LTC Insurance Premium Increases

Why should I consider maintaining coverage?

Even in the face of premium increases, long term care insurance can offer value to those who made the decision to purchase such policies. We see this every day when we pay out claims to our customers when they need us most. There are a number of factors that affect the possibility that you will need care such as age, gender, disability, health status and living arrangements. For details go to: LongTermCare.gov. As you evaluate what is best for you, we encourage you to review the current and projected cost of care in your area. For current cost of care information specific to your area, please visit our Cost of Care website.

Cost of Long Term Care Services

Shown below is the national annual median cost for long term care services. As you think about your coverage, consider publicly available resources regarding current costs of long term care. For example, the national accounting firm PwC prepared an industry study1 that indicates:

  • The average duration for a long term care event was about three years and,

  • Approximately 75% to 80% of long term care events will cost less than $250,0002

These figures are averages and approximations and your actual results may be different. The U.S. Dept. of Health and Human Services also has information on cost of care at longtermcare.acl.gov

Annual Median Cost of Long Term Care Services3

Homemaker Services$68,640
Home Health Aide$75,504
Adult Day Health Care$24,700
Assisted Living Facility$64,200
Nursing Home (Semi-Private Room)$104,025
Nursing Home (Private Room)$116,800

1 The formal cost of long-term care services: How can society meet a growing need? was initially made available in 2016. The portion of the study relating to the cost of long-term care events was updated in 2021.
2 The cost of a long term care event includes the policyholder’s out of pocket expenses and payments made by the insurance company.
3 Genworth Cost of Care Survey, December 2023. Adult Day Health Care based on 5 days per week by 52 weeks. Home Health Care based on 44 hours per week by 52 weeks. Assisted Living Facility based on 12 months of care, private, one bedroom. Nursing Home Care based on 365 days of care.

Value of Long Term Care Insurance

Policyholders have access to long term care benefits far in excess of the premiums they pay.

Funds available to pay for Long Term Care (LTC) services:

Infographic showing lifetime max increasing much higher than premiums paid over 5 years. Long description of this image can be found in the longdesc attribute

This is a hypothetical example for illustrative purposes only. This example assumes a 56 Year-Old-Male, with a Genworth Privileged Choice® policy that was issued in the state VA with standard underwriting, a $4,500 Monthly Benefit, a four year Benefit Coverage Period, a 90 day Elimination Period, a 5% Inflation Protection, and no claims were incurred for 20 years. For simplicity, it also assumes premium did not change over the life of the policy. All values rounded to the nearest dollar. Premiums are not guaranteed. Payment of benefits is subject to all policy limitations and exclusions, including Daily/Monthly Benefit Maximums.

Differences between available benefits and premium paid will vary over the life of the policy. Also, even a slight change in the assumptions used could result in significantly different outcomes. If you own a long term care insurance policy, you should refer to your policy to understand your long term care coverage benefits.

206401C4C 02/22/24