People With
Disabilities: Steps to Take Control of Your Finances
Thinking about the financial impact of the
potential need for care is not easy. It can feel like a heavy topic, filled
with possibilities we do not want to consider. But, there is much that can be
done in the now to give your future the support you deserve.
Save
Through Further Assistance
To best prepare for your financial future,
it’s a good idea to save what money you can. There are a variety of ways you
can do so, and applying for additional assistance to cut back on everyday costs is
one. For example, there are programs that provide energy assistance to those
with a low-income. If you qualify, you’ll get a yearly payment to help cover
the burden of your electric bill. You can also apply for income-based housing,
if you do not already have it. This can help you save additional funds that you
can later put toward medical care. Again, if you qualify, food stamps can be a
great way to save a bit of money at the grocery store. If possible, you can
work a bit from home to earn some extra income. You might sell
crafts or art on Etsy, resell things on Ebay, or any number of other avenues.
However, you need to be careful because you might lose your Social Security if
you earn too much.
Long-Term
Care Insurance
Unfortunately, much of Medicaid and many
general health insurance policies will not cover long-term care. This includes assisted living, day care
services, and importantly, in-home care. As we age, we may become less
independent around the home, and we may need additional help with our daily
routines. Long-term insurance will cover this care. Such care can maintain a person’s independence and dignity
as we age. It is important to shop around, however, as prices and coverage can
vary. Speak to an advisor to get good advice and guidance to see if this is
something you may need.
Spouse’s
Income
If you require care, Medicaid won’t pay your
spouse to provide it. There is good news, however, as many states have programs
that will allow you to elect your own caregiver, which may be your spouse. Yet, you need to ensure that you
qualify financially to be eligible. Your spouse must make less than $25,000 a
year and, jointly, you must have less than $4,000 in physical assets. Luckily,
that does not include a home. Some programs are put in place by Medicaid itself
and then handled through a separate agency, but some are state run entirely.
Additionally, some states offer paid family leave, which allows for a spouse or
other family member a period of time in which they can care for a loved one.
Unfortunately, not every state has a program in place, so do research if yours
does. If you are a veteran, you have additional support, including for your
spouse.
The
Benefits of a Reverse Mortgage
One way to pay for safe, sufficient care later
in our senior years is to consider a reverse mortgage. This is not your
typical mortgage, but is a home equity loan. You receive monthly payments,
which you don’t have to pay back until you leave the home, either through sale
or if you pass away. Thankfully, the loan will never exceed the value of the
home, so you will never enter debt. Care, no matter if it is private, in-home or
assisted living, can be quite expensive. A reverse mortgage may be just the way
to pay for it, depending on who currently lives in the home, and how long they
will be there. Assess all of the pros and cons for your particular situation
and check different mortgage options to pick which is best for you.
Your needs are specific to you. Disability
varies and there's no one template, but there are universal actions you can
take to start planning for the possibility of care as you age. You deserve a
secure future and today's financial decisions can be crucial to that.
hazel.bridges@agingwellness.org
