When you have an elderly parent with special needs, one of the biggest challenges is to find the money to have funding for senior care. Most people require assistance when they grow old, because of physical or mental impairment.
Both assisted living and in-home care are expensive, and costs significant money. When the parent is no longer able to take care of themselves, it is up to the family to find a suitable care option. But money can often pose a problem.
Vital things to know
Paying for senior care is expensive with or without insurance. While policies like Medicare cover some of the expenses, things like long term care or assisted living aren’t covered. That means, you have to pay for them out of your pocket, despite having insurance.
Whether you choose a nursing home or an assisted living facility, none of them come cheap. Anyone who chooses senior care facilities should be prepared to spend at least thousands of dollars a week. Unfortunately this is not easy for most people.
Every elderly person has the right to proper senior care when they need it, and there are also ways to minimize the cost. There are other programs and policies that help people with little to no money pay for senior care.
One of the easiest ways to arrange for senior care funding is to sell a life insurance policy that you no longer need. This is called life settlement. The person buying the policy from you pays a one-time cash amount, and becomes the beneficiary.
This is a great option to make some money when the policy that you hold cannot be cashed out before death. You simply sell the policy to third party at up to 75 percent of the policy value.
In some cases, the life insurance policy can be converted to a long-term care payment plan. Although this is beneficial when there is no other option, the downside is that the policy value drops significantly.
Military service
If the senior or their spouse served in the military for at least 90 days during a period of conflict, then they are eligible to receive assistance from the Veterans Benefits Administration. However, if the senior requiring assistance does not have a medical condition, the benefits will not be granted.
Consider renting out the house if your parent is no longer living there. The income from rent can contribute significantly towards senior care. Selling the house is also an option.
For people with no money, there are federal laws that allow seniors or their families to file a hardship waiver with the state’s Department of Health and Human Services, while a local long-term care advocate will be able to negotiate with assisted living facilities to provide financial assistance.