Posted on: 14 June 2017
Around 10,000 baby boomers turn 65 every day, and one day you may have to make the decision about your own aging parents living alone. Will they be able to care for themselves, or will they require special care? Assisted living facilities help families and seniors find a way to get the care they need, but what are your options for paying for this cost? Take a look at several different ways you and one or both of your parents can find the financing necessary for assisted living.
One way to obtain the funds necessary for assisted living is by seeking a reverse mortgage, also called a Home Equity Conversion Mortgage. This is a type of loan for homeowners above the age 62 that takes the equity in a home and converts it into cash. There are no restrictions on how the money is spent; you are free to invest it in caring for one of your parents if they are unable to live by themselves. Your parents would still maintain ownership of the home, and your other parent can continue to live in the home. Even better, a reverse mortgage pays of any existing mortgage, which eliminates a monthly mortgage payment. This helps free up additional cash for other expenses.
Long-Term Care Insurance
If your parents' health insurance does not cover costs for long-term care like assisted living, Long-Term Care Insurance, or LTCI, may be able to help. What's covered? In addition to assisted living care, LTCI pays for home care, adult day care, hospice care, nursing homes, respite care and Alzheimer's care facilities. This way, you have more freedom to choose where to place your loved ones. There are many different options LTCI offers, such as daily benefit amount and inflation protection, so research all your options before choosing the right plan to fit the needs of your parents.
Life Insurance Policy
If your parents have active, valid life insurance, consider converting their policy into a Long Term Care Benefit Plan. Any type of life insurance – Term, Whole, Universal and Group – can be used as long as the death benefit is between $50,000 and $1,000,000. This option does not have a waiting period so it can be initiated quickly. Any pre-existing conditions are covered, and there are no care limitations. There are also no premium payments. You and your loved ones are able to choose which type of care fits their needs, whether assisted living, nursing homes, home health care, hospice care or memory care.
With these and other types of finance options, you and your parents can be assured they are receiving the best care possible.Share