Long-Term Care Insurance Calculator

Long-term care insurance helps cover the cost of services for people who can no longer perform basic daily activities on their own — such as bathing, dressing, eating, or managing medications. It's not limited to the elderly; chronic illness or injury can trigger the need at any age. Roughly 7 out of 10 people will require some form of long-term care in their lifetime, making planning important for most adults.

Costs vary significantly by location and type of care. Nationally, a semi-private nursing home room averages around $250–$300 per day, while home health aide services cost approximately $35–$45 per hour (about $75,000–$80,000 per year for 44 hours per week). Assisted living facilities typically range from $4,000–$6,000 per month. These costs have historically increased 3–5% per year due to inflation.

Most financial experts recommend purchasing long-term care insurance in your mid-50s to early 60s. At this age, premiums are more affordable and you are more likely to qualify medically. Waiting until your late 60s or 70s means higher premiums and a greater risk of being declined for coverage due to health issues.

Yes, there are several strategies to lower your premium. Buying at a younger age locks in lower rates. Choosing a longer elimination period (how long you pay before benefits kick in) reduces the premium. Selecting a benefit growth rate that matches inflation rather than exceeding it, and limiting the maximum benefit period can also bring costs down. Couples may also qualify for shared-care or spousal discounts.

The average long-term care need lasts about 3 years, but this varies widely. Women tend to need care longer than men — about 3.7 years on average compared to 2.2 years for men. About 20% of people need care for more than 5 years. A policy with a 3–5 year benefit period covers the majority of needs, but your personal health history and family longevity should influence your decision.

Medicare only covers short-term skilled nursing care (up to 100 days) following a qualifying hospital stay — it does not cover custodial or long-term care. Medicaid does cover long-term care, but only after you have spent down most of your assets to qualify. Long-term care insurance is designed to bridge this gap and protect your savings and estate.

Long-term care costs have risen faster than general inflation for decades. If care costs $250 per day today and inflate at 3% annually, they will cost roughly $452 per day in 20 years. This is why inflation protection riders on LTC policies are important — they increase your daily benefit over time to keep pace with rising costs.

A coverage shortfall is the gap between your projected future long-term care costs and the resources you have available to pay for them — including savings and any existing insurance benefits. Knowing your shortfall helps you determine how much long-term care insurance to purchase so you don't deplete your retirement savings or burden your family.