Long Term Care Insurance Market Report 2025

The long-term care insurance market size has grown rapidly in recent years. It will grow from $281.77 billion in 2024 to $311.44 billion in 2025 at a compound annual growth rate (CAGR) of 10.5%. During the historic period, growth was driven by the increasing aging population, rising healthcare costs, a growing number of individuals delaying retirement, heightened awareness of elderly care needs, and greater reliance on private care funding.

The long-term care insurance market size is expected to see rapid growth in the next few years. It will grow to $459.0 billion in 2029 at a compound annual growth rate (CAGR) of 10.2%. In the forecast period, growth is expected to be fueled by the rising demand for home-based care coverage, increasing pressure on public health systems, growing interest in hybrid insurance products, the expansion of the middle-class elderly population, and a stronger focus on retirement planning. Key trends anticipated in the forecast period include advancements in digital claims processing, the development of bundled life and care policies, innovations in telehealth-enabled care models, advanced underwriting using health data analytics, and progress in customer-centric plan design.

The increasing life expectancy is expected to propel the growth of the long-term care insurance market going forward. Life expectancy refers to the average number of years a newborn is expected to live under current mortality conditions. The rise in life expectancy is driven by improved medical technologies and better access to effective treatments, which have significantly reduced mortality rates and enabled people to live longer, healthier lives. Long-term care insurance supports this trend by ensuring access to sustained medical care and assistance in later years, helping individuals manage chronic conditions, maintain independence, and improve overall quality of life as they age. For instance, in January 2025, according to a report published by the Peterson Center on Healthcare and KFF, a US-based nonprofit organization, life expectancy at birth in the US rose by 0.9 years in 2023, reaching 78.4 years compared to 2022. Therefore, the increasing life expectancy is driving the growth of the long-term care insurance market.

Major companies operating in the long-term care insurance market are focusing on developing innovative solutions, such as digital insurance engagement interfaces, to enhance customer experience, streamline policy management, and improve operational efficiency. A digital insurance engagement interface refers to a technology-driven platform that facilitates seamless, real-time interactions between insurance providers and policyholders through digital channels. For example, in March 2025, National Guardian Life Insurance Company, a US-based mutual insurance company, launched a new long-term care insurance policyholder portal for submitting claims, reviewing documents, downloading forms, and more. The portal offers features designed to enhance convenience and flexibility, allowing users to access correspondence and policy documents, request and view annual statements, obtain copies of their policy, and review detailed policyholder information such as premium history, beneficiary designations, and third-party assignments. Additionally, policyholders can view claims information, including open or closed claims and payment history, and submit various service requests such as claims inquiries, duplicate policy requests, and beneficiary change forms.

In April 2022, illumifin Corporation, a US-based provider of third-party insurance administration and technology, acquired Long Term Care Group (LTCG) for an undisclosed amount. This acquisition aimed to expand illumifin’s administrative and clinical servicing capabilities in the long-term care insurance sector, strengthening its ability to manage long-term care policy administration comprehensively. Long Term Care Group Inc. (LTCG) is a US-based provider of administrative solutions and clinical services to the long-term care insurance industry.

Major players in the long term care insurance market are Metropolitan Life Insurance Company, Nationwide Mutual Insurance Company, New York Life Insurance Company, The Allstate Corporation, Chubb Limited, Massachusetts Mutual Life Insurance Company, Mutual of Omaha Insurance Company, CNA Financial Corporation, Thrivent Financial for Lutherans, Securian Financial Group Inc., Genworth Financial Inc., Transamerica Corporation, Pacific Life Insurance Company, Bankers Life and Casualty Company, The Northwestern Mutual Life Insurance Company, John Hancock Life Insurance Company, National Guardian Life Insurance Company, GoldenCare USA (, OneAmerica Financial Partners Inc, and Minnesota Life Insurance Company.

North America was the largest region in the long term care insurance market in 2024. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in long-term care insurance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the long-term care insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Long-term care insurance is a type of coverage that helps pay for care services needed by individuals with chronic illnesses, disabilities, or other conditions requiring long-term assistance. It generally covers expenses for services such as nursing home care, assisted living, or in-home care, which are not typically included under standard health insurance or Medicare.

The primary types of long-term care insurance include traditional long-term care insurance and hybrid long-term care insurance. Traditional long-term care insurance is a standalone policy designed to cover the costs of long-term care services, such as help with daily living activities. The coverage applies to multiple age groups, including under 65, 65-74, 75-84, and 85 and above. The associated risks include medical and nursing care, home health care, assisted living and personal care, and skilled nursing and rehabilitation care. Premium payment options include single premium, level premium, graded premium, and return of premium. These policies are distributed through various channels, including direct sales, insurance brokers or agents, online sales, and others.

The long-term care insurance equipment market research report is one of a series of new reports that provides long-term care insurance equipment market statistics, including long-term care insurance equipment industry global market size, regional shares, competitors with a long-term care insurance equipment market share, long-term care insurance equipment market segments, market trends and opportunities, and any further data you may need to thrive in the long-term care insurance equipment industry. This long-term care insurance equipment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The long-term care insurance market includes revenues earned by entities by providing services such as adult day care, hospice and palliative care, rehabilitation, hospice and palliative care, and memory care facilities. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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