How can older adults pay for long-term medical care?

| Jun 19, 2020 | Elder Law & Estate Planning

As your mother and father draw closer to the age of retirement, you hope they prepared themselves financially. Even if they have, the cost of medical care for older adults can become a burden for even the most well-prepared individuals. 

To help your aging parents get the medical care they need, see what the National Institute on Aging says on the matter. Help your parents make use of every available resource. 

Government programs 

You may not be aware of every available state and federal government program designed to help older adults: 

  • National Council on Aging 
  • Social Security Disability Income 
  • Department of Veterans Affairs 
  • State Health Insurance Assistance Program  

Sit down with your parents to help them decide which programs they qualify for. Do not forget well-known programs such as Medicaid and Medicare. 

Private financing  

Now is a great time to help your parents decide if long-term care insurance makes sense for them. This coverage helps with the cost of hospice and palliative care and nursing homes. Just like with auto and home insurance, several providers offer long-term care insurance, so help your parents explore their options carefully and thoroughly. Keep in mind that older individuals and those with health issues often pay more for long-term care coverage. 

If your parents have life insurance, their policy could help cover the cost of long-term care. Before tapping into an existing policy, know that using it for long-term care reduces the amount beneficiaries receive. 

Reverse mortgages allow homeowners to tap into home equity for cash. This private financing option does not require repayment until the owner passes, sells the property or moves out of the home. 

With the right information, older adults can cover the costs of aging. Hopefully, the above info gives you a solid starting position.