Long term care insurance quotes are drawing new attention after an AARP study found family caregivers now spend $11,508 a year out of pocket. The AARP study, published October 28, 2026, reports that spending is up nearly 60% in five years and averages 31% of caregivers’ household income. AARP says the increase is more than twice the 24% overall inflation rate over the same period, based on Bureau of Labor Statistics CPI data. The findings were also covered in MarketWatch’s October 28 report.
The New Numbers
AARP’s 2026 Caregiving Out-of-Pocket Costs Study used a hybrid online survey of 2,538 U.S. adults age 18 and older, conducted by Ipsos KnowledgePanel in June and July 2026, along with a one-week expense diary. It reports the average annual amount caregivers spend from their own funds, not the total cost of care, an insurance premium, or a forecast for any one household.
AARP reports that expenses include housing, household and medical costs, as well as personal costs incurred by caregivers. The results describe a financial burden that may be missed when care is viewed only as a medical bill.
Where the $11,508 Actually Goes
AARP assigns 42% of reported spending to household and housing expenses, including food and rent or mortgage costs. It assigns 29% to medical expenses, such as insurance premiums, copays and direct payments to providers, including nursing home costs. Another 11% goes to caregivers’ personal expenses, including travel and childcare. The remaining share falls into other reported expense categories.
For a household budget, the categories matter. Housing and household spending can affect routine bills and groceries. Medical payments may recur or change as care needs shift. Travel and childcare can add indirect costs when a caregiver is coordinating appointments or providing support. The percentages are study-wide averages; individual spending patterns vary.
The Burden Falls Hardest Where There Is Least Cushion
AARP reports that caregivers with household incomes below $40,000 spend an average of 76% of that income on caregiving. For caregivers earning more than $85,000, the reported share ranges from 9% to 19%. AARP also reports that Black caregivers spend 52% of household income on care, the highest share among racial and ethnic groups in the study.
Caregiving for a person with dementia is associated with higher average reported out-of-pocket expenses: $15,846 annually, compared with the overall average of $11,508. AARP’s study reports substantial regional variation as well, from $15,845 in the Mid-Atlantic to $7,955 in the West North Central region.
These are group averages, not estimates for a particular family. They do indicate that a single national average can conceal very different budget effects.
What Medicare Does and Does Not Pay For
A frequent coverage misunderstanding is that Medicare pays for long-term custodial care. It generally does not. The Medicare.gov long-term care coverage page explains that custodial care includes help with everyday tasks such as bathing, dressing and using the bathroom. Medicare does not cover most long-term care services, whether care is delivered at home, in the community or in a facility.
Medicare may cover limited skilled nursing facility care when the requirements for that benefit are met, including a qualifying hospital stay and medically necessary skilled care. That is distinct from ongoing custodial support. AARP has identified mistaken beliefs about Medicare long-term care coverage as a financial-literacy gap among caregivers. AARP has also advocated for policy changes, including allowing certain flexible spending or health savings account funds to pay caregiving expenses; that is an advocacy position, not a current general coverage rule.
Medicaid’s Safety Net and Its Trade-Offs
Medicaid is the largest public payer of long-term nursing home care, but eligibility is subject to state rules, including financial and care-related criteria. Some applicants may need to reduce countable assets before qualifying. The rules and available home- and community-based services differ by state.
For 2026, Medicaid.gov’s spousal impoverishment guidance lists federal resource-allowance limits for a community spouse ranging from $32,532 to $162,660, and a monthly maintenance needs allowance ranging from $2,643.75 to $4,066.50. These are federal minimum and maximum ranges; states set their own figures within them. Protections depend on the circumstances and do not replace a state-specific eligibility review.
What a Long Term Care Insurance Quote Actually Buys
A quote estimates the premium for a defined policy design. It does not show that a claim will automatically be paid or that every care expense will be covered. Policies commonly define benefit eligibility by the need for help with activities of daily living or by cognitive impairment. The contract sets the qualifying conditions, covered services, waiting period, benefit limits and claim process.
Industry data estimate that roughly 70% of people turning 65 will need some long-term care services during their lifetime. Genworth/CareScout’s 2025 cost-of-care survey puts the national median annual nursing home cost at $114,975 for a semi-private room and $129,575 for a private room. These are provider-cost estimates, not guaranteed future prices or policy benefits.
