This week’s blog is from our friend Hazel Bridges at agingwellness.org. Making the decision to move yourself or a loved one into a long term care facility can be a challenge. Hazel offers some great guidance to help you make a good choice. Enjoy!
Weigh Your Options When It Comes to Long-Term Care Decisions
Facing a need for long-term care can be upsetting enough, but if plans are not in place to manage the costs involved, seniors can find themselves in the midst of financial upheaval. What options are available to cover the need for care if you or a loved one needs to live in an assisted-living home or a nursing home? How will you pay for it?
Why plan ahead?  Many people have misunderstandings about long-term care. For one thing, while Medicare is a precious resource for many seniors, it provides little coverage when it comes to assisted living or nursing home care. What’s more, people often underestimate the cost of long-term care, as well as how much work is involved. Forbes points out when those misconceptions are revealed during a crisis, it can mean financial devastation and emotional turmoil.
End-of-life caregivers can experience particularly challenging circumstances, trying to find good quality, affordable long-term care, and often suffer tremendous guilt. There are financial resources available some people overlook, such as selling your life insurance policy for a cash payout. Veterans and their surviving spouses can get help from the Veterans Administration, and some homeowners resort to a reverse mortgage to pay medical expenses.
What are your plans should a need for long-term care arise? Here are some ideas to consider:
Medicare Advantage plans.  One way to offset long-term care costs is to purchase a Humana Medicare Advantage insurance plan. You can enjoy the same coverage as with Medicare (Parts A and B). Additionally, some plans include benefits for prescriptions, dental care, vision care, and fitness services. A 24/7 nursing advice line is also available, along with caregiver support.
Long-term care insurance.  Long-term care insurance is just what it sounds like; it’s insurance coverage designed specifically to cover costs should a need for long-term care arise. Long-term care insurance usually pays out after an event requiring care, and will cover care in-home and in medical facilities. This form of insurance is usually best purchased when young, as premiums rise with age. Those with existing medical conditions may be denied coverage.
Life insurance rider. Those who do not qualify for long-term care insurance due to medical conditions still have other insurance options. As U.S. News explains, many people choose to add a rider to a life insurance policy. Specifics vary in accordance with your insurer and the policy you choose, but in essence if you need long-term care, you access the death benefit in advance. This means your beneficiaries will receive a lower benefit later, and there is typically a cap on how much you can use toward your expenses.
Retirement and investments. By only using the interest and dividends from retirement plans, some professionals point out you can save the principal toward long-term care expenses. You could also set up a dedicated investment account and hold it in reserve toward medical and care expenses.
Health savings account (HSA). Many people are surprised to discover they can use HSA funds toward medical expenses even after they retire. In addition, those age 65 and older can use HSA funds toward non-medical expenses without penalties.
Relocation. While on the surface it may sound extreme, some people choose to relocate in order to be able to afford the cost of long-term care. The cost of nursing home care varies widely in accordance with where you live, and by moving some statistics indicate you could reduce nursing home costs care from $170 to $340 per day, which comes out at about $5,000 per month. When push comes to shove, relocation could make the difference in financial solvency.
Is long-term care part of your future? While it’s usually impossible to know for sure, having a plan in place can make the difference in security and quality of life. Weigh your options now so you and your loved ones can face the future with confidence.