As retirees in Australia plan for the future, long-term care insurance (LTCI) is becoming an important financial consideration. With rising healthcare costs and increasing life expectancy, many retirees worry about how they will pay for aged care services, nursing homes, or in-home care should they need it later in life.
Long-term care insurance is designed to protect your retirement savings by covering the costs of extended care when you can no longer manage everyday tasks independently.
In this guide, we will explore the 10 best affordable long-term care insurance plans for retirees in Australia. We’ll break down premiums, coverage, and benefits, and share tips on how to choose the right plan for your needs.
Why Retirees in Australia Need Long-Term Care Insurance
Australia has a high standard of aged care, but the costs can quickly add up:
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Expensive aged care: Nursing homes and residential care facilities can cost retirees over $90,000 annually in accommodation and care fees.
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In-home care costs: Government-funded home care packages are limited, and private in-home care can be costly.
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Retirement savings protection: LTCI ensures you don’t have to deplete superannuation balances or sell assets to cover care costs.
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Quality care options: Insurance gives you flexibility to choose your preferred aged care provider and location.
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Peace of mind: You’ll avoid placing the financial burden on your family.
What to Look for in Long-Term Care Insurance Plans in Australia
When selecting a policy, consider these important features:
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Premium affordability: Make sure premiums fit comfortably into your retirement budget.
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Daily benefit amount: Select coverage that realistically matches aged care costs in Australia.
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Benefit period: Policies often allow 2–5 years or lifetime benefit options.
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Inflation protection: To keep up with rising costs, this feature is essential.
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Waiting (elimination) period: Longer waiting periods reduce premiums but delay benefit payouts.
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Company reputation: Choose insurers with strong claims history and good customer support in Australia.
Summary Table: 10 Best Affordable Long-Term Care Insurance Plans for Retirees in Australia
| Insurance Company | Average Monthly Premium (Age 60–70) | Daily Benefit Amount | Benefit Period Options | Key Features |
|---|---|---|---|---|
| TAL Life | AUD $130–$260 | AUD $150–$300 | 2–5 years, lifetime | Flexible benefit amounts, inflation protection |
| AIA Australia | AUD $125–$250 | AUD $150–$325 | 2–5 years | Bundled with life insurance, loyalty discounts |
| Zurich Australia | AUD $120–$240 | AUD $150–$325 | 2–6 years | Strong financial backing, hybrid plans |
| MLC Life Insurance | AUD $115–$230 | AUD $125–$300 | 2–5 years | Shared care rider for couples, multiple benefit options |
| AMP Insurance | AUD $110–$220 | AUD $125–$300 | 2–5 years | Competitive pricing, no medical exam for some plans |
| BT Financial Group | AUD $120–$250 | AUD $150–$325 | 2–5 years | Discounts for bundled policies, strong customer service |
| OnePath Life | AUD $115–$235 | AUD $150–$325 | 2–5 years | Flexible elimination periods, optional add-ons |
| CommInsure (CBA) | AUD $130–$270 | AUD $175–$350 | 3–6 years | Established brand, hybrid life + LTC plans |
| ClearView Life | AUD $110–$220 | AUD $125–$300 | 2–5 years | Simplified underwriting, lower premium options |
| Integrity Life | AUD $120–$250 | AUD $150–$325 | 2–5 years | Affordable premiums, community-based benefits |
Premiums are based on retirees aged 60–70 and will vary by health, state, and coverage level.
Detailed Reviews: 10 Affordable Long-Term Care Insurance Plans in Australia
1. TAL Life
TAL Life is one of Australia’s largest insurers and offers comprehensive LTCI options for retirees.
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Premiums: AUD $130–$260 per month (age 60–70).
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Coverage: Daily benefits from AUD $150–$300.
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Benefit period: 2–5 years or lifetime.
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Highlights: Flexible benefit amounts, inflation protection, and strong claims history.
2. AIA Australia
AIA is well-known for competitive premiums and loyalty rewards.
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Premiums: AUD $125–$250 monthly.
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Coverage: Daily benefits from AUD $150–$325.
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Benefit period: 2–5 years.
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Why it’s great: Bundled policies with life insurance for added savings, plus wellness programs for policyholders.
3. Zurich Australia
Zurich provides traditional and hybrid long-term care insurance policies.
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Premiums: AUD $120–$240 per month.
