5 Ways to Pay For Long Term CareWed, Sep 16 2015 | Uncategorized
5 Ways to Pay For Long Term Care
If you have a loved one who requires long term care, no one needs to tell you the cost can quickly drain your savings account.
According to the recent Genworth Cost of Care Survey, a private room in a nursing home has a median cost of $230 per day. That adds up to a jaw-dropping $83,950 for a year’s worth of care.
Fortunately, there are ways to cover the cost of long term care without dipping into your own pocket.
- Long-term care insurance: These specialty policies must be purchased when an individual is younger, but if your loved one has long-term care insurance, you can rest assured money should be available to pay for their care.
- Life insurance: Even if your loved one doesn’t have long-term care insurance, they may have a life insurance policy. Some life insurance plans have riders that will pay for long-term care. Others may allow you to tap into cash value or claim a living benefit for care expenses. Life settlements or conversion options may also be available to policyholders.
- Government programs: State Medicaid programs will pay for nursing home care for those who meet certain income and asset requirements. In addition, most states have options available for some individuals to receive money for in-home care.
- Reverse mortgage: Although not for everyone, a reverse mortgage can provide monthly income that can be used for long-term care.
- Health insurance: Private health insurance plans, as well as Medicare, typically do not pay for ongoing long-term care, but they can provide temporary nursing home coverage. For example, the Department of Health and Human Services says Medicare will pay for up to 100 days of skilled nursing home care following a hospitalization.
- Veterans Administration - Veterans and their surviving spouses can qualify for the VA Aid and Attendance Benefit which can pay for 12-25 hours of free in home care per week. AHC works with a team of Accredited Veterans Benefits Agents who can assist families with applying for this difficult to get benefit and successfully getting them approved. Contact us today to find out more information about our VA program that is no cost to Veterans and their surviving spouses.
For more information on these and other long term care payment options stay tuned for our follow up newsletters where we discuss these funding options in more detail.