Other Ways Pay For Care
When it comes to figuring out how to pay for your parent’s or loved one’s care, look carefully at all the options: Medicare, Medigap, Medicaid, Long-term Care Insurance, and Veterans Benefits. Wait, there’s more! Here are some ideas that might work in conjunction with these health care plans:
If you or other family members are willing and able to care for your parents or older loved ones, this is one way to cut costs. But even if your parents live in your home, the time may come – if it isn’t already here – when you’ll need to count on some outside assistance.
Some companies offer additional riders for life insurance policies. Your parents may be able to use their life insurance policies to help pay for their long-term care. They may be able to sell their policy to a third party. Check with their agent.
A reverse mortgage is a loan that gradually converts the built-up equity in a home into money. If your parents are still able to live at home, a reverse mortgage might be a good option for them. The payments are tax-free. There are no health stipulations. And the loan won’t need to be repaid until your loved one moves or passes away. To learn more about reverse mortgages, ask our expert.
Long-Term Care Annuities
This is a series of payments over a set time period. A single premium payment made when the account is established provides the funds for the annuity. This can be a good option if there’s a pre-existing medical condition, but an annuity might complicate your parent’s taxes, so consult with a tax advisor first.
Selling a Home
If your parents are no longer living in their home, funds from the sale can be a good source for paying for long-term care.
Raiding the Piggy Bank
Talk to your parents about any savings accounts or other assets you may not know about. Tell them the time has come to spill the beans on their hidden piggy banks. This includes any investments. Long-term care is expensive and you’ll need to know exactly what they have to work with.