Memory care is essential for many people who suffer from dementia, but paying for memory care is often too expensive for families. However, there are ways to finance it. Here are some ways to afford memory care services:
1. Long Term Care Insurance Can Be A Great Way To Finance Memory Care:
While it can be difficult to get long term care insurance after a diagnosis of dementia is made, it’s a smart move before a formal diagnosis of dementia is made. Long term care insurance often covers a large portion of the expenses associated with memory care. However, there are typically co-pays and/or deductibles.
In addition, it’s important to make sure that the long term care insurance policy you choose covers memory care. While many long term care insurance policies do, some do not.
In addition, it’s important to make sure that the company is licensed in your state. It also is important to make sure that the specific facility you choose is covered by the long term care insurance policy that you’re considering.
It’s important to see what other people’s experiences have been with the company that you’re considering. There are many websites where you can read reviews of long term care insurance companies.
Here are some well known long term care insurance companies to consider:
Mutual Of Omaha
The Federal Long Term Care Insurance Program:
If your loved one retired from certain federal jobs, they will be able to receive coverage from The Federal Long Term Care Insurance Program. In order to receive benefits, employees need to be eligible to receive benefits from The Federal Employees Health Benefits program. However, they do not have to be enrolled in the program. Here are some examples of positions within the government that include long term care insurance as a retirement benefit:
US Postal Service Employees
Members Of The Armed Services
Qualified Relatives Of Individuals In These Positions
This program covers much of the cost of memory care facilities. However, there still are some out of pocket costs.
2. It May Be Possible For Your Loved One To Cash In Their Life Insurance Policy Early To Fund Memory Care:
Some life insurance policies make it possible to cash in the policy while you’re alive. Often times, the payment is 50-75 percent of the policy’s value. However, this cannot be done with term life policies. It’s only possible with whole life policies.
There are two main ways that you can cash in a life insurance policy. Your loved ones can receive either an accelerated benefit or life settlement. Individuals who qualify for an accelerated benefit may receive as much as 60 to 80 percent of the policy’s face value. In some cases, you won’t be able to receive an accelerated benefit unless you suffer from a terminal illness.
Life settlements are negotiated with a company other than the policy was purchased from. Essentially, a life settlement allows you to sell your policy to another company. A life settlement could allow you to receive anywhere between 40 and 75 percent of the policy’s value. However, some policies are easier to sell to another company than others.
In some cases, term policies may be sold. However, this often isn’t the case. It will depend upon the age of the policy holder and their health status.
If you are considering a life settlement for your loved one, it’s essential to speak with an elder law attorney. They will be able to ensure that they are able to get the best deal possible and ensure that you follow appropriate procedures regarding taxes.
3. A Reverse Mortgage Could Free Up Enough Cash To Pay For Memory Care:
A reverse mortgage can be obtained from a bank or another financial institution. The loan is backed by the value of your home, and it converts home equity into cash. Funds can be received as a lump sum, a monthly payment, or a line of credit. After the owner of the home dies, the situation can become a bit complicated. In some cases, the home could be foreclosed. However, the home can be sold by family members to pay off the loan.
The reverse mortgage could be used either by your loved one or relatives. However, all residents of a house must be at least 62 to qualify for a reverse mortgage.
It’s important not to ignore smaller banks if you’re looking for a reverse mortgage. In some cases, a local bank might offer a better rate than larger financial institutions.
It’s important to make sure that you choose a lender that is FHA secured. Also, some of the major banks that offered reverse mortgages in the past no longer offer them. If you are going to get a reverse mortgage from a major financial institution, here are some that you should consider:
American Advisors Group
All Reverse Mortgage Company
Home Point Financial
Reverse Loans For Other Assets:
In some cases, you or your loved one may be able to free up a significant amount of cash by using a reverse loan on assets other than a home. For instance, it is possible to get a reverse loan on a vehicle. There are a number of financial institutions that offer reverse vehicle loans.
4. Medicare Could Cover Certain Costs Associated With Memory Care:
Medicare won’t directly cover the cost of your loved one’s stay in a memory care facility. However, it can cover the cost of assessment for dementia. It also covers 100 days in a skilled nursing facility before transfer to memory care. However, this only applies if your loved one was transferred to a skilled nursing facility within several days of a hospital stay of three days or longer. The cost of the stay is covered in entirety for the first 100 days in such a facility. This can free up cash that can be put towards your loved one’s stay in memory care. Furthermore, Medicare covers a significant portion of the cost of drugs that your loved one takes to treat the symptoms of dementia while in memory care.
5. Selling Assets May Free Up Enough Funds To Cover Memory Care:
In some cases, your loved one may be able to sell certain assets to cover the cost of memory care. While some people suffering from dementia sell their homes before going into memory care, there are other assets that can be sold as well. For instance, selling a vehicle may provide enough cash to put a dent in the cost of memory care.
If your loved one’s home will be sold to cover the cost of memory care, it’s important to take steps to ensure that it sells for as high of a price as possible. Here are some tips to keep in mind:
1. Make sure you get rid of as much clutter as possible. It may be possible to sell some of the “junk” items that are found around the house. Ideally, the home will be completely free of personal belongings other than furniture.
2. Make sure the property is professionally inspected and fix any issues that may deter buyers.
3. Hire a competent realtor.
4. Become aware of the selling points of the home and always follow your realtor’s advice.
If You Have Any Questions About Paying For Memory Care, Give Us A Call or contact us online.