Concern about how to pay for long-term care is often a roadblock to moving forward. Too many people wait for something unfortunate to happen before they consider the right type of care to support their personal needs and wants. Waiting until the last minute can place unnecessary stress on you, your family, and your finances.
While it’s impossible to know what the future holds, it’s never too soon to start planning for successful aging. Plan ahead by imagining what your life will be like in five to ten years.
Fortunately, there are many options to help you pay for the lifestyle and community best for you.
Using proceeds from the sale of a house is one of the most common ways to pay for senior living. Once the move is made, most seniors find they have fewer worries about climbing the stairs, loneliness, maintenance and other unexpected costs and safety concerns often associated with owning a house. Bridge loans and reverse mortgages are also ways your house can be used to help finance senior living.
Many people spend their lives saving for retirement so they can enjoy their senior years. When the time comes, assets and sources of income like Social Security benefits, annuities and interest from retirement accounts, stocks, bonds, and trust funds can supplement personal savings.
Long-term care insurance can help pay for services that assist with the activities of daily living (ADL’s) – up to a preselected limit. These services can be delivered in a range of settings. Private health insurance and Medicare may also be used to cover necessary medical costs. Life settlement – selling an existing life insurance policy to a third party – is another way some seniors cover the cost.
Some or all the costs of senior living may be tax-deductible depending on the type of community you live in, your state, income level and medical expenses. These tax benefits could mean substantial savings to seniors themselves, or families who claim an aging loved one as a dependent.
Most Americans are surprised to find out about the wide range of benefits available to veterans and their spouses, especially those that can supplement the cost of care in a senior living community. The Veterans’ Aid and Attendance Program (A & A) and Housebound Allowance are two such programs available to qualifying veterans and their spouses.
