Insights into the U.S. Long-term Care Private Insurance Market

 The U.S. long‑term care private insurance market was valued at USD 9.13 billion in 2022 and is expected to reach USD 14.37 billion by 2030. This represents a compound annual growth rate (CAGR) of 5.84 percent between 2023 and 2030. Growth is fueled by an aging population, rising long‑term care costs, and greater consumer awareness of care options, alongside shifting family structures and demographic trends.


Drivers of Growth:
An increasing number of individuals recognize the risks and limitations of institutional care and are seeking policies that cover home‑based services and alternative care settings. In response, providers have revised policy terms to extend home‑care coverage, clarify protection against infectious diseases, and integrate telehealth services—changes accelerated by lessons learned during the COVID‑19 pandemic.


Consumer Awareness and Enrollment Trends:
Heightened awareness is a key contributor to market expansion. In 2021, new individual long‑term care policy sales nearly tripled, prompted largely by Washington state’s introduction of a public‑option program. Many residents opted for private coverage instead of enrolling in the government program. That same year, Transamerica affiliates of Aegon NV issued approximately 60,664 new individual policies—about 55,000 more than in 2020.


Demographic Shifts:
The U.S. population is aging rapidly, driven by baby boomers reaching retirement age. According to the Administration on Aging, one in six Americans (around 17 percent) was aged 65 or older in 2020. By 2040, this cohort is projected to grow to nearly 80.8 million. The number of those aged 85 and over is also forecast to more than double—from 6.7 million in 2020 to 14.4 million in 2040. As age‑related dependency increases, demand for long‑term care services—and therefore for insurance coverage—will continue to rise.


Key Market Trends & Insights

  • California state held a significant market share in 2022 and accounted for 8.14% of the revenue. California's aging population has significantly increased, mostly as a result of the baby boomer generation nearing retirement age. Long-term care services are more necessary as people age, increasing the demand for LTCI coverage. 
  • Texas State is expected to grow at a substantial CAGR during the forecast period. With a sizable and diversified population, Texas is the second most populous state in the U.S. The sizeable population of the state generates a sizable market for LTCI providers, providing insurance firms with a sizable customer base. 
  • Based on buyer age, the age 55 to 65 segment accounted for the largest market share of 55% in 2022. Buying long-term care insurance in the age group of 55 to 65 provides a longer planning horizon. People have more time to assess their requirements, research insurance choices, and make informed decisions about the coverage that best suits their needs.

 

Order a free sample PDF of the U.S. Long-term Care Private Insurance Market Intelligence Study, published by Grand View Research.

 

Market Size & Forecast

  • 2022 Market Size: USD 9.13 Billion
  • 2030 Projected Market Size: USD 14.37 Billion
  • CAGR (2023-2030): 5.84%
  • California: Largest market in 2022
  • Texas State: Fastest growing market

 

Key Companies & Market Share Insights

Key players engage in strategic initiatives such as partnerships, new service launches, expansions, mergers, and acquisitions to strengthen their market position. For instance, in September 2022, Northwestern Mutual introduced Long-Term AdvantageTM, giving customers new levels of flexibility to prepare for long-term care needs.An innovative product offers guaranteed premiums and the chance to increase policy value over time by paying annual dividends.

 

Key Players

  • Mutual of Omaha
  • New York Life
  • Northwestern Mutual
  • Thrivent
  • National Guardian Life
  • Bankers Life
  • Transamerica
  • MassMutual
  • Genworth Financial
  • John Hancock

 

Browse Horizon Databook on U.S. Long-term Care Private Insurance Market Size & Outlook

 

Conclusion

Taken together, these factors—demographic change, evolving care preferences, policy adaptations, and regulatory influences—create a strong foundation for sustained growth in the U.S. long‑term care private insurance market, driving it from USD 9.13 billion in 2022 to an estimated USD 14.37 billion by 2030.

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