5 ways seniors can lower their long-term care insurance costs in 2025

As the costs of healthcare and long-term care continue to rise, the need for long-term care insurance coverage has become increasingly critical for seniors. According to data from Genworth, the average cost of a private room in a nursing home is estimated to be about $10,326 per month in 2025, or over $120,000 annually, while in-home care services are estimated at $6,675 monthly, or over $80,000 per year. These costs are only expected to climb over time, making long-term care insurance an essential consideration for seniors planning their financial future.

The cost of long-term care isn't the only expense that's rising, though. The premiums for long-term care insurance policies have also seen significant increases in recent years. This trend has made it challenging for many seniors to afford the coverage they need and those living on fixed incomes or relying primarily on retirement savings may find it even more difficult to fit these costs into their budgets. The combination of rising premiums and increasing care costs has also led many seniors to search for strategies to make long-term care insurance more affordable.

The good news is that there are several effective ways seniors can work to lower their long-term care insurance costs in 2025. By taking a proactive approach, older adults can potentially save significantly on the cost of their long-term care policy while still maintaining the coverage they need. 

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5 ways seniors can lower their long-term care insurance costs in 2025

Here are five key strategies to consider when looking to reduce long-term care insurance expenses:

Customize your elimination period

The elimination period — which is the time between when you need care and when your policy begins paying benefits — can substantially impact your premium costs. While a shorter elimination period of 30 days means you'll receive benefits sooner, opting for a longer period of 90 or even 180 days can reduce your premiums in many cases. Before choosing a longer elimination period, though, it's important to ensure you have sufficient savings to cover care costs during this waiting period. You may also want to consider coordinating your elimination period with any short-term care coverage you might have through Medicare, which may help bridge the gap.

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Adjust your daily benefit amount

Rather than selecting the maximum daily benefit amount when purchasing a long-term care insurance policy, carefully analyze your potential care needs and local care costs and use that to inform your coverage amount. For example, choosing a daily benefit that covers 70% to 80% of the average care costs in your area and supplementing the remainder with personal savings or other resources can result in lower premiums while still providing substantial protection against long-term care expenses. Just remember to factor in inflation and regional cost variations when determining your optimal daily benefit amount.

Consider shared care policies

If you're married, it may be worth considering a shared care policy. These types of policies can offer significant cost savings compared to individual policies, as they create a pool of benefits that either spouse can use, which typically provides more flexibility and better value than two separate policies. While both spouses need to qualify for coverage, shared care policies often cost substantially less than purchasing individual policies. Plus, if one spouse dies without using their benefits, the surviving spouse retains access to the remaining benefit pool.

Explore hybrid policies

Hybrid policies, which combine long-term care insurance with life insurance or annuities, have become increasingly popular alternatives to traditional long-term care insurance. These policies can offer premium guarantees and return of premium features that traditional policies don't provide — and they may be worth considering if you're trying to find an affordable solution to long-term care coverage. While hybrid policies typically require a larger upfront investment, they can be more cost-effective in the long run and provide greater financial certainty. They also offer the advantage of ensuring that your beneficiaries receive a death benefit if you don't need long-term care services.

Tailor your coverage to specific needs

Customizing your long-term care insurance policy to include only essential coverage is another way to reduce costs. For example, you have the option to opt for a policy with a lower daily benefit amount, shorter benefit duration or limited inflation protection, all of which can help lower the costs of a policy. While it's crucial to avoid underinsuring, tailoring your coverage to reflect realistic care needs and financial capabilities can make premiums more manageable. 

The bottom line

Securing affordable long-term care insurance is possible, but it requires careful planning and consideration of various policy options and features. By implementing these cost-saving strategies, you can potentially reduce your premium costs while maintaining adequate coverage for future care needs. However, it's essential to work with a qualified insurance professional who can help evaluate your specific situation and recommend the most appropriate coverage options. While reducing costs is important, the primary goal should be securing coverage that provides adequate protection for your long-term care needs while remaining within your budget constraints.