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How to Pay for Senior Care

How to Pay for Senior Care

The cost of senior care is prohibitive for many older Americans. Nursing home care or a stay in an assisted living facility has become necessary for maintaining their medical needs and quality of life. But they’re unable to afford the cost of such expensive facilities. To ensure financial assistance in your senior years, proper planning is essential. There are various resources seniors can use to help defray the expenses of senior care.

Medicare Benefits 

Medicare is usually available for short-term stays in nursing homes and transitional care facilities. Medicare benefits have a time limit; it is designed to provide temporary assistance until you’re able to get back on your feet and back in your own home. However, they can be useful in providing the necessary interim financing, until other options are available.

Medicaid 

For seniors with restricted income and few assets, Medicaid is the ideal option for paying nursing homes, home care or other forms of assisted living. Medicaid is also available for individuals who have income or assets that exceed the limits. This additional income has to be sent to a trust that is dedicated specifically to their personal care. You may want to consult a Medicaid expert in your state to find out more about your eligibility.

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Veterans Programs

If you or your spouse served as a member of the armed forces, there are resources in place that can help provide for the later days of your life. Some veterans benefits, like the Aid & Attendance Housebound benefits, come with a higher asset and income limit than many other programs. Contacting your local Veterans Office is the best way to get started on this journey, as the people there will be able to help you get the information you need. If you are aware that benefits due to you are being denied, be persistent in making calls till you find the answers you seek.

Non-Medicaid Government Assistance 

Many states offer their own non-Medicaid assistance to help seniors pay for their nursing home care. These programs may include managed long-term care waivers, assisted living programs, and many more. Other programs provide in-home assistance to elderly individuals who are hoping to live in their own homes for as long as possible. Still others provide specific care for those with dementia, like Alzheimer’s patients.

Non-Profit Assistance 

There are many non-profit programs that offer assistance in paying for the medical care of individuals who need nursing homes or assisted living care. Non-profit nursing homes usually offer paid care on a sliding scale based on income and asset ratios.

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Private Health Insurance 

Most private health insurance plans don’t automatically include the cost of long-term medical care. With careful forethought and planning, however, you can acquire a rider for your policy that will help cover the cost of nursing homes or assisted living facilities. The key to this type of insurance is to take the policy well before you really need it.

Life Insurance 

When you take out a life insurance policy, you usually intend to use it to help cover those final expenses that you don’t want to burden your loved ones with. Some life insurance policies, however, come with an Accelerated Death Benefits rider that can be used before you die. Choosing a policy that will pay out either: A) a portion of your death benefits or, B) the full amount of the policy, will allow you to use those funds to offset the cost of long-term care.

Annuities 

Annuities are a great source of income during those senior days. Even better, you can sometimes withdraw money tax-free from the annuity to help pay for long-term care. There are several types of annuities, and in general, the holder of the annuity can choose to make a single payment or a series of payments to the insurance company.

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Long-Term Care Insurance 

This very specific type of insurance is designed to pay for long-term care as you get older. This coverage can be purchased as a separate LTCI policy or be added as a rider on your existing life insurance policy. The earlier you add this rider to your insurance policy, the less expensive it will be. But, not all LTCI policies are created equal, so be sure to check out all the fine print to ensure that the plan fits your needs.

Bridge Loans 

Bridge loans are designed to provide one lump sum immediately when you need it. As a long-term care payment option, bridge loans are only efficient if you anticipate a large source of income — for example, the sale of your home, to cover the cost in the near future.

Reverse Mortgage 

A reverse mortgage allows you to draw money out of your house value without having to sell it outright. This is a great way to pay for short-term care in a nursing home or assisted living facility. This method also allows you to continue to draw on that money long-term, giving you a source of income throughout the rest of your life.

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Private Payment 

Private payment for senior living choices like a quality nursing home is the best option for many individuals. It allows you to choose your nursing home based on your needs rather than leaving it to the mercy of programs like Medicare, Medicaid, or any other organization.

No one really wants to think about the need for long-term care, either for themselves or for a loved one. Unfortunately, as life expectancy increases, the need for long-term care goes up along with it. Planning wisely for future medical needs is a critical part of ensuring that both you and your loved one are well cared for, when that time eventually arrives.

Featured photo credit: huffingtonpost.com via i.huffpost.com

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

More About Thinking Smart

Featured photo credit: Austin Distel via unsplash.com

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