If you’re a wartime Veteran or the surviving spouse of a wartime Veteran, you may be eligible to receive this non-service-connected benefit to help in funding senior care. Veterans Aid & Attendance starts with the basic pension and, depending on medical need, gives you a rating that could add more money to your monthly pension. But you must meet the military service criteria as well as the medical requirement AND the financial requirement to qualify.
LTC insurance can help in funding senior care by covering services typically not covered by health insurance, Medicare, or Medicaid. Many LTC policies begin to pay benefits after an assessment has determined that you need help with two or more Activities of Daily Living (ADLs) or have cognitive impairments (known as a benefit trigger). However, there will be an elimination period, typically 30, 60, or 90 days after the benefit trigger occurs before payments will be received. During this time, you may need to cover the cost of services you receive out of pocket. Also, remember that LTC policies may only pay up to a pre-set daily limit until the lifetime max is reached. What’s more, while applicants for this coverage should be in good health, waiting too long to purchase a policy can result in higher expensive premiums.
If you have an in-force life insurance policy, you may be able to transform it into a pre-funded financial account that disburses a monthly benefit to help in funding senior care. Unlike life insurance, this account is a Medicaid-qualified asset. The conversion process simply transfers ownership of a life insurance policy from the original holder to an entity that acts as a benefits administrator. Because the original owner no longer holds the policy, it won't count against you in the Medicaid spend-down process. There are no application fees to apply for a life insurance conversion, and the typical enrollment time is 30-45 days. Once converted, the benefits payments should start immediately.
A reverse mortgage is a type of home equity loan specifically for homeowners aged 62 or older. It may make sense if you want to access the equity in your home to supplement income to help in funding senior care. If you meet the age requirement, own a home, or have a small mortgage, and the home meets FHA property standards as well as flood requirements, you may be eligible. If so, the lender will pay the borrower based on a percentage of your accumulated home equity. Keep in mind that the loan will need to be repaid when the borrower dies, sells the home, or permanently moves out.
Don’t forget about your current assets as well. Consider selling or renting your home, for example. Also, check into what savings, stocks, bonds, or annuities you may have to help in funding senior living.
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