Planning to Pay for Elderly Care
Paying for elderly care is an expensive, uncertain prospect, and many people don’t know how to go about planning for care as their health declines. When you begin the process, keep in mind that there are a few sources to consider for elder care. You should research how each source may work in your situation.
Government payments are the most common way that people pay for elderly care. These payments, usually through Medicare or Social Security, often will allow people to stay in assisted living homes or to have in-home care in rare circumstances. While these funding sources are better than nothing, they should not be factored into the plans that you have to pay for your care.
Long-term care insurance or disability insurance can cover the cost of elderly care, especially if you are hurt or fall into ill health before you reach retirement age. Some long-term care insurance plans will cover the cost of assisted living or nursing home care regardless of the age at which you become ill. Begin your plans for paying for elderly care by looking at any insurance policies you may have now and considering any policies that could provide this level of financial assistance.
The personal finances of people close to the elderly person often foot some of the bill. For people who are not able to get long-term care insurance, preparing to use their personal finances may be the way to go. Work with a financial planner to put money into a trust for your care. Once you designate someone to oversee the trust in case you are unable to care for yourself, then you only have to continue to put money into the trust fund. When you need elderly care, you or your designee will be able to use this money to cover your expenses.
