Non-Governmental Long Term Care

Some people choose not to use any government help when paying for long term care expenses. These people often use their private saving or insurance to cover the expensive costs associated with long term care.

Annuities

An individual can give a large lump sum of money to an insurance company in exchange for receiving monthly payments that will run for the rest of their life. This option is particularly appealing because it insures that the money a person has saved to cover long term care costs does not run out. It allows an individual to use their current saving to guarantee a certain payment that can be counted on for the rest of their life.

Additional Options

An individual can choose to sell their life insurance policy to obtain money quickly in order to pay for care. Other individuals with large homes or multiple homes can choose to rent out living space in an attempt to generate a cash flow that can supplement long term care expenses. The federal government will, in some cases, allow a person who is using private funds to pay for long term care to deduct the money as medical expenses on their federal income tax. Some individuals move in with their children or other close relatives. Their relatives become the primary care givers and make necessary adjustments to their home and lifestyle in order to accommodate their new responsibility.

Insurance

For some, the best option appears to be insurance policies. Insurance gives an individual the security of knowing that their savings will not be completely wiped out in the event of a major medical expense. Most people obtain insurance through their employer or privately. Many pay monthly premiums while other policies allow the individual to pay their premium on a 10 month cycle. Others can be paid in one lump payment. There are different types of policies that allow a person to designate whether their policy covers assisted living, nursing home care, or care at home. There are policies available that will pay a family member for providing long term care. Discounts are often offered to couples who get policies together and often employers can offer better insurance premiums to an individual than can be found personally.