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One option to pay for long-term care is by getting a reverse mortgage. This is where instead of making a mortgage payment every month, your mortgage company pays you. You could then use the money to pay for your long-term care. You’re usually not required to pay back this money so long as you live in your home. The loan is repaid when you die, sell your home or when it's no longer your primary residence.
A second way to pay for long-term care is with a home equity loan or homeowner's equity line of credit (HELOC). However, most experts say this is a really bad idea because you don't want to take out a home loan to pay medical debt. The reason for this is because it would put your house at risk.
It's also possible that you could have an annuity or a trust that would pay for your long-term care. Barring this, your final option would be to file for bankruptcy. For example, if you had a $20,000 bill for your long-term care and you simply don't have the money, then you might consider filing for bankruptcy. While this would put a stain on your credit report for up to 10 years, you might be in a position where you might not care.
Getting the best deal on long-term care insurance
The way to get the best deal on your long-term care insurance or insurance for your parents is to pick a shorter benefit period. The vast majority of your long-term care needs would be covered by a benefit period of three to five years. Another effective way to cut the cost of long-term care insurance is to choose a lower level of protection against inflation. However, some financial experts worry that if you were to choose an inflation protection of 3% of or less this will not keep up with rising long-term care costs. Finally, the best solution is to buy early. The best time to buy long-term care insurance would be while you're in your 50s. And, of course, it's better to buy when you're in good health. One quarter of people aged 60 to 69 applying for long-term care insurance are rejected and 44% of people aged 70 to 79 are denied coverage. And if you are over age 75, most companies simply won't issue you a policy.