It's hard to predict if you'll need Long-term services and supports. It’s also hard to know how much you'll need, what it will cost, and whether family or friends will provide some of the care.
You will likely have to pay for some or all of your long-term services and supports. An increasing number of people are using private financing options to help pay for them.
Which financing option is best for you depends on many factors.
It can be very hard to save enough money to pay for these expenses.
Will you have saved enough if you need long-term services and supports earlier than expected? Can you pay for your own long-term services and supports without taking funds from other vital needs such as your spouse’s living costs?
Long-term care insurance purchased from an insurance company can help you fund your long-term services and supports if needed. Long-term care insurance features and benefits may vary from company to company and by policy. Knowing the types of services you may want or need will help you find the best solution.
In Oregon, long-term care insurance must cover care in a private home, a nursing home, an assisted-living facility and an Adult foster care setting. Private health insurance and Medicare usually do not cover the services covered by these plans.
To learn more about long-term care insurance, visit the Oregon Department of Consumer Business and Services Insurance Division website.
You may have greatly reduced or paid off your home mortgage by the time you need long-term services and supports. The value of your home may be more than its original purchase price. If so, there are several ways you can use that equity to pay for long-term services and supports.
Make sure you thoroughly understand the implications of each option and whether it is right for you.
One of the hardest decisions you may face is whether to leave your home and move to a more supportive setting. For example, you may choose to move to an Adult foster home, assisted living facility or other facility-based setting. Consider several factors as you decide whether staying in your own home makes sense:
A reverse mortgage is a special type of home equity loan for people aged 62 and older. The homeowners borrow part of the home’s equity. The loan principle and interest are not paid back until the last borrower dies or moves out. You may want to consider this if you plan to live in your own home a long time.
Some features of a reverse mortgage are:
You may be able to use your life insurance policy to help pay for long-term services and supports. Be sure to review your policy carefully and consult with your insurance agent about options.
Another option may be Annuities and Trusts. Contact your financial advisor to assess this option. If you do not have a financial advisor you can Contact the National Association of Personal Financial Advisors.
ADRC of Oregon staff are available to help you explore your options to meet your current needs or create a plan for the future.
Find information, resources and tools to help you start planning.
Calculate your future long-term services and supports expenses.
Estimate your likely future financial resources.