Long-Term Care Insurance for Couples: Shared Benefit Plans Explained

Planning for long-term care as a couple is both more important and more complex than planning as an individual. According to the Administration for Community Living (ACL), women need long-term care for an average of 3.2 years and men for an average of 2.3 years. When you are part of a couple, the odds that at least one of you will need significant care are very high. The good news is that long-term care insurance offers couples some unique advantages, including shared benefit plans and discounts that make coverage more affordable.

This guide explains why couples should plan together, how shared benefit policies work, the discounts available when both spouses apply, what coverage costs at different ages, and strategies for coordinating your long-term care plan as a household.

Why Couples Should Plan for Long-Term Care Together

Long-term care is not just an individual issue. When one spouse needs care, the financial and emotional impact affects the entire household. Without insurance, the caregiving burden typically falls on the healthy spouse, which can lead to burnout, health problems of their own, and significant financial strain.

Consider these statistics from the ACL:

• Women need long-term care for an average of 3.2 years, while men need it for an average of 2.3 years.
• About 56 percent of people turning 65 today will need some form of long-term care during their remaining years.
• For a married couple both aged 65, there is approximately a 70 percent chance that at least one of them will need long-term care.

Planning together allows you to coordinate your coverage, take advantage of couples discounts, and potentially share benefits between spouses. It also ensures that neither partner is left financially vulnerable if the other needs extended care.

How Shared Benefit Plans Work

Shared benefit plans, also called shared care plans, are a feature designed specifically for couples. They allow spouses to pool their long-term care benefits into a combined reserve that either partner can draw from if needed. There are two main approaches to shared benefits:

Shared Benefit Rider

With this approach, each spouse purchases their own individual policy with their own benefit period. A shared benefit rider is then added, which creates a combined pool. For example, if each spouse has a three-year benefit period worth $250,000, the combined pool is $500,000. Each spouse uses their own benefits first. Once one spouse has exhausted their individual benefits, they can access unused benefits from the other spouse's pool.

Pool-of-Money Approach

Some insurers offer a single pool-of-money policy where there is one combined benefit amount that both spouses share from the start. Rather than having individual benefit periods that link together, the couple has one large bucket of benefits. Either spouse can draw from it at any time, in any proportion. This provides maximum flexibility but carries the risk that one spouse could use a disproportionate share of the benefits.

The shared benefit rider is the more common approach because it gives each spouse a guaranteed minimum benefit while still providing the flexibility to share when needed. If one spouse needs extended care beyond their individual benefit, the shared pool provides a safety net.

Couples Discounts: How Much Can You Save?

One of the biggest financial advantages of buying long-term care insurance as a couple is the discount. Most major insurers offer couples discounts of 10 to 30 percent when both spouses apply at the same time. The discount is typically applied to each policy individually, reducing the premium for both the husband and wife.

Here is what this looks like at different ages using average annual combined premium estimates for a couple with standard coverage:

• Couple at age 55: Approximately $2,080 per year combined, after couples discount.
• Couple at age 65: Approximately $7,000 per year combined.
• Couple at age 70: Approximately $14,000 or more per year combined.

As these figures illustrate, the cost increases dramatically with age. A couple that buys at 55 and pays $2,080 per year for 25 years spends about $52,000 in total premiums. The same couple waiting until 70 and paying $14,000 per year for 15 years spends $210,000. Timing your purchase wisely is one of the most impactful decisions you can make. Read more about when to buy long-term care insurance for a detailed age-by-age breakdown.

Coordinating Coverage Between Spouses

Couples have several strategic decisions to make when setting up their long-term care insurance coverage. The goal is to balance adequate protection for both spouses while keeping the combined cost manageable.

