Everyone knows that the costs associated with retiring aren’t always easy to manage. This is especially true for seniors who know they will need to live in a skilled nursing care facility for long-term care. These facilities are typically for seniors who don’t need to be in a hospital, but can’t receive the level of care they need at home.
In fact, it’s estimated that 70% of seniors over age 65 will need this long term care at some point in their retirements — and the average cost of living in a long term care facility currently hovers around $70,000, according to U.S. News and World Report. It’s a price tag that would intimidate anyone.
Not sure if you’ll be able to afford living in a long term care nursing home? Chances are, you can more than likely handle the costs by making a few small changes. Here are three ways to ensure that your skilled nursing care will be affordable and manageable:
Get long term care insurance
This is perhaps the best way to manage the costs associated with long term care. These insurance policies pay a specified daily amount toward one’s nursing home care over a certain number of years. However, it’s important to make sure you’re getting the right policy depending on your health, age and a few other factors, otherwise you might just be wasting your money on this policy.
Enroll in Medicaid
Did you know that Medicaid sometimes offers financial assistance for long term care or nursing? It depends on the specific program, but by spending down and then enrolling in Medicaid you can likely get the benefits you need to afford your care for many more years to come.
Consider a reverse mortgage
Reverse mortgages are often better than long term equity loans at giving you more financial freedom for long term care costs. With a reverse mortgage, the homeowner is able to draw on its equity — but defer payment until he or she moves out or passes away. Best of all, you’ll never owe more than the actual value of your home.
Have any other questions or advice on managing the cost of nursing homes or skilled nursing care at home? Feel free to let us know in the comments below.