We will help you understand the variety of financial options available so you can decide which may be the most appropriate for your situation.
Of course you will want to make sure your loved one gets the care necessary to live comfortably. Navigating the host of payment options adds additional challenges to the stressful process. This list of payment options will provide you with the background you need to have when making the best decision.
Long-term care insurance: This insurance provides a variety of coverage to pay the cost of care that is typically not covered by other forms of insurance. Once an individual has a pre-existing condition it is cost prohibitive. Some policies cover assisted living and memory care as well as skilled nursing for a pre-determined amount of time, or in some cases, a dollar amount.
Veteran’s benefits: Veterans, or their spouse, who served during wartime may be eligible for this benefit. It pays up to $2,000 per month of supplemental income that may be used to offset the cost of assisted living, in-home care or other expenses as defined under the Aid & Attendance portion of VA Pension benefit. There are some financial qualifiers that must be met in order to receive the benefits.
Secured lines of credit: A line of credit can be secured by certificates of deposit (CDs), equities (stocks), personal property and cash. This is similar to a bank account; however instead of depositing money into the account, money is borrowed against a line of credit to fund the cost of care. This form of credit may be consistently borrowed against without having to renegotiate terms.
Reverse mortgage: Homeowners age 62 and older have the option of using a reverse mortgage to provide access to their home’s equity. The homeowner is mortgaging their home to the provider, who pays in one lump sum or multiple payouts to help cover the cost of assisted living or in-home care. Repayment of the loan is deferred until the owner passes away, moves out or the home is sold. As long as one of the homeowners remains in the residence, these funds may be available.
Life Insurance: Some forms of life insurance can be used to fund the costs of assisted living and other care services.
Gift Tax Exemption: Family members can offset the costs of a loved one’s memory care by taking advantage of the IRS gift tax exemption. This allows individual family members to gift up to $13,000 per person, per year without paying gift tax.
Tax Deductions: Residents and their families may be eligible to deduct some or all of their long-term care services, including assisted living, memory care and home care as unreimbursed medical expenses on their federal tax return.
Moving from one’s home is grueling at any age. For older adults, especially those with health issues this transition can be both physically and emotionally difficult. Today’s senior adults didn’t move even as baby boomers have. As a result, they may have lived in their current home for many decades. Parting with it isn’t easy. It’s a monumental task.
Below are some Questions/Answers concerning the physical move from one’s home.
Finding the right care for your patient or client isn’t just good business practice, it’s of utmost importance. At Aster Senior Communities we share your dedication to a client’s best interests, be they in need of an assisted living or memory care community. Our mission is to have Aster Senior Communities be top of mind with high quality care with those professionals who consider us for their clients’ or patients’ needs.
Support and knowledge are valuable tools when meeting the challenges of dementia. They can make all the difference in the world for those with memory issues. Not to mention those who care for them. Please browse the links on this page for additional resources to help better understand dementia and provide care for both your loved one and even yourself.