Financing

FCP Live-In Caregiver Financing

Finances should not be a barrier to receiving quality in-home care. There are many options for financing a live-in home caregiver through FCP Live-In. Our knowledgeable and experienced staff can advise you on the best type of financing, answer any questions, and connect you with a specialist depending on the type of financing option you may be deciding on.

No one really likes to think about growing older, or the fact that long-term care might become necessary as they age.
But according to the U.S. Department of Health and Human Services, there’s a 70% chance that individuals currently turning 65 will need long-term care at some point in their lives. One in five will require this care for five years or more.

Long-term care can be extremely expensive, ranging from an average of $68 per day for adult day care services to about $253 per day for a skilled nursing home. The actual cost will depend on the type of care required, the provider, and the area where you live.

Unfortunately, far too many people neglect long-term care planning until it’s too late. But understanding the available options can make preparing for the future far less daunting.

But there is hope. You or your loved one may benefit from financial options such as:

Self-Pay for Long-Term Care

According to Carlos Dias Jr, a wealth advisor and founder of Excel Tax and Health Group, many people simply pay for long-term care out of savings. However, it’s difficult to anticipate exactly how much long-term care might end up costing, and it’s always possible to outlive a bank account.

Medicare and Medicaid

Many people wrongly assume that Medicare will provide for their long-term care needs as they age. But the truth is, Medicare only covers nursing homes and home health care for rehabilitative purposes, and can’t be used for long-term care.

Low-income seniors might be able to rely on Medicaid for long-term care, depending on their state of residence. But qualifying for Medicaid isn’t easy, as the income limits for single people hover just around $2,000 per month, while total assets (excluding the value of a home and vehicle) can’t exceed $2,000. Married couples, however, can have assets as high as $120,900.

Veterans Aide and Assistance Program

Military veterans who served during wartime can take advantage of the Veterans Aid & Attendance Pension benefit, which offers:

  • Up to $1,830 per month for single people.
  • As much as $2,170 per month for married individuals.
  • Up to $1,176 per month for the surviving spouse of a veteran.

However, a doctor’s evaluation, proof of service, and other requirements must be met in order to obtain these benefits.

Traditional Long-Term Care Insurance

Long-term care insurance can be purchased through an insurance agent, financial planner, or broker. Some states also offer Long-Term Care Partnership Programs that allow certain individuals to protect some of their assets if they qualify for Medicaid.

It’s important to remember, however, that unless the policy includes a return-of-premium rider, it won’t have any value if allowed to lapse or if the insured passes away.

Combined Life Insurance with Long-Term Care Benefits

This type of life insurance includes a rider for long-term care benefits. While these policies offer inflation protection and other features typical of traditional long-term care insurance, they also allow beneficiaries to receive a tax-free death benefit when the insured passes away.

However, it’s important to make sure the rider actually covers long-term care, rather than care for chronic illness.

Combined Annuity with Long-Term Care Benefits

These annuities are similar to combined life insurance with long-term care benefits, but frequently offer a higher dollar amount and may be easier to qualify for.

But keep in mind that only a handful of companies offer such annuity policies, and it’s important to ensure the annuity will cover long-term care. According to Diaz, many financial advisers are actually offering annuities with a “home health care doubler,” which only provides coverage for a maximum of five years.

Home Equity Conversion Mortgage

A Home Equity Conversion Mortgage (HECM) is a Federal Housing Administration insured mortgage that allows seniors to convert the equity in their home to cash. The borrower must be at least 62 years of age, and the amount of the loan is based on the appraised value of the home. While interest accrues on the value of the loan, no payments are due until the home is sold or the borrower passes away. At that point, the entire mortgage must be repaid.

HECM’s are somewhat similar to traditional reverse mortgages offered by some banks. However, they typically offer lower interest rates for borrowers.

Life Settlement

Most people don’t realize that their traditional life insurance policy actually has cash value, whether term or permanent. If life insurance is no longer needed, such policies can frequently be converted into long-term care insurance. An existing life insurance policy can also be used as collateral to fund long-term care.

FCP Live-In Care

FCP Live-In provides non-medical support and personal care assistance to seniors, disabled individuals, and those living with chronic illness, in the familiarity and comfort of home and usually for far less than the cost of assisted living.

FCP Live-In has in-depth experience with all of these options and can help with any questions or connect you with a specialist. If you’d like to learn more about FCP Live-In’s affordable long-term care programs, please give us a call today at 1(866) 559-9492.

About FCP Live-In, A Leading Live-In Home Caregiver Provider

We have provided the ultimate solution in senior care since 1997. Our live-in caregiver agency is committed to providing a unique and customized In-Home services approach to caregiving with the goal of a lifestyle that provides enjoyment for the one in care, and families with peace of mind.  FCP Live-In is a Live-In Home Care company with over two decades of experience specializing in elderly care needs within the home. Our live-in caregiver staff provides an insurance policy of safe and supportive care, along with a 24-hour professional support system that starts with our direct care staff in the home and expands out to a multi-faceted corporate structure that is there for the client and the Live-in Caregiver at all times.

For more information about our live-in home care services contact us today at or 1(866) 559-9492.

Sources:
Link: https://www.kiplinger.com/article/retirement/T036-C032-S014-6-options-to-fund-long-term-care-in-retirement.html
Link: https://longtermcare.acl.gov/the-basics/how-much-care-will-you-need.html
Link: https://www.ltcfeds.com/help/faq/miscellaneous_partnership.html
Link: https://www.hud.gov/program_offices/housing/sfh/hecm/hecmabou

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