Author: Andrea Miller
Reviewed By: Gene Altaffer

Long-term care insurance typically pays $50 to $250 per day for assisted living. The median cost of assisted living care in the United States is $4,500 a month as of 2021, according to the Genworth Cost of Care Survey, so insurance covers a significant portion of this expense for policyholders.

How does long-term care insurance work for assisted living?

When you buy long-term care insurance, your plan covers the cost of assisted living up to a monthly or daily limit. You pay for any portion of your bill that exceeds this maximum amount. Research the average cost of assisted living care in your area to ensure you purchase a large enough LTC insurance policy.

What does long-term care insurance for assisted living cover?

Long-term care insurance for assisted living usually covers a portion of your rental costs. However, every plan has different benefits and guidelines, so review the policy documents carefully to find out what specific type of LTC your insurance covers.

When should you buy long-term care insurance?

Buy long-term care insurance if you don’t expect to need assisted living for at least 25 years, according to the National Institute on Aging. As you get older, the premium for this type of coverage increases. If you develop health problems, such as a chronic illness, you might not meet the requirements for an LTC policy.