Financing Dementia Care

Dementia refers to several different types of brain-related diseases that result in cognitive (memory, thinking and reasoning) impairment. The disease can also cause tremors, an inability to focus, speech and language problems, difficulty eating and swallowing, visual perception problems, depression and hallucinations. Most of the people affected by dementia are seniors over the age of 65.

Alzheimer’s disease is the most common type of dementia. Other types of dementia include:

  • Lewy body dementia
  • Vascular dementia
  • Frontotemporal dementia
  • Huntington’s disease
  • Parkinson’s disease
  • Creutzfeldt–Jakob disease

Only a few types of dementia can be cured. Most cases will become progressively worse, usually until the person can no longer care for themselves. Caring for an elder family member with dementia can be physically, emotionally and financially overwhelming, especially as the disease progresses.

Dementia Symptoms & Care

During the early stages of dementia, care is usually provided at home. Dementia home care typically includes help with daily tasks like bathing, dressing, meal preparation, shopping, and transportation. Expenses will often include the cost of medical treatment and equipment, home safety equipment to prevent accidents and injuries, as well as items related to personal care.

Caregivers experienced in dementia care can also be hired to provide assistance. Hourly rates for a non-medical caregiver average $15 to $25 per hour, or $100 to $200 per day, depending on location and the services provided. The national average for a homemaker services (cooking cleaning and running errands) is $19 per hour. Home care can also include time spent at an adult day care center in the community.

Many seniors with dementia end up moving to an assisted living facility (ALF) or nursing home. An ALF is a residential community. There are various types of ALFS ranging from rooms in houses to apartment or condominium facilities. Residents will either share rooms or have their own private room, with access to common areas. Many ALFs have staff trained to provide the special care that is often needed by dementia patients. Assisted living facilities can cost a few thousand to several thousand dollars a month, with a national average of $3,500 per month.

The most expensive care for an elder with dementia is usually a nursing home. Nursing homes have licensed medical staff, including nurses and aids, to assist residents 24/7. In addition to providing personal care, the staff also helps patients with medication and therapy. Nursing home rates average between $200 and $250 per day depending on whether the room is private or semi-private.

Families are often unprepared for the costs of dementia care, and struggle to find financial solutions to ever-increasing medical bills and personal care expenses.

How to Finance Dementia Care

One way to pay for long term care like dementia care is by converting a life insurance policy into a Long Term Care Benefit Plan. The money is deposited into a Benefit account and can be used to pay for any medical or personal care-related costs.

Many times life insurance policies are allowed to lapse, either because circumstances have changed or the premium can no longer be paid. Sometimes the policy is given back to the life insurance company for a minimal amount of money (cash surrender value).

With a Long Term Benefit Care Plan, the policy holder can receive as much as 30% to 60% of the face amount, and the benefit is not taxable.

Dementia is almost always chronic or progressive. The costs for care will increase over time, especially when the disease leads to medical complications.

Let Elder Care Funding help you convert a life insurance policy into a Long Term Benefit Care Plan. To find out if your policy qualifies for this plan, complete the form below. You can also give us a call at 1-844-814-6511.