The cost of a long-term care insurance policy is determined by several factors, including:

• The age of the person covered (the older the person, the more expensive)
• The amount of the benefit
• How long the benefit is to be paid
• The types of care covered
• The health status of the beneficiary when signing up for the policy
• Whether the policy includes inflation protection
• The cost of long-term care in the state where the beneficiary lives

For example, in 2005, a typical low-end long-term insurance policy cost $1,877 per year for a 55-year-old, $2,000 per year for a 65-year-old, $2,600 for a 75-year-old, and more than $5,000 for an 80-year-old, according to the U.S. Department of Health and Human Services. These figures are higher today.

Premiums are lower for younger people, and the policy holder must be in reasonably good health to pass underwriting. So when thinking about getting a policy, it makes sense to do so sooner rather than later.