With the average life expectancy increasing, more and more people are reaching a stage in life when they need long term senior care of some sort. If you or a loved one have given some thought to planning for senior care, you are probably aware that quality nursing homes, assisted living facilities, and in home care can be expensive. While you may be able to count on some income from social security, pension plans, investments, or annuities, these may not cover the full cost of the care you desire.
6 Ways to Finance Senior Care
Thankfully, there are many options available to those looking for ways to finance senior care costs. Here are a few of them.
Unlike Medicare, which does not cover long-term care costs, Medicaid will cover long-term nursing home stays and, depending on the state in which you live, may also help to pay for assisted living or in home care.
There are income guidelines involved in qualifying for Medicaid. However, even if you do not qualify at the present time, it is a good idea to learn about specific guidelines in case a change of circumstances in the future makes you eligible.
The Veterans Aid and Attendance Pension is available to Veterans and their surviving spouses or widows who require assistance in performing daily activities. This benefit will potentially assist with the costs of long-term stays in nursing homes or assisted living facilities and with in-home care.
Long-Term Care Insurance
Long-term care insurance can reduce the out of pocket expenses associated with senior care. This type of insurance is generally less expensive the earlier you purchase it, and if you are already in poor health you may not qualify for coverage. When you are choosing a policy, make sure that it covers the kind of care that you desire. For example, some cover costs associated with nursing home stays but not with assisted living facilities.
It may be possible to tap in to the value of a life insurance policy in order to pay for long-term care. Many agencies will buy a policy back from you at a percentage of its face value. If this is not an option with your policy, you might be able to sell it to a settlement company. You may also be able to convert your life insurance policy into a long-term care benefit.
A reverse mortgage allows you to access the equity in your home without actually having to sell it. The advantage of this is that it allows you or another family member to continue living in the home. Even though this type of loan does not require you to make monthly payments, you are still responsible for the property taxes and insurance on the property for as long as you own it. Once the home is sold, the loan amount is repaid.
If you decide to sell your home to finance senior care costs, a bridge loan will allow you access to the anticipated funds before the sale takes place. This type of loan is also repaid once the sale of your home is final.
Before you make any decisions in the matter of financing senior care costs, it’s important to get the advice of an accountant, elder care or estate attorney, or financial planner who knows your specific circumstances. A professional will be able to advise you as to any tax implications, penalties, or other considerations involved in the choices you are considering.
Visit the Davis Community’s Assisted Living in Wilmington NC
If you or loved one are no longer capable of living a safe, independent lifestyle, then call the Davis Community today at 910-686-7195 or simply complete and submit our online information request form. We provide exceptional assisted living in Wilmington NC with a strong and supportive environment where your loved one will feel welcomed and part of an active community. Get to know the difference today – schedule a visit to the Davis Community!