Private Pay

One of the easiest and most popular ways to provide for future care is through private pay, which can be arranged in a number of ways. One way is to have family and friends set up an account that you can draw from as needed, so they will know when the money should be drawn down on your behalf. Another way is to arrange for a credit line with your bank so that you can draw from the account as needed. This approach might be appropriate if you want to maintain control over how much money you use and when, or if your financial resources are limited.

Another way to use private pay is through a long-term care insurance policy. Though you need to have adequate assets in order to qualify and the premiums can be expensive, these policies offer an alternative for covering future home care needs. If you don’t want your funds tied up in one of these policies or if they are not appropriate for your circumstances, an alternative may be to use a reverse mortgage. With this option, you will be able to receive funds in the form of a line of credit that can then be used for home care needs and other purposes.