According to the U.S. Department of Health & Human Services, approximately 70 percent of people aged 65 and older will eventually require long-term care. Having proper financial planning for long-term care is important before retiring. Here is a guide to preparing your financial planning for senior living in Fort Worth, TX.
Know the Options
Long-term care can differ from person to person. Long-term care is usually referred to when a person requires help with their everyday tasks or rehabilitation that lasts more than 90 days. These care services are often offered in three places, a nursing home, an assisted living community, or a person’s home with the help of a caretaker.
While assisted living communities typically do not accept Medicare or Medicaid as payment for rent, you can still use Medicare to cover medical expenses. On the other hand, you can use Medicare or Medicaid to cover the costs of nursing homes.
Consider the Costs
Long-term care expenses are based on the type of services and location. According to HHS, the average monthly cost of a private room at a nursing home in 2010 was $6,965. The monthly cost of a semiprivate room was roughly $6,235. In contrast, the average monthly cost of care in a one-bedroom in an assisted living community was $3,293. It’s also good to keep in mind that women need long-term care for 3.7 years on average as compared to males who require 2.2 years.
Understand Medicare and Medicaid
Once you turn 65, Medicare and perhaps Medicaid may help cover part of your long-term care expenses. However, there are significant differences.
If your doctor recommends rehabilitation or other professional services, whether they are provided in a nursing home or your home, Medicare will cover the cost of long-term care. A greater range of long-term care services is covered by Medicaid, which is different in each state, although one must satisfy the income and asset criteria.
However, to determine whether applicants fit the standards, the government will examine their finances dating back five years and consider any assets they no longer possess.
Decide How to Pay
There are typically three payment choices: Using retirement funds, purchasing insurance, or relying on Medicare and Medicaid. According to experts, you should use a combination that best meets your demands.
Consider long-term care insurance, which pays policyholders a predetermined sum to cover expenditures. Changing a life insurance policy to a long-term benefit care plan is an extra option. Essentially, you are selling your policy to a business that would reimburse you for between 30 percent and 60 percent of the whole benefit amount should you require long-term care. Any money you don’t use goes to the beneficiary of your choosing.
Choose Assisted Living at Morada North Richland Hills
As a resident in our Assisted Living community, you can expect our dedicated team to assist you with daily living activities whenever you need it. Additionally, you can take advantage of our resort-style amenities and engage in our exclusive senior living programs. Contact us today!