• Benefit period: Since women tend to need care longer than men, some couples choose a longer benefit period for the wife. For example, a four-year benefit for the wife and a three-year benefit for the husband. Adding a shared benefit rider provides extra flexibility regardless of who needs care longer.
• Daily benefit amount: Both spouses should generally have the same daily benefit amount since the cost of care does not vary by gender. Base this on the average cost of care in your area or the area where you plan to retire.
• Elimination period: This is the waiting period before benefits begin, similar to a deductible. A 90-day elimination period is standard and keeps premiums more affordable. Some couples choose a shorter period for one spouse if they have fewer resources to cover care during the waiting period.
• Inflation protection: This is especially important for couples buying in their 50s since they may not need care for 20 or 30 years. Compound inflation protection ensures your benefits keep pace with rising care costs over time.

One Policy or Two: Understanding Your Options

When people refer to couples long-term care insurance, they can mean different things. Here are the main approaches:

1. Two individual policies with a shared benefit rider: This is the most common and generally recommended approach. Each spouse has their own policy and their own guaranteed base benefits. The shared rider links the two policies so unused benefits can transfer between spouses if needed.
2. Two individual policies without a shared rider: Each spouse has fully independent coverage. This is simpler but does not allow any sharing of benefits. It is less flexible but may be appropriate if both spouses want completely separate coverage.
3. Single shared pool-of-money policy: One policy covers both spouses from a single benefit pool. This offers maximum flexibility but carries the risk that one spouse could consume most of the benefits, leaving less for the other.

For most couples, the first option, two individual policies linked by a shared benefit rider, offers the best balance of individual protection and shared flexibility. Each person has their own guaranteed coverage, but the safety net of shared benefits is available if one spouse needs extended care.

What Happens If One Spouse Uses All the Benefits?

This is one of the most common concerns couples have about shared benefit plans. The answer depends on how the shared benefit is structured.

With a shared benefit rider on two individual policies, each spouse has their own base benefit that cannot be taken by the other. The shared rider creates additional shared benefits on top of the individual base. For example, if each spouse has a three-year base benefit and a three-year shared rider, the total pool is nine years of benefits (three for each spouse plus three shared). One spouse could use up to six years, which is their own three years plus the three shared years. The other spouse would still have their own three-year base benefit intact.

With a single shared pool, there is more risk. If one spouse uses the majority of the pool, less is available for the other. This is why many financial advisors prefer the individual-policies-plus-shared-rider approach, as it provides a guaranteed floor of coverage for each person.

Strategies for Couples Who Cannot Both Qualify

It is not uncommon for one spouse to qualify for long-term care insurance while the other is denied due to health reasons. If this happens, do not let it stop you from getting coverage for the spouse who can qualify. Here are some strategies to consider:

• Buy coverage for the qualifying spouse: Having at least one spouse insured is better than having neither spouse covered. It protects at least a portion of your shared assets.
• Consider a hybrid policy for the denied spouse: Hybrid life insurance policies with LTC riders often have less stringent underwriting than standalone LTC policies. The spouse who was denied traditional coverage may qualify for a hybrid product.
• Buy a larger policy for the qualifying spouse: If only one spouse has coverage, consider a longer benefit period or higher daily benefit to provide more financial protection for the household.
• Set aside dedicated savings: For the uninsured spouse, earmark a portion of savings specifically for potential long-term care costs. This is not as efficient as insurance but provides some financial buffer.

The Bottom Line for Couples

Long-term care insurance is one of the most important financial planning tools for couples approaching retirement. Shared benefit plans provide a flexible, cost-effective way to protect both spouses, and couples discounts of 10 to 30 percent make the coverage more affordable than two fully separate policies. The key is to start planning while both spouses are healthy and premiums are manageable. For help comparing carriers and policy options, explore our guide to the best long-term care insurance companies.

Whether you choose two individual policies with a shared benefit rider, a hybrid approach, or a combination of strategies, the most important step is to have the conversation and take action before health changes limit your options. A financial advisor who specializes in long-term care can help you design a plan that fits your specific needs and budget as a couple.