Short Term Ways to Pay for Care

Jun 8, 2016

Short Term Ways to Pay for Care

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Senior care is very expensive and the prices are only escalating over time. Each type of senior living has different cost, which makes it important to figure out the type of assistance you need. By figuring out what type of senior care you need it will give you a better idea of how much you will need to pay for care. Eventually you may need more senior care, but for now, just focus on what you need.

Short-Term Ways to Pay for Senior Care

Some seniors have not had a chance to participate in legal planning, nor estate planning, which can help prepare you for paying for senior care. This is why knowing your short-term senior care payment options are important. Below are listed ways to pay for senior care for a short timeframe until other forms of payment can be used such as veterans benefits or Medicare.

Set a Budget

Cutting out some expenses and being more stingy with your money may seem like it would not work, but a little extra cash never hurt. Saving your money and stopping frivolous shopping can make a huge difference, you would be surprised how much money you spend on items that you do not necessarily need. Instead of ordering food or going out to eat, save that money and put towards senior care.

Though this is a short-term payment option, it can also benefit you later if you have any medical expenses or other senior care to pay for. This is temporarily a solution to take care of expenses until you receive money to cover the costs. Perhaps your Veteran’s Benefits or Medicaid benefits are taking a while to cover the costs and the deadlines are closing in, by budgeting your money you can cover some of the costs.

Family Assistance

Relying on family members can be useful for those who need help covering the costs of senior care. Moving in with a family member can help save you some money until your benefits begin. If you are receiving home care or personal care, instead of owning your home (and all the costs going with the home) you can live with family so you can save money then use it to pay for care. Asking family members for help to pay for care is another way to cover costs in the short term.

Working to Pay the Bills

If you are trying to save money to pay for care, then work as many hours as possible and pick up overtime. Any extra working time you can receive will benefit your senior care savings. If you have retired and need help to pay for care, then get a part-time job to save money for care. More and more people are working into their retirement to pay for all the costs and save for the future care costs.

It is becoming the norm to continue working, even if you have retired. People who are still working may have less to worry about since they are receiving paychecks that help cover the care costs. Though most senior workers may be so fortunate to have high or even moderately paid jobs, any amount of money that can be earned can ease a senior’s frame of mind.

Short-Term Senior Savings Account

Some seniors may be lucky enough to have a 401k plan, so they have some money saved for their senior care but the money goes very fast. As seniors get older, they may experience more medical issues and other expenses that their 401k will have to cover. So it would be a good idea to have a senior care savings account. This account can be very useful when you need senior care, since your 401k may not be enough (depending on how much money you have in the plan and how much you have used).

This is more of a backup plan in case you have an emergency and your 401k is used up or almost used up. Otherwise, you can use your 401k to pay for care, but like Social Security the longer you postpone the more money you can accumulate.

The Last Resort: Debt

The last way to pay for care would be to take out a loan or pay for the care on your credit cards—thrusting you into debt. Most recommend to figure out a different solution, but for many, there are not many options. Senior care is very expensive and not everyone has the savings or funds to pay out of pocket for care.

Seniors can apply for Medicare, Medicaid, Veteran’s Benefits, and other senior care payment options. But if you are looking for a short-term option, then taking out a personal loan can be the option for you. By taking out a personal loan, then a senior does not have to wait to move into a senior community, for their house to sell, waiting for their benefits or any other problems.

Using credit cards and personal loans will potentially provide the seniors with more financial problems over time, but if the seniors just need the money for a short time and plan on paying them back (as soon as their other options become available) then it should not be too problematic. Going into debt may be the only option for seniors who need care, but lack the resources, which is why this is the last resort.

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Frequently Asked Questions

What are annuities?

Annuities can be an important part of your retirement or senior care savings strategy. An annuity is a tax-deferred investment sold by insurance companies. After your invest and watch your principle grow, when you retire you will be able to receive a series of annual payments. These payments could be used to pay for a senior's care. To find out more about annuities, find a financial advisor you can trust and discuss your options.

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On average, the hourly rate for a home-care attendant is between $14 and 24 per hour. These prices will vary based on your location, the range of required services (medical and non-medical), and the professional certification of a home health caregiver. Here you can search for home care by your state to find the best option for you or your elderly loved one!

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