As 70 million Americans settle into their retirement years, the need for quality senior care has become essential. Families feel the stress of trying to find and afford the care that will help them and their aging parents enjoy their golden years safely.
The average cost of retirement living can top $3,500 per month. Many people don’t have those kinds of resources unless there has been some financial planning for retirement. Not being able to afford the right care can cause seniors and their families a lot of stress.
The good news is that many seniors have more resources than they might think to help them afford proper care. Whether they have equity in their homes or want to cash in their life insurance with Windsor Life Settlements, there may be cash available to fund the right care. Let’s take a look at a few ways that seniors and families can pay for care.
Some seniors have a savings plan that they have been working on for decades in preparation for their retirement. This is the most traditional route to help pay for senior care. Family members may also be able to dip into their savings to help pay for a retirement community or at-home care for their senior parents.
Many seniors have been paying mortgage payments for years to be able to own their homes. They may not realize that they have a significant amount of available income wrapped up in the equity value of their property. For example, the amount of money that has been paid on a mortgage, minus any amounts owing, may be available as a loan. Seniors can use the estimated market value of their homes to help pay for their retirement care.
Seniors over the age of 62 may qualify for a reverse mortgage. Like a home equity loan, a reverse mortgage is essentially a loan on the value of your home but doesn’t require any monthly repayment installments. Your loan is only collected upon the sale of your home.
Military veterans may be able to use some of their government benefits to fund their retirement care. In-home care, respite care, and standard medical benefits are available to those who have served their country. Talk to your local VA branch about filling out an application for these special benefits to help pay for senior care expenses.
Seniors with a life insurance policy have two options that can help them pay for their retirement care. If there is a cash value to their policy, seniors may borrow against that amount to pay for care expenses.
Seniors that are terminally ill can sell their existing policy for up to three times the amount available for withdrawal to help pay for their care, and the payments are tax-free.
As seniors make their way through their retirement years, there will come a time when together with family, they will need to make some senior care decisions. Resources may be more bountiful than is evident when you take advantage of some of these resources, including life insurance settlements, real estate sales, and VA benefits.