Financing Option

Only Available for Long-Term Care Costs

Remaining Funds Available to Heirs

Rate of Asset Accumulation

Eligibility Requirement

Risk of Insufficient Funds

Cost

Family Support and Caregiving

No

No

None

No

Moderate

-- Family members may be unable/unwilling to provide care

You pay for services that family members are unwilling to provide

Personal Savings

No

Yes

Variable

No

High

-- Long-Term Care costs can exceed your personal savings

You are responsible for creating private savings

Long-Term Care Insurance

Yes

No

Fixed

Yes

Moderate to Low

-- Long-Term Care costs could exceed original coverage amount

Monthly premiums for the life of the policy

Limited Long-Term Care Insurance

Yes

No

Fixed

Yes

Moderate to Low

-- Long-Term Care costs could exceed original coverage amount

Large one-time or short-term monthly premium

Life Settlement

Yes

No

Fixed

Yes

Moderate to Low

-- Amount received from benefit may not pay all long-term care costs

None

Viatical Settlement

Yes

No

Fixed

Yes

Moderate to Low

-- Amount received from benefit may not pay all long-term care costs

None

Accelerated Death Benefit

Yes

No

Fixed

Yes

Moderate to Low

-- Amount received from benefit may not pay all long-term care costs

None

Reverse Mortgages

No

Yes

Variable

Yes

Moderate

-- Amount received from benefit may not pay all long-term care costs

-- Home maintenance costs still exist

Processing and origination fees to establish mortgage

Continuing Care Retirement Community

Yes

Yes

Variable

Yes

Low

-- Additional care provided as needed in CCRC assisted living or nursing facility

High purchase price and fixed monthly payment required of CCRC property

Veterans Benefits

No

No

None

Yes

Moderate to High

-- Amount received from benefit may not pay all long-term care costs

None

Medicare

No

No

None

Yes

Moderate to High

-- Amount received from Medicare may not pay all long-term care costs

Co-payments and deductibles

Medicaid

No

No

None

Yes

High

-- Amount received from Medicaid may not pay all long-term care costs

-- Recovery of Medicaid may be made against estate

You pay for services not covered by Medicaid

PACE

Yes

No

None

Yes

Moderate to High

-- Amount received from benefit may not pay all long-term care costs

You pay for services not covered by PACE