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Overview | ![]() |
Government Programs | ![]() |
Private Insurance | ![]() |
Home Equity | ![]() |
Other Options | ![]() |
Resources | ![]() |
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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: August 3, 2012