Elderly Care Is Expensive: Make Sure You Spend Your Money Wisely
Elderly care costs a lot of money, so we look at how to ensure your hard earned cash is getting the best care for you or your loved ones.
Elderly care can be extremely expensive, so it is important that any cash you put into paying for care is spent wisely. There’s little room for error unless you have endless funds, which most people don’t. It is a big subject, but we’ve compiled an easy list of things to consider when planning care to make sure that you place your funds exactly where they need to be to get the best possible result:
Which Type Of Care?
When considering caring for the elderly you or your relative can choose between a wide variety of different types of care. The type chosen all depends on the needs, preference and budget of the person requiring care. Two main types are live-in care and elderly care homes.
Help Paying For Care
It is so important that you get all the help you are eligible for when it comes to paying for care. Self-funding individuals aged over 65 may be eligible to claim attendance allowance and pension credit. In some circumstances it is possible that your local authority may pay for some or all of your care. You will need to be means tested to check your needs, your financial position and the type of care you require. You can begin this process by contacting your local Social Services. In most cases financial help with care is not provided if your total capital (including your home and incomings) comes to more than £23,250. So it’s likely you will have to cover some or all of the residential care home costs or live in carer costs.
Immediate Needs Care Fee Payment Plan
This is a payment plan that people take out that is comparable to an insurance plan. The person needing care will get regular, tax free income (when paid to a care provider) in exchange for an upfront lump sum. The risk with this type of plan is that the insurer bases the amount paid out on life expectancy which means that if the person passes away before this time, the money will be absorbed by the insurance provider.
Often a property will be sold to provide finances for elderly care but that needn’t be the only answer. A person can keep their property if they opt for live-in care which is fast becoming one of the most popular forms of care. Alternatively, the person may wish to let their home out for additional income so that the property stays as an asset to pass on to future generations.
Getting Financial Advice
Getting financial advice from a qualified IFA (Independent Financial Advisor) is recommended at all stages of considering care, regardless of whether you opt for live-in care or an elderly care home. In fact, the sooner you can plan for care the wiser you can be in your choices because you will have had time to consider all the different options properly.
There is a lot of advice available when it comes to planning care. With the right information and support, you will be able to invest in exactly the right type of care for your needs.