Traditional long-term care insurance typically provides benefits for eligible care after policy requirements are met. Hybrid policies combine life insurance or an annuity with a long-term care rider. Depending on the contract, a hybrid policy may provide a death benefit if long-term care benefits are not used, generally at a higher upfront cost.
Industry data from the American Association for Long-Term Care Insurance places illustrative 2026 premiums for a couple both age 55 buying a $165,000 benefit pool at roughly $2,080 per year for level benefits, rising to more than $8,500 with 5% compound inflation protection. Premiums vary by age, health, state, carrier and benefit design. These figures are examples, not individual offers.
Seven Questions for Comparing Long Term Care Insurance Quotes
1. What Is the Waiting or Elimination Period?
Confirm how long eligible care costs must be paid before benefits begin, and how the policy counts that period.
2. How Does the Benefit Pool Work?
Ask for the daily or monthly limit, total pool, benefit period and whether benefits reduce the pool as they are paid.
3. What Inflation Protection Is Included?
Compare level benefits with inflation riders. Review how the rider changes both the future benefit and the premium.
4. Is the Policy Traditional or Hybrid?
Compare premium timing, benefits, contract guarantees and any death benefit. The products have different cost structures.
5. What Is the Carrier’s Premium Increase History?
Ask whether premiums are guaranteed or can change, and request available information on rate increases for similar policy forms.
6. What Health Underwriting Applies?
Confirm the application requirements and underwriting limits at the applicant’s age. A quote is not approval, and health changes may affect eligibility or pricing.
7. Is the Agent Appointed With Multiple Carriers?
Ask which insurers the agent represents and whether the comparison includes more than one carrier. Confirm the options and assumptions used.
What One Ohio Family Is Facing
Consider a hypothetical 52-year-old woman in Ohio who works full time while helping her 78-year-old mother, who has dementia. AARP’s $15,846 dementia-caregiver average is about $1,321 per month when divided across a year. It is a study average, not a prediction of this daughter’s expenses. Her actual budget could include household costs, medical payments, travel and missed work.
Medicare is not expected to pay for her mother’s ongoing custodial help with daily activities. Medicaid may be an option if her mother meets Ohio’s applicable financial and care requirements. If her mother has a spouse living in the community, spousal protections may affect how resources and income are treated; the federal ranges do not determine the household’s eligibility on their own.
This month, the daughter could record recurring care-related expenses, collect her mother’s insurance and care documents, and ask a qualified Ohio Medicaid or elder-law professional to explain eligibility rules for the family’s circumstances. Separately, if the daughter is evaluating coverage for her own future needs, requesting quotes before a health problem develops may preserve options. Her mother’s current dementia diagnosis may affect her own ability to qualify for a new policy.
Checking the Agent Before You Buy
Long-term care insurance is sold by state-licensed agents. Before an application or purchase, request the agent’s National Producer Number (NPN) and verify the license with the state insurance department. The VerifiedAgent state directory is a research starting point for locating agent profiles. Directory information should be independently confirmed with the state regulator; licensing records do not establish that a policy is suitable or that a claim will be paid.
Frequently Asked Questions
Does Medicare Cover Long-Term Care?
Medicare generally does not cover ongoing custodial care, including help with bathing or dressing. It may cover qualifying skilled nursing care under specific conditions.
How Much Does Long-Term Care Insurance Cost?
Premiums depend on age, health, state and policy design. Industry examples for a 55-year-old couple range from about $2,080 annually for level benefits to more than $8,500 with 5% compound inflation protection. An individual quote may differ.
What Is a Hybrid Long-Term Care Policy?
A hybrid policy combines life insurance or an annuity with a long-term care rider. Contract terms determine how care benefits and any remaining death benefit work.
When Should I Buy Long-Term Care Insurance?
Industry purchasing patterns often place traditional coverage in a person’s 50s. Earlier quotes can show options before health changes, but application approval and final pricing depend on underwriting.
The AARP study records what caregivers are paying now; it is not a projection of future care costs or proof that one policy fits every household. A long-term care quote can help document potential premiums and benefits. The quoted premium may be lower than a year of caregiving expenses, but coverage is not a like-for-like replacement: eligibility, benefit limits and contract terms apply.