Long-term care insurance prices are down: Here's why you should buy a policy now

In today's inflationary environment, it can be rare to see the price of anything decline — especially anything of any substantial value. But that appears to have been the case for long-term care insurance premiums last year. 

According to the American Association for Long-Term Care Insurance, in 2023, the average 55-year-old man in superior health paid about $900 annually for $165,000 in level long-term care benefits. That's a decrease of about $50 annually compared to the $950 average annual price in 2022. And, had that same 55-year-old man added inflation protection to a policy that increased its value by 3% per year, he would have paid an average of $2,100 for the annual premium — down from $2,200 the year prior.

So, with the recent decline in long-term care insurance prices, now may be the perfect time to purchase a policy. Here's why.

Find out how affordable long-term care insurance can be now. 

Long-term care insurance prices are down: Here's why you should buy a policy now

There are a few reasons it makes sense to buy long-term care insurance now that prices have declined, including:

It may be difficult to find a better price in the future

Long-term care insurance prices were down in 2023, but that lull in prices may not last long. And, that's not the only reason you may have a hard time finding a better price than you'll find right now. 

"You should buy coverage now because your good health is not guaranteed in the future," says Kelly Augspurger, CSA and instructor at Certification for Long-Term Care. "A future diagnosis or condition could preclude, postpone, or rate you for coverage." 

In other words, if you wait too long to purchase long-term care insurance, you could pay more for the coverage or be denied entirely. 

That's because long-term care insurance companies calculate premiums, in part, on how long it is likely to be before you make a claim. So, the younger you are, the less risky you'll typically be to insure, which means you'll typically pay lower long-term care insurance premiums. 

Purchase long-term care insurance today. 

Long-term care insurance gives you options

As you age, you may want the choice of whether to move into an assisted living community or age at home. And, if you choose to move into an assisted living community, you may want the option of choosing a private or semi-private room. 

However, those choices usually come at a cost. For example, this year, a private room in a nursing home is expected to cost, on average, about $13,000 more annually than a semi-private room, according to Genworth. A long-term care insurance policy could help you cover the added cost of opting for a private room instead. And, considering the recent declines in policy premiums, now may be the time to act. 

Long-term care insurance can benefit your family, too

Long-term care insurance may seem like it only benefits the insured, but that's not entirely the case. This type of insurance can also benefit your loved ones. For example, if you plan to lean on family for care, you could purchase a long-term care insurance policy that allows you to pay your family caregivers. 

And, there are other ways long-term care insurance protects your loved ones. For example, this type of coverage can help protect your estate — and, in turn, your beneficiaries. That's because some types of long-term care can cost over $100,000 per year. And, if you pay out of pocket for this care, it can negatively impact what you leave behind for your heirs. 

But today's lower long-term care insurance premiums can make this type of coverage an even more attractive option for protecting those you love. 

Protect yourself and your loved ones with a long-term care insurance policy. 

The bottom line

Long-term care premiums were down year-over-year in 2023, but that may not be the case in the future. Moreover, your age and health can play a significant role in your premiums and access to coverage. So, it makes sense to act now to gain the benefits of this type of policy at a lower price while avoiding any undue strain on your loved ones. Purchase a long-term care insurance policy now while prices are down.