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Long-term care can include help with everyday activities such as bathing, dressing and eating, whether that care is provided at home, in assisted living or in a nursing home. Paying for these services can become a significant financial consideration: In 2025, the national median cost of assisted living was $6,200 per month, while a private nursing home room had a median cost of $10,798 per month. Long-term care insurance can help cover eligible expenses, but policies vary considerably in their benefits, costs and structure. AARP members considering coverage can evaluate long-term care insurance options available through New York Life, including traditional and hybrid life insurance/LTC policies.
Given the different ways to prepare for long-term care expenses, it may help to consult an experienced financial advisor as you consider how potential care costs fit into your financial plan.
When considering long-term care, how to pay for it can become a major financial question. Long-term care insurance can help cover eligible services that traditional health insurance may not cover. These can include assistance with activities of daily living (ADLs), such as bathing, dressing, eating and using the bathroom, as well as certain types of care provided at home or in a facility.
The cost of long-term care insurance can vary considerably. Factors that can affect premiums include your age and health when you apply, the amount and duration of benefits, the elimination or waiting period, inflation protection and whether you choose a traditional or hybrid policy. Because coverage and premiums vary by insurer and policy design, comparing multiple options can help you evaluate the trade-offs between cost and coverage.
Regular health insurance and disability insurance generally aren’t designed to pay for ongoing custodial long-term care. Medicare provides limited coverage for certain skilled nursing and home health services when its requirements are met, but it generally doesn’t cover ongoing custodial care when that is the only care needed. Other potential sources of funding can include personal savings, Medicaid for eligible individuals and certain long-term care partnership programs. Some consumers may also be able to use a 1035 exchange to exchange certain insurance or annuity contracts for qualifying long-term care coverage without recognizing a taxable gain at the time of the exchange, subject to applicable tax rules.
Long-term care costs can also vary substantially by the type of care and location. According to CareScout’s 2025 Cost of Care Survey, the national median cost of assisted living was $6,200 per month, while a semi-private nursing home room had a median cost of $9,581 per month. A private nursing home room had a median cost of $10,798 per month. Comparing potential care costs with your savings, retirement income and available insurance benefits can help you determine how much coverage you may need.
Overview of AARP
AARP is a nonprofit, nonpartisan organization that provides resources, advocacy and member benefits focused primarily on people age 50 and older. It was founded in 1958 by retired educator Ethel Percy Andrus and grew out of the National Retired Teachers Association.
AARP itself is not the insurer providing the long-term care coverage discussed here. AARP currently offers members access to Long-Term Care Options from New York Life. The insurance products are provided by New York Life, and AARP states that third-party providers pay royalty fees for the use of AARP’s intellectual property.
Because long-term care policies may provide benefits many years after they are purchased, an insurer’s financial strength can be one consideration when comparing coverage. As of 2026, New York Life Insurance Company has the following financial strength ratings:
- A++ from A.M. Best, as of July 23, 2026
- AAA from Fitch Ratings, as of September 2025
- Aa1 from Moody’s Investors Service, as of May 28, 2026
- AA+ from S&P, as of October 28, 2025
Financial strength ratings represent the rating agencies’ assessments of an insurer’s ability to meet its financial obligations. They aren’t guarantees of future performance and shouldn’t be the only factor considered when comparing insurers.
AARP Long-Term Care Policy Features & Riders
AARP currently provides members access to customizable long-term care options from New York Life. New York Life offers both traditional long-term care insurance and combination products that pair long-term care benefits with life insurance. Product features and availability can vary by state.
New York Life’s current long-term care options include:
- NYL My Care: This is a traditional long-term care insurance option designed to provide a more streamlined set of coverage choices. Benefits can help cover eligible long-term care services, including care provided at home or in a facility.
- NYL Secure Care: This traditional long-term care policy provides more opportunities to customize coverage. Policyholders can select from available benefit amounts, benefit periods and inflation-protection options, subject to policy terms and state availability.
- Asset Flex: This is a combination life insurance and long-term care product. It can provide long-term care benefits if eligible care is needed as well as a death benefit for beneficiaries based on the policy terms. New York Life also offers different benefit-payment options on current versions of Asset Flex, including an indemnity option that can provide eligible LTC benefits without requiring policyholders to submit bills and receipts for individual covered expenses.
The amount of coverage available from a policy depends on the specific product and options selected. New York Life premiums can vary based on factors including age and health at the time of application, the amount and types of coverage, benefit period, elimination period and inflation-protection options. Applying at an older age can generally result in higher premiums, while changes in health can also affect eligibility and pricing.
The cost of the underlying care is another factor to consider when choosing coverage. CareScout’s 2025 Cost of Care Survey reported the following national median costs:
| Type of Long-Term Care | 2025 National Median Cost |
|---|---|
| Non-medical caregiver | $35 per hour |
| Assisted living community | $6,200 per month |
| Semi-private nursing home room | $9,581 per month |
| Private nursing home room | $10,798 per month |
Based on those figures, assisted living had a national median cost of $74,400 per year, while a semi-private nursing home room cost $114,975 and a private room cost $129,575 annually.
Actual costs can differ substantially based on location, care needs and provider. Long-term care insurance can help cover eligible expenses, but it isn’t the only way to prepare for these costs. Consumers may also use personal savings, retirement income and other available resources depending on their circumstances.
AARP’s Customer Satisfaction
Customer satisfaction with an insurance provider can be difficult to measure with a single rating. Consumers evaluating AARP Long-Term Care Options should distinguish between AARP, which makes the member benefit available, and New York Life, which provides the insurance products.
One resource for researching an insurer is the National Association of Insurance Commissioners (NAIC) Consumer Insurance Search. The NAIC provides complaint information based on data reported by state insurance departments. Because complaint data can change from year to year and can differ by insurance product and company subsidiary, consumers can review the latest available information for New York Life when comparing insurers.
Financial strength ratings can provide another perspective, although they measure an insurer’s ability to meet its financial obligations rather than customer satisfaction. New York Life currently holds financial strength ratings of A++ from A.M. Best, AAA from Fitch, Aa1 from Moody’s and AA+ from S&P.
When comparing long-term care insurers, consider multiple factors, including financial strength, policy features, exclusions, premium costs, available riders, complaint history and how claims and benefits are administered. Reading the specific policy documents can also help you understand what is and isn’t covered before purchasing a policy.
How to Contact AARP
To learn more about AARP membership and benefits, you can call AARP at 888-687-2277 or visit aarp.org.
AARP members interested specifically in Long-Term Care Options from New York Life can also contact New York Life at 800-604-1527 or access the long-term care benefit through AARP’s website. Product availability, features and restrictions can vary by state.
Bottom Line
Long-term care insurance can help cover eligible expenses for services such as in-home care, assisted living and nursing home care, but coverage, premiums and benefit limits vary by policy. New York Life currently offers traditional long-term care options, including NYL My Care and NYL Secure Care, as well as Asset Flex, which combines long-term care and life insurance benefits. When comparing policies, consider the available benefit amount, elimination period, inflation protection, covered care settings, riders and how premiums fit into your long-term budget.
Tips for Long-Term Financial Planning
- If trying to plan for future care for you or a loved one makes you feel overwhelmed, consider consulting a financial advisor. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors in your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- The timing of when you apply for long-term care insurance coverage can affect what your premiums are, what your elimination period is and more. Check out SmartAsset’s guide for when to apply for LTC insurance to learn more.
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