INDUSTRY INSIGHT
SENIOR CARE
SPONSORED CONTENT
HOW TO PAY
FOR LONG-
TERM CARE
P
lanning for long-term care is an important and necessary
part of aging. Many people are surprised to learn that most
long term care is private pay; and that only under certain
circumstances and with certain medical conditions, that medical
insurance or Medicare / Medicaid will pay for your long term care
needs. With personal care / assisting living communities running
anywhere from $50,000 to 65,000 a year; and long term skilled
nursing facilities running $120,000 to 150,000.00 a year; you may
need to look outside the box to uncover your resources.
Monthly Income: Start by taking a look at what you have to
work with on a monthly basis. Review your monthly income
then add in any pension, savings, investments, assets or other
income. This will give you a total monthly amount to work with.
Now, what do you have in savings? You may be reluctant to dip
into your savings, but remember this is what you saved for, and
now is the time to use that nest egg.
Pension Program. According to the Veteran’s Aid & Attendance
Benefit program, Veteran’s can receive up to $1912 per month,
and both a husband and wife can receive up to $2266.00
per month to help pay for in-home or assisted living care.
Unfortunately it can be a year or so before you are approved and
the monthly benefit payments begin.
Planning for long-term care can feel overwhelming. But by
learning about the type of care that’s available and reviewing
your additional sources of income; you should be able to find
the funds to pay for these services when they are needed.
Long Term Care Insurance: Do you have a Long Term Care
Insurance policy? If so, you will want to review the policy to
see when you may qualify to receive benefits. Most of the older
policies do not have a cash payout upon death, so the sooner
you open a claim and start getting the benefit the better.
Real Estate: Do you have a home to sell? For many people
the income from the sale of their home is their savings. Most
homes take 4-6 months to sell, and some older homes may need
upgrades before they can go on the market. So although this is a
resource, it may not be an immediate source of income. In some
instances, renting the home can be a quicker income option.
Life insurance: Life insurance isn’t only for survivors to inherit.
The liquidation of a life insurance policy through a life settlement
can act as a funding bridge to help cover the costs of retirement
and senior living services when other assets, such as a home or
stocks are not available. Some policies may have a penalty for
early withdrawl however the payout could be substantial and
well worth the cost.
Veteran Benefits: If you or your spouse is a U.S. veteran
who served during war time you may be eligible for monthly
compensation through the Veterans Aid & Attendance Benefit
WOODLAND HILLS
❘
SPRING 2020
23