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Growing older is just a part of life, and with it comes many different lifestyle changes. Medical necessities often pop up and as a result, having part or full time health care becomes necessary. When that happens, it’s important to understand that entering a nursing facility or moving in with your children aren’t the only options. Home health care is often the best choice for many seniors who aren’t ready to move out of their homes, but it can be expensive. Fortunately, there are always ways to help pad your retirement and medical funds without having to burden your family.
If you have a stock portfolio, use some of your assets. Sell off what isn’t making the majority of what you need from retirement income, and use that cash as necessary on home health care. Speak with a trusted advisor before making any sales, as he or she may be able to provide insights on specific stocks that could be very worthwhile.
Sell Your House
Usually, by the time the need for home health care arises, the kids are gone and the need for a very large house just isn’t there any more. Selling that house and downgrading into a smaller home or an apartment can provide you with a significant amount of cash that can help you pay for in-home healthcare. You might also consider selling your car, or at least opting for a model that isn’t as large or luxurious.
Home Equity Loan
Of course, homes are often very sentimental to each one of us, especially if they’ve been a part of the family for years. If you just can’t see yourself parting with your home, you can consider taking out a home equity loan. In a home equity loan, you’re essentially borrowing money from a lender and using your home as collateral. This provides you with the cash needed to help make your home health care possible while still enjoying your senior years in the home you love.
Borrow from Family or Friends
You may not want to move in with family or friends—that’s understandable. But it’s important to realize that they may be able to help you in other ways. Rather than relying on a bank loan, which will have strict repayment guidelines that could put you in a worse financial situation, you may opt to borrow money from family or friends. In this case, it’s still important to set guidelines based on how you will repay them, but it might be an easy way to get the money you need for home health care.
A life settlement is the sale of a life insurance policy to a second party buyer. In most cases, seniors don’t realize that their life insurance policies are considered an asset. Instead of surrendering the policy when the premiums become more of a burden or unnecessary expense, you can sell it for a larger sum of money than the cash value. In many ways, a life settlement can provide you with the extra funds you need for home health care without having to disrupt any of your other assets or financial priorities.
To see if you quality for a life settlement, check out our Qualification Calculator today!