Financial Independence for the Lifestyle You Want and the Care You Need

There are many ways individuals can pay for senior living, but the most common method is to use private funds, such as savings and retirement accounts. You may consider 401(k)s IRAs Pensions Social Security Investments Sale of car, excess furniture and other valuables.

The Department of Veterans Affairs has established the Aid and Attendance Pension for qualified veterans and their surviving spouses. This program can help fund senior living. Qualifying veterans must have at least 90 days of active military service with at least one day of service during a period of national conflict, with honorable discharge, or be their surviving spouse. A medical diagnosis requiring assistance with two or more activities of daily living, insufficient monthly income to purchase required care, limited liquid assets, such as savings and retirement funds. Please contact your local Veterans Affairs office or visit VeteranAid.org for additional information.

You can access your home’s equity as a possible resource for additional income. The equity may also be tax-deductible. A home equity line of credit, similar to a home equity loan, however you can borrow from an available pool of money as needed and only pay interest on the money borrowed. Also, there are reverse mortgages, which will work in some situations, but require at least one homeowner to continue living in the house. Personal loans, which may be a good short-term solution. However, interest rates are higher and they are generally not tax-deductible.

There are several ways you can use your current life insurance policy to access cash that can be used to assist in funding your needs. Taking a loan from your current life insurance policy, with the understanding that it will reduce your policy benefits accordingly Surrendering a life insurance policy and receiving a cash payout. Your policy may feature an accelerated death benefit rider, which may give you access to a portion of the death benefit if you become terminally ill. Or, take a life settlement, where you can sell your existing life insurance policy to a third-party company that typically pays more than the surrender value. In additional, you may be able to convert your life insurance policy to a long-term care assurance benefit plan.

Long-term care insurance covers individuals who need long-term care or assistance with several activities of daily living, such as toileting, walking, bathing and getting dressed. If you need care, nursing home or in-home care services and do not have long-term care insurance or the funds to cover associated costs – and you do not qualify for Medicaid – you may convert your existing life insurance policy to a long-term care assurance benefit plan. This plan covers care services and long-term care expenses at the time services are needed, without requiring you to spend down your financial assets to qualify for Medicaid coverage. This conversion option is a Medicaid-qualified spend down of your life insurance asset that extends the time you remain a private payer before going onto Medicaid. For more information on converting your life insurance policy into a long-term care plan, contact your financial advisor.

Listing and selling one’s home through a real estate agent is a good option. Many individuals capitalize on real estate investments without giving up their homes by selling it to a family member that would inherit the property or renting it.