ADDITIONAL RESOURCES

How Could You Plan to Pay for Long-Term Care?

Updated on: August 17th, 2022

Your personal circumstances should play a large role in determining how you will cover the costs of long-term care. You should consult professional advisors (such as an estate-planning lawyer or other qualified person) to consider your specific situation, including the impact of any option on your spouse or dependents, before making any decisions about how to finance your long-term care.

Savings, Pensions and Other Retirement Accounts

Many people save all their lives to have funds for retirement. These resources are intended not only to afford a comfortable standard of living in retirement, but also to prepare for certain predictable expenses, e.g., a new roof or a new car. These resources could also be considered to pay for longterm care costs. You should consider all of your liquid assets, such as savings accounts, CDs (certificates of deposit), money market accounts, stocks, bonds, mutual funds, annuities, pension plans, profit sharing or employee stock option retirement plans and Individual Retirement Accounts (IRAs). You could use any of these sources to pay for long-term care services when they may be needed.

Residential and Real Property

In addition to your liquid assets, you may own other property that can contribute to paying for the costs of care. These assets could include your home, motor vehicle or other property. Although the value of these assets should be considered in making decisions, neither the Division of Insurance nor any other state agency recommend that any specific asset be sold. Homeowners may also be able to tap into the value of their homes without selling them. Some financial organizations offer reverse mortgages or special loans that enable you to continue living in your own home. Some of these contracts will guarantee payments in return for a new mortgage on your home. If you wish to investigate this option, you should contact organizations such as Homeowners Options for Massachusetts Elders.

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