Mortgage Help for Seniors - Long Term Care

We try to anticipate all kinds of things that could happen; car accidents, house fires, illness or disability, etc.  But most people don’t think about or plan for the fact that 70%* of us are going to have to worry about the cost of long term care at some point before we pass away. 

There are four essential questions that you will have to answer as soon as something happens to you, such as a broken arm or leg, a stroke, or something else that might be debilitating and would cause a need for long term care.

1. The first question asked would be, “Who would be your caregiver?” Most people think, “my family will take care of me.” That’s not always a quick and easy solution.  Does your family live nearby or hours/states away?  Are they employed, and if so, do they have enough vacation time to handle your needs? It also doesn’t mean that your family will be available immediately when you need them.  
2. The second question is, “Where do you want to receive your care?” Most people want to receive care at home. I’ve never run into anybody that said I couldn’t wait to get into a nursing home. That’s not the goal. They want their care at home, and that’s something related to your ability to pay for it. 
3. The third question is, “How are you going to pay for your care?” Money & finances are always involved when we need to pay someone to take care of us. 
4. The fourth question is, “How will this situation affect your family”?

All four of these questions are critical issues that must be answered when a long term care event occurs.

Regarding the third question, “How are you going to pay for it?” There are only four ways to pay for long term care insurance.

1. Income & Assets: Are you working and/or do you have savings or investments to cover this cost?
2. Government: Medicare is a health insurance program and doesn’t cover long term care. (LTC)  Medicaid is an income-based program designed for low-income people.  VA healthcare might be possible, but qualifying for the medical benefits can be complicated.
3. Family: Not many people want to be dependent upon family members, but it is an option.
4. Long Term Care Insurance**: A reverse mortgage loan can be used to fund long term care directly, or there are a variety of life insurance products with long term care features that you can use.  

Long Term Care is a difficult subject to address and pay for, but since 70%* of Americans will need it at some point in their lives, it is a necessary conversation.  With a reverse mortgage loan used to directly pay for the care or cover some of the insurance cost**, it is something that may decrease some of your worries in retirement.  If you're curious what you may qualify for, use our free reverse mortgage calculator. And if you're interested in learning more, we can help.

*Source: https://longtermcare.acl.gov/the-basics/how-much-care-will-you-need.html  ** This advertisement does not constitute financial advice. Please consult a financial advisor regarding your specific situation.

November 19, 2018