Think of the best things you can remember. Maybe this is the year they finally bought your bike for your birthday, or see something full of peppermint and chocolate chip ice cream every time you open the freezer because my mom knows it's beautiful
As you get older than your parents, this is something to keep in mind. You may be wondering when you will take care of them and more importantly how.
Treatment may extend to nursing, home care, or assisted living. One study found that the average cost of a nursing home was $7,698 per month. Even if your parents need your attention at the time, there's nothing wrong with starting a conversation. Do not leave the first topic to care for the elderly – you have to plan ahead of time. Other health problems may arise long before the care of the elderly.
The good news is that you can help your parents in many ways by helping them manage their assets or to pay for the future care of the elderly. Here are some ways to know the advantages and disadvantages of caring for the elderly:
- Savings and investments
Your parents already have a lifetime pension that will cover health care costs or long-term care decisions. Sounds great, but of course, not everyone has enough money to retire. Perhaps your parents have retired or are about to retire to fill the gap. If that's true, you might consider saving your own money over time so the parents can take care of it and use it to their advantage.
The advantage is that you are planning, which is the safest way. The downside, however, is that you may have other financial services, such as paying off debt, starting a family, saving for smaller loans, or investing in a pension.
- Long term insurance coverage insurance
Providing long-term insurance coverage is a good way to cover home care costs, although some may not consider it an option. Cost does not necessarily depend on many factors; If you are younger than healthy, health will be less. Many experts recommend going back to school at age 50.
But if your loved one is over 60 or in good health, English debt can be reduced, or your parents will not be able to get insurance. While one benefit of long-term insurance is that the money doesn't pay taxes, the disadvantage is that the payment isn't cheap. According to the American Health Insurance Association, the median annual income of a couple is $2,466-3,381, which results in increasing your budget.
- Reverse mortgage
A reverse mortgage allows homeowners over the age of 62 to use the value of their home without selling it. They can withdraw money in the form of a large sum, credit line or fixed monthly income. Unlike regular mortgages, they do not have to make payments on the loan – instead, they can repay when they sell or move.
But the reverse mortgage holds. As interest accumulates, the debt balance increases and commissions and interest are higher than traditional mortgages. This can significantly reduce the value of your parents' property and possessions.
- Health Savings Account (HSA)
HSA is a store of value that allows your parents to allocate pretax dollars for future medical expenses. Most employers cooperate and individuals can contribute up to 4,400 per year. Even better, if your parents are over 55, they can give you an extra $ 1,000 a year.
Pros: Your parents can invest in their HSA so that the money grows over time. These funds can be used to pay medical expenses after retirement or to pay long-term care insurance premiums. Is It Worth Noting? Your parents will have to co-operate with their account, making it difficult for you to help. In addition, they will not receive tax relief for paying donations after 65 years.
- Permanent life insurance
If your parents have a permanent or full life insurance policy, that policy will have cash value. They can use this monetary value to pay high care costs in three ways: borrow directly against the policy, use the policy as collateral for a loan from another lender, or get some amount. Refund of part or all of the policy.
The obvious reason behind this decision is that it gives your parents the money to pay for the care of the elderly. The problem is, when you take out a policy loan, the interest charged is usually very high. In addition, the termination of the policy reduces the benefit of death. Finally, not everyone wants to start life insurance.
- Medicaid / Medicare
Medicare covers specialist nursing care, hospice and temporary care, home health care and long-term care hospitals. However, it does not include long-term care for the elderly who need daily help. In contrast, Medicaid covers long-term care costs, but only under certain circumstances and after someone has spent all of their assets.
Both programs have very strict eligibility requirements – you can find out if your parents qualify by visiting the Medicare and Medicaid websites.
- Personal loan
When it comes to elderly financial assistance, there are both fixed costs, one-off costs such as home care and a new wheelchair. Personal loans can be a lifesaver in both cases.
A personal loan that you or your parents can take out can help you pay off large expenses at your parents' age. Personal loans can also be used to pay for recurring expenses, especially if you expect additional funding to pay off these loans at a later date. For example, if your parents are planning to sell their home, it makes sense to finance their living expenses as much as they can with personal debt. After selling the house, you can repay the entire loan.
The advantage is that sometimes it is better to save on expenses that do not outweigh the costs on the credit card, which usually comes with a skyrocket interest rate. A personal loan is provided at a low-interest rate and can help prevent you or your parents from selling the property to cover the cost of a home nurse. However, the downside is that you have to apply for one and if you want to get funded quickly, the approval process can take longer.
What fits your family
Taking care of aging parents when dealing with medical expenses is a way to say thank you for all the mint and chocolate chip ice cream you ate as a kid. But in the end, the right choice to pay for the care of the elderly depends on your parents and your situation.
