The average lifespan of the people in the US is gradually increasing. There are more and more adult children that are caring for their elderly parents who have used all of their savings.The2014 Cost of Care survey by Genworth stated that the average cost of a one-bedroom apartment in an assisted living facility in the United States is around $42,000 a year and a private room in a nursing home is more than $87,000. Paying annually for care often requires a full understanding of the options through careful elder care planning in San Diego, California, and research. Here are some of them-
Long-Term Care Insurance (LTCI)
Long-Term Care insurance or LTCI may help to pay for the costs that are not covered by private medical insurance. This type of plan may minimize the financial impact of the need for long-term health care. Basically, LTCI covers the costs for assisted living, home care, respite care, adult day care, nursing homes, hospice care, and even Alzheimer's care facilities. Many companies will not insure anyone that has a pre-existing condition, so it is best to purchase an LTCI before any health issues begin.
Life Insurance Policy Conversions
Instead of just allowing a life insurance policy to surrender or lapse, you can often have it converted into a long-term care benefit plan. Any type of enforced life insurance policy, such as universal, whole term and group with the death benefit of $50,000 to $1million can be easily and quickly converted into a policy that is right for you. It is a very unique financial option for the elderly because it pays for immediate care needs. There are no wait periods, no cost or obligations to apply, no premium payments, no care limitations, no requirement to be terminally ill, and most importantly—all health conditions are accepted. The policy owner has the right to have the policy converted to an enforced life insurance policy to be able to enroll in the benefit plan. And they are able to immediately send tax-exempt payments to cover long-term care in senior housing costs.
Government-Funded LTC
Many US citizens are very surprised to find that Medicare isn't a universal health care plan for those who are over 65 and it doesn't cover the long-term care costs for the elderly. A home equity conversion mortgage or a reverse mortgage is a specific loan for those who are over the age of 62 that will turn the equity saved in a home into cash. When someone obtains a reverse mortgage, they can use the money from their home equity while living in and keeping the ownership of their home. There aren't any restrictions on how you can use the money as well. If you really need money for a specific purpose and are concerned about not being able to make any type of payments on an average or regular loan, getting a reverse mortgage makes good financial sense.
For eldercare planning services in Toledo, Ohio, contact Chris Cooper today!