scrambling to figure out how to pay for it. That is what deciding early buys you.
The Federal Long Term Care Insurance Program Is Closed to New Applicants
The Federal Long Term Care Insurance Program, or FLTCIP, is not an option right now if you do not already have a policy. Federal employees, postal workers, and members of the uniformed services may remember it as a way to buy coverage through the government, but that door is currently shut.
According to FLTCIP’s own suspension notice, the program suspended new applications effective December 19, 2022, then extended that suspension again in December 2024 through at least December 2026. OPM can extend it further, so there is no guarantee it reopens even then. If you already have a FLTCIP policy, your coverage is not affected. You can keep paying premiums, file claims, and decrease your coverage if you choose, but you cannot increase it or apply for the first time.
If you were counting on FLTCIP as your plan, this is exactly the kind of gap a private long-term care insurance policy or a hybrid policy can fill instead.
Is Long-Term Care Insurance Tax Deductible?
Yes, within limits set by the IRS, and the limit depends on your age. Under current law, according to AALTCI, the most you can deduct in qualified long-term care insurance premiums for the 2026 tax year is:
| Age at Year End | Maximum Deductible Premium | Notes |
|---|---|---|
| 40 or under | $500 | Per person, per year |
| 41 to 50 | $930 | Per person, per year |
| 51 to 60 | $1,860 | Per person, per year |
| 61 to 70 | $4,960 | Per person, per year |
| 71 or over | $6,200 | Per person, per year |
These limits only apply to a policy that qualifies as “tax-qualified” under IRS rules, meaning it is guaranteed renewable, does not build cash value, and follows a few other specific requirements. Most policies sold today meet this standard, but it is worth confirming with whoever sells you the policy. A tax professional can also confirm exactly what applies to your specific return.
What Disqualifies You From Coverage?
Health, mostly. Insurers ask detailed questions about your medical history before they will issue a policy, and some conditions make coverage very hard to get. The NAIC notes that if you already have a condition that tends to lead to long-term care, such as Alzheimer’s disease or Parkinson’s disease, you probably will not qualify for a new policy.
Insurers use different levels of underwriting. Some ask a short list of health questions. Others request your full medical records or a statement from your doctor.
Answer every question completely and honestly. Inaccurate answers can give an insurer grounds to cancel your policy within the first two years, even after you start paying premiums.
This is exactly why timing matters so much. Applying while you are still healthy, well before a diagnosis shows up on your chart, is usually the difference between qualifying and not.
How to Apply for a Policy
Start by talking to a licensed insurance agent or broker who specializes in long-term care insurance, not a general life insurance agent. They can compare policies across multiple carriers, since no single company is the right fit for every health history or budget.
Be ready to answer detailed health questions and, depending on the insurer, complete a phone interview or even a short in-person assessment. Have your current medications and any ongoing diagnoses ready to discuss. The more complete your answers, the fewer surprises later.
Compare more than the premium. Look at the elimination period, the daily or monthly benefit amount, the total benefit cap, and whether inflation protection is included. Two policies with the same sticker price can cover very different amounts of care.
Long-Term Care Insurance: The Quick Answer
- Long-term care insurance pays for custodial care, the kind of help Medicare does not cover
- Cost depends heavily on your age and sex; buying in your mid-50s can cost thousands less per year than waiting until 65
- Traditional policies only pay for care; hybrid policies also leave a death benefit if you never use it
- The Federal Long Term Care Insurance Program (FLTCIP) is closed to new applicants as of this writing
- A portion of your premium may be tax deductible, based on your age and current IRS limits
- Health is the main disqualifier, so applying earlier and healthier improves your odds of qualifying
Frequently Asked Questions
Can a 70-year-old still buy long-term care insurance?
In many cases, yes, though it depends on your health and the insurer. Some carriers will still issue a policy into your mid-70s or beyond, but premiums are higher and the health questions get stricter the longer you wait. A licensed insurance agent can tell you which carriers are still taking applications at your age and health profile.
Does long-term care insurance cover home care, or only a nursing home?
Most policies sold today cover care wherever you receive it: at home, in an assisted living community, or in a nursing home. Older policies sometimes paid less for care at home than for a facility stay. Check your specific policy’s benefit schedule, since this detail still varies by carrier and policy age.
In most cases, your coverage lapses and you lose the benefits you have been paying for. Some policies include a grace period, and many waive premiums once you start actively receiving benefits. Ask your carrier directly what your specific policy includes before you consider letting it go.
Is long-term care insurance the same as long-term disability insurance?
No. Long-term disability insurance replaces part of your income if you cannot work due to an illness or injury. Long-term care insurance pays for the cost of custodial care, like help bathing, dressing, or eating, once you can no longer safely manage those tasks. They solve two different problems.
Can I buy long-term care insurance for my parent?
You can pay the premiums, but your parent is the one who has to apply. Insurers require the person who will be covered to answer the health questions directly, since the policy and its price are based on their health, not yours.
Does having long-term care insurance affect my Medicaid eligibility?
It can help, indirectly. Because your insurance pays toward care costs first, it can slow down how quickly you spend through savings, which is often what eventually triggers the need to apply for Medicaid. An elder law attorney can walk through how this fits into your specific financial picture.
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Content on SetToRetire.com is researched and drafted with AI assistance, then reviewed and edited for accuracy by the editorial team at Senior Media Group LLC. It is provided for general informational purposes only and does not constitute medical, legal, or financial advice. Consult a qualified financial or tax professional before making decisions. For more on how we create content, see our Editorial Process.
