Israel Long Term Care Insurance Market is projected to grow at a CAGR of 5.8% during 2026-2032F

Fixed benefits segment by Benefit Amount held the highest revenue share in Israel Long-term Care Insurance Market -6Wresearch

The fixed benefits segment dominated the Israel Long Term Care Insurance Market, driven by its simplicity, predictability of payouts, and strong alignment with standardized group insurance structures offered through health funds. The assurance of predefined benefit amounts, irrespective of actual expenses, has increased consumer confidence and ease of claim processing. Additionally, its affordability and transparency have reinforced the segment’s position, solidifying it as the primary revenue contributor in the market.

According to 6Wresearch, the Israel Long Term Care Insurance Market is projected to grow steadily during the forecast period 2026-2032F with a CAGR of 5.8%, as it is under significant pressure from a rapidly aging population. According to the Taub Center for Social Policy Studies, national expenditure on long-term care reached at a high number in 2022. This growth is driven by a doubling of elderly individuals receiving benefits from the National Insurance Institute (Bituach Leumi) over the last decade, far outstripping the growth in the general retirement-age population.

The Shift in Coverage Dynamics: Historically, a high percentage of Israelis held private LTC insurance. However, data from the Capital Market, Insurance and Saving Authority shows a decline in overall population coverage. This is largely due to the collapse of the individual commercial LTC market (which many insurers stopped selling due to high risk) and a massive migration toward group policies offered by the four main health funds (Kupot Holim). As of 2022, roughly several Israelis were insured through these health fund group plans.

While the public system (Bituach Leumi) provides a baseline of hours for home care, the Bank of Israel identifies a significant "underinsurance" gap. Premiums are typically indexed to the Consumer Price Index (CPI), whereas the actual cost of care is tied to labor wages, which rise faster. For those requiring institutional nursing care—which can cost upwards—private and supplemental insurance remains the only viable way to avoid total depletion of family assets.

According to Sumit, Senior Research Analyst, 6Wresearch, the level premium segment dominated the Israel Long Term Care Insurance Market, driven by its pricing stability and long-term affordability for policyholders. The predictability of fixed premium payments over time has increased consumer preference, particularly among middle-aged individuals planning for future care needs. Additionally, its widespread adoption across group and private policies has reinforced the segment’s position, solidifying it as the primary revenue contributor in the market.

Israel Long-term Care Insurance Market (2026-2032) report provides an in-depth analysis with 23 figures and 5 tables, covered in 73 pages. The report thoroughly covers the market by service, by risk covered, policy type, by benefit duration, by benefit amount & by premium payment structure. The Israel Long-term Care Insurance Market outlook report provides an unbiased and detailed analysis of the ongoing trends, opportunities/high growth areas, and market drivers, which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.