This is a question that’s often asked, and one that needs to be contemplated by all given that most people are going to need nursing home care at some point in their lives. The question also leaves many individuals stressed given that nursing home care can cost more than $100,000 per year. So, let’s take a closer look at some of your options when it comes to covering these costs.
Utilizing Medicaid
Since most people can’t afford long-term care, they seek to fall back on Medicaid. However, to qualify for Medicaid, you’re going to have spend down your assets in advance of the five-year lookback period or find other estate planning options that can reduce your income and assets for eligibility purposes.
Filing a long-term care insurance claim
If you have long-term care insurance, then you might be able to receive significant financial support by filing a successful claim. Just be sure to thoroughly analyze your policy, as there may be restrictions on the type of care that’s covered and there are probably requirements that must be met before a claim will be accepted.
Finding other funding options
You might have other ways to cobble resources together to cover your long-term care needs. For example, you might be able to borrow money against your insurance policy, or you could seek out an annuity. Although you should try to avoid it if you can, you also have the option of dipping into your own financial resources such as retirement accounts to help offset your expenses.
Develop the estate plan that works for you
You have a lot of options when it comes to creating an estate plan that focuses on your long-term health care. But you need to fully understand those options before moving forward with any of them. That’s why now is a good time to research your options and discuss them with your attorney. That way you can make the decision that puts you in the best position possible for the future.