Senior Financing


How does one pay for senior care and housing options?

The Metlife Mature Market 2010 Survey indicated the following regarding pricing for senior care and housing options:
  • The national average daily rate for a private room in a nursing home is $229, while a semi-private room is $205, up from $219 and $198 respectively in 2009.
  • The national average monthly base rate in an assisted living community rose from $3,131 in 2009 to $3,293 in 2010.
  • The national average: hourly rates for home health aides ($21) and homemakers ($19) and daily rates for adult day services ($67) were unchanged from the previous year.

So how does one pay for these services if private funds are not readily available?
 
Are you a Veteran or a surviving spouse of a Veteran who...
  • Served 90 days in the service
  • Served 1 day during war time
  • Is over the age of 65
  • Is in need of Aid & Attendance
A Veteran or widow of a Veteran needing regular aid and attendance may be eligible for VA pensions. Below are pension rates for Veterans and surviving spouses needing regular aid and attendance.
  • A Veteran with one dependent can receive $1,949.00 per month.
  • A Veteran with no dependents can receive $1,644.00 per month.
  • A surviving spouse can receive $1,056.00 per month.
A very helpful kit is available from our trusted partner, AgingWithGrace.net. This benefit applies to home support, assisted living, or long-term care setting.
 
Can the government bail you out?

Medicare
There are two parts to Medicare Plans. Part A covers hospital expenses and Part B covers all other medical expenses. The Medicare Website indicates most Americans qualify for Medicare Plan Part A without premiums after age 65 though there is always a premium for Medicare Plan Part B. In addition, some people under age 65 with certain disabilities may also qualify for the Medicare Plan. Curious if you qualify? Visit the Medicare Eligibility Tool.
 
Unfortunately, Medicare Plans will not pay for long-term care. Most of the care provided in long-term care is custodial care, or assistance with Activities of Daily Living (ADLs), which include personal care, bathing, dressing, and grooming. The Medicare Plan will, however, pay for skilled medical care for a period of time including physical therapy, occupational therapy, and speech therapy.
 
Medicaid
Medicaid also known as Medi-Cal in California is a program funded by both state and federal governments. The program is administered by the individual states. Medicaid coverage is designed to help cover cost of health care for low income individuals who meet certain eligibility requirements.
 
Medicaid will cover some or all of the cost of both medical care and long-term care. Typically, a waiver is needed for care to be provided outside of a long-term care environment.
 
According to the Centers for Medicare and Medicaid Services Medicaid Eligibility is determined by the state in which you reside.
 
Life insurance anyone? From BudgetLife.com
 
A senior life settlement is a transaction wherein the owner of a life insurance policy sells that policy to an investor. Investors are paying 10-20% of the face amount under the right circumstances. Some analysts have estimated that the senior life settlement market will grow to over $100 billion. How is this possible? Where did this market originate?
 
It turns out that over 90% of life insurance policies never make a payout. This is because most people let their policies expire or turn them back in to the life insurance company for a small settlement. Companies have factored this in to their pricing, resulting in policies which are a bargain, especially in the senior market. In fact, if you are 70 or older with a policy of over $100,000, investors have been paying 10-20% of the face amount for a life settlement.
 
But why sell such a valuable asset to an investor rather than leave the face amount for your children? We recommend that you keep the policy unless you can no longer afford it, or if you have no children or other beneficiaries to whom you would like to leave a gift.
 
On the other hand, if you can no longer afford the premiums, or you have no other use for the policy, you certainly should obtain an independent life settlement quote before you obtain a settlement from the insurance company or just let it lapse.
 
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