5 Places to Find Money for Long-Term Care
by ElderCarelink
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 Genworth 2013 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. You
may also want to look into companies that specialize in converting a life
insurance policy into long-term care funds.
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.
For more information on these and other long-term care
payment options, stay tuned for our follow up newsletter series where we
discuss these funding options in more detail.
Source(s):
What is Covered by Health & Disability Insurance?
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