If you or your loved one is considering the option of eldercare, one of your biggest concerns might be how to pay for the monthly costs of board and care, in-home care or assisted living. These services can cost thousands of dollars each month, and it can be tough on one’s budget to handle the expense. Here are just a few ways that you could pay for one of these care options.
Obviously, retirement planning beginning in your 20s is the best way to prepare for the future. If you have saved up a large amount of money, then you probably will be just fine. However, many people don’t have enough and many people live on fixed incomes and depend on Social Security to get by. In these cases, there are definitely a few options to consider.
If you own a home and are 62 or older, you might consider a reverse mortgage to help cover the cost of an in-home caregiver, and typically you cannot obtain a reverse mortgage unless you are staying in your home. This also can be a complicated process, so it’s wise to speak with a financial expert before making this decision. Another option would be to rent out your home and use the rental income to help you pay for the monthly fees at an assisted living facility or board and care facility. A third option might be to apply for a line of credit for elder care, and this often is also called a senior care loan or perhaps an elder care loan.
Selling your home is, of course, another option and this can be an excellent choice if you stand to make a decent profit off the sale of the home. Again, talk to a financial planner about the best way to invest the profits of your home so that your money is earning some interest and providing you with additional income. Perhaps you will want to invest some of the money as well as having some money in a checking account so that the assisted living community can debit out your monthly fees. No matter what you decide to do with the money or your home, it is wise to place all of your assets into a trust and have an attorney or someone you trust manage the trust for you. This is a legal document that not only describes who receives your assets when you die, but also how you want your life managed if, for some reason, you are unable to make those decisions yourself.
If you are in your 50s or 60s and still enjoying excellent health, eldercare might not be something you ever need. Studies show, however, that because we live so much longer, more than half of seniors will need at least a few years of eldercare at some level in their lifetime. Long-term care insurance can be a way to ensure that you have the money you need to pay for eldercare. This can be expensive, so it is wise to shop around and really do your research about each policy and each insurance company.
If you need eldercare now and money is a problem, you may need to select a facility that accepts Medicare or Medicaid. Medicare can be used to cover a portion of the costs of hospital expenses, the costs of staying in a nursing home or the costs of hospice care. Medicaid (known as Medi-Cal in California), in some cases, also can be used to cover some of the costs of residence in a skilled nursing facility or for in-home care. There are 10 California counties, including San Diego County, that offer an Assisted Living Waiver Program. For seniors who would prefer to live in an assisted living facility, this program can help cover some of the costs for those who qualify.
A good first step would be to contact us at Care Placement. We are an eldercare placement service specializing in matching seniors to suitable facilities in San Diego County or Orange County. We can take a look at your needs and your budget and come up with some excellent options for you to consider. We are San Diego’s largest free eldercare referral service, and can help you find an excellent solution for eldercare.