[Last updated June 2, 2025]
When it comes to preparing for the future, few topics spark more internal debate than long-term care insurance (LTCi). It’s not cheap, and it’s not something everyone will use. But it’s also one of those things that, if you need it, could be financially lifesaving. So how do you answer the big question: Is long-term care insurance worth it?
The answer depends on a combination of personal factors — some financial, some medical, and some emotional. Below are the key factors that influence both the premiums and the potential value of a policy, along with how each factor interacts with the others to shape your decision.
Age: Timing is everything
Age is perhaps the single biggest factor when determining the cost and value of LTCi. The younger you are when you buy a policy, the cheaper the premiums tend to be. Most people who purchase coverage do so between the ages of 50 and 65.
Buying early locks in a lower rate and helps you avoid the risk of developing health conditions that could disqualify you later. However, buying too early means you might pay premiums for decades before you ever need care, if you need it at all.
So what’s the sweet spot? Many experts suggest the early 60s. At that age, most people are still healthy enough to qualify and can get reasonable rates, but they’re also close enough to retirement that the policy may be used within 15 to 20 years.
However, it’s important not to overgeneralize. A 68-year-old with a family history of Alzheimer’s or no nearby support system may still find value in purchasing a policy, even with higher premiums. Likewise, a 50-year-old with limited assets might decide to forgo coverage and focus instead on building up savings.
Health and medical history
LTCi is medically underwritten, which means your current health and medical history play a role in whether you qualify and how much you’ll pay. Chronic conditions like diabetes, heart disease, or a history of cancer can either increase your premiums or disqualify you altogether.
Here’s where the nuance comes in: Someone in excellent health at age 60 may be tempted to put off buying coverage. But health can change quickly, and waiting even a few years could make a big difference in cost or eligibility. Conversely, if you already have preexisting conditions, it may be better to explore hybrid life insurance policies or alternative planning options, such as short-term care insurance or a health savings account (HSA).
Bear in mind that insurers will carefully review your medical records, so be forthright and thorough with your answers if you apply for either an LTCi or hybrid life insurance policy.
Income and net worth
Long-term care insurance isn’t cheap. Premiums average $2,550 annually for a healthy couple in their early 60s, and they tend to increase with age. It makes sense to consider whether the coverage aligns with your financial capacity and goals.
- If your net worth is under $500,000 (excluding your home), you may end up qualifying for Medicaid if you need care.
- If your net worth is over $2 million, you might be able to self-pay for your long-term care needs.
- For everyone in between, LTCi could serve as a safety net to protect assets from being wiped out by long-term care costs.
Still, preferences vary. Some high-net-worth individuals buy policies to preserve their estate for heirs, while some middle-income retirees prioritize flexibility over insurance.
It may be beneficial for you to consult with a financial advisor or an insurance professional dedicated to selling long-term care insurance to make sure LTCi is in alignment with your budget and long-term goals.
Family support and care preferences
Another key consideration is who will take care of you if and when you need help. Some people assume their adult children will step in, but that’s not always realistic, especially if your kids live out of state, have demanding jobs, or face financial strain themselves. Others might strongly prefer professional home care or a senior care facility with certain amenities.
If you know you want options (or don’t want to burden your family), LTCi could be a good fit. It can help you pay for care in your preferred setting without draining your finances.
On the flip side, if you have strong family support and are open to moving in with relatives or relying on community resources, you might find less value in a policy.
Type of policy and inflation protection
Not all LTCi policies are created equal. Some cover only nursing home care, while others cover home health aides, assisted living, and adult day care. Some are stand-alone policies; others are part of a hybrid life insurance plan with a long-term care rider.
One key decision is whether to add inflation protection, which increases your benefit amount over time. This is especially important if you buy the policy in your 50s or early 60s, as the cost of care could double or triple by the time you use it.
Inflation protection adds to the cost, but skipping it means your benefits may fall short later. Again, your age, budget, and expected needs play a role here.
Premium stability and rate increases
While LTCi policies are guaranteed renewable (which means the insurer can’t cancel your policy as long as you pay), premiums are not guaranteed to remain level. Insurers can and do raise rates on groups of policyholders with regulatory approval.
This means you need to plan not just for today’s premium but also for potential future increases. If your budget is already tight, this risk could make the policy less sustainable over time.
Hybrid policies, which combine life insurance with long-term care (LTC) riders, offer more premium stability but typically come with a higher upfront cost.
Is long-term care insurance worth it?
There’s no one-size-fits-all answer to this question. For some people, it’s absolutely worth it, an essential part of protecting retirement savings and ensuring access to quality care. For others, it may be financially out of reach or simply not necessary based on their assets and preferences.
Here’s what to consider when making your decision:
- Your age and health: Can you still qualify for a good rate?
- Your assets: Can you self-pay for care, or would care costs threaten your nest egg?
- Your care preferences: Do you want professional care, or are you open to relying on family?
- Your support network: Will you have help, or will you need to hire outside care?
- Your risk tolerance: Are you comfortable betting that you won’t need care, or would you rather insure against it?
In the end, asking “Is long-term care insurance worth it?” is the right question, but the answer depends entirely on you. Taking time to evaluate these factors will help you make a thoughtful, informed decision that fits your life, budget, and vision for the future.
This information is for educational purposes and is not legal, financial, tax, or investment advice. It should not be substituted for information from professionals authorized to practice in your area. You should always consult a suitably qualified professional regarding your specific situation.
