Why is Long Term Care Insurance More Expensive for Women?

Long term care insurance is becoming more important than ever before. Statistically, people in Houston have smaller families, less financial support, more expensive healthcare, and are living longer than ever before. The likelihood of needing professional long term care is greater than ever, and very few people in Houston can afford the expense out of pocket without significant support.

Most families should consider long term care insurance, ideally by the age of 55 as the annual premiums can grow substantially from there. But one thing you may notice when looking for a quote for long term care insurance is that the premium for women is significantly greater than the price for men – so much so that a policy that costs $175 per month for men may cost as much as $300 per month for women for the same coverage.

Why is there Such a Significant Gender Gap?

Long term care insurance is designed to cover the costs of care that are not covered by regular health insurance, Medicare, or Medicaid. This type of insurance is particularly important in today’s world, as it helps cover the expenses for personal and custodial care, either at home or at various types of care facilities, that are not covered by other forms of insurance.

This type of insurance is more expensive for women for several reasons, including:

  • Longer Life Expectancy – Statistically, women live longer than men. This longer lifespan increases the potential need for long term care services, which insurers account for by charging higher premiums.
  • Higher Likelihood of Claims – Women are not only likely to live longer but are also more likely to suffer from chronic conditions or disabilities that require long term care. This increased probability of filing a claim contributes to higher premiums.
  • Greater Duration of Care – On average, women need care for a longer period than men when they enter care. This longer duration means more extended services and subsequently higher costs covered by the insurer.

The insurance industry uses actuarial tables to predict the likelihood of a claim and to determine pricing. Insurers rely on this data to assess risk and set premiums. Since women are statistically at higher risk of requiring long term care, this is factored into the cost. These tables show that women, on average, utilize more long term care services than men. This usage reflects in the cost disparity seen in premiums.

Are There Ways to Lower the Cost?

This gender-based pricing can raise concerns about fairness and affordability of long term care insurance for women. Some states are looking for ways to remedy this, but Texas has not. That means, in general, there are only a few ways to decrease the cost:

  • Obtain it Younger – The younger you are when you obtain LTC insurance, the less expensive it will be. Women should consider getting it earlier for a cost savings.
  • Bundle – Long term care insurance can, in some cases, be less expensive if both partners obtain long term care insurance at the same time, together.

In theory, you can also decrease the amount of coverage, but this is typically not the best solution.

Get Personalized Support with Kaia Insurance Group

The higher cost of long term care insurance for women primarily reflects their longer life expectancy and greater likelihood of requiring sustained care. While this might suggest a prudent actuarial decision, it also highlights a significant burden on women who need to purchase these policies. Addressing these concerns through innovative insurance design and regulatory changes could help make long term care insurance more equitable and accessible for all, regardless of gender.

But for now, contact Kaia Insurance Group for personalized insurance policies including long term care insurance in Houston, Conroe, and the surrounding areas.

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