The Average Cost of Long-Term Health Insurance

How much you pay for long-term health insurance will vary great, especially when you base it on the age you are when first buying the policy. Cost can play a factor in the type of policy you purchase and what coverage you choose to have.

Average Annual Premium

• A 2007 study revealed the average annual premium for long-term health care insurance was $2,207, according to Longtermcare.gov. This was based on a comprehensive report covering all types of health insurance, ages and amount of coverage chosen. America's Health Insurance Plans website on long-term health insurance says individual premiums in each age range generally don't increase for health insurance. When they do increase, it's for all policy holders simultaneously.

Average Premiums by Age

• Based on the studies of Longtermcare.gov, those under 40 years old generally pay around $881 a year in premiums as of 2008. A 50-year-old was more apt to pay $1,982 a year in premium costs. The biggest leap occurs once you hit your 60s. Those 65 to 69 years old will have to pay $2,539 a year. It's worse when you hit 70, when you pay $3,026 a year.

Monthly Premiums by Plan Level

• Most long-term health insurance programs offer various plan levels that will give you different degrees of coverage for care. Longtermcare.gov says that in many cases, a Plan E will be the lowest level of coverage available. If you're under 40 years old, a Plan E will cost about $24 a month. But it costs around $90 a month for a Plan A at 40 years old. A Plan A at age 75 would cost you about $520 a month.

Annual Costs of Long-Term Care

• Without long-term health insurance, a nursing home will cost an average person about $81,777 a year, according to Longterminsurancetree.com. Assisted living facilities are a little cheaper, though still expensive at $42,345 a year. Care directly in the home is about $33,223 a year. If a person lives in a nursing home without long-term insurance to help alleviate costs, it would cost a person an average of $237,153 after three years.