A Caregiver’s Guide to Long-term Care Options
Fifty-three million Americans are providing unpaid care for their loved ones. Caregivers selflessly give their time and energy to aid others and help improve their lives. If you’re a caregiver, it’s likely one of the most important roles you’ll ever have, but it can come with its share of financial consequences.
National Long-term Care Awareness Month is observed every November bringing to light the costs and challenges that arise from being a caregiver. And it may involve making long-term decisions about a loved one’s future.
Read on as we outline the obstacles and financial options that you may consider when tasked with another’s care.
Long-term care planning for the what ifs
Americans and 65 and over have a 70% chance of needing long-term care services in their lifetime. Eighty-eight percent would prefer receiving care at home.
While aging in place is the ideal option for many, it’s not always financially realistic, depending on the level of care needed. But what if you can’t go at it alone?
Home health aide. A professional home health aide can visit your loved one’s home daily to help with administering medications, checking vitals and assisting with activities of daily living, such as bathing or eating. The median cost of care for a home health aide in the U.S. is $4,957 per month.
Adult daycare. There are over 3,500 adult daycare centers currently operating in the U.S. Most centers offer meals, exercise, activities, socialization and transportation, and some also have services for the memory impaired. For this type of care, the price tag averages around $1,560 a month, depending on location and amenities
Medicare PACE programs. PACE (or Programs of All-Inclusive Care for the Elderly) offers in-home services to Medicare beneficiaries who would otherwise require a nursing home. While these programs don’t cover 24/7 personal supervision, they include medical and some personal care at home. Beyond the normal Medicare fees, PACE carries no additional cost, but availability in certain areas may be limited.
How to pay for long-term care
Healthcare needs can derail the best-laid plans. So what’s a family to do if you don’t have the resources to pay out of pocket?
Long-term care insurance (LTCI). LTCI covers services like home health care, adult day care and hospice care. It’s best to purchase LTCI at a younger age, ideally when a patient is in his or her mid-50s. A 55-year-old man, for example, can expect to pay a long-term care insurance premium of $2,220 per year on average, while a 55-year-old woman pays an annual average of $3,700.
Premiums increase with age, and people who are over age 60 may have missed the window to purchase affordable long-term care insurance. In addition, each year after age 60 it becomes less likely that you will qualify medically.
A reverse mortgage loan. For qualified borrowers, a reverse mortgage allows your loved ones to free up the cash they’ve built up in their home, all while continuing to live in it and own it †. The funds can be accessed as a lump sum, monthly payments or a standby line of credit to fall back on ‡. Best of all, borrowers can use the money to help fund health-related expenses and more.
The funds from a reverse mortgage can also be used to make home modifications that make aging in place safer and more feasible. For example, your loved one can modify a bathroom to include a walk-in tub or relocate a primary bedroom suite to the ground level of their home.
Keep in mind, if they have a condition that may require long-term care at a facility in the future, a reverse mortgage might not be the best option. As a borrower, under the terms of the loan, their home must be their primary residence.
We care, too — and we’re here to help
The support you provide for loved ones is life changing. And at Reverse Mortgage Funding (RMF), our goal is to help further your mission to give them — and you — the best life possible. Learn more about reverse mortgage loans. Call us today at (888) 277-1567 to set up an appointment.
This content is sponsored by RMF, one of the nation’s leading reverse mortgage lenders. We are dedicated to helping older Americans live the retirement lifestyles that they imagined and deserve, in the comfort of their own homes. As a result of our commitment to providing an extraordinary and positive customer experience, we have earned a 98% customer satisfaction rating; a 5-star / Excellent score on Trustpilot; 4.5 out of 5 stars on LendingTree; and an A+ rating with the Better Business Bureau. Call (888) 277-1567 to speak with one of our experienced reverse mortgage specialists to learn about our retirement financing products and solutions.
†As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance and keeping your home in good condition.
‡Borrowers who elect a fixed rate loan will receive a single disbursement lump sum payment. Other payment options are available only for adjustable rate mortgages.
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