From Yahoo Finance: 2025-04-23 08:30:00

Long-term care insurance policies are priced based on factors like benefits cap, benefits growth, age of policyholder, duration of coverage, sex of policyholder, and pre-existing medical conditions. Costs for individual policies with inflation protection vary from $2,100 to $3,600 per year, with age playing a significant role.

SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. A long-term care policy priced at $7,000 per year is higher than average. Typically, a single male or female should pay around $2,100 to $3,600 per year for an inflation-protected long-term care insurance policy.

Most households should consider long-term care insurance due to the high costs of residential or in-home care. Nursing homes can cost between $130,000 and $150,000 per year. Without insurance, families may need to sell assets to cover care expenses. Medicaid may help with costs, but requirements may impact estate planning.

Long-term care insurance covers in-home and residential care, with standard policies costing several thousand dollars per year. It’s advisable to consult with a financial advisor to create a comprehensive plan tailored to your needs and situation.

Medicaid can serve as a backup plan for health coverage and long-term care, but it’s essential to protect assets from the program’s poverty requirements. Building an emergency fund with liquid cash can help cover unexpected expenses. Financial advisors can provide personalized advice on long-term care planning.

Read more: Is a $7,000 Annual Premium Too Expensive for Long-Term Care Insurance?