The average American turning 65 has a nearly 70% chance of needing some form of long-term care, according to the Administration for Community Living. Without insurance, nursing home costs can exceed $115,000 per year. Here’s what you need to know.
Long-Term Care Costs (Most Recent Available Data)
Figures below are from the CareScout (Genworth) Cost of Care Survey, 2025 data (fielded July–November 2025, released March 2026) — the most current national survey available as of September 2026. Memory care is not a standard category in this survey; the figure shown is an approximate market estimate from multiple senior-living cost aggregators and should be confirmed for your specific area.
| Type of Care | Monthly Cost | Annual Cost |
|---|---|---|
| Nursing home (private room) | $10,798 | $129,575 |
| Nursing home (semi-private) | $9,581 | $114,975 |
| Assisted living facility | $6,200 | $74,400 |
| In-home non-medical caregiver (full-time, 44 hrs/wk) | $6,673 | $80,080 |
| In-home non-medical caregiver (part-time, 20 hrs/wk) | $3,033 | $36,400 |
| Adult day health care | $2,058 | $24,700 |
| Memory care facility (approximate — confirm current local rate) | ~$6,500-$8,000 | ~$78,000-$96,000 |
Average Duration of Care Needed
| Type of Care | Average Duration |
|---|---|
| Any long-term care | 3 years |
| Home care only | 2 years |
| Nursing home only | 2.5 years |
| Women’s average need | 3.7 years |
| Men’s average need | 2.2 years |
These duration estimates are commonly cited industry reference points (Administration for Community Living / LTC industry research) and are approximate.
At $10,798/month for a private nursing home room, 3 years of care costs approximately $388,728 (10,798 × 36).
Long-Term Care Insurance Premiums
The premium figures below are illustrative, industry-typical estimates for comparison purposes — not live quotes. Get quotes from specific carriers, since pricing depends heavily on your health, state, and the exact policy design.
Illustrative Annual Premiums by Age at Purchase
| Age of Purchase | Male (Annual) | Female (Annual) | Couple (Combined Annual, w/ shared-care discount) |
|---|---|---|---|
| 45 | $1,200 | $2,000 | $2,800 |
| 50 | $1,500 | $2,600 | $3,500 |
| 55 | $2,100 | $3,700 | $5,000 |
| 60 | $3,200 | $5,400 | $7,400 |
| 65 | $5,000 | $8,400 | $11,500 |
The “Couple” column reflects a typical shared-care/couples discount, not a simple sum of the individual premiums — insurers commonly discount joint policies by 25-40%.
Women typically pay 40-70% more than men because they tend to need care longer, on average.
Buying at 55 vs. 65 can save a meaningful amount in cumulative premiums (commonly cited as $30,000-$50,000 over the policy’s life) while getting 10 extra years of coverage — though the exact savings depend on the specific policy and carrier.
Types of Long-Term Care Insurance
| Type | How It Works | Pros | Cons |
|---|---|---|---|
| Traditional LTC | Pay premiums for LTC-only benefits | Highest coverage amounts per premium dollar | Use it or lose it; premiums can increase |
| Hybrid (life + LTC) | Life insurance + LTC rider | Get benefits either way; premiums typically fixed | Higher initial cost |
| Hybrid (annuity + LTC) | Annuity with LTC rider | Lump sum funding; guaranteed rates | Requires large upfront payment |
| Short-term care | Covers 6-12 months of care | Lower cost, easier to qualify | Limited coverage duration |
Who Might Consider Long-Term Care Insurance
| Asset Level | LTC Insurance? | Reasoning |
|---|---|---|
| Under $100,000 | Often not a priority | Medicaid will typically cover care after a spend-down |
| $100,000-$500,000 | Frequently considered | LTC costs could consume most/all savings |
| $500,000-$2,000,000 | Frequently considered | Can help protect significant assets from LTC costs |
| Over $2,000,000 | Often self-insure | Some can absorb care costs from assets |
This describes common patterns, not individual recommendations — consult a financial planner for your specific situation.
What Medicare Does and Doesn’t Cover
| Service | Medicare Covers? |
|---|---|
| Skilled nursing facility (after hospital stay) | Up to 100 days (coinsurance of $217/day starts day 21 in 2026) |
| Home health care (skilled, medically necessary) | Limited |
| Long-term nursing home care | No |
| Assisted living | No |
| Custodial care (bathing, dressing, eating) | No |
| Memory care | No |
Medicare is not long-term care insurance. It covers short-term rehabilitation, not ongoing custodial care.
The Bottom Line
If you have roughly $100,000-$2 million in assets and want to protect them from potential long-term care costs, some financial planners suggest buying insurance between ages 50-60 as a balance of cost and coverage. A couple buying at 55 might pay in the range of $5,000/year (illustrative) while protecting against $300,000+ in potential care costs. Hybrid policies (life insurance + LTC) offer the advantage of benefits either way — LTC if needed, death benefit if not.
Sources
- CareScout (Genworth). “Cost of Care Survey 2025.” genworth.com/aging-and-you/finances/cost-of-care.html
- Administration for Community Living. “What Is Long-Term Care?” acl.gov/ltc/basic-needs/what-is-long-term-care
- Social Security Administration. “Benefits and Eligibility Information.” ssa.gov/benefits
- Centers for Medicare & Medicaid Services. “Medicare Program Information.” medicare.gov
Long-term care insurance is a key planning tool in the elder care hub. Understand how Medicaid interacts with care costs in Medicaid planning, and see how Medicare coverage fits with the Medicare hub.
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