Helpful Ideas on Paying for Senior Care

Last updated on July 21, 2021 by Mark Cussen in Life Settlements, Retirement Planning

Elder couple reviewing how to pay for senior care.

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The cost of elder care has skyrocketed over the last 30 years, and it shows no sign of slowing. Here’s what you can do to protect your loved ones. Senior living and paying for senior care is a different proposition today than it was for past generations. Statistics show that if you are relatively healthy when you are in your sixties, you can probably expect to live well into your eighties or nineties or perhaps even longer. You’ll want to be sure you won’t have trouble paying for senior care.

Types of Care Seniors Typically Need

The elderly population today has access to a level of health care that has substantially increased the average person’s longevity.

But this care can come at a steep cost, and many older Americans (and their loved ones) struggle with paying for senior care alternatives such as:

  • Skilled nursing care
  • Nursing home care
  • Adult daycare.

Paying for Senior Care Resources

There are several possible alternatives that you can choose from when it comes to paying for senior care expenses. Those who have the money to spare could take it out of their IRA or other retirement savings account. Medicare may cover home health care services that are provided for a short length of time, as long as the patient meets certain conditions.

Medigap policies may offer supplemental protection for short-term home care needs as well. These policies are designed to cover the “gaps” in coverage provided by Medicare, but neither type of coverage is designed to pay for any type of long-term care.

Private health insurance may also provide medical in-home care for a short period of time, but coverage, deductibles and copays will vary from one carrier to another. Long-term care coverage can be provided by long-term care insurance, but this kind of insurance is also very expensive, and its premiums may rise over time, or the coverage that it provides may decrease. Nevertheless, it is usually still much cheaper than paying for long-term care expenses out of pocket.

A reverse mortgage or reverse life insurance are another alternative that can be used to access the funds necessary to pay for home health care costs or nursing home expenses. There may also be state or local financial aid programs that can help seniors to cover these costs.

The National Council on Aging (NCA) has a list of over 2,000 programs that can help seniors to pay their bills, and a great deal of this money is never claimed by anyone. And, if all else fails, seniors can turn to Medicaid to pay for health care expenses as long as they are willing to meet the financial requirements. But this alternative should probably only be used as a last resort.

Family members may also be willing to help you defray the costs of skilled care or staying in a senior living community. These communities can provide personal care to seniors that is not necessarily medical in nature.

If you have served in the military, then you may be eligible for veterans benefit under the VA. Go to to find out what benefits are available for you.

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The Cost of Elder Care

It is easy to see why so many seniors are having difficulty meeting their medical and living expenses. As of June 2017, the monthly cost for nursing home care in Alaska was a whopping $24,820.

The cost in Connecticut and Massachusetts was about half of that, while in several other states such as Kansas, Missouri, Louisiana, Oklahoma and Arkansas, the monthly cost was between $5-6,000. But even those rates would wipe out the financial resources of many seniors in short order.

Common Problems

Unfortunately, a great many senior citizens are not financially prepared to shoulder the costs of long-term care (or even short-term care in some cases). A large percentage of retirees simply cannot afford to pay the premiums for Medigap policies, long-term care insurance or home health care in any form.

They also may not qualify medically for long-term care coverage. This is a double whammy, because if they cannot be medically underwritten, then the odds that they will eventually need some form of managed care are usually much higher.

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The Life Settlement Solution

Fortunately, the life insurance industry has stepped in to provide some ways for their policy holders to pay these bills without having to go bankrupt. Here are a few ways that you can protect yourself from costly nursing home expenses and other bills that could otherwise possibly wipe out your savings.

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