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Coverage: Daily benefits from AUD $150–$325.
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Benefit period: 2–6 years.
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Benefits: Strong international financial backing and a variety of flexible plan options.
4. MLC Life Insurance
MLC is a popular choice among retirees looking for shared care options.
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Premiums: AUD $115–$230 monthly.
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Coverage: Daily benefits from AUD $125–$300.
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Benefit period: 2–5 years.
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Unique feature: Shared care riders for couples and multiple benefit levels.
5. AMP Insurance
AMP offers straightforward, competitively priced long-term care policies.
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Premiums: AUD $110–$220 monthly.
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Coverage: Daily benefits from AUD $125–$300.
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Benefit period: 2–5 years.
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Why choose it: No medical exams required for some policies, and simple plan structures.
6. BT Financial Group
BT Financial Group provides LTCI with excellent customer service.
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Premiums: AUD $120–$250 monthly.
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Coverage: Daily benefits from AUD $150–$325.
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Benefit period: 2–5 years.
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Highlights: Discounts for bundled life and disability policies.
7. OnePath Life
OnePath is a flexible and affordable option for retirees.
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Premiums: AUD $115–$235 monthly.
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Coverage: Daily benefits from AUD $150–$325.
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Benefit period: 2–5 years.
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Advantages: Optional riders, flexible elimination periods, and hybrid coverage choices.
8. CommInsure (CBA)
CommInsure, part of the Commonwealth Bank, is a trusted brand for Australian retirees.
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Premiums: AUD $130–$270 monthly.
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Coverage: Daily benefits from AUD $175–$350.
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Benefit period: 3–6 years.
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Why it’s ideal: Combines life insurance and LTCI in hybrid policies.
9. ClearView Life
ClearView offers lower-cost policies with simplified underwriting.
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Premiums: AUD $110–$220 monthly.
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Coverage: Daily benefits from AUD $125–$300.
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Benefit period: 2–5 years.
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Benefits: Affordable premiums and straightforward policy design.
10. Integrity Life
Integrity Life is a newer but fast-growing insurer focusing on affordable care options.
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Premiums: AUD $120–$250 monthly.
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Coverage: Daily benefits from AUD $150–$325.
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Benefit period: 2–5 years.
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Advantages: Competitive pricing and community-focused member benefits.
Tips for Retirees in Australia to Find the Best LTCI
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Apply early: Premiums rise sharply after age 65.
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Compare quotes: Prices can differ significantly between insurers.
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Consider inflation protection: Care costs in Australia rise quickly, so this feature is essential.
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Select the right benefit period: Shorter benefit periods cost less but may limit coverage.
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Ask about discounts: Couples and non-smokers often get lower rates.
FAQs: Long-Term Care Insurance for Retirees in Australia
1. How much does aged care cost in Australia?
Residential aged care can exceed AUD $90,000 per year, depending on location and services.
2. Does Medicare cover long-term care?
No, Medicare does not cover ongoing aged care services. It only covers some short-term medical treatments.
3. What is the average premium for LTCI in Australia?
Premiums typically range from AUD $110–$270 per month for retirees aged 60–70.
4. Can I buy hybrid life + LTC policies in Australia?
Yes, many insurers such as TAL, Zurich, and CommInsure offer hybrid policies.
5. Can I still get LTCI after age 70?
Yes, but premiums will be higher, and you may face stricter medical underwriting.
6. Are premiums tax-deductible in Australia?
LTCI premiums are generally not tax-deductible in Australia.
7. What is an elimination period?
It is the waiting period (usually 30–90 days) before your policy starts paying benefits.
8. Which companies offer couples’ discounts?
TAL, MLC, and AIA Australia provide strong discounts for couples.
9. What if I never use my LTCI?
Some hybrid policies return unused premiums as a death benefit.
10. Is inflation protection necessary?
Yes, because aged care costs rise quickly in Australia, especially in metropolitan areas.
Conclusion
Long-term care insurance is a crucial part of financial planning for retirees in Australia. The 10 affordable LTCI plans in this guide—from reputable companies like TAL Life, Zurich, and CommInsure can help you cover the high cost of aged care while protecting your retirement savings.
If you are over 55 and living in Australia, start comparing quotes now. Acting early allows you to secure lower premiums and ensure you have the coverage needed for quality care in your later years.