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.

How Life Settlements Can Pay for Long Term Care

Older Americans with serious illnesses are often faced with an inability to pay mounting medical bills. One way to offset health-related financial problems is with life settlements – the sale of a life insurance policy to a third party. The policy is sold for less than the death benefit but significantly more that the cash surrender value.

Cash Surrender vs. Life Settlements

Studies show that a high percentage of insurance policies will lapse and eventually be cancelled before benefits are paid. Many times the policyholder can no longer afford the premium, or decides that the policy isn’t needed anymore. What most people don’t know is that an insurance policy can either be given back to the insurance company for cash (cash surrender) or sold to a third party.

In a cash surrender, the insurance company will pay a policyholder who voluntarily terminates the policy before it matures. The cash surrender amount is usually from 3 to 5% of the policy’s face value (the death benefit).  There are also additional charges and fees the insurance company will deduct from the Surrender amount which varies for different insurance companies.

With a normal life settlement, the policyholder can often receive 15% – 25% of the face amount. Selling a life insurance policy has been an option for policyholders since 1911, when the United States Supreme Court established that a life insurance policy was transferable private property (Grigsby v. Russell – 222 U.S. 149)

Using Life Settlements for Long Term Care

Chronically or terminally ill policyholders can use a life settlement to pay for long term care. The life insurance policy is simply converted into a Long Term Care Benefit Plan. Like regular life settlements, the policy is sold to a third party; however, the funds are put into a protected Benefit Account.  With the Long term Care benefit Plan, the policyholder can often receive 30% – 60% of the face amount.

The additional advantages of converting a life insurance policy into a Long Term Benefit Plan include:

  • No waiting periods – transactions can be completed in as little as 30 days.
  • No care limitations – the settlement can be used for whatever type of long term care is needed, including assisted living, nursing home and hospice care
  • No premium payments – the policyholder is no longer required to pay life insurance premiums once the settlement transaction has been completed.
  • No loans to pay back – the money that is deposited into the Benefit Account does not need to be paid back
  • Asset protection- you do not need to sell your assets to qualify for a life settlement.

Not only are all health conditions are accepted under a Long Term Benefit Plan, you do not need to be terminally ill to qualify. Once the policy has been converted, the buyer will receive the benefits upon death. The settlement can also be cancelled if the policyholder changes his or her mind within 15 days of the sale.

Life Settlements and Viatical roblox download Settlements

Viatical settlements are a type of life settlement for an individual with a terminal illness or someone that has a life expectancy of less than two years. Recently, some viatical settlement companies have started offering Long Term Benefit Plans to chronically as well as terminally ill patients.

Life Settlement Laws & Regulations

In addition to federal legislation, over 40 states also have laws that regulate life settlements. The purpose of these laws is policyholder protection. This includes licensing legislation and requirements for companies involved in life settlement transactions. It is also standard practice for a state to review and approve each settlement.

Leading life settlement providers will have both a successful and lengthy track record of transactions along with a special in-house department that makes sure they are in compliance with the government’s life settlement regulations.

One of the main advantages of a life settlement is that is allows the policyholder to generate the cash needed to remain a private pay patient.

Elder Care Funding can help you or a loved one convert a life insurance policy into a Long Term Care Benefit Plan. You can find out if you qualify for the Long Term Care Benefit Plan by filling our the registration form or call 1-844-814-6511 for more information.