Finding Funding for Long-Term Care
Did you know that just about half of all Americans turning 65 today will require long-term care (LTC) in their later years? With life expectancy continuing to rise as care costs grow with it, finding sustainable funding for LTC needs can be a challenge [1]. Luckily, there’s several funding options available. Here’s some of the most common:
- Annuities
Although among the least-used insurance products for LTC benefits annuity-LTC products deliver a lifetime income stream that increases in the event of an LTC need. It’s suggested that pure LTC products are best, but if you’re declined LTC by an insurer, annuities can serve as a healthy backup. [1]
- Life Insurance
Whole, term, or universal life insurance can all be converted into an LTC account. During this conversion, the policy ownership is transferred to an entity that acts as a benefits administrator, who takes on the responsibility of premium payments. [2]
- Qualify for Medicaid
Under the reality that many Americans are simply living longer, this strategy becomes more viable to closer you are to running out of money. The government assesses income and asset levels when deciding who qualifies, so once total assets are low enough, Medicaid will kick in. However, it should be noted that private insurance will likely provide a better quality of life. [3]
- VA Benefits
If you’re a veteran or spouse to one, there are many different benefits/compensation programs available through Veterans Affairs. Two of the most popular LTC services is Housebound and Aid and Attendance. The application process can be complex and lengthy, however, so be sure to consult with a VA benefits expert before you start. [2]
If you need help finding the best long-term care option(s) for you, call us anytime.
[1]http://www.investmentnews.com/article/20171009/FREE/171009944/how-to-pay-for-long-term-care-several-funding-options-exist
[2]https://www.agingcare.com/articles/all-ways-to-pay-for-long-term-care-195529.htm
[3]https://health.usnews.com/health-news/best-nursing-homes/articles/2009/03/11/4-ways-to-cover-the-cost-of-long-term-care
