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Nursing Home Insurance Cost

Last Updated on December 29, 2023
Written by CPA Alec Pow | Content Reviewed by Certified CFA CFA Alexander Popinker

Man is a social being and regardless of age, it is difficult for him to overcome the need for a social life. During life, he manifests his desire to communicate and cooperate with his peers, to love and be loved, to integrate into a group, etc. All are elements related to the need to belong, which does not disappear once one gets older.

In reality, many are left alone after their life partner leaves them in the world of the righteous, while the familiar and the close ones forget to open the door for them. And because of physical limitations, they get to know the bitter taste of loneliness.

But in a nursing home, such problems disappear. Here, they are offered the chance to live out their old age in serenity and to spend their remaining time among people of similar ages.

How Much Does Nursing Home Insurance Cost?

There are several factors that affect the cost of nursing home insurance, such as the provider you choose, if you want a joint policy or not, age, limits, location, coverage, daily costs, payment method, and benefit period. However, you should expect to pay anywhere between $120 and $550 per month.

The main factor that will affect the cost of your nursing home insurance is your age at the time you buy the insurance. It will decrease with the age. For instance, if you are younger than 50, the annual premiums start at around $1,400, and after you reach 60 the costs will increase.

Nursing Home Insurance Overview

Nursing home insurance is a policy that pays a certain sum of money for your long-term healthcare costs. It is not mandatory to enter a nursing home in order to receive the benefits of this coverage. This can also cover other aids, at-home nursing, and assisted living facilities.

The expenses with this can be extremely high, and you may end up needing this care and services for many years, if not for a decade or even more. You will end up saving hundreds of thousands of dollars when you are old if you start paying for this coverage when you are younger. Moreover, you will have the guarantee that you will be taken care of as you deserve, without spending all of your savings or becoming a money problem for your children.

Types of insurance you may need

  • Disability Insurance: In case a disability prevents you from working, the insurance will cover a certain percentage of your income.
  • Health Insurance: Medical expenses such as surgery, medicine, or doctor visits are not covered by nursing home insurance. In order to cover the costs of these, you will need normal health insurance.
  • Life Insurance: Upon the death of the insured a designated beneficiary will receive a certain amount of money.
  • Liability Insurance: Your property within the care facility will be covered with by insurance. This is similar to renters’ insurance.

What does nursing home insurance cover/not cover?

Nursing home insurance pays anywhere between $50 and $120 per day for the daily costs of your long-term care, depending on your coverage. This is the cost of living in an at-home or facility nurses, and/or other additional assistance.

The nursing home insurance does not cover any payouts for your beneficiaries upon your death, protection of your property in a facility, or medical expenses. Additional policies are required to cover these scenarios.

Risks and Benefits

Surely, there is the risk of not having enough money to pay for your long-term care needs when you will get old. You could limit your choice when it comes to a nursing home if you only rely on your savings or other government programs. Most probably you will end up in a poorly run hospice.

Besides covering your care expenses, nursing home insurance offers many other advantages. One of the most important is that you know for sure that you will be cared for as you deserve and you will have some control over your facility. It is pretty hard to save for retirement and for some people it is close to impossible. But with this type of insurance, you know that you will be able to cover a certain amount of the expenses beyond what Medicaid or Medicare will spend. With this coverage, you can enjoy your retirement period without worrying about what will happen to you when you will not be able anymore to take care of yourself.

Tips for Purchasing

Nursing Home InsuranceIt can be pretty difficult to understand from the start the long-term care coverage needs as they can be very complex. Here are some tips that may help you understand the cost of nursing home insurance, so you can be sure you get the coverage you need at the best possible price.

The cost of premiums tends to vary considerably from one insurance company to another. Take into consideration asking for multiple price offers before deciding to sign a contract.

In case you are working with a retirement planner or accountant, tell them that you would like to have nursing home insurance. They will be able to make all the calculations and tell if this policy is suitable for you or your family.

You can find the best nursing home insurance provider if you choose to work with an independent agent. It may be complicated to understand and choose nursing home insurance, but can be very beneficial to get coverage from a provider which is specialized in the industry.


How can I save money on my home insurance policy?

  • Buy a joint policy with your wife.
  • Purchase insurance when you are younger.
  • Pay your insurance annually instead of monthly.
  • Pay for more of your care yourself before the insurance coverage kicks in.
  • Go for simple interest payments.

When does the policy start paying?

The start of policy paying depends on your elimination period. You will be able to save money on your premiums with a longer elimination period, but this requires you to pay more out of your pocket before the insurance coverage kicks in. You will have to decide if it makes sense and is worth having a shorter or longer elimination period.

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

There are some policies that will allow you to cash out, select a beneficiary upon your death or receive dividends if you are lucky enough to be in good health condition and never need to use your nursing home insurance.


A cost-effective way to make sure that you will have the support and assistance you need when you get old is through nursing home insurance. You don’t want to be a financial burden for your family or to stress figuring out how to pay for care when you will reach that age.

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