July 24, 2020
A common theme we hear from our clients who are approaching their post-retirement years is that they plan on staying in their home as long as possible. And we are honored to be able to help so many seniors in the US accomplish this goal with our expertise! But with that said, there are some misconceptions around the efficacy and safety of aging in place. A study by Vi Living, a senior living facility operator, and Age Wave identified some of the main misconceptions:
- “My current home will be the best possible place to live in my post-retirement years.”
As life changes, our “ideal home” changes as well. The “ideal” home for our post-retirement years is the home that provides the most freedom, conveniences and least worry!
- “My current home is the best option to continue an active social life and to stay connected with friends in the years ahead.”
The study found that choosing to age in place can lead to increased isolation and loneliness, and is a major factor behind the increasing trend of elder self-neglect.
- “It’s less expensive and more financially secure for me to stay in my current home.”
Even with the mortgage taken care of, the costs and effort of maintaining a home can become a burden later in life. Not only do the repairs and maintenance never end, but as you age in place you will likely become less able to manage these activities as well.
- “It would be easy to get any care I might need at home.”
Finding good, affordable home care can be a significant challenge. And unfortunately, when this need arises, home care is critically important and must be arranged quickly.
The costs of private home care can be quite high, especially for 24 hour care, and the same can be said even for other forms of long term care. The good news is that more seniors are learning how they can tap the market value of their life insurance policy to help cover costs like these! Using a powerful financial tool called a life settlement, a life insurance policy holder can sell their policy to a third party for an amount greater than the cash value in the policy, but less than the death benefit. The new owner pays the offer amount to the seller, and also covers all future life insurance premiums on the policy. The life settlement offer can also be structured in our Senior Care Benefit Plan, which makes monthly payments towards long term care services!