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How to Pay for Long Term Care


Client at a long term care facility

People are living longer than ever, but 70% of those over age 65 will need long term care at some stage of their lives. Health insurance will not cover the cost, and Medicare and Medicaid may provide only limited coverage.


If you and/or your spouse are concerned that you will outlive your retirement nest egg a long term care event will guarantee that you will. The Employee Benefits Advisors Group Group can help you make a plan. We help seniors by providing unbiased information about long term care planning solutions and empowering them to make informed decisions.


Here's a breakdown of the basic payment options:


Pay out of Pocket

  • This gives you the most freedom to choose care, however, you could run out of money.

Government programs

  • Medicare is very limited

  • 100 Days for Skilled Care if you meet the qualifications

  • More lenient for home care, but must b house bound

  • Medicaid is means-based

  • Spend-down requirements

  • Limits where you can receive care

  • Most states require your income be less than the cost of care

  • Limitations on assets

  • Look back period for asset transfers and penalties

Viatical Settlements

  • Reimburses the cost of care up to the benefit amount chosen

  • Gives you the freedom to choose care

  • Provides guidance with care decisions

  • Pays for home modifications so you can stay at home

  • Reduces the burden on loved ones

  • Protects assets

  • Can cover the look-back period if you have to apply for Medicaid

Life Care Funding

  • Converts life insurance into long term care payments

  • Proceeds are placed in an FDIC insured account in the owner’s name

  • Payments are made directly to long term care service providers

  • Includes a funeral fund

  • Unused funds are paid to beneficiaries

Reverse Mortgages

  • When structured properly, provides a line of credit that can be used to pay for long term care services

  • If there is a concern about loved ones inheriting the property, in many cases, life insurance can be purchased to pay back the loan.

Paying for long term care can be costly – which is why it’s important to start planning now for the future. Let the Employee Benefits Advisors Group help you determine if long term care insurance is a viable option for you.


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