A Loved One's Preference

As individuals age in their retirement years, they often prefer to stay in their homes for as long as they physically and mentally can. This choice may result in a need for an in-home caregiver to be there for them, either as a companion who would assist with cooking and cleaning, or for more advanced needs that may require round-the-clock care. The cost of an in-home caregiver can be expensive and is typically not covered by major medical or Medicare plans.

There are many resources that can provide additional financial support to cover this type of service.

Annuities are designed to provide a steady stream of income during retirement years. This income can be used to supplement the cost associated with in-home care services. Today’s annuities also offer riders for chronic illness and long-term care, allowing an acceleration of the death benefit proceeds to cover costs associated with health care needs.

Another benefit some annuities offer is the government only considers the income taken from the annuity as an asset rather than the full premium invested. This can help protect your assets if you apply for Medicaid.

Long-term care policies are designed to cover the cost associated with in-home care and assisted living/nursing home care. If an individual qualifies as having difficulty with daily living actives such as transferring, dressing, cooking meals, etc. the benefit of the long-term care policy can be used to cover the cost of an in home caregiver to assist with those needs.

Life insurance is another resource a client can utilized to access funds to cover a long-term care need. The cash value within a life insurance policy can be withdrawn up to the principle amount invested without a taxable event. This money can then be used to cover the cost associated with in-home care services. In addition, many policies today offer a rider for a small cost to the premium that is specifically designed to accelerate the death benefit proceeds to cover costs related to long-term care services.

There are many supplemental programs to Medicare that will assist in covering specific long-term care services for an individual that has been discharged from a hospital or rehabilitation center. This can be very helpful when there is a sudden medical emergency that requires short term care for a specific period of time.