VA Benefits: The Department of Veteran Affairs (VA) offers benefits to help Veterans pay for increased senior care. The Aid and Attendance benefit is one of these programs and can provide eligible U.S. Military Veterans and their spouses over $2,600 of monthly, tax-free income, which can help cover the costs of their senior care. Eligibility can be determined in less than 5 minutes by reviewing wartime dates, discharge type, care needs, income, and assets.
Long-Term Care Insurance: Long-term care insurance is a type of insurance that people buy because they anticipate needing to pay for long-term senior care at some point. These types of policies can also be very specific about what services and care they cover – and what they do not. Review your policy or speak with your insurance provider to learn if and how you can use your long-term care insurance policy to help fund senior living. If you’re worried you’re not getting the maximum payouts for care or have questions about your policy, ElderLife has consultants available to help review your policy, at no cost to you.
Life Insurance: Life insurance is a type of insurance that people typically buy so their loved ones receive a sum of money after the policyholder’s passing. And as you age, your life insurance premiums may increase. In some cases, policyholders decide to let their policies lapse because of the increased premiums. Depending on the type of insurance policy you have, you may be able to access funding from it or sell it during your lifetime, which you can use to pay for senior living. Not all life insurance policies can be used this way, so it’s best to review your policy to determine if and how you can use your policy to help pay for senior living.
Tax Deductions: The Internal Revenue Service (IRS) offers tax deductions on some costs related to senior care. Generally, you’re able to deduct certain medical expenses if they are over 7.5% of your adjusted gross income. There are rules on what you can and cannot deduct, but these tax deductions can go a long way. Since the tax rules are complex, it’s always best to consult your accountant or tax advisor. Their expert knowledge may be able to help you free up more money to help you pay for senior living.