Financial Options for Paying for Senior Living
We understand a family has strong emotions when looking for senior living care options for their loved one. Finding the right level of care, a compassionate staff with a low staff to resident ratio, and a facility that is not only convenient but one that provides a safe and enjoyable lifestyle for your loved one are just a few of the typical concerns. We know it is heartbreaking to think of the possibility of having to put the financial burden of that care above any of those considerations, so here are some general options to consider in how to pay for senior living.
Individual Private Funding
Essentially this is when the senior or family use personal savings or other assets to pay for the cost of care out of pocket. The cost of care usually increases over time and with the needs of the patient, so this can quickly deplete the savings of even a well-funded individual or family.
Long Term Care Insurance
Long Term Care Insurance policies can vary greatly in coverage, but they are generally designed to provide financial assistance for anyone over the age of 65 that needs home health care or care in a nursing home. Overall health and age are two of the largest determining factors for eligibility to qualify for a long-term care policy, but there can be others as well. Just like with traditional medical insurance, there is usually a monthly payment and stipulations around what is covered by the policy and for how much.
Reverse Mortgage
A reverse mortgage is taking a loan out on the equity in your home. Most lenders will either release a monthly stipend, but some lenders will allow you to take one lump sum. This can be risky because the length of time of the care and the total cost of the care needed are often largely unknown, so it is difficult to know if the equity will sufficiently cover all the financial needs.
Life Insurance
There are some life insurance policies that can be converted to pay the senior living homes directly. Other life insurance policies offer the option to borrow against the value of the plan which may be an additional option to cover the cost of care.
Medicare and Medicaid
There are some federal and state programs that offer assistance to help pay for nursing home care. Medicare is a federal program that provides short term stays for seniors over 65. It doesn’t cover long-term care. You can learn more about Medicare’s coverage and some additional benefits of the program.
Medicaid, on the other hand, is a state and federal program that covers medical costs for people with limited income and resources. Unlike Medicare, Medicaid pays for extended nursing home care if a senior qualifies based on income. Eligibility requirements differ by state so check out this resource if you need more information.
At Liberty Health Care Center, we understand that it can be overwhelming to weigh which option or options are the best fit for your loved one, so we encourage seeking out a trusted financial professional to help navigate through what different plans are available. Give us a call at (936) 336-7247 so we can further assist you.