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How to Choose a Long Term Care Insurance Policy

Long Term Care Buyers Guide · reviewed 2026

Four decisions define every LTC policy: the monthly benefit (match local care costs), the benefit period (3 years covers most claims), the elimination period (90 days is the value point), and inflation protection (compound, always). Everything else is refinement.

Decision 1: Benefit amount

Price care in your area — Genworth's Cost of Care survey is free — and set the monthly benefit at what you'd want covered after netting income you could contribute. Common approach: cover assisted-living or home-aide costs fully and accept a personal contribution toward nursing-level care.

Decision 2: Benefit period

Most claims last under three years, which is why 3-year pools are the value baseline; dementia-driven claims run longer, so family history of cognitive disease argues for 5+ years or a shared-care design for couples. Note the benefit is really a dollar pool — spending below the monthly maximum stretches the years.

Decision 3: Elimination period

90 days is standard and usually the pricing sweet spot; you self-fund the first three months. Confirm how home-care days count — calendar-day policies satisfy the wait far faster than service-day policies (details in the comparison checklist).

Decision 4: Inflation protection

Non-negotiable for buyers in their 50s–60s: claims arrive 20–30 years after purchase, and care costs compound. 3% compound is the modern default; 5% compound for the strongest protection at meaningfully higher premium. Skip simple-interest and future-purchase-option designs — they quietly erode.

Diagram of the four key decisions when choosing a long term care insurance policy
Four levers set both the protection and the price.

Refinements worth their cost

Then take the design to multiple carriers for quotes — the same specification varies 40–60% in price across insurers.

Frequently asked questions

How much long term care coverage do I need?
Enough monthly benefit to cover care costs in your area — commonly $5,000–$8,000/month today — net of income you could contribute, with compound inflation growth so the number keeps pace for decades.
Is a 3-year benefit period enough?
It covers the majority of claims and is the value baseline. Family history of dementia — the long-claim driver — argues for 5 years or more, or shared care for couples.
What elimination period should I pick?
90 days for most buyers: significantly cheaper than 30 days, and the first three months of care are typically fundable from savings. Confirm calendar-day vs. service-day counting.
Is inflation protection worth the extra premium?
Yes — for younger buyers it's the difference between meaningful and token benefits at claim time 25 years later. Choose compound (3% or 5%), not simple interest.

Ready for real numbers? Premiums vary widely by age, health, and state. Comparing personalized quotes from multiple carriers is the only way to know what you'd actually pay.

Compare LTC quotes →

Disclosure: We may earn a commission when you request quotes or purchase coverage through links on this page. This does not affect the price you pay or our editorial content.

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