Very few people who purchase Long-Term Care insurance ever drop that coverage. It’s one of the most “kept” insurance contracts on the market, because once people understand what it actually protects, they don’t want to lose it.

There’s a reason.

Picture this: you need extended care at age 85. Now imagine you waited and only bought coverage at age 75. Because of the actuarial math, your premiums are higher and you’re still exposed to large out-of-pocket costs.

But if you lock coverage in at 55 — or even younger — premiums are generally far lower because you’re spreading cost over more years, and the policy can take on far more of the future burden instead of you (or your kids).

You’re protecting your assets — and your family

Long-term care costs can quietly erase a retirement. Families without coverage have had to sell homes or drain savings just to keep up with care.

Others plan to “just rely on the kids.” That sounds kind on paper, but in reality it often creates emotional strain, burnout, resentment, and money stress for adult children who are also trying to live their own lives.

How does this actually work?

• Example 1: You have no long-term care coverage. You pay out of pocket for in-home help, assisted living, or nursing care — potentially down to the poverty line — before the state steps in.
• Example 2: You have, say, $250,000 of dedicated long-term care benefits. You only spend your own money for what the policy doesn’t cover. That means you can keep up to $250,000 of your own assets instead of liquidating everything first.

That benefit could be $100,000… $250,000… $500,000… even more. The point is: you’re buying time, dignity, and control.

Modern “combo” policies

Today’s market isn’t just old-school “use it or lose it” LTC insurance. Many newer hybrid designs can link care benefits to life insurance or annuities, offer cash value, or provide a death benefit if you never need care.

Let’s talk real numbers. Professional in-home care commonly runs about $22–$25 per hour. That might be manageable for a few hours a day.

But when you need round-the-clock help, that jumps to roughly $575 a day — which is over $17,000 a month, or about $204,000 a year. A million dollars of coverage can go surprisingly fast in that situation — roughly five years.

Assisted living isn’t always the preference, but it’s often far less expensive. Roughly $120 per day comes out to about $3,600 a month, just over $43,000 a year. A $500,000 benefit could last more than a decade in that environment.

The key is flexibility: you can shift between levels of care, including in-home care first if that’s what you want.

Want to see how your age, health, and assets affect cost and benefits?