- What level of care do we need?
- How will mom/dad/I adjust?
- Who are the best care providers in my area?
- When should we make the transition?
And, finally and perhaps most important of all: How will we afford it?
That’s a great question. A 2020 Genworth Cost of Care survey tells us just how expensive long-term care can be. Here are a few annual averages cited from the survey:
Adult Day Care: $19,000+
Assisted Living Facility: $51,000+
Skilled Nursing Facility: $93,000 – $106,000+
It isn’t hard to see how lack of funding can put the brakes on your plans.
It can also force you into accepting an arrangement that is less than ideal because, if you can’t afford the very best for mom, you may have to settle for second best, or third best. That’s an agonizing compromise to have to make.
At Mom’s House we talk over these concerns with family members every day. And we’ve found that, aside from using Medicare/Medicaid to help pay for care, many are not aware of other potential resources available to them to help bridge the financial gap between what they need and what they have put aside.
So, you need some financial help. But where to start?
It’s important to first note that there are pros and cons to every financial resource. So it’s a matter of doing the groundwork, understanding the options and making the best choice for your given circumstances.
Here are just a few of several available sources to help finance long-term care, taken from the book, “Paying for Long-term Care”. (You can get the book here.)
- Veteran’s Benefits. Available to veterans and their spouses, you’d be surprised at how many vets are either unaware of these benefits or don’t think they qualify. Most of the help for long-term care needs will come in the form of Aid and Attendance Pension. There are requirements to qualify which you can learn more about by contacting your local VA or going online.
- Life insurance conversions. This is a process that transfers ownership of a life insurance policy to a third party who takes over the payments and, in addition, pays out the balance by making monthly payments to the original holder. The payments can be used to help pay for long-term care.
- Bridge loans. These loans can be helpful when an immediate transition is needed. They can help you cover the cost of long-term care while waiting for the proceeds from the sale of a house or other sources to kick in.
- Selling the house. While this can be a major cash producer, there are many issues that need to be addressed which take time and resources. However, transition specialists, like ours at Mom’s House, will remove most of the burden by buying your house outright, commission-free, thereby eliminating delays and putting cash in your hands quickly.
Each of the above has its merits. Identifying which is best suited to your needs, however, takes some time and effort. That’s where Mom’s House can help. Our transition specialists are experts in funding sources and can help you navigate through each to help you find the best fit for your decision.