When you’ve made the decision that you’re ready to downsize and simplify your life, it’s time to start researching senior communities to find a new residence that will meet your needs, now and potentially in the future. Or, perhaps you’re a family member assisting an aging loved one in the moving process. Whatever your current situation may be, chances are you’ve started to wonder how to pay for senior care when the time finally comes.
Senior living costs and assisted living costs vary state by state, and also can depend on the type of community in which you wish to reside.
Paying for senior care can be done a few different ways, based on your own financial status or needs. Here are just a few of the financial options available:
When you have enough income and savings, paying for senior care or long term care privately is the first option to consider. Paying privately can also include utilizing your home equity through a Reverse Mortgage, which is a special kind of home equity loan that allows you to receive cash against the value of your home without selling it. Or, you can enter into an annuity contract with an insurance company to help pay for senior care. There are also certain trusts, like Charitable Reminder Trusts or Medicaid Disability Trusts you can utilize.
Long Term Care Insurance covers long term services that may not be covered by private medical insurance. In most cases, LTCI will cover skilled nursing care and assisted living costs, as well as respite care, hospice care, and memory care. Just note that it’s generally easier to purchase LTCI before any health conditions arise, and most companies will not cover people with preexisting conditions.
You can choose to convert your current life insurance policy into what is called a Long Term Care Benefit Plan instead of allowing your policy to lapse or be surrendered. If you have a Term, Universal, Whole or Group Policy with a death benefit of $50,000 up to $1 million, it can be converted into a Long Term Care Benefit Plan to start covering senior living costs immediately. There are no wait periods and all health conditions are accepted, so it’s a good financial option for some seniors.
Your current health insurance plan probably covers only very limited and specific types of long term care. In general, most forms of private health insurance follow the same rules as Medicare; meaning that if they do pay for long term care services, it’s usually only for short term, skilled care when it is medically necessary, like for hospitalization after an injury or illness.
If you’re looking for senior care in West Palm Beach, Florida, consider Lourdes-Noreen McKeen. We are an active retirement community offering luxurious, waterfront senior living. We offer a holistic approach to senior care, focusing on supporting the mind, body and soul.