Senior care isn’t always a topic people like to discuss, but understanding how to finance your senior care options is as important as the expenses associated with other typical life events like college, retirement, and life insurance. Understand the basics when it comes to financing senior care so that you can be prepared when the time arises.
Retirement/Savings
A savings account and retirement plan are great ways to ensure you are covered in your later years. In addition to your existing savings plan, consult with a financial advisor to make sure you have a senior care plan in place.
Government Benefits
Medicare is only a short-term plan, but Medicaid is a great option for long-term care. Medicaid guidelines vary from state to state, so remember to consult with your local office to find out details on benefits and eligibility. If you were a member of the United States military, you may also be eligible for Veteran’s Benefits. As with other government benefits, this assistance is need-based and may vary on an individual case basis.
Reverse Mortgage
Reverse mortgages are a great way for home owners over the age of 62 to turn equity into cash. Also called a Home Equity Conversion Mortgage, this is a preferred financial option for many seniors who need care but are physically able to still stay in their own homes.
Life Insurance Policy Conversion
This financial option allows seniors with death benefits over $50,000 to convert a policy to pay for immediate care needs. Advantages of this financing option include the fact that it does not exclude pre-existing conditions and does not have wait limits or care limitations.
Long-term Care Insurance
Basic medical insurance and savings may not be enough to cover long-term care costs, which is why many adults invest in long-term care insurance. This type of coverage helps reduce payments associated with assisted living, adult daycare, respite care, or hospice care. Eligibility may be based on pre-existing conditions and health screening.
