Long Term Care Financing Options

How to Manage the Costs of Care

One of the most pressing issues faced by families contemplating assisted living is how to pay for it. The time to start preparing is now by learning as much as you can about long term care financing.

The truth is that most families need to use more than one means of funding to pay for senior living costs. Below we’ve listed the main options.

This section of the website also provides a selection of articles for more in-depth answers to your questions about long term care financing.

Sources of Long Term Care Financing:

• Money from Home Sale or Equity: It’s possible to finance long term care by selling your home or using its equity through a reverse mortgage. This may or may not be enough to cover all assisted living costs.
• Private income, assets and savings: Most long term care financing comes from individual contributions. This requires planning ahead and is best when started as early as possible.
• Insurance: Most general health insurance doesn’t cover long term care financing, so read your policy carefully. Long term care insurance policies are available but premiums can be high.
• Medicare: It pays only for short term care after hospitalization. Medicare doesn’t cover long term care however it may pay for skilled nursing or home care under certain circumstances.
• Medicaid: Medical Assistance or Medicaid is a government program that pays for long term care for people with low income and limited assets.
• PACE: Programs of All-inclusive Care for the Elderly offers long-term care services for frail people. It lets them keep living at home while receiving care rather than be institutionalized. PACE is available only in states that offer it under Medicaid.
• Veteran’s Benefits: Veterans Affairs (VA) may provide long term care for service-related disabilities or for certain eligible veterans. The VA also provides some home care.

A certified financial planner can help you navigate your options and create a long term care financing plan... both for yourself and your loved ones.