Obviously, a long stay in a nursing home can potentially bankrupt you. That’s especially true for married couples, if one spouse has to maintain a private residence while the other is institutionalized. You can protect your assets by buying long-term care (LTC) insurance. These policies usually pay a specific daily benefit if you’re in a nursing home. Here’s a bonus: Many LTC policies also pay for home care. But there is a downside. LTC insurance can be quite expensive. A 70-year-old who buys a policy with a $100 daily benefit might pay anywhere from $1,700 to $2,500 per year, depending on specific policy features. A married couple might get a discount but the cost could easily top $3,000 per year. General guideline: You shouldn’t pay more than 10% of your retirement income for LTC insurance.