Call Now to Speak with a Care Manager Speak with a Care Manager Now: 916.226.3737

What Are the Top Options for Financing Senior Care?

By Debbie Waddell, 9:00 am on November 17, 2015

Whether you hire a Roseville at-home care provider or your elderly loved one is in an assisted living facility, senior care does cost money. Luckily, there are some good ways to help finance care you and your loved one may not have thought of.

Long-Term Care Benefit Plan

If your loved one has a life insurance policy, it’s worth considering converting it into a Long-Term Care Benefit Plan. Any type of plan, be it universal, term, whole, or group, can be converted into a Long-Term Care Benefit Plan as long as the death benefit of the policy is at least $50,000. Because he or she already has the insurance plan, there are no limitations, waiting periods, or conditions that can exempt your loved one. The money from the benefit plan is tax exempt and can be immediately set up to cover housing, long-term care costs, and medical expenses.

Long-Term Care Insurance (LTCI)

If your senior loved one doesn’t have a life insurance policy eligible to be converted into a Long-Term Care Benefit Plan, LTCI is also a good option. This insurance covers any care needs your loved one’s private insurance doesn’t cover, and the payments for LTCI are generally far less expensive than the leftover costs associated with private insurance. LTCI generally covers any type of long-term care options such as assisted living, nursing homes, in-home health care, and even respite care in Roseville. The one drawback to this method is seniors with preexisting conditions are often denied, so purchasing LTCI before your loved one has a serious medical diagnosis is a good idea.

Sliding Scale Options

Sometimes care organizations decide on a payment amount based on your loved one’s income. These sliding scale forms of payment often mean your loved one will have a pay rate tailored to his or her budget rather than the overall cost of care from a non-sliding scale facility.

Reverse Mortgage

For seniors 62 and over who own their own home, a reverse mortgage may be an option to cover care expenses. This type of mortgage uses the equity in your loved one’s home to afford a lump sum or monthly payment schedule. Rather than borrowing a set amount, a reverse mortgage’s loan balance increases over time. The homeowner is allowed to stay at home until his or her passing, even if that means the balance of the loan eventually exceeds the value of the home. However, once your loved one passes, the home must be sold to repay the loan.

These are just a few ways your loved one can pay for high-quality home care services. If you have additional questions on how to pay for senior care, reach out to Home Care Assistance. We want to help our clients find the best options to obtain part-time and live-in care in Roseville. For more information on our senior care services, call one of our experienced Care Managers at 916.226.3737 to schedule a complimentary consultation.

Bootstrap 101 Template