It depends, of course! Everyone’s situation is different but based on our decades of experience with long-term care insurance products and clients, we’ve determined the average target premium sweet spot to be around $150-$250/month. Additionally, we almost always quote a product with lifetime inflation (because, well, inflation!) and a zero-day waiting period for homecare services (compared to a typical 90-day waiting period for skilled nursing care).
A note on coverage amount: Clients aren’t buying long-term care insurance to fully fund a long-term care stay—they usually have other sources of funding, too. Therefore, the benefit amount a person or couple chooses should be more about supplementing existing income sources during a high-cost event. In this way, LTCi works in combination with other income sources such as social security, RMDs, pensions, annuities, or other investment income. It makes little sense to show a plan that covers the full cost of care when most people have other resources available.
Even for someone projected to have a lot of money in retirement, we’d still typically recommend this $150-250/month premium range for long-term care insurance. This efficiently supplements whatever income someone has in retirement without overpaying for too much coverage, but most importantly, without depleting existing assets.