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Long-Term Care Insurance

Long-term care insurance in North Carolina

A North Carolina nursing home costs $8,000 to $10,000 per month. Medicare does not cover custodial care. Medicaid covers it only after you've spent down most of your assets. LTC insurance protects both.

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What long-term care insurance covers

Nursing home care

24-hour skilled or custodial care in a licensed facility for people who cannot perform basic daily activities.

Assisted living

Residential care with assistance for bathing, dressing, medications, and meals. Costs $4,000-$6,000/month in NC.

Memory care

Specialized care for Alzheimer's and dementia patients. Often housed in secured units within assisted living facilities.

In-home care

A home health aide or skilled nurse provides care in your home, allowing you to age in place.

NC long-term care costs

Type of careAverage monthly cost in NC
Nursing home (private room)$8,000-$10,000
Assisted living$4,000-$6,000
Memory care$5,000-$8,000
In-home care (40 hrs/week)$4,000-$5,600

Traditional LTC vs hybrid policies

Traditional LTC insurance pays a daily or monthly benefit if you need care. Premiums are ongoing and the policy is use-it-or-lose-it. If you never need long-term care, you receive no benefit from the premiums paid.

Hybrid policies combine life insurance or an annuity with a long-term care benefit. If you need care, the policy pays LTC benefits. If you don't, your heirs receive a death benefit. The premium concern disappears because the money doesn't vanish if you stay healthy.

LTC carriers we work with

Mutual of OmahaNationwidePacific Life (hybrid)Lincoln Financial (hybrid)Transamerica

Cooper's take

Long-term care is the largest uninsured financial risk for most families approaching retirement. Most people assume Medicare will handle it. It won't. Medicare is for skilled, medically necessary care. Custodial care, help with daily activities over months or years, is not covered by Medicare.

The NC Department of Insurance regulates LTC policies and rate increase requests. Rate increases on traditional LTC have happened industry-wide. Hybrid policies address this by locking in your premium at purchase. Most of the conversations I have today end up at hybrid LTC solutions precisely because of that stability.

Cooper Parsons, NC License #19272643

Frequently asked questions

What does long-term care insurance cover in North Carolina?

Long-term care insurance covers nursing home care, assisted living facilities, memory care units, and in-home care when you need help with 2 or more activities of daily living (ADLs) such as bathing, dressing, eating, or transferring. It also covers care needed due to cognitive impairment like Alzheimer's disease.

Does Medicare cover long-term care in NC?

Medicare provides limited coverage for skilled nursing care only after a qualifying hospital stay of at least 3 days. It covers skilled nursing fully for the first 20 days, then with a significant copay through day 100, and nothing after that. Medicare does not cover custodial care, which is the kind of ongoing daily assistance that LTC insurance is designed to cover.

What is the average cost of a nursing home in North Carolina?

A private room in a North Carolina nursing home averages $8,000 to $10,000 per month. Assisted living averages $4,000 to $6,000 per month. In-home care through a home health aide averages $25 to $35 per hour. Without LTC insurance or significant personal savings, these costs can deplete a lifetime of savings within a few years.

What is a hybrid long-term care policy?

A hybrid or linked-benefit policy combines life insurance or an annuity with a long-term care benefit rider. If you need care, the policy pays LTC benefits. If you never need care and pass away, your heirs receive a death benefit. This solves the 'use it or lose it' concern that traditional LTC policies carry, you get a benefit either way.

When is the best time to buy long-term care insurance in NC?

The best time is in your 50s. By your mid to late 60s, health issues often make you uninsurable or premiums become very high. Rates are based on your age and health at the time of application. Waiting until you're already sick means you likely won't qualify. Buying in your 50s locks in lower rates and ensures you qualify.

Written & Reviewed By

CP

Cooper Parsons

Owner & Licensed Independent Insurance Agent

NC License #19272643 · IronHaven Insurance · Wake Forest, NC · 25+ carriers

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