Tips on Funding Elder Care

Financing is often a key concern when an elder family member requires medical and personal care, especially when a senior has health issues. Funding elder care can be difficult. Even basic personal care services can cost tens of thousands of dollars a year. If skilled nursing care is required, annual expenses can jump to a staggering $120,000 or more per year.

Types of Elder Care Funding

There are two main types of funding for elder care: government support and private pay. Government support includes Medicare, Medicaid and veteran’s benefits.

Medicare is part of the Social Security Act and managed by the U.S. government. The program was launched in 1966 to ensure health care for seniors aged 65 and older and younger people with specific disabilities. You may also be eligible for Medicare if you have kidney failure.

In order to qualify for Medicare, you must be a U.S. citizen and have paid into the system. Medicare primarily focuses on emergency and short term care. It does not cover long term care or personal care such as assistance with hygiene and housekeeping. Skilled nursing may be provided under certain circumstances for 20 days. If longer care is needed, Medicare will cover costs that exceed $140.00 per day for the next 21 to 100 days.

Medicaid is a health care program for low income individuals of any age. The program will only cover long term care if you meet strict financial criteria. Individuals with assets rarely qualify for Medicaid.

Military veterans can receive disability benefits if the injury was service-related or the Aid and Attendance Benefit for non-disability cases who are war era veterans or their surviving spouses.

Funding Elder Care On Your Own

For many people, funding elder care will require tapping into other types of financial resources such as savings accounts and loans. However, depleting bank accounts and increasing debt can create new hardships and burdens.

One way to avoid a financial catastrophe is with a life settlement or viatical settlement.

A life settlement is the selling of a life insurance policy to a third party. The sale price is lower than the death benefit by much higher than the cash surrender value. In most cases, the policyholder must be at least 65 years old and not chronically or terminally ill.

Viatical settlements are a form life settlement structured for life insurance policyholders who have a chronic or terminal illness. In order to qualify for this type of settlement, life expectancy is generally 2 to 5 years.

In both cases, after the policy has been sold, the buyer becomes responsible for the policy’s premium payments. The buyer will also be the beneficiary of the policy when it is time for death benefits to be paid.

While there are no restrictions on how the money from a life settlement or viatical settlement is used, in most situations the income will go towards elder care. A third option involving a life insurance policy is a Long Term Benefit Plan. Similar to life settlements and viatical settlements, the policy is sold to a third party. The difference is that the money from the sale is deposited into a protected Benefit Account.

A Long Term Benefit Plan can be established fairly quickly, usually within 30 days. There are no limitations regarding what type of care the money is spent on and the money does not need to be paid back.

It can be heartbreaking to watch a family member’s physical or mental condition deteriorate as they age. It can also be devastating when financial resources for assisted living, nursing home or hospice care are limited – or nonexistent. Elder Care Funding specializes in finding financial solutions for seniors in need of medical and personal care. To find out if you qualify for a Long Term Benefit Plan, complete the form below. You can also give us a call at 1-844-814-6511.

Elder Care for Seniors With Health Conditions

Not only is America’s population of seniors growing at a rapid rate, there has also been a significant increase in older adults with chronic illnesses. According to a recent study, 1 in 5 seniors have 5 or more chronic conditions, and 2 in 5 seniors will require long term care, also known as elder care.

What is Elder Care?

Elder care is medical and personal care tailored to meet the needs of seniors who are disabled or suffer from a chronic or terminal illness. It can include skilled nursing care, as well as help with everyday living. The care can be provided at home, by community agencies or at a facility.

One of the goals of elder care is to enable a senior to maintain his or her quality of life as best as possible for as long as possible. Home care in particular can help reduce stress, and may even lead to fewer hospital visits and improved health.

Elder care at home is either provided by family members or caregivers such as nurses, home health aides and personal aids. Nurses and home health aides will administer medication, check vital signs and manage the senior’s health care needs. Personal aids will help the senior with bathing, dressing, hygiene, meal preparation, errands and transportation. Many times the duties of a nurse and home health aide will include personal assistance. Home health care workers are hired directly by the family or through an agency.

Community programs such as adult day care centers are another form of elder care. At an adult center, seniors receive whatever help they need throughout the day in a supportive environment. Programs can include social as well as therapeutic activities. Adult day cat centers generally operate during normal business hours, Monday through Friday.

An independent living facility is another option for elders, especially individuals with minimal health care needs. Apartments or condominiums at these facilities can be purchased or rented. They enable seniors to live on their own in an environment with an abundance of recreational and social activities.

If a senior cannot live independently, elder care can be provided at an Assisted Living Facilities (ALF). These facilities are for seniors with health conditions who need help with daily tasks such as personal hygiene, getting in and out of bed, dressing and bathing. Also known as adult foster car or residential care, most ALFs will have health care workers such as health care aides on-site.

Elders with serious health problems may need the services of a nursing home. At a nursing home, seniors will receive 24/7 care by a licensed health care professional. They may have a private room or share a room with another resident. Some nursing homes will only provide basic care, while others are staffed to help elders with severe and worsening health conditions.

Other types of elder care include hospice care for seniors with a terminal illness, and dementia or memory care. Dementia (Alzheimer’s) is a very specific health care issue. Due to its progressive nature, various types of dementia care may be needed over time. It is estimated that as many as 5 million Americans have the disease, and 1 in 3 seniors will die with Alzheimer’s or another similar type of dementia.

Financing Elder Care

Caring for an aging elder can be difficult emotionally and financially. According to a 2011 study, almost 40 million people over the age of 15 provided some type of unpaid care to a person over 65 with an age-related condition.

One of the best ways to provide for an elder’s medical and personal needs, is by converting their life insurance policy into a Long Term Benefit Care Plan. The policy can be converted in as little as 30 days for significantly more money than its cash surrender value.

Elder Care Funding can help you with financing issues related to long term care. To find out if you or a family member qualifies for a Long Term Benefit Care Plan, complete the form below or call 1-844-814-6511 for assistance.