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Paying For Long-Term Care

  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: August 3, 2012

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