Deciding that it's time to move one of your parents or other loved ones into an assisted living facility can be an emotional and difficult process. In addition to the challenges that come with making the decision and moving from an independent living arrangement to an assisted one, it's also extremely common to worry about how to pay for the care your loved ones will need. Fortunately, there are many funding options that can help you let go of some of your worries.
1. Medicare
Once you meet certain eligibility criteria, Medicare coverage kicks in and can pay for a significant amount of medical bills. Seniors can get Medicare at age 65 or older, and if they or their spouse worked for an eligible employer for at least 10 years. Among the senior health care plans, Medicare is one of the most popular. There are four types of Medicare coverage:
Part A covers in-patient hospital care, including skilled nursing and hospice care.
Part B covers doctor's visits, medical equipment and supplies, and home health care services.
Part C is a Medicare Advantaged Plan, which is administered by a select, approved group of private companies.
Part D covers prescription drugs.
2. Long Term Care Insurance (LTCI)
It's true that many of us will need long term care as we get older. You can purchase long term care insurance, or LTCI, in advance to help prepare for that possibility. If your parents had the foresight and ability to prepare their senior health care plans this way, LTCI can help to pay for certain types of care, including assisted living and home health care. However, LTCI has some unique eligibility criteria and consequences, so you should check with a financial advisor for more additional information about using such a policy.
3. Veteran's Benefits
If your loved ones proudly served our country, now it's our country's turn to help pay them back for all their efforts. The VA pension and the military's Aid & Assistance programs can help to pay for medical costs for seniors over 65 years of age who served in World War I or II, the Korean War, the Vietnam War, or the Persian Gulf War. These senior health care plans can pay for long term care, assisted living and medications that aren't otherwise covered by other programs.
4. Reverse Mortgage
The family home is one of the most valuable assets most seniors have. Obtaining a reverse mortgage is one of the newer ideas that may help fund a senior health care plan. A reverse mortgage issues cash payments based on the balance of the equity in the home.
5. Senior Line of Credit
A senior line of credit can be a great option for financing a stay in an assisted living facility. This option is not suitable for every senior, but can allow seniors who have a strong support network to pay for care. The senior line of credit is an especially useful tool for families who need care immediately but need to find a way to pay for it before funds from other senior health care plans become available.
You have many possible options for senior health care plans that will make sure your loved one gets the top care for assisted living. Contact us for more information about how we can help you find the right solution.
What are some of your concerns about financing assisted living care?
