Everything you need to know about long-term care insurance in Florida
70% of those people will be proven wrong.
The unfortunate truth is that 70% of Americans 65 years of age or older will need some form of long-term care in their lifetime.
And long-term care is a costly expense to pay out of pocket. In Florida, long-term care — in an assisted living facility or complete care in a nursing home — costs between $52,800 and $168,000 a year.
Most households don’t have that kind of money to shell out, especially during retirement. That’s why it’s important to invest in long-term care insurance now.
Discover your ideal Insurance Plan
Why should I invest in long-term care insurance in Florida?
Many folks would agree that long-term care insurance for elderly people is important.
But you’re not old. And you’re healthy. You plan on working well past the “usual” retirement age.
You can’t imagine relying on others for care.
Age creeps up on all of us.
Ask your friend who cares for her aging parents at home if she imagined Mom or Dad ever needing long-term care.
Ask her if she can afford the level of care her parents would need if they moved into an assisted living facility or nursing home.
The answer to both questions is “no.”
If you think you can’t afford long-term care insurance now, your family certainly won’t be able to afford long-term care in the future. The cost of long-term care is unsustainable for anyone but the very wealthy. That puts your family on the hook for your care and its costs. Often at great sacrifices.
To make it worse, many people move away from their families to enjoy sunny retirement in Florida. Then, when they need extra help, they find themselves isolated and without a family support network nearby.
Others simply outlive their family members and have no family support. This makes long-term care insurance in Florida even more vital.
Long-term care insurance can save you and your family thousands — possibly even millions — of dollars. What you pay in premiums over 20 years could be gone in a single year of long-term care.
But the trick is to take out a policy at the right time.
When is the best time to get a quote?
I strongly recommend you start thinking critically about long-term care insurance as you approach your 50th birthday.
After that, the longer you wait, the more expensive and the more limited your options will be… if you are still insurable.
For a couple around age 50, quality long-term care insurance in Florida typically costs around $400 a month. But that cost could triple for the same couple at age 60.
If you wait longer than that, the estimated cost of long-term care insurance will skyrocket, with the likelihood of actually getting coverage dropping by 50 percent.
I don’t recommend long-term care insurance for folks in their 40s because the chances that you’ll need care before you’re 50 is so low. I don’t see premium rates low enough to make 10 years of playing into an insurance plan worth it.
The prime time to take out a long-term care policy is between ages 50 and 55. Don’t operate on the fallacy that you need to be elderly to take out a long-term care insurance plan. It will be far too late by then.
What is the estimated cost of long-term care insurance?
The estimated cost of long-term care insurance is far less than a single year of care.
Let’s say you need long-term care today. You’d be looking at assisted living between $4,400 and $5,250 per month. A semi-private nursing home would be between $9,000 and $10,000, and a private nursing home at about $11,000 to $14,000 a month. Even in-home and community services are quite pricey.
Never mind how inflation will affect those costs 10, 20 years down the road. I don’t know about you, but my pockets don’t run that deep.
Below is the average costs in the Fort Lauderdale area for a single month as captured in 2023.
Average monthly cost of long-term care in Fort Lauderdale, Florida
| In-home care | Community and Assisted Living | Nursing Home Facility | |||
| Homemaker services | $5,200* | Adult day care | $1,788 | Semi-private room | $9,997 |
| Home health aide | $5,200* | Assisted living facility | $5,250 | Private room | $13,916 |
Source: Genworth Cost of Care survey, 2023
*Based on 40 hours per month
If you don’t live in Florida, the AARP and Genworth have great cost calculators to give you a better idea of long-term care costs in your area.
What I can tell you — no matter where you live — is that the estimated cost of long-term care insurance will be far less than the cost of long-term care.
Estimated monthly premiums for long-term care insurance
| Age | Males | Females |
| 55, male | $173 | $308 |
| 60, male | $215 | $367 |
| 65, male | $261 | $439 |
Source: AARP
Let’s say you secured a long-term care insurance plan at age 55 for a premium of $300 a month. Then, at age 70, you need to move into an assisted living facility. In those 20 years, you’ve paid a total of $72,000 in premium payments.
In just over a year at an assisted living facility, you’ll have paid back your investment. At age 70, you can anticipate needing many more years of care.
And what about if you had to transition to a nursing home? A single year of nursing home care in Florida costs between $100,000 and $168,000 on average.
Even though I’ve been responsible and forward thinking in my retirement investments, I know I couldn’t afford long-term care. No way would I want to saddle my family with that kind of bill, either.
What are the different types of long-term care insurance?
In general, there are two main types: guaranteed issue and fully underwritten.
Guaranteed issue means you can get coverage as long as you can answer “no” to a few basic health questions. These include whether you had cancer in the last five years, if you’ve had a heart attack in the last three to five years, or if you’re an insulin-dependent diabetic.
In short, guaranteed issue insurance is more expensive and isn’t as comprehensive, but it’s easier for more people to qualify for.
The other type is fully underwritten. For this, insurance companies look at your comprehensive health information, your medications and pre-indicators. Then they come up with a rating category that will determine your premium. The healthier you are, the less premium you pay.
You also have the option to add in an inflation factor to make sure that by the time you need long-term care, the amount you are insured for will be comparable to what you were initially insured for.
Another factor is insurance is how long it lasts.
Premium for life is just that — it will remain in effect for the rest of your life, no matter how many years of care you may need. You might start with in-home services at age 72, go into assisted living at 78, transition to a nursing home at 85, then live there until the ripe old age of 95.
Your long-term care insurance would remain in effect that entire time.
Limited issue is for a specific amount of time. For instance, the long-term care insurance may cover care for five years, but after that you are responsible for the full cost.
With limited issue, you’ll find seniors delaying needed care because they don’t want that clock to start running. That can have a dramatic impact on your quality of life.
Finally, I always recommend a policy that has home-based care provisions that will pay for care from a home aide or skilled nurse. Unfortunately, not every policy automatically includes that, and most folks would prefer to stay in their homes if they have the choice.
Find the long-term care insurance you need
If you’re in your early 50s, long-term care insurance is a must, especially if you live in Florida. Don’t wait for your costs to increase as you get older.
If you’re 60 or older, I’m here to help you find a plan that will save you money (and worry) in the long run.
Now is the time to discuss which type of plan best fits your reality. Let’s get you a quote and restore your peace of mind for the future.
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