Updated: August 25, 2022 by Catharine D. Allado
The cost of long-term care can vary quite a bit depending on the things you are looking for like the type of senior care, additional senior services needed and the location you prefer.
It is very important to know your available financing options in order to help you prepare for the cost of senior care, as it can be very expensive. To help you understand the different financing options available for you and your family, please refer to the Caregiving Payment Options chart below.
| Financing Options | Rate of Asset Growth | Risk of Insufficient Funds | Cost |
| Family Support and Caregiving | None | Moderate Family members may be unable / unwilling to provide care |
You pay for services that family members are unable to provide |
| Personal Savings | Variable | High Long-Term Care costs can exceed your personal savings |
You are responsible for creating private savings |
| Long-Term Care Insurance | Fixed | Moderate to Low Long-Term Care costs could exceed original amount |
Monthly premiums for the life of the policy |
| Limited Long-Term Care Insurance | Fixed | Moderate to Low Long-Term Care costs could exceed original coverage amount |
Large one-time or short-term monthly premium |
| Life Settlement | Fixed | Moderate to Low Amount received from benefit may not pay all long-term care costs |
None |
| Viatical Settlement | Fixed | Moderate to Low Amount received from benefit may not pay all long-term care costs |
None |
| Accelerated Death Benefit | Fixed | Moderate to Low Amount received from benefit may not pay all long-term care costs |
None |
| Reverse Mortgage | Variable | 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 | Variable | 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 | None | Moderate to High Amount received from benefit may not pay all long-term care costs |
None |
| Medicare | None | Moderate to High Amount received from Medicare may not pay all long-term care costs |
Co-payments and deductibles |
| Medicaid | None | 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 | None | Moderate to High Amount received from benefit may not pay all long-term care costs |
You pay for services not covered by PACE |
Source: U.S Department of Health and Human Services
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Related Articles:
- Choosing The Right Senior Care Facility
- Senior Care Facility Checklist
- Major Factors That Influence Senior Care Housing Fees
- Caregiving Payment Options
Catharine “Kate” is a Certified Administrator for Residential Care Facilities for the Elderly (RCFE) and an Expert Senior Care Advisor. Kate’s grandmother battled Alzheimer’s Disease and Kate personally understands what millions of families are going through. Kate and her team are very passionate in empowering Seniors and their families by providing them with the Best Available Senior Care Options based on Senior’s care needs, preferred location and family’s budget.
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