Watching your parents age can become overwhelming. Not only will they experience the different physical characteristics of aging, but they will also begin to change emotionally. If you have recently become a caregiver for an elderly parent, but believe they need to be in assisted living or a full-time nursing home, worrying about the costs is normal. While shocking to learn, a private room in a nursing home can cost an estimated $87,235 per year. Finding options to pay for this care may be difficult, but it is possible. Here are a few options to consider if you will be paying for a parent's nursing home.
Life Insurance Cash Out
To get started, ask your parent if they have a life insurance policy. Certain policies can become valuable over time, allowing your parent to cash out the money at one point.
A whole-life insurance policy may provide you and your parent with enough funds to care for their long-term care. Withdrawals are tax-free, so the only negative to cashing out would be the lower payout if and when your parent passes away.
Life Insurance Sell Off
Your elderly parent may also be able to sell off their policy to a life insurance settlement company. These companies buy the policies from individuals and continue paying the insurance premiums. When your parent passes away, the settlement company will be the one to collect the death benefit, though.
Although not the most ideal situation, a settlement company may be a good option if you require immediate cash for your parent's nursing home.
Your elderly parent will most likely qualify for Medicaid or Medicare assistance, but you need to learn the differences and limits offered for assisted living or a stay in a nursing home.
Medicare helps pay for individuals 65 years of age and older who require a short stay in assisted living. Unfortunately, Medicare does not cover long-term care.
Medicaid is another option that may be beneficial to you and your parent. This coverage is only available after savings and other assets are used. In addition, Medicaid is only available to families with an income at or below to families with income at or below the federal poverty line.
Cash and credit are also options for paying for your parent's care in a nursing home or assisted living facility, but these means can affect your personal finances. With the use of insurance policies and government programs, your elderly parent will receive the care they need without personal financial distress. Visit a site like http://www.seniorsolutionsofli.com for more help.Share