Sunday, January 8, 2012

Financing Elder Care

Eliminate one worry. Think about financing elder care before you need it. Long-term care insurance may be cost-prohibitive.

1. Find out if your loved one is eligible for government resources such as Medicare, Medicaid, the PACE program or Veterans Aid & Attendance.

2. A reverse mortgage is available for 62+ year olds. This releases the home equity on the property to the owner(s) as one lump sum or as multiple payments. The obligation to repay the loan is deferred until the owner dies or the house is sold.

3. It may be possible to borrow against a life insurance policy to fund long term care. The payment arrangement can vary so weigh the costs and benefits before taking this measure.

4. Discuss ahead of time how siblings can help defray the costs.

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