While this option is not feasible for many seniors, some people may be able to pay for long term care using their own assets. This is a good option for wealthy seniors who have plenty of assets. Paying for long-term care from your own resources can save the time and stress associated with applying for Medicaid, veteran’s benefits, or other sources of payment.
Medicaid is for less wealthy people who have already exhausted their financial resources. However, because it provides at least some of the payment for long-term care for about two-thirds of nursing home residents, it should not be looked upon as “welfare” or as something that is available only to impoverished seniors. Medicaid can be used for community-based care – that is, long-term care that takes place in a community setting like an assisted living facility or adult day care. It can cover the cost of doctor’s visits, hospital care, outpatient care, home health care, medications, and nursing home care. However, Medicaid is limited, and it does not pay for the cost of home care or adult day care in every state. Furthermore, not all nursing homes accept Medicaid as a payment option, and it is important to make sure than any nursing homes you consider accept Medicaid if you will be relying on Medicaid to pay for long-term care.
There are two major benefits available to veterans through the Department of Veteran’s Affairs. The first benefit is the death pension, which is available to surviving spouses or unmarried children of deceased veterans who were not discharged dishonorably and who served in the military for 90 days or more, at least one day of which was during wartime.
Another financial benefit available to veterans and their spouses is aid and attendance. In order to qualify for this benefit, you must be in need of the aid and attendance of someone else – for example, you must require nursing home care or live in an assisted living facility because you are mentally or physically incapacitated.
Long-term care insurance
Long-term care insurance can help you pay for part of the cost of long-term care. It can provide money that will pay for an aide to come into your home and help you with daily living, or it can help to pay for the cost of adult day care, an assisted living facility, or a nursing home. It is often available through a variety of sources, including employers, private insurance companies, fraternal societies, and continuing-care retirement communities. However, if your need for long-term care is right around the corner, the premiums that you will have to pay for long-term care insurance will often be too high, and some seniors in poor health might not qualify at all. Therefore, it is important to consider this option early-on, before you are in poor health.
Reverse mortgages are an option for homeowners over the age of 62. When you take out a reverse mortgage, your home equity is turned into liquid cash. This money can be used for anything, from remodeling your home to make it handicapped accessible to paying for long-term care. While many people believe that they must give up their home in order to obtain a reverse mortgage, the truth is that there is no requirement that you move or even make regular loan payments as long as you remain in the home. However, reverse mortgages aren’t for everyone. If you are planning on moving any time soon, it is not financially wise to get a reverse mortgage due to the high up-front costs associated with obtaining a reverse mortgage. Also, if you are not facing a financial emergency or if you have other financial resources available to you, it is best to explore those options first. Obtaining a reverse mortgage depletes your home equity, which you may need later if another financial crisis arises. It is best to consider less costly alternatives, such as a home equity loan or a home equity line of credit, before resorting to a reverse mortgage. Finally, if your main goal is to preserve your resources for your children to inherit, a reverse mortgage is not the best plan. Once your house is sold, a high percentage of the proceeds will go to the lender of the reverse mortgage rather than to your children.