What Should You Know About Financing Living Arrangements at a Senior Care?
Thursday, November 9, 2017, 6:00 PM | Leave Comment
Caring for seniors at home is a matter of grave concern for today’s generation that often has to part ways with the elders for various reasons.
The fact is that majority of elders in the US lead a lonely life at home and often left to take care of themselves.
More and more seniors are moving out of homes and residing at assisted living facilities to seek relief from the solitary existence at home.
According to figures available, there were more than a million inmates in assisted living facilities until 2016, and the number is likely to double in the next fifteen years.
The crowd at the Milwaukee assisted living community is growing, and it is the result of increased longevity that people enjoy today. Going by the trend, the age of 80 is the new 65.
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Eldercare is costly
Community living is not cheap, and you must be ready to shell out a decent sum every year to meet the expenses of living in an assisted facility.
Although assisted living is cheaper than nursing homes, you may have to pay on an average $42,000 for staying for a year in an assisted living facility, assuming that you live in a one-bedroom apartment.
For a private room in a nursing home, it could cost you more than double, $87,000 annually. How you can arrange to pay for senior care will be clear after reading this article.
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Long-term care insurance
For covering the costs of senior care, the private medical insurance does not have any provision.
You can recoup the cost of assisted living by taking out long-term care insurance, designed to lessen the impact of high cost of health care needs in the long term.
The coverage includes expenses related to facilities for assisted living, home care, hospice care, respite care, nursing home, adult daycare and Alzheimer’s care.
Buy the policy before you experience any healthcare issues because insurance companies do not provide coverage for any pre-existing conditions.
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Convert your life insurance policy into long-term care insurance
It is not always necessary to buy a new coverage for long-term care insurance because you can convert one of your life insurance policies into long-term care insurance.
However, for conversion, the life insurance policy must be in force and provide death benefit ranging between $50,000 and $100,000.
Immediate upon conversion to Term Care Benefit plan you stay covered for senior care costs according to your choice. You receive payments for senior care immediately on commencement of the policy.
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Make use of reverse mortgage of your property
You are entitled to get a loan against the property you own by entering into an arrangement for a reverse mortgage once to attain the age of 62 years.
The lender converts the home equity into cash and disburses it in the form of a loan. Since there is no condition attached to the loan regarding usage of the money, you can use it for meeting the expenses of senior care.
Despite high costs, a reverse mortgage is a viable option when you find it difficult to get conventional loans.
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Robert Williams is a freelance writer who writes on a variety of subjects including, healthcare, insurance, personal finance and social issues. He is on the advisory board of a Milwaukee assisted living community. A nature lover, Robert is very fond of bird watching.
