One of the biggest obstacles for our loved ones and families is comprehending the financial elements of senior living. For the uninformed, simply sorting financial reality from fantasy might take up their whole day. Learning more about how to pay for care before starting your senior living journey will help you move forward with less anxiety and more understanding.
This article explores four myths about financing Clinton, MS senior living residence and debunks them.
Myth: Medicare Will Cover Some of the Costs of Living
Long-term care is not covered by Medicare Parts A and B, which provide health insurance (aka custodial or nursing care). However, in some circumstances, such as post-surgery rehabilitation following a qualifying hospital stay, Part A may provide coverage for skilled nursing care at a skilled nursing community for a brief period of time.
Myth: Costs Associated with Living May be Covered by Supplemental Social Security Income
Yes, SSI can be used to pay for care, but only if the recipient is eligible. SSI is designed for those who fulfill modest income and asset requirements.
The eligibility for Supplemental Security Income is subject to both income and asset restrictions. One’s countable monthly income cannot be greater than the benefit amount to be eligible. For a single person, it is $771, and for a married pair, it is $1,157 as of January 2019. Employment earnings, Social Security benefits, Veterans Affairs (VA) benefits, and pension payments are a few examples of countable income.
Therefore, SSI can be used to pay for living expenditures for people who are eligible, but this should not be expected until an application has been submitted and approved.
Myth: All Expenses are Covered by Long-term Care Insurance
Although not all plans are made equal, long-term care insurance is a proactive method to plan for potential medical requirements in the future. Additionally, when health care prices continue to rise, even a wonderful program may not seem so great in a few years.
This is because health care costs are continually changing. Please don’t hesitate to get in touch with your agent if you have any questions or concerns regarding your insurance so that you can get the information and support you need to make the best choices.
Myth: Until My House Sells, I Cannot Afford to Relocate into a Living Community
Your loved one’s home is frequently their most valuable possession, and they use it as their living savings account. Finding the money for the transfer before a home sells and closes, however, may become stressful for everyone concerned when a move to housing needs to be accelerated.
A bridge loan is one option to solve this problem. When it was necessary to bridge the gap between buying a new house and selling the old one, many people took out bridge loans. In the case of care, these loans are often unsecured (which means the interest rate might be greater than a home equity loan) and there can be limits on how much can be borrowed.
Multiple family members can apply for a bridge loan on behalf of a loved one by pooling their creditworthiness as co-borrowers, relieving them of the burden. A bridge loan also gives extra time to remodel and fix up a house before offering it, which increases the sale price.