Financing Long-Term Care

Financing Long-Term Care

When it comes time to consider long-term care, you and your loved one’s mind will most likely be working overtime trying to answer questions, such as, “how much is this going to cost?” or “how am I going to pay for this?” Soon, you will find that there are various ways to pay for the costs of long-term care, but which is best? It all comes down to which is the option for you at your stage in life.

According to Edward Toy, Director of Sales & Marketing at Lions Gate, a Continuing Care Retirement Community in Voorhees, New Jersey, figuring out how to pay for long-term care can be one of the most confusing experiences, but it doesn’t have to be. “There are various options that are available to help you or your loved one pay for care. These options range from personal funds, such as savings and investments, to government funds or private options, such as Medicaid or insurances, respectively,” Ed Toy states. “None of these options are one-size-fits-all and it is important to weigh the pros and cons of each method of payment.” 

In order to make this process a little less confusing, it can help to break down each payment category. In each different type of payment option, there are subcategories of different ways to pay for you or your loved one’s long-term care. Sources such as the National Institute of Health (NIH) and the Alzheimer’s Association provide many helpful resources in order to ease your mind and help you or your loved one as much as possible throughout this process.


When the need for long-term care arises, the first way seniors pay for it is through personal funds. Most home-based care is paid for out of pocket with family and friends helping you where they can. As needs increase, the cost will also increase. Those who take part in long-term care from Assisted Living communities or Continuing Care Retirement Communities almost always pay for this out of pocket, according to the NIH. However, this is mostly an option for those who are financially secure and have planned for care in advance. Out-of-pocket options include:

  • Savings
  • Pension/Retirement
  • Income from stocks and bonds
  • Proceeds from sale of a home

Personal funds are usually used along with the following payment options in order to help pay for you or a loved one’s long-term care. Many seniors are able to take advantage of government payment options and, if they plan ahead for the future, private financing options.


Public programs can also help seniors who are eligible to pay for their care. These programs are limited as to who is eligible and what is covered. Availability is dependent on age, disabilities and income. Some of these payment options include:

  • Medicare
  • Medicaid
  • Veterans’ benefits

Medicare and Medicaid can be helpful options depending on circumstances. Coverage from Medicare, however, is limited as compared to Medicaid, which is broader, according to the NIH. It is rare that Medicare covers most long-term care costs and is not usually a good choice for extensive long-term care. Medicaid, on the other hand, helps seniors with a limited income and seniors who meet certain financial and heath requirements. If eligible, Medicaid can help to pay for long-term services such as personal care, home health care and nursing home care.

For Veterans and their spouses, Veterans’ benefits can be a valuable source of funds. The US Department of Veterans Affairs can assist seniors in paying for care in certain nursing homes and services at you or your loved one’s home. To learn more about Veteran benefits, call 1.800.827.1000 or visit


Most people are not able to take advantage of personal payment options because of the extensive costs of long-term skilled nursing care. This leaves them with the need to plan ahead for their care. Planning ahead means that seniors can take advantage of private financing options, which can help them to pay for their long-term care. Choosing which of these financing options is best for you or a loved one depends on age, health and other factors. These options include:

  • Long-term care insurance
  • Annuities
  • Reverse mortgages

These long-term care payment options are very different. Long-term care insurance coverage is going to be dependent on what policy you have. Planning ahead to buy long-term care insurance is a good idea because as seniors age and their health declines, costs go up. Another option is to enter into a contract with your insurance company called an annuity. There are two types of these, immediate and deferred. Both of these involve a monthly income but they also are in exchange for a premium payment.

If you need an option that doesn’t involve restricting requirements, reverse mortgages can be a good idea. Reverse mortgages turn ownership value of a home into cash. This can be beneficial because of the lack of income or medical requirements needing to be met, and no repayment of this loan has to be made until the home is sold or the borrower dies.

“Figuring out how to pay for seniors’ care in a sea of options can be confusing,” Ed states, “but there are plenty of resources available to help you make the choice that is the best for you, your loved one and your families.”

For more information about paying for long-term care, visit the US Department of Health and Human Services website on long-term care.


“At Lions Gate, dependent on the terms of your policy, long-term care insurance can be used. Not only this, but you may find that Lions Gate is more affordable than you ever thought possible. In Independent Living, utilities, weekly housekeeping, telephone and basic cable, taxes, maintenance, transportation and 30 meals a month for apartment residents are included. Compare that to your current monthly expenses and see where we stand,” Edstates. “For those who have economic need, Lions Gate partners proudly with The Jewish Senior Housing and Healthcare Service to provide housing and healthcare services for those with limited incomes.”


Lions Gate, located in Voorhees, NJ, offers a continuum of lifestyle and care options rooted in Jewish traditions and values. Whether you are in need of Independent Living,Assisted Living, Memory Care, Skilled Nursing or Rehabilitation Services, Lions Gate has you covered.

Our mission at Lions Gate is to enrich the lives of those we serve through quality and compassionate care consistent with our heritage and values. We strive to provide programs and services that inspire well-being, as well as social, cultural and spiritual independence.

As a full-service community rich in wellness programs, meaningful experiences and educational opportunities from Lions Gate University, Lions Gate allows residents to connect with those who share their interests and cherished traditions. Our goal is to provide residents with an active, worry-free lifestyle filled with ways to connect with others, pursue their passions and be engaged in everyday life. While we focus on Jewish customs and traditions, we welcome people of all faiths to the Lions Gate family.

Through our affiliation with Jewish Senior Housing and Healthcare Service, we also offer three senior living communities for those with limited incomes.

To learn more about Lions Gate’s unparalleled lifestyle and community services, contact us today!