While it’s really comforting to know that there are some fantastic assisted living care facilities available for your aging loved ones, paying for it can be quite expensive over an extended period of time. If you’re not careful, you could quickly deplete all your savings. Fortunately, there are assisted living care financing options that you can look into to make it easier in your pocket.
Here are some of the available financing options that you could look into.
Long Term Care Insurance
Long Term Care Insurance pays for those expenses that are not covered by private medical insurance. This helps to reduce the financial burden of expenses that arise with long-term health care.
Long Term Care insurance helps to cover the costs of the following: Adult daycare
- Assisted living
- Home care
- Hospice care
- Alzheimer’s care
- Respite care
- Nursing home services
Purchasing insurance before any age-related health problems arise is often cheaper as most insurance companies either do not cover individuals with pre-existing conditions or if they do, it is at a much higher premium.
Life Insurance Policy Conversions
Rather than letting a life insurance policy lapse, you can benefit by converting your policy into a long term care benefit plan. For instance, any kind of in-force life insurance policy that consists of a deal benefit of say $50,000 to $1,000,000 can be converted without any problem.
After converting this existing plan into a long term care benefit plan, the cost of senior care will be covered immediately. The exact amount and terms and conditions will depend on the terms of your current policy.
The benefits of this option include:
- All types of healthcare conditions are accepted
- No limitations on care and no waiting periods
- You needn’t have to be terminally ill
- No premium payments and no obligations/costs to apply for
Government Funded Long term Care
You may be surprised to know that Medicare is not considered as general health care for individuals over 65 years and does not take into account long term care such as for the assisted living. For that reason, it is not a solution for those searching for long term care requirements.
Medicaid is the best government assistance program for people who cannot afford it by themselves. It pays for long term care. A senior citizen, however, needs to put in all their present assets for this. Medical expenses need to be higher than the income generated.
Reverse Mortgages
Reverse mortgages can be a practical option for couples who want to finance assisted living care for one spouse while the other is at home. A reverse mortgage basically refers to a loan for homeowners who are over 62 years. It transforms equity saved in a home into cash. You can use this money from your home equity even as you retain ownership and reside in that house. They come at high closing costs but there are no constraints on how you use the money.
Veterans Are Eligible For Assisted Living
Under this financial option, coverage for veterans and their spouses is offered for assisted living care by the Department of Veterans Affairs. To be eligible the insured individual should have served a minimum of 90 active duty days and one day through wartime.
If you are looking into assisted living care options for your loved one, exploring your financing options simultaneously will help you make a better choice.
Disclaimer: Please note we are not experts in this area. The article has been put together using the information we have garnered from reliable sources. You must consult with financial experts for more information and professional advice.
