Long-Term Care Insurance Calculator

Long-term care insurance covers the cost of nursing homes, assisted living, and in-home care when age or illness makes self-care impossible. Care costs 40,000-100,000+/year for residential care. Few self-fund fully. LTCI covers the gap between state support (limited, means-tested) and actual care cost.

Age 55 buying 5,000/month benefit × 3-year benefit period = 180,000 maximum potential payout. Age factor 1.5% × total potential benefit = 2,700 annual premium. By age 65, same cover costs 4,500/year (2.5% factor). By 70: 7,200. Premiums rise steeply with age because probability of claim rises with age.

LTCI is hotly debated. Proponents: genuine risk, cost of care is financially devastating. Critics: premiums rise over time (most policies are not level-premium), carriers have history of rate increases, state public health coverage for low-income residents in some countries covers worst cases. the market for LTCI has shrunk significantly as providers have exited. Consider alternatives: save aggressively, downsize home, family care arrangements.

Quick example

With age at purchase of 55 years and monthly benefit of 5,000 (plus benefit period of 3 years and inflation protection of 3%), the result is 2,781.00. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Age at Purchase, Monthly Benefit, Benefit Period (years), and Inflation Protection %. Not every input has equal weight. Adjusting one input at a time toward extreme values shows which ones move the result most.

What's happening under the hood

Base rate varies by age bracket. Annual premium = total potential benefit × base rate × (1 + inflation protection %). The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

What to do with a low result

A disappointing result is information, not a judgement. Pick the single input that dragged the figure down most and focus the next quarter on that one factor. Breadth-first improvement rarely works; depth-first on the worst input usually does.

What this doesn't capture

The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.