One important consideration when you are planning for long-term care is how you will pay for it. Long-term care can be quite costly, especially if you want a service such as an in-home caregiver.
You may count on family or friends to provide you or your spouse with in-home care for free. New York even has a program that allows family members to get paid for providing in-home care to family members.
While this is an incredible benefit to have, sometimes medical or healthcare needs become too much and additional care is needed.
Perhaps you have personal funds saved up and can pay for these expenses out of pocket. However, the costs quickly add up and you might find your savings being depleted faster than you thought.
Medicaid and long-term care insurance
There are many government programs that provide long-term care services at little to no cost, including Medicaid or long-term care insurance.
Not everyone qualifies for Medicaid and sometimes insurance does not cover all expenses. If you own a home, a reverse mortgage could provide you with the cash you need to cover your long-term care.
A reverse mortgage allows you to convert some of your home’s equity into cash while continuing to live in your home.
Life insurance provisions that could help
If you have life insurance, examine your policy to see if it includes an accelerated death benefit. This allows you to receive a cash advance from the policy while you are still living. The amount of the advance is deducted from the proceeds to beneficiaries after your death.
You also have the option of selling your life insurance policy for the cash equivalent. If you do choose options involving a life insurance policy, remember that this lowers the amount left for your beneficiaries after your death.
Remaining in their own home for as long as possible is the goal of many people as they grow older. These options can help achieve that goal.