Costs of long-term care insurance increased 8.6 percent last year, according to the 2015 Long Term Care Insurance Price Index released Tuesday.
The current average cost of long-term care insurance for a healthy 55-year-old man is $1,060 per year for $164,000 of potential benefits, compared with $925 at the beginning of last year, reports the American Association for Long Term Care Insurance, a trade association for long-term care insurance providers. The average cost for a 55-year-old single woman is now $1,390, an increase from $1,225 per year last year.
According to the price index, a married couple where both partners are age 60 would pay $2,170 per year for a combined total of $328,000 in coverage, compared to $1,980 a year ago.
"Rate increases are the result of both higher claim costs and the historic period of low interest rates," explains Jesse Slome, director of the association.
The claims paid out by long-term care insurance continue to grow and hit $7.5 billion last year. Claims are expected to reach $34 billion by 2032, the association says.