Return to non-screen reader version
Overview | Government Programs | Private Insurance | Home Equity | Other Options | Resources |
The cost of long-term care can vary quite a bit depending on what kind of care you need, where you get the care, and where you live. The chart below shows a comparison of available financing options:
Financing Option
Only Available for Long-Term Care Costs Remaining Funds Available to Heirs Rate of Asset Accumulation Eligibility Requirement Risk of Insufficient Funds Cost Family Support and Caregiving No No None No Moderate -- Family members may be unable/unwilling to provide care You pay for services that family members are unwilling to provide Personal Savings No Yes Variable No High -- Long-Term Care costs can exceed your personal savings You are responsible for creating private savings Long-Term Care Insurance Yes No Fixed Yes Moderate to Low -- Long-Term Care costs could exceed original coverage amount Monthly premiums for the life of the policy Limited Long-Term Care Insurance Yes No Fixed Yes Moderate to Low -- Long-Term Care costs could exceed original coverage amount Large one-time or short-term monthly premium Life Settlement Yes No Fixed Yes Moderate to Low -- Amount received from benefit may not pay all long-term care costs None Viatical Settlement Yes No Fixed Yes Moderate to Low -- Amount received from benefit may not pay all long-term care costs None Accelerated Death Benefit Yes No Fixed Yes Moderate to Low -- Amount received from benefit may not pay all long-term care costs None Reverse Mortgages No Yes Variable Yes Moderate -- Amount received from benefit may not pay all long-term care costs -- Home maintenance costs still exist Processing and origination fees to establish mortgage Continuing Care Retirement Community Yes Yes Variable Yes Low -- Additional care provided as needed in CCRC assisted living or nursing facility High purchase price and fixed monthly payment required of CCRC property Veterans Benefits No No None Yes Moderate to High -- Amount received from benefit may not pay all long-term care costs None Medicare No No None Yes Moderate to High -- Amount received from Medicare may not pay all long-term care costs Co-payments and deductibles Medicaid No No None Yes High -- Amount received from Medicaid may not pay all long-term care costs -- Recovery of Medicaid may be made against estate You pay for services not covered by Medicaid PACE Yes No None Yes Moderate to High -- Amount received from benefit may not pay all long-term care costs You pay for services not covered by PACE |
Page Last Updated: April 10, 2007
|
||||
|
||||
|
|
|||||||||||
NEW! Medicare & You 2009 |
|||||||||||
|