How to Pay for Senior Care

Aside from determining the type of senior care you need, the biggest decision you’ll make comes down to cost and payment. Though some seniors have children or other family members who can pay for their senior care assistance, many do not. Once you are retired, there are many different ways you can pay for senior care, from government assistance to loans. Here are some of the most common payment options to consider.

Medicare

Government-backed Medicare is one option for financial assistance for elderly care. Generally, Medicare Part A is the plan that will cover senior care, including short-term nursing home stays, daily nursing facility or in-home health care, and hospice. It excludes in-home custodial care that is not medically necessary, and also long-term nursing home stays. If you anticipate needing only temporary or short-term care, Medicare can help you pay for it.

Medicaid

Another option from the U.S. government, Medicaid provides coverage for certain long-term senior care—such as live-in health services for the chronically ill, integrated health care, and the PACE program for community and social services. If you qualify for Medicaid, you can get a broad range of elderly care assistance services covered through the program benefits.

VA Benefits

As a token of their service, elderly veterans may be eligible for an increased pension that covers assisted living, home health visits, or nursing home stays through the U.S. Department of Government Affairs. Vets who require daily care and attention or have a terminal condition may apply to long-term care programs, such as hospice or palliative care.

Reverse Mortgage

Reverse mortgages work exactly the opposite of a mortgage—instead of paying a lender, the lender pays you. You borrow against the equity in your home for cash, which can supplement senior care and healthcare expenses. While untaxed, reverse mortgages will come with interest and eventually need to be paid back—usually by selling your home—which may fall to your beneficiaries.

Life Insurance

If you hold an existing life insurance policy of any type—even term—it can potentially be sold in exchange for cash. This process is known as a life settlement, or the sale of an existing life insurance policy for a lump sum greater than the surrender value. If your policy is no longer needed or wanted, you can explore selling it to better afford the senior care you need. If you are eligible, a life settlement provider such as Coventry Direct can help guide you through the process. Find out if you qualify today.

The Costs of Senior Care

Paying for elderly care assistance can seem daunting—especially in retirement. It’s important to research different options and determine what is most cost-effective and meets your needs upfront. Keep in mind that the type of care you need may evolve over time, depending on your age and health.

According to the U.S. Department of Health and Human Services, the average costs of senior care are as follows:

• Nursing homes: $6,844-$7,698 per month, depending on if a room is shared or private.

• Assisted living facility: $3,628 per month for a single bedroom

• Personal health aide: $20.50 an hour

• Homemaker/concierge services: $20 an hour

• Adult day health care: $68 per day

The costs of senior care may range significantly from state to state. For instance, a private room in a nursing home facility averages $12,349 per month in New York State, but only $5,627 per month in Oklahoma. The cost of senior care is expected to climb by 2030.

A life settlement can help you start planning for your future, your comfort, and your family. Contact Coventry Direct to learn more about how selling your life insurance may benefit you.