Long-Term Care Insurance Cost Calculator
Long-term care insurance helps pay for custodial care services that Medicare does not cover. The US Department of Health and Human Services estimates that 70 percent of people turning age 65 will need some form of long-term care. The Genworth Cost of Care Survey provides national median care costs updated annually. This calculator estimates the daily benefit and total pool of benefits you need, and an approximate annual premium based on your age and benefit selection.
Long-term care coverage formula
Total Benefit Pool = Daily Benefit x 365 x Benefit Years
Elimination Cost = Daily Benefit x Elimination Days
Base Annual Premium = Daily Benefit x 365 x Age Rate Factor x COLA Factor
Age Rate Factors: age 50 = 0.035, age 55 = 0.043, age 60 = 0.056, age 65 = 0.080 (per $1 daily benefit per year)
Premium estimates are based on AALTCI average rate factors by age. Actual premiums are highly individualized by health status, gender, marital status, and insurer. The COLA rider is critical because care costs have historically inflated at 3 to 5 percent annually.
Genworth 2023 national median care costs (annual)
- Adult day services: $20,280 ($56/day)
- Home health aide (44 hours/week): $61,776 ($170/day)
- Assisted living facility: $64,200 ($176/day)
- Nursing home, semi-private room: $104,025 ($285/day)
- Nursing home, private room: $116,800 ($320/day)
Frequently asked questions
What does long-term care insurance cover?
Long-term care (LTC) insurance covers custodial care services: help with activities of daily living (ADLs) such as bathing, dressing, eating, and mobility. It covers care in nursing homes, assisted living facilities, memory care units, and home care. Most policies require that you need help with 2 or more ADLs, or have a cognitive impairment, to qualify for benefits.
How much does long-term care cost?
According to the Genworth 2023 Cost of Care Survey, US median annual costs are: private nursing home room $116,800, assisted living facility $64,200, adult day services $20,280, and home health aide $61,776. Costs vary significantly by state and metropolitan area.
Does Medicare cover long-term care?
Medicare does not cover custodial care (help with daily activities). It covers only skilled nursing facility care for up to 100 days following a qualifying hospital stay, and only if care is medically necessary. Medicaid covers long-term care but only after you have spent down most of your assets to very low thresholds that vary by state.
What is the benefit period for long-term care insurance?
The benefit period is how long the policy will pay benefits. Common options are 2, 3, 4, or 5 years, or unlimited. According to the Department of Health and Human Services, the average long-term care need lasts approximately 2.5 years, but 20 percent of people will need care for more than 5 years.
When is the best time to buy long-term care insurance?
The American Association for Long-Term Care Insurance recommends buying between ages 52 and 64 when you are most likely to qualify medically at affordable rates. Premiums increase significantly with age, and many applicants are declined due to health issues if they wait until their late 60s or 70s.
Official sources
- HHS: How Much Care Will You Need? (ACL.gov).
- Genworth: 2023 Cost of Care Survey.
- NAIC: Long-Term Care Insurance Consumer Guide.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.