It’s no surprise that the cost of care is rising year after year (and varies based on where you live). These increasing costs can make it difficult for families to afford care for their loved ones. Unfortunately, health insurance and Medicare don’t cover long term care services. Other public programs such as Medicaid require spending down your assets to become eligible for benefits.
If you’re looking for ways to pay for LTC for your future, here are a few different options to consider when you’re on a budget.
Long Term Care Insurance
Long term care insurance pays for you to receive care in your home, an assisted living facility, memory care facility, and more. This coverage is bought with your health and rates are based on your age at the time of purchase. An LTC specialist can help you decide how much coverage you can afford on a fixed budget. Flexible coverage options are available to cover a portion of care expenses and help ease the financial burden on your family.
Planning ahead for care offers peace of mind. Speak with a long term care specialist to learn more about your options.
A reverse mortgage is a unique type of home equity loan that allows you to live in your home and receive the cash value of your home without selling it. This income can be used to pay for LTC or other living expenses.
Reverse mortgages are limited to those ages 62 and older and you must be living in the home as your primary residence while receiving payments. Keep in mind, a reverse mortgage may not be right for everyone. Speak with a long term care planning specialist or mortgage counselor to determine if this option is right for you.
Hybrid products are Life Insurance or Annuities policies with long term care riders added to cover your care needs. These unique products offer you flexibility in how your pay for care, and can be a great solution for those who are unable to qualify for traditional long term care insurance policies. A long term care specialist can work with you to determine which option is right for you and your budget.
Spending Down to Qualify for Medicaid
Medicaid is a federal and state government program established to assist low-income individuals with paying for high medical bills. It is also the largest public payer for long term care services.
To become eligible for Medicaid, you’re required to spend down your assets. This public program is available for individuals on a fixed budget with few assets but is not the best option for individuals with assets to protect.
Are you interested in finding the best way to pay for LTC on your budget? An LTC specialist will shop the market to help you find the best solution for your future care needs. Get a free quote today to learn more about your options.
LTC Consumer is an independent, free online service to help consumers understand what long term care insurance is, how it works, and how to evaluate coverage options. Our mission is to provide an educational, no-pressure resource for learning about long term care planning, with the opportunity to speak with specialists who can help them.