How to pay for your parents’ assisted living

| Oct 11, 2019 | Firm News

One of the most difficult parts of getting older is having to watch your parents get also older and dealing with the emotional and financial stress that comes with it. On average assisted living can cost between $2,000 and $5,000 per month, which may sound daunting.

You may be wondering how you will pay for the high cost if your parents require assisted living facilities. Luckily, there are a few options available to make this time a little easier for both of you.

Longterm care insurance

A long-term care insurance policy can be purchased from a private insurance company. There are many factors that affect the price of the policy such as age, health and the state you live in. When looking for a long-term care policy, you should keep an eye out for pre-existing condition coverage. Some insurance companies may limit coverage for certain conditions or not cover them at all. Benefits can range widely for this type of policy and the amount of benefits you choose will affect the monthly premium for your insurance policy.

Medicaid

Medicaid is a government-sponsored program that offers financial assistance to individuals and families. Eligibility for Medicaid is based on income. Medicaid generally only pays medical bills for people with lower incomes and may not cover room and board. Each state administers the program a little differently. Consider speaking with an estate planning attorney to see if you qualify and that the insurance company offers the benefits you want.

Life insurance

Typically, when you purchase a life insurance policy, you assume the policy will not be paid out until you pass away. However, a life insurance company can buy out the life insurance policy. Depending on the company and the amount of coverage, you may receive 50 percent to 75 percent of the value of the policy. This can help pay for assisted living if you find yourself in a tough situation.

Between the emotional and financial stress of your parents getting older, this can be a difficult time for everyone involved. It’s comforting to know, there are options available to help you with the finances, so you can enjoy the time you have with your parents. If you have questions or problems about receiving financial help, contacting an eldercare lawyer may help.