Nursing Home Insurance Cost

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With the average lifespan increasing, many older people find themselves in assisted living facilities for many more years than they anticipated. Your savings has to last you for the remaining years you live in your home and get to travel and spend time with family, but also for your final years when you may require significant care. This new dynamic significantly changes the amount of money most people need for retirement.

Simply having a private room in a decent facility can cost over $80,000 a year. While Medicare or Medicaid will provide some coverage, there will still be a significant amount you have to pay out of pocket and that can limit your choices. One way to ensure your ability to dictate the level of care you receive is with nursing home insurance. These policies will cover the costs of your long-term care when you get older and prevent you from depleting your savings or that of your family.

In this guide, we will provide you with some information about nursing home insurance costs to help you choose the right policy for your needs.

We Cover in This Guide

  • How much does nursing home insurance cost?

  • What is nursing home insurance?

  • What does nursing home insurance cover/not cover?

  • Benefits and risks

  • Tips for buying

  • Types of insurance you may need

  • FAQ

  • Summary

How Much Does Nursing Home Insurance Cost?

Nursing home insurance costs range from $110 to $500 per month depending on your provider, age, location, daily costs, benefit period, payment method, coverage, limits, elimination period, interest option, and whether or not you choose a joint policy. The biggest factor in your policy’s premium price is your age when you purchase the insurance. The younger you are, the cheaper it is. Annual premiums start at $1,300 if you are younger than 50 and steadily increase, especially after you reach 60.

What is Nursing Home Insurance?

Nursing home insurance is a policy that will pay a certain amount of your long-term healthcare expenses. You don’t have to enter a nursing home to receive the benefits. It can cover other assisted living facilities and at-home nursing and aids. The cost of this care is extremely significant, and you may end up needing these services for years, if not a decade or more. By paying for coverage when you are younger, you will end up saving hundreds of thousands of dollars when you are older. Additionally, it will guarantee you will have the care you deserve without wiping out your own savings and becoming a financial burden on your family.

What Does Nursing Home Insurance Cover/Not Cover?

Depending on your coverage, nursing home insurance pays between $100 and $500 a day for the daily expenses of your long-term care. That means the cost of living in a facility or at-home nurses, cleaning, and other additional assistance. It does not include your medical costs, protection for your property in a facility, or any payouts for your beneficiaries upon your death. Coverage for these scenarios require additional policies.

Benefits and Risks

The risks of not having enough money for your long-term care needs are pretty clear. Relying solely on your savings or government programs for coverage could limit your choices and you could end up in a poorly run facility.

In addition to covering your expenses, nursing home insurance provides numerous benefits. The most important is the security of knowing that you will have some control over your facility and the care you receive. Saving for retirement is difficult and can be impossible for some people. With this coverage, you know that you will be able to cover a certain amount of the costs beyond what Medicare or Medicaid will spend. That way you can enjoy your retirement years without being overly concerned about what happens when you are no longer able to care for yourself.

Tips for Buying

Long-term care coverage can be extremely complex. The following are some suggestions to help you understand nursing home insurance cost and make sure you get the coverage you need at a good price.

  • Working with an independent agent will help direct you toward the best providers for this type of policy. Nursing home insurance can be complicated and getting coverage from a provider that specializes in this industry can be extremely beneficial.

  • If you are working with an accountant or some other retirement planner, mention that you are considering nursing home insurance. They will be able to crunch the numbers and determine whether this policy makes sense for you or your loved ones.

  • Premiums tend to vary considerably between insurance companies. Consider at least three quotes before signing your contract.

Types of Insurance You May Need

  • Health Insurance: Nursing home insurance does not cover your medical expenses like medicine, doctor visits, and surgery. For that coverage, you will require normal health insurance.

  • Liability Insurance: Similar to renters insurance, this policy will protect your property within the care facility.

  • Life Insurance: Pays a designated beneficiary a certain amount upon the death of the insured.

  • Disability Insurance: Will cover a certain percentage of your income in case a disability prevents you from working.


- How can I reduce my nursing home insurance costs?

  • Buy a policy when you are younger

  • Pay for more of your care yourself before the insurance kicks in

  • Choose simple interest payment

  • Pay your premium annually instead of monthly

  • Purchase a joint policy with your spouse

- What happens if I never need long-term care or enter a nursing home?

If you are fortunate enough to have good health and never need to use your insurance, some policies allow you to cash out, receive dividends, or select a beneficiary upon your death.

- When does the policy start paying?

It depends on your elimination period. A longer elimination period will allow you to save money on your premiums, but require you to pay for more out of pocket before the insurance kicks in. You will have to determine whether it makes sense to have a longer or shorter elimination period.


Nursing home insurance is a cost-effective way to make sure you will have the support you need when you can no longer care for yourself. When you reach that age, you don’t need the stress of figuring out how to pay for care and don’t want to be a burden on your family.

Now that you have a greater understanding of nursing home insurance costs, you can confidently go out and find a good policy for your needs at a great price.

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