As you get older and develop medical conditions, you may need to consider getting assistance in the form of senior care. From in-home care to an assisted living or nursing facility, there are many options that can meet your needs. But the unfortunate reality is that senior care often comes with a high price tag, and you need to know what costs to anticipate—and how you’ll cover your care. In this post, we’re exploring how you can finance this important step in your journey—and live comfortably and affordably throughout your later years.
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.
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.
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.
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 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.
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.