Answering the Questions of Families and Loved Ones
When families start to discuss assisted living for their loved ones, one of the first concerns is the cost of senior living. How much is covered by insurance, and how much by private pay? What if my loved one needs to move up to a higher level of care after they are a resident?
The best time to consider a senior living community is while your loved one is still healthy, because the family is able to take a calm and methodological approach to their upcoming decisions.
How to Pay for Senior Care at Tudor Oaks
There are a several ways to approach paying for long term care. Here are just a few of the financial options available for future residents of Tudor Oaks:
- Long Term Care Insurance (LTCI): Long Term Care Insurance (LTCI) is separate from your current health insurance policy. LTCI covers long term services that may not be covered by private health insurance. In most cases, LTCI will cover skilled nursing care and assisted living costs, as well as respite care, hospice care, and memory care. However, long term care insurance is generally easier to purchase before any health conditions arise. In addition, preexisting conditions will not be covered by most companies. This is another reason to consider senior living while you are still healthy and independent.
- Private Health Insurance: Private health insurance generally pays for short-term, skilled care when it is medically necessary. This might be a route to take when you are looking for short-term rehabilitation services. Private health insurance will cover hospitalization after an injury or illness, much like the coverage provided by Medicare. In other words, your current health insurance plan probably covers only very limited and specific types of long term care.
- Life Insurance Policy Conversions: Instead of allowing your policy to lapse or be surrendered, you can convert a current life insurance policy into what is called a Long Term Care Benefit Plan. This is an ideal choice because all health conditions are accepted and there are no wait periods. You can start covering senior living costs immediately by converting your life insurance policy if you have a Term, Universal, Whole or Group Policy with a death benefit of $50,000 up to $1 million.
- Private Pay: Private pay can mean utilizing your home equity through a Reverse Mortgage, which is a home equity loan that allows you to receive cash against the value of your home without selling it. You can also enter into an annuity contract with an insurance company to help pay for senior care. Additionally, there are certain trusts such as Charitable Reminder Trusts or Medicaid Disability Trusts that can help you cover your costs. Seniors who have enough of their own income and savings can consider paying privately for the independent living, assisted living or skilled nursing care that is needed.
Only by researching all of your payment options for senior living will you know what the best options are for you or your loved ones. The sooner you start planning, the more prepared you will be.
For more information about how to pay for senior care and the options available at Tudor Oaks, contact us today.