On what factors is long-term care insurance premium based?

Long-term care insurance premiums are primarily based on a person's age, health condition, and the level of benefits they choose. As individuals age, the likelihood of needing long-term care increases, which directly impacts the cost of premiums. Additionally, an individual's current health status plays a crucial role; those with pre-existing health issues may face higher premiums due to an increased risk of requiring care sooner than healthier individuals.

The level of benefits selected also significantly influences costs. Policies that provide more comprehensive coverage, such as higher daily benefit amounts or longer coverage durations, will generally have higher premiums. This combination of factors—age, health condition, and chosen benefit levels—accurately captures the underwriting criteria that insurers use to assess the risk associated with issuing a policy and to set premiums accordingly.