Is Long Term Care Insurance Worth It?
LTC insurance is generally worth considering for households with roughly $300,000–$2 million in assets — enough to protect, not enough to comfortably self-insure a multi-year care event. Below that range Medicaid becomes the payer of last resort; well above it, many families reasonably self-fund.
The risk you're insuring
Federal projections estimate about 70% of people turning 65 will need some long-term care; roughly a quarter of that group will need care longer than two years, and women average longer care needs than men. Combine those odds with care costs of $70,000–$130,000+ per year and the exposure is real but uneven — which is exactly the profile insurance handles well.
Worth it if…
- Your assets fall in the protect-worthy middle band, or you want to protect an inheritance or a healthy spouse's lifestyle
- You'd rather pay a known premium than risk a $500,000 tail event
- You want choice of care setting — Medicaid's default remains facility care in many states, while private coverage funds home care first
- You're insurable now — waiting risks both higher age-based pricing and losing eligibility entirely
Probably not worth it if…
- Premiums would strain your budget — a policy you drop at 75 after a rate increase protected nothing (see premium increases)
- Assets are modest enough that Medicaid would cover care relatively quickly anyway
- You have $3M+ liquid and consciously prefer to self-fund — though many wealthy buyers still insure to protect portfolio timing and simplify family decisions
The break-even sketch
A 55-year-old paying $3,000/year pays $90,000 by 85. Median assisted living costs pass $90,000 in about 15 months; a nursing home in under a year. One modest claim returns decades of premiums — and if you never claim, the premium bought certainty, the same as your homeowners policy. A hybrid design changes that trade by returning unused benefits to heirs.
Frequently asked questions
What are the odds I'll actually use long term care insurance?
At what net worth should you skip long term care insurance?
Is long term care insurance a waste of money if I never use it?
Should both spouses get long term care insurance?
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.