Paying for care is one of the biggest sources of stress that senior citizens face. Care can be quite expensive, and unfortunately, some insurance policies don’t pay for a lot of care services. Those that do pay for care often have income requirements, and a lot of people don’t qualify for these things.
It forces some people to get creative with how they pay for care. But that can be very costly. Not every method of getting the funds to pay for senior care is smart. Here, I am going to look at a couple controversial methods of paying for care, and go over some of the things that you should be aware of.
Just remember–at the end of the day, these will more than likely not be the right choices for you and your family. However, it is worth knowing what they are and why they aren’t going to be right for you. And in the off chance that they will be helpful for you, please speak with a financial professional before you make any sort of decision.
Reverse Mortgages
A reverse mortgage has some benefits, but there are also some big drawbacks to using one of these. A reverse mortgage is a loan that taps into the value of the home that you own. It can be paid out as a lump sum or in a series of payments, but ultimately needs to be paid back. The home is used as collateral for this type of loan, which means that if the loan is defaulted upon, there is potential that the home could be lost. As such, it is very important that the details of such a loan be examined thoroughly before it is committed to.
Private Financing
Taking out a personal loan or using a credit card to pay for senior care might be a good idea if you are in a pinch. The downside of this is that these types of loans have very high credit rates. This can be a short term solution if money is temporarily tight, but it will more than likely not be helpful over the long run.
With both of these things, there’s a lot of risk involved. Like other aspects of life, they might work out well for some people, but might be very problematic for others. It’s really important that you speak with a professional in the field of finance and elder care before you make any decision about what the best way to pay for care is for you and your family.
And just like finances, senior care should be customized, too. The right kind of care for one person won’t necessarily be the right kind of care for another. Be sure to know what you’re looking for out of care, and then go over all of your options before making a commitment. The right kind of care can go a really long way for someone, but it’s rare that you will just stumble upon it. The sooner you start looking at what’s best for you, the sooner you can get your family connected to the best resources possible.
As always, we’re here to talk if you’d like a little more guidance.
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