Ways to Finance Your Elderly Parent's Care
When you sit and think about your elderly parents, you can't help but remember the best memories you share with them and how they took care of you. But now since they're older, your parents may require additional care. Wanting to repay your parents for the care they gave you is a great thing; however, it might not be as easy as you think. Caring for elders can be financially demanding, depending on the type of care they need. In this article, we'll be going over a few ways to finance your elderly parent's care.
Long-Term Care Insurance
Long-term care insurance is a policy that's used to cover those with a chronic illness or debilitating injury. The provided coverage makes it easier for them to take care of their basic needs, like eating and buying clothes. This type of insurance is commonly bought by and for people who are aged 65 and older. Before purchasing this insurance, however, there are a few things you need to know about it.
For starters, there are multiple types of this coverage: traditional, hybrid, and life insurance with a long-term care rider. Each of these policies functions a bit differently, but they all provide what you need. However, there are some cons to be aware of as well. The one major problem you can experience with this insurance is the high costs. Unfortunately, there are some policies with premiums that cost a lot to maintain. What's more is that many elderly people don't have enough savings to keep up with the price. If you plan on buying this insurance for your elderly parents, make sure to weigh the pros and cons first.
Take Out a Personal Loan
Taking out a personal loan can save the financial hassle of the newfound responsibility. It's the most flexible loan you can have as it allows you to pay for just about anything you set your mind to. In this scenario, you can put it towards your elderly parent's needs. You can use it for their medication, equipment, food, and clothing. Before taking out this loan, however, you need to make sure nothing will decrease the amount of money you can receive. You can get a free copy of your credit report at a place such as Experian and AnnualCreditReport.com. Furthermore, pay off any lingering debt you may owe; having outstanding student loans and credit cards can lower your score quickly.
Sell Their Life Insurance Policy
With their permission, you can sell the life insurance policy your parent has for a lump sum of funds. There are two ways you can sell this policy: selling it back to the company or getting a life settlement. Life settlements work almost identical to the former with the only difference being who you give the policy to. In this case, you'll be giving the policy to a third-party buyer. Another thing to point out is that there are life settlements known as viatical settlements. Viatical settlements are for those who suffer from a terminal illness. Regardless of your preference, this is a fantastic way to get thousands in a short amount of time.