Iris Memory Care understands many of the financial considerations and challenges that seniors and their families face when considering a transition to Memory Care. While the need for Memory Care may be immediate, the unpredictability or uncertainty of the economic climate and the financial markets may impact decisions that need to be made.
In today’s economy, many families are exploring new ways to help pay for Memory Care. Traditional means of finance, such as the sale of the senior’s home, are subject to real estate market conditions, while others may be influenced by stock and bond market fluctuations or a host of other factors.
To help you explore alternative financing sources, here are helpful ideas to assist seniors in transition to Memory Care:
Long Term Care Insurance: Long-term care insurance can cover a portion of a resident's stay in Memory Care. Because these policies vary from person to person, coverage is individualized. Our team can help identify what is required for coverage under your existing insurance policy. We can also help fill out the necessary forms and will work with your insurance provider to assist you in receiving your benefits.
Check with your insurance company or agent about coverage you may be eligible to receive.
Aid and Attendance: The V.A. offers financial aid for veterans and spouses who are in need of care. This may include individuals in need of Memory Care. Although assistance may vary, the support can be significant for those who qualify, with total benefits for some being as high as $25,000 per year. To learn more about how the program might benefit you or your family, visit www.veteranaid.org.
Secured Lines of Credit: A secured line of credit is quite similar to a bank account. However, instead of making deposits, money is borrowed against the account. This source of credit can be secured by CDs, stocks, personal property and cash. To help pay for Memory Care services, the funds can borrow from the account without having to renegotiate terms. If your loved one does not qualify for a secured line of credit, you may also want to consider a reverse mortgage.
Reverse Mortgage: This financing product is a loan that is made available to persons aged 62 or better. It can be used to put the idle home equity in the property to work. The homeowner's obligation would be to repay the loan. However, this repayment is deferred until the owner passes away, moves out, or the home is sold. For couples, as long as one person still occupies the home, there are safeguards for them to remain living at home.
Life Insurance: If your loved one has cash accumulated in a life insurance product, they may be able to liquidate the policy to fund the costs of Memory Care services. This may be a good way to assist with the cost of Memory Care without depleting other income sources. There are many excellent resources for this kind of financing solution, but the key is keeping the premiums current on the policy.
Gift Tax Exemption: Family members may want to assist in a loved ones move to a Memory Care community. One way would be to take advantage of the IRS gift tax exemption. Individuals can gift up to $14,000 per person each year without having to pay any taxes on such gifts. Contact your personal financial advisor or tax professional as these individuals can assist you in finding out how this may benefit both you and your loved one.