Financing Options for Long-Term Senior Care
It is important that you should have complete information about the finance options available to you, especially when a decision has to be reached for you or your loved ones to relocate to a senior care facility for elderly. To have a comfortable stay at a senior care facility, it is essentially important to consider the finance options available to you. There are a range of finance options available that can be tailored to suit your needs.
Long-Term Care Insurance
Over 10 million Americans have purchased long-term care insurance. Long-term insurance coverage has appropriately assisted in paying the bills of the elderly confined to a facility. The quotes offered by insurance firms vary but in most cases insurance has been beneficial in providing coverage for home care and also helps protect the individual’s assets. Make sure that your loved one has an apt insurance policy with long term insurance firms.
Life insurance is a well-known financial planning tool which can also provide coverage for cost of care. In most cases insurance policies providing life coverage are made flexible in order to also provide coverage for long-term care plan rather than a benefit paid out after the death of an individual. It should be understood that a life insurance coverage is terminated by the insurance firm immediately a cash out is made for the purpose of long-term care.
Commonly used life insurance policies are as follows:
- Universal Life Insurance (UL) which is inclusive of build-up fund and a life insurance.
- Whole Life insurance affords individuals the opportunity to own policyholder coverage for a life time and the cash accrued can be cashed out for the purpose of paying the care bills of the elderly.
- Group Life insurance is provided for the benefits of employees or members of a labor organization. To remain a beneficiary, you must maintain employment.
- Life Settlement involves selling an existing life insurance policy to another person at a value below its net death benefit but reasonably above its cash surrender worth.
Other Financial Options
- Supplemental Security Income (also referred to as Title XVI) is an initiative that gives a monthly check to the elderly, blind and disabled individuals. It is a need based program designed to support only individuals who have worked long enough. Social Disability Insurance provides a low asset limits and income value, but it is the only program initiated to supplement individuals in this group.
- Line of Credit is a financial resource designed for retirees. It is provided to pay for care while in expectation of the Veteran Aid and Attendance benefits or prior to the intervention of long-term care insurance firms (It is important that a source of funding is anticipated in the near future before applying for this option).
- Social Security Benefits can be used in addition with other options by the elderly to access funds. It should not be viewed as a bailout to pay for home care services because the fund provided will not suffice, the average check is $1,230 for retiree and $2,045 for a couple.
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