Families often struggle to find funds for their loved ones' care, but adequate planning and awareness of available options can make a world of difference!
There are countless ways to finance long-term care needs. All too often, individuals do not pursue a care plan early enough to cover all their future costs. Either they are not proactive, or they plan to self-insure through a lifetime accumulation of personal savings and investments. But, unless you have saved a substatial amount, these costs can wipe out a person's life savings in a short amount of time.
According to Genworth's 2015 Cost of Care Survey, the national median rate for care in an assisted living facility is $43,200 annually. More than 70% of Americans over the age of 65 will require long-term care at some point in their lives.
What is long term care? This might include adult day care, home care, assisted living, memory care, independent living, and more! Health insurance policies do not cover these costs and Medicare coverage for skilled nursing is only intended for short-term rehab and not extended stays. Medicaid is really only eligible for long-term care to those who are low income and have few assets. So, the question then must be asked, where do we turn for financial assistance?
Private Pay options might include pensions, interest income, dividends from investments, payments from an IRA or 401k, cash, savings, stocks and bonds, annuity payments, and real estate. Many families might exhaust their private funds and end up seeking additional help.
VA Benefits can include a variety of different types of compensation programs. One of the most popular for long-term care is called Aid and Attendance and Housebound. These programs provide funds for care at home, in assisted living, independent living or a nursing home to veterans who require regular assistance. The application process for VA benefits can be lengthy and complex, call and ask us to help you expedite this process. We are one of the largest providers for VA Benefits in the state and can get you eligible to receive benefits in no time.
Long Term Care Insurance ensures that funds will be available to pay long-term care bills for a set period of time. It is essential to purchase one of these policies while you are still healthy, do not have memory care issues, mobility issues, or diabetes. There are various types of LTCI available and they each have their own perks and drawbacks. If you are interested in obtaining a policy, contact us today and we can refer you to a reputable agent to find the right fit for you or your loved ones.
Life Insurance plans can be converted into a long-term care benefit plan account. This conversion transfers ownership of the policy to an entity that acts as a benefits administrator and then assumes all responsibility for premium payments. In order to convert, the previous policy holder must have an immediate need for some acceptable type of long-term care and must arrange monthly payouts to cover these services. The payouts are made directly to the care provider. (IE: assisted living facility, home care agency, etc.) This is a perfectly acceptable Medicaid spend-down strategy as well.
PLAN AHEAD! Regardless of how you deicde to plan for financial security in your golden years, it is vital to begin preparations as soon as possible! If you have questions or need help making an informed decision, we can help.