Long-Term Care Insurance Calculator

Compare long-term care insurance premiums against the benefits payable.

About Long-Term Care Insurance Calculator

Without an inflation rider a daily benefit set decades before a claim loses most of its real value. The rider substantially raises the premium but is what preserves the policy's usefulness. Policies are only claimed by a minority, so the comparison is about transferring catastrophic risk rather than expected value, and premiums can also rise on existing policies.

Formula

Long-Term Care Insurance

Maximum benefit = daily benefit grown by the rider × 365 × benefit period

inflation rider: Grows the daily benefit annually, essential over long horizons
elimination period: An initial waiting period during which no benefit is paid

Worked example

With the default values below, Long-Term Care Insurance Calculator returns Net Benefit Over Premiums of $412,900.10. Change any input above and every figure here is recalculated in your browser.

Inputs used

Annual premiumminimum 0: 3,200
Current ageaccepts 30–85 years: 58 years
Age care is expectedaccepts 30–105 years: 82 years
Daily benefitminimum 0: 220
Benefit periodminimum 0.1 years: 3 years
Inflation rideraccepts 0–10 %: 3 %

Results

Net Benefit Over Premiums: $412,900.10
Total Premiums Paid: $76,800.00
Maximum Benefit Payable: $489,700.10
Daily Benefit When Care Begins: $447.21
Benefit to Premium Ratio: 6.376 x

Step by step

1Values used
2Long-Term Care Insurance
3Net Benefit Over Premiums= 412,900.10
4Total Premiums Paid= 76,800.00
5Maximum Benefit Payable= 489,700.10
6Daily Benefit When Care Begins= 447.21
7Benefit to Premium Ratio= 6.376 x

Assumptions and limits

The result is derived only from the 6 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take tax or fees or charges into account.
Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
This is a general illustration, not financial, tax or legal advice. Rules, thresholds and rates vary by jurisdiction and change frequently, and individual circumstances materially affect outcomes. Consult a qualified adviser before making any decision based on these figures.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

This is a general illustration, not financial, tax or legal advice. Rules, thresholds and rates vary by jurisdiction and change frequently, and individual circumstances materially affect outcomes. Consult a qualified adviser before making any decision based on these figures.

Frequently Asked Questions

How is Long-Term Care Insurance calculated?

Maximum benefit = daily benefit grown by the rider × 365 × benefit period Without an inflation rider a daily benefit set decades before a claim loses most of its real value. The rider substantially raises the premium but is what preserves the policy's usefulness.

Why does Long-Term Care Insurance matter?

Policies are only claimed by a minority, so the comparison is about transferring catastrophic risk rather than expected value, and premiums can also rise on existing policies.

What values do I need to enter?

This calculator takes 6 inputs: Annual premium, Current age, Age care is expected, Daily benefit, Benefit period, Inflation rider. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.