Paying for Long Term Care

As we age, so does the likelihood of needing long term care. Nearly 70% of individuals over age 65 will need some form of long term care before they die. We know these expenses are coming, so what’s the best way to pay for long term care?

The information below can help you answer that question. 

Insurance Products Should Be Your First Choice

If financial hardship is likely to fall upon you, then investing in an insurance policy that protects against that hardship is a wise decision to make. 

Protecting against possible financial loss is the sole purpose of all insurance products. And in a time of economic hardship, no one has ever regretted having an active insurance policy in place. 

Before we explore the different ways of paying for long term care, it’s essential to know the different types of insurance options available. All of which will help reduce the overall long term care cost. 

The three types of insurance products that can help pay for long term care include:   

Depending on your current health, age, and financial situation, one of these products will likely fit better than the other two. Our friendly agents will help go over your specifics and help you narrow down your best option. 

The remainder of this article aims to discuss ways to pay for long term care without a long term care insurance policy. 

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6 Ways to Pay for Long Term Care without a LTC Insurance Policy

1. Self Fund.

Self-funding your future medical expenses will be an obvious option for paying for long term care. And that’s precisely why we put it at the top of the list.  

We all know that paying for long term care out of pocket can be incredibly expensive. Many will doubt that it’s possible to cash flow these expenses out of pocket; however, we’re here to tell you it is possible with proper planning and financial discipline. 

Many individuals already have the financial means of paying for their long term care needs; however, what they are missing is a plan. 

Through proper planning, discipline, and smart investing, paying for long term care expenses out of pocket is possible. For those who go this route, it’s crucial to set realistic goals, and then work diligently towards those goals. Save and sacrifice for future rainy days. 

2. Add A Rider to an existing life insurance policy or Annuity

One of the cheapest ways for paying for long term care is to add a long term care rider to either a life insurance policy or an annuity investment. This insurance add-on will allow you to access your life insurance or annuity funds to pay for qualifying medical care. 

If you already own one of these investments, we highly suggest you explore your options of adding a long term care rider.

If you don’t own a life insurance policy or an annuity, one of our agents can help you explore your options of making a new purchase that includes a long term care rider.

3. Government Benefits 

It’s a common misconception that the government pays for long term care costs through Medicare. Medicare does pay a minimal amount of long term care expenses; however, it is minimal.

Medicare Part A covers up to 100 days of inpatient care in a hospital, nursing home, or treatment center. Once you exhaust these benefits, you’ll be left paying for the full cost on your own. While this is a great benefit to have, Medicare fails to cover the most common type of long term care which takes place in your home, not inside a hospital.

At-home, personal care is the most common type of long term care and comes in the form of assistance with daily activities such as eating, bathing, and dressing. Medicare does not provide any benefits for this type of care.

If you qualify for Medicaid, then you may be able to get your LTC expenses covered. However, the government will seize practically all of your assets for compensation. Some states have laws that allow you to keep your car and stay in your home; however, the bank will seize these assets after your death.

While those on Medicaid can get LTC coverage, this is a place no one truly wants to be.

4. Life Settlement

Did you know that most life insurance policies can be sold or cashed in for a lump sum? It’s known as a Life Settlement, and it’s a viable alternative to long term care insurance

For some people, it may be wise to purchase a new life insurance policy. For others, it may be best to exchange your old policy for a lump sum life settlement. It all depends on your life circumstances. Each situation is unique, and that’s why it’s best to work with an independent agent to help you thoroughly asses your options. 

5. Reverse Mortgage 

For specific individuals, a reverse mortgage may be a suitable option for paying for long term care. Millions of Americans own homes with untapped equity. You can access that equity through a reverse mortgage.

Through a reverse mortgage, you can get a predictable stream of income to supplement your long term care expenses. You will get to live and remain in your home until death. After death, the bank will take ownership of your house. Many homeowners are pleasantly surprised by how much income they can receive through a reverse mortgage.

If you’re interested in exploring your options, give our office a call today. Our helpful agents provide a free referral service to the top reverse mortgage companies in the country.

6. Reach out for Generosity 

If you’ve exhausted your alternatives for funding long term care, you may have to rely on the generosity of others to pay for your long term care expenses. Or if you’ve been caught off guard from an unexpected life event and need immediate financial help, this may be your only option. 

It may be tough to ask family or friends for financial help, but you never know how generous people can be when someone they love is suffering. The most challenging part may be asking with humility and honesty about your situation.

How Should You Pay For Your Long Term Care?

The answer to this question is ultimately up to you. We highly suggest you explore your options with the options listed above. Until you do your research, it’s impossible to make the best decision for you and your family. 

We provide free advice and support. Our knowledgable experts are here to help you the whole way through.  

There’s never any obligation when speaking with an agent – just friendly advice from an expert with years of experience. 

See why thousands have chosen us to help them protect their health and their finances. 

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