Five Ways To Pay For Long Term Care

What is long term care? Well, the most basic definition for it is the care you need when you can no longer perform daily tasks such as dressing, toileting, bathing, and eating.

Let’s say someone becomes disabled. The question to ask is, “What are his options for long-term care?”. There are four options to choose from, with different things in-between the four, but these are basically the four major ones.

There is in-home care, adult day-care, assisted living and a nursing home. Each of these just go in degrees of how much help you need. Obviously, you need less help if you are in an adult day-care versus an assisted living facility where they are there to assist you at the push of a button.  

If you are in a nursing home, it’s the most amount of care you’re going to need because they are available with nurses 24/7. We’ve all heard about nursing homes on TV and in movies. A nursing home is a big issue.

For some staggering statistics about long term care. 70% of everybody over 65 years old will need one of these forms of care, and if you’re married, the figures are even higher. 

If you’re married, 91% of one of the two of you will end up in a long-term care facility. So, it is a high thing, and that’s the reason why there are so many caregivers out there nowadays.

Don’t allow yourself to be left with no provision in your old age and no long-term care. Schedule a strategy session today!

There are so many nursing homes because this thing is just skyrocketing, booming all over and in demand. The more people get older and people are living longer, the more of these services are needed.

So, the question to ask yourself is, “How do you pay for these things? What are your options?” 

#1 Use Your Own Money

Well you could use your own money. If you’re broke, the government will help you at the end of the day. 

Most people use their own money, this is the most common thing that people do. It’s sad though, that assets are getting wasted this way, especially when they don’t need to be. I guess it’s a way to do this.

#2 Long-term Care Insurance 

You could use long-term insurance if you have it. That is if you were lucky enough to have bought into this before the time. According to the federal government people for shop for LTCI’s are about 60 years of age. 

It is better to start shopping at around 50 though, because when you start to shop at an older age your LTCI premiums become more expensive, with premiums at age 65, 8-10% higher than at age 64. 

#3 Aid and Attendance For Veterans

As a veteran, you qualify for aid and attendance if you fought in certain wars. The government would help with the nursing home or long-term care costs. 

To qualify you must have a net worth limit of $127,000, which increases yearly with cost-of-living adjustments. However, in the case of a VA, this amount includes both your assets and your income.

Don’t allow yourself to be left with no provision in your old age and no long-term care. Schedule a strategy session today!

#4 Medicare

Medicare is a government program that is targeted towards 65-year olds and higher. You are automatically enrolled if you’re 65. 

They will usually help you with your health insurance and will also help with long-term care. If you’re in palliative care or in a hospice, and you injure yourself, needing rehab, they will cover up to 100 days. 

What happens most often is that after a hundred days you’re off, and now you have to pay with your own money. The decision becomes one of whether to pay for a hospice, or whether to bring them home and do in-home care, which is a big problem these days.

So, we have to figure out which is best. Which style do they want? In that regard Medicare has limited benefits.

#5 Medi-Cal

Medi-Cal is also called Medicaid. Whether it is Medi-Cal, Medicaid, it is still the same thing. It is a joint government program, that will cover almost all your nursing home expenses.

Though it does not cover all long-term care expenses, it does cover nursing home and some assisted living facilities if the facility takes Medi-Cal. 

A lot of people think that using Medi-Cal must mean they are poor. As if people think that they don’t have enough assets, therefore they need Medi-Cal. 

That is not the case.

Medi-Cal is simply a box with a set of rules. You have to ask yourself, do you fit in this box? If you do, you’re on Medi-Cal. If not, maybe you just need to do a couple of things and you will be qualified for Medi-Cal.

You should speak with an attorney that knows the procedures and how to get on Medi-Cal in order to do this. A lot of people have no idea that if for instance, you own a house in Beverly Hills, and it’s worth let’s say $4 million, and you have nothing else.

If you come to me and say, “Hey, I have a $4 million house. What do I do for long-term care?” I’m going to sit them down and tell them, you will qualify for Medi-Cal. Believe it or not, you qualify.

It’s as simple as asking an attorney. 

You might need to move a couple of things in other situations, but in that situation, you’re good and you don’t have to sell your house. You don’t have to pay all those taxes.

Don’t allow yourself to be left with no provision in your old age and no long-term care. Schedule a strategy session today!