The price of long-term care can be something that catches people off guard. Studies have shown that the median monthly price for these Assisted Living communities is $4500, though that figure is lower in certain states.
A number of factors go into these figures, including levels of care and included amenities. These prices are often variable, depending on how much care is needed. Still, it can be a shock at first, especially if you are unfamiliar with long-term care.
Thus, planning is key. And to plan, you need to be informed about your options and resources that are available that can help you afford senior living, especially long-term care.
Keep reading to find out more about resources that are available for those looking to find ways to pay for senior living and long-term care.
- Long-term care insurance
While private health care plans are variable in what they cover, most insurance policies do not cover assisted living or other forms of long-term care. Luckily, many of these companies offer a separate product known as long-term care insurance. An individual that is not able to perform a set number of activities essential to daily life can become eligible for these benefits in most situations.
These policies may allow an individual to lower the amount that they would pay out of pocket, making the cost of long-term care more affordable. While traditional health insurance policies may not cover this type of care, they will assist with some of the costs associated with it, including medications.
As these policies may vary, it is best to ask your insurance provider for specifics about LTC insurance.
- Veterans benefits
If you receive benefits from the Veterans Administration, you may be eligible for certain benefits that can help cover the cost of long-term care. One of these benefits is the Aid and Attendance benefit – a need-based payment that supplements the VA pension.
This can help cover the cost of long-term care, as the benefit is meant for veterans who need assistance in daily activities. The amount that it covers varies, as do the eligibility requirements, so we recommend you ask your local VA office for more info and how to apply. There are certain third parties that can assist with this process, including Veterans Service Organizations.
State-offered Medicaid may include provisions for long-term care, though the provisions and eligibility requirements may vary. Because Medicaid is administered at a state level, the eligibility is different from state to state.
One important thing to note is that certain Assisted Living communities may not accept Medicaid. Similarly, a community must be Medicaid certified in order for a resident to receive Medicaid benefits.
- Third-party financing
Various third-party financing options are available to pay for long-term care. These include annuities and reverse mortgages specifically designed for those in long-term care communities. Additionally, options include life insurance policies which may have some stipulations concerning long-term care, lessening the amount that the holder or their beneficiaries have to pay.
Because these benefits vary, check with your providers to see if you are eligible, and what options are available.
The cost of long-term planning can be high, but many individuals will need some sort of long-term care in their lifetimes. Therefore, it is essential that you have some sort of plans in place, including plans about how to finance it.
By utilizing some of the above resources, you’ll know the full extent of your options and live life worry-free.