3 Ways To Pay for Caregivers or Seniors To Pay for Elderly Care
Aging is a bear, and in many instances, it can be a financial burden. People spend the majority of their working lives considering future expenses, but many times, even the best estimates fall short of the reality, especially when yourself or loved ones require long-term specialized care. Finding ways to pay for elderly care services depends significantly on the type of service and situation of the individual. While the costs of medical care can seem daunting and impossible to manage, there are several ways to get the funding you need, and they typically fall into three categories.
1. Government Programs
Older Americans are eligible for some benefits through Medicare and Medicaid Services. While these programs might not cover all costs, and the benefits are subject to change, each service can provide some financial support and relief to people in need of elderly care services.
PACE, or the Program of All-Inclusive Care for the Elderly, is a Medicare program that covers long-term care, medical expenses, and social services for frail individuals. In some instances, the program can cover all the medical and long-term care needs of someone suffering from Alzheimer’s disease.
SHIP, or State Health Insurance Assistance Program, is a program offered in every state to help people with government insurance questions. The program offers counseling and assistance for those who are trying to navigate the Medicare, Medigap, and Medicaid market.
Finally, the National Council on Aging, a private organization, provides a free service to help individuals and families find Federal and State programs to assist in medical treatment and expenses. The programs suggested will vary by individual, but typically include discount programs for prescription drugs, heating and housing assistance, legal services, and meal delivery services.
2. Personal Funds
While it can be hard to fathom, most home-based care options require the use of personal funds. In most cases, these services are considered optional, meaning they are not essential to a person’s survival. However, even when elderly care doesn’t meet the expectation of a life or death situation, it doesn’t always suggest the service isn’t necessary.
Assisted living and continuing care retirement communities are prime examples of services that are necessary but deemed luxuries — although, some states do permit the use of Medicaid assistance. In these circumstances, an individual will need to use money from their savings, retirement accounts, pension, home equity, or income from the stock market to pay for their care.
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3. Private Financing
Private financing is a valuable option for the right individual. Through a combination of long-term care insurance, life insurance policies, or reverse mortgages, an individual can afford to fund elder care services.
Long-term care insurance can include everything from nursing home stays to palliative and hospice care. Additionally, if you want to reduce your expenses, you can opt for a nursing home-only coverage, but a comprehensive policy for both home and facility care might be best.
If you purchase a life insurance policy, it is possible that you might get help paying for long-term care. If your policy includes an accelerated death benefit, you can use cash advances to pay for care while you’re alive, but the money you use will be taken from the policy amount, meaning your beneficiaries will receive less money upon your death.
A reverse mortgage allows a homeowner to convert some ownership value in their house into cash. While technically a loan, repayment is not required until the sale of the house or the death of the homeowner.
Do you know of any other ways to fund elderly care? Leave a comment below to continue the conversation.