Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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Will Long Term Care Insurance Pay Nursing Home Costs

Long-term care insurance is specifically designed to give assistance to people that are unable to perform the daily routine of living, like cooking, bathing and grooming. Nursing home care is often part of this assistance and is commonly paid for by long term care insurance.

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The article below gives specifics on other assistance long term care insurance may pay for, the difference in types of care, and ways to evaluate your own need for this type of insurance coverage.

What does long-term care involve?

Long term care involves staff-supported activities often associated with nursing homes. These can include help with:

  • Dressing
  • Transportation or walking
  • Bathing
  • Eating
  • Continence

Long-term care is not only for elderly people, but also for anyone who is incapable of supporting themselves day by day. About 40% of all long-term care individuals receiving long-term care are under the age of 64.

Long-term care insurance encompasses all facilities that are associated with caretaking:

  • Home care
  • Assisted living
  • Adult daycare
  • Nursing homes
  • Hospice care
  • Respite care

Long-term care, by definition, refers to any person who requires daily living assistance for an indefinite period of time. The benefits of this insurance policy are that it can provide assistance without taxing the grown sons or daughters of an aging parent. Not to mention the adult family of a younger person who has a debilitating illness.

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Is there a difference between a nursing home and an assisted living facility?

Yes, and it is important to realize that not every insurance company will offer a policy that covers nursing homes. Nursing homes and assisted living facilities (which encompass a variety of long-term care homes) are not the same thing.

Assisted living facilities provide supervision and assistance for seniors or disabled younger persons who are in capable, or partly capable, of caring for themselves. While an assisted living facility may assist in the supervision of medication, and while staff members are trained for their job, it does not operate in the same capacity as a nursing home.

A nursing home provides a superior and medically-based living center. In addition to providing assistance with daily activities, patients are also cared for by registered nurses who may administer treatment. Nurses may provide also provide rehabilitative therapy to patients. It is not unheard of for a nursing home to have a doctor on call for medical emergencies. A nursing home also offers 24-hour supervision, unlike an assisted living facility, which may dismiss staff members after hours, if residents feel they are capable of being alone for several hours.

The best assisted living facilities can be pricey but are much less expensive than nursing homes. The cost of staying in a nursing home can cost several thousand dollars a month for one patient. Often, family members will have to pay this expense out of their own pocket.

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Even if a low-income nursing home takes in a resident who desperately needs attention, they will want to seize that resident’s property so they can cover their own costs. Assisted living facilities can cost as little as $1,500 a month for one occupant; paltry when compared to $12,000 a month for a nursing home.

The difference in price definitely matters to a long-term care insurance company. Some long-term care insurers may not be able to finance a stay in a nursing home. However, they may be willing to work with an assisted living facility.

The average cost of nursing home insurance is pricey; it can be up to $3,800 a year, or over $300 a month. However, compared to paying the full price of a nursing home stay ($400 a day easily) this is certainly an affordable alternative.

Why invest in long term care insurance?

Insurance agents recommend that nursing home insurance be less than 10% of your gross income, or else you probably can’t afford the policy. Instead of waiting for an elderly parent or disabled family member to get progressively worse, start looking for long-term care insurance when they are older but still in good health.

Though you might not think of buying this type of insurance for yourself when you are young, by the time you reach your 40s and 50s it’s time to seriously start looking for a policy. The younger and healthier you are, the less expensive your policy premiums will be. Once you sign a long-term care contract, the company cannot cancel the policy. You are covered—perhaps for life depending on the policy.

What are the advantages to having a nursing home or assisted living facility insurance policy?

Not only can you protect yourself and family members from having to pay full price for long-term care, but it also helps residents who are trying to get admittance into a facility. Those without any form of long-term care insurance will definitely face some challenging obstacles. Those who have long-term care insurance will be admitted quickly. Remember, traditional insurance plans do not cover nursing home stays.

Find out long term care insurance rates for comparison by inputting your zip code into the free quote tool now!