Don’t Wait Until It’s Too Late: Get Nursing Home Insurance Now

Shawn Plummer

CEO, The Annuity Expert

Navigating the landscape of nursing home insurance can feel overwhelming and daunting. Many of us think about the cost of long-term care, specifically nursing home insurance, as we age or as our loved ones do. Let’s dive into this subject and unravel the mysteries, one question at a time.

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What is Nursing Home Insurance?

Nursing home insurance, often referred to as long-term care insurance, is a type of coverage that provides for the cost of long-term care beyond a predetermined period. This coverage is designed to meet health or personal care needs over an extended period. It covers services like nursing home care but can also pay for non-skilled personal care services, such as assistance with daily activities like bathing, dressing, eating, or using the bathroom.

Think of it as a safety net that covers costs that health insurance, Medicare, or Medicaid typically don’t cover. It’s about ensuring your comfort and ease of mind as you navigate the golden years of your life.

Nursing Home Insurance

How Does Nursing Home Insurance Work?

Just like any insurance, you pay a premium with nursing home insurance. In return, the insurance company agrees to cover a portion of the total cost of your nursing home or long-term care expenses when needed. The coverage usually kicks in when you have difficulty performing at least two of six daily living activities or develop a cognitive impairment like Alzheimer’s.

The benefit payout can be based on a daily, weekly, or monthly maximum, while the policy’s benefit period determines the length of time benefits are paid.

Let’s paint a clearer picture with an example: If you had a policy with a $150 daily benefit amount, a 90-day elimination period, and a 3-year benefit period, you would start receiving benefits after paying for 90 days of care out of pocket, and then the insurance would continue to pay for up to three years.

Who Needs Nursing Home Insurance?

Nursing home insurance is designed for individuals planning for their future needs, particularly those in their 50s and 60s. It can be a godsend for those who want to protect their assets from being consumed by nursing home costs or who do not want to burden their loved ones with the expense.

If you have substantial income or assets that you want to protect, or if you want to maintain your independence and have the financial freedom to choose the type of care you receive, you might want to consider investing in nursing home insurance.

Why Do People Need Nursing Home Insurance?

Long-term care can be expensive, and the costs continue to rise. The harsh reality is that many people cannot afford to pay out-of-pocket for nursing home care. And given that Medicare and regular health insurance do not cover long-term care, nursing home insurance becomes a significant part of the puzzle.

Nursing home insurance can give you the financial security you need to approach your future confidently. It ensures you have the resources to pay for the care you need without draining your life savings or burdening your loved ones.

Nursing Home Insurance Ltc

How Much Is Nursing Home Insurance Per Month?

The cost of nursing home insurance can vary greatly depending on factors such as age, health status, and the level of coverage you choose. As a ballpark, premiums can range from $1,500 to $3,000 annually for a 55-year-old, which is about $125 to $250 monthly.

Remember, it’s crucial to shop around and consult an insurance professional to find a policy that fits your budget and meets your needs.

Pros and Cons of Nursing Home Insurance

Like any other financial product, nursing home insurance has pros and cons. On the upside, knowing you’re covered should you require long-term care gives you peace of mind. It also offers flexibility, allowing you to choose the care that best suits your needs.

On the downside, it can be expensive, especially if you start at an older age. Additionally, your policy may never pay out benefits if you never need long-term care. It’s essential to weigh these pros and cons with a financial advisor to make an informed decision.

When Is the Best Time to Get Nursing Home Insurance?

The best time to buy a nursing home insurance policy is typically in your mid-50s to mid-60s. Buying at this age allows you to lock in lower rates, as premiums increase as you get older. Plus, it’s also a time when you’re more likely to get approved since good health is a qualifying factor.

Next Steps

Ultimately, nursing home insurance can provide a valuable safety net in our later years. It’s about planning for the future and ensuring that, whatever comes, we’re ready for it. It’s about ensuring you or your loved ones have the care needed without jeopardizing your savings. Remember, the best decision is always an informed one. Take the time to evaluate your circumstances, talk with an insurance professional, and make the choice that fits your needs best.

Nursing Home Insurance Long-Term Care

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Frequently Asked Questions

How much is nursing home insurance per month?

Nursing home insurance, typically a part of long-term care insurance, varies in cost depending on factors like age, health, and policy details. Monthly premiums can range from $125 to over $500, translating to $1,500 to $6,000 or more annually.

Do nursing homes take your pension?

When living in a care home, your private pension will be impacted comparable to your State Pension. However, if you’re paying for your care, you’ll still receive your pension as usual, at the amount you or your former employers set.

How do I pay for nursing home care with Social Security?

While Social Security payments can help with some nursing home expenses, they cannot cover all costs. However, if you are 65 or older and receive Supplemental Security Income, Medicaid can assist with paying for nursing home care.

What assets are used for nursing home care?

Generally, you will be required to use a portion of your income to contribute towards the cost of care. However, certain parts of your income, such as earnings from employment, will not be considered. Your assets, including cash savings, investments, property (both local and overseas), and business assets, will also be considered.

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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