Long Term Care Financing

Covering the rising cost of long term care has been a subject of much debate and discussion for a number of years now. And if the past is any indication the subject should stay in the limelight for years to come.

Nursing home costs on our area average $150.00 per day for custodial care and the average stay averages a little over a year… 388 days to be exact. Using those figures the cost comes up to $58,200.00.

This is a cost that not very many people can afford to bear themselves.

There are a number of ways for long term care, whether in home or in the nursing home, to be financed.

1. Self Pay, this one is fairly obvious. You pay the bill with personal savings and assets. The problems with this option are also obvious. A lot of people do not have that kind of money lying around and if they do, they probably have planned on using it for something else besides paying for nursing home costs.

2. Medicaid. This option is for the segment of society who have few enough assets and income to qualify for help from the state to pay for nursing home. This option is becoming increasingly difficult to qualify for. With state budget stretched to the limit, most states have tightened the requirements for individuals to qualify for this type of assistance.

3. Life insurance and annuities. Recent innovations in the insurance industry have brought these financial vehicles into the long term care arena. One option is the purchase a life insurance policy that includes a benefit that allows the…



Source by Mark E VonMoss

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