In general terms, LTC insurance will pay a daily amount, up to a predetermined dollar limit and length of time, for services. Those specifics, along with any optional benefits you choose, partly determine the cost of your premiums.
Your age also plays a role. The older you are, the more expensive the policy will be. Also, be aware that if you have a preexisting condition, an insurer can reject you or place care limitations on that condition.
According to the American Association for Long-Term Care Insurance, the average married couple, both age 55, would pay $1,816 per year for a policy with $162,000 in coverage for each. If they also purchased a 3 percent inflation protection rider, the policy would set the couple back $3,725 yearly.
Meanwhile, federal data shows that the average cost for long-term care in an assisted-living facility was $3,293 monthly (about $40,000 a year), $6,235 per month (roughly $75,000 a year) for a semiprivate room in a nursing home or $6,965 per month (more than $83,000 yearly) for a private room.