Assisted Living Insurance: 2026 Prices
Posted in Long Term Care last updated on December 7, 2026
The average cost of assisted living in the U.S. is $5,900/month and growing.
While this may seem like an astronomical cost per month, there are ways to pay for such a cost if the need arises.
This article covers assisted living insurance qualifications, prices, and how to get it.
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Table Of Contents
- Is There Insurance For Assisted Living?
- What Disqualifies For Assisted Living Insurance?
- When To Buy Assisted Living Insurance
- Assisted Living Insurance Cost
- Death Benefit
- Return of Premium
- Insurance Providers
- Tax Implications
Is There Insurance For Assisted Living?
Yes, there is insurance designated for assisted living.
These are generally known as long term care policies, and they pay for all or a portion of your assisted living costs, depending on what you select.
You pay either a single premium from a retirement account or a monthly payment for a length of time, and in the event you need assisted living, there will be a monthly payout to you.
What Disqualifies For Assisted Living Insurance
Most people can qualify for assisted living insurance medically, but there are health questions and sometimes even a medical exam if there are serious health issues, like heart failure.
Below are some knock out health issues that will get you declined for assisted living insurance.
- Dementia
- Oxygen Use
- Wheelchair/Walker
- Multiple Sclerosis
- Cirrhosis
- Receiving Disability
This is not an extensive list, but you get the idea. Most other people qualify.
When To Buy Assisted Living Insurance
As is the case with any insurance, the time to buy assisted living insurance is before you need it.
Many people wait until they have a significant health event to look for insurance, and it can be too late at that time to qualify or find something affordable.
Also, the premiums to start a policy at a later age will be more than starting it when you’re younger.
Assisted Living Insurance Cost
The cost of assisted living insurance varies considerably depending on how much in payout you want, how long you want to pay for it, your age, and how long you want benefits to last.
There are single premium policies and monthly payment options for a certain number of years or pay to age 95, so you have many options.
Below are some sample rates for a 65 year old couple buying joint policy that will give benefit payouts for 4 years.
| Monthly Benefit To You | Single Premium | Monthly Pay to 95 |
|---|---|---|
| $2,000/month; $150,000 lifetime | $38,084 | $247/month |
| $3,000/month; $216,000 lifetime | $54,824 | $352/month |
| $5,000/month; $360,000 lifetime | $91,373 | $572/month |
The cost of assisted living for a 65 year old couple buying a joint policy with a $2,000/month benefit or $150,000 lifetime is $247/month. Prices can vary depending on other factors.
Assisted Living Insurance Death Benefit
Not all assisted living insurance plans have a death benefit, which is a tax free payout to beneficiaries if you die early and don’t use the policy, but the best insurance policies do include it.
In the above example, a single premium of $38,000 on an assisted living policy will have an immediate death benefit of $72,000.
If you don’t use the assisted living insurance policy your kids or family will get the money tax free.
Assisted Living Insurance Return Of Premium
Assisted living insurance can also have a return of premium or refund policy.
You should know that this does make the policy quite a bit more expensive per month, but you can get a return of all your premiums at any time.
Assisted Living Insurance Providers
There are many companies that sell assisted living insurance and long term care policies.
As of the time of writing this article, I cannot say the “best” insurance providers, as the assisted living and long term care landscape is always changing.
I also think many well known websites and news companies get this industry wrong and they just list the most popular insurance companies on their website, rather than what’s best for the individual.
So, what I reccommend is to just fill out our contact form and I will be in touch.
Tax Implications
Assisted living long term care insurance policies payouts are tax free!
Whether that is the death benefit or the payout to you, you or your beneficiaries pay no taxes on the money.
However, premiums you pay into to the policy are not tax deductible.
Summary
That’s it for our assisted living insurance guide.
Assisted living insurance is a tax free way to leverage your money, and can prevent you from depleting your nest egg completely.
If you have any questions please fill out our quoter and I will be in touch!
