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How to Pay for Your Care after a Health Event

How to Pay for Your Care after a Health Event

April 25, 2024

Five Ways to Pay for Your Care after a Health Event

A whopping 70% of us do not pass away quickly, but “linger” and need help at the end of our lives.  If you’re in the 70% group, do you have a plan to pay for long term care?  If not, reach out and let’s make a plan.  Here are some of the most common options to consider:

  • Long-term care insurance.Most policies are purchased between ages 50-65, when they are less expensive and easier to qualify for.  Most clients are surprised to learn that policies – like cars- can be customized to fit a range of budgets.  Options that impact premiums are the exclusion period (often first 90 days is out of pocket), inflation rate picked (0-5%), number of years you’d like to be covered (3,5, unlimited), how much coverage you want each month ($3k, $5k, etc.).
  • Reverse mortgage. If you own your home outright, meet age and home value requirements, you may be able to convert your home into a cash machine by setting up a loan that pays you income each month. 
  • Spend down assets.If you’ve accumulated a substantial nest egg that could handle a $200,000-$500,000 spend down (today’s potential costs for a stay lasting 3-6 years), this may be the best option if you’re not concerned about leaving assets to heirs.
  • Cash in or borrow from life insurance policies. Not all policies allow you to dip into the value or death benefit before end of life, but many newer policies will allow you to tap into a future death benefit (reducing it for your heirs by each dollar removed) during a major health crisis.
  • Medicaid. This government program covers the bulk of long-term care costs for Americans and spends over $400 BILLION annually on care for those needing help with covering care costs.  Medicaid has stringent rules for spending down assets before qualifying and a 5-year look back for folks gifting assets to try to qualify.  Each state administers their own pool of funds and requires different spenddowns and protections for surviving spouses. 

Every family is different and every situation unique.  If we haven’t talked about your plan to cover care costs recently, let’s touch base soon and make sure you’re comfortable with your personal strategy and that it’s communicated clearly to your family. 


Jayne W. Di Vincenzo CFP®, ChFC®, CEP®, AIF®

CEO | Fiduciary EDGE Advisors, LLC


Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS.  Please consult with your financial and legal advisors regarding your individual situation and the rules for Medicaid that apply in your state.

Kestra Financial and Fiduciary EDGE Advisors are not affiliated companies.