Financing Long Term Care: Alternatives and Considerations

Marlene S. Stum, Ph.D. & Claire Althoff; Family Social Science

When an elderly family member needs long term care, a variety of methods may be used to pay for the costs involved. There are no "magical" or "right" payment options for all families. What's "right" depends on what is most important to those involved, their personal values and financial goals, as well as what options are legally available. Choices will be influenced by whether or not a person is eligible or qualifies for an alternative given their financial resources and health status. Most families rely on a variety of financing alternatives, not one single source.

When individuals fail to plan in advance for the possibility of changing health and need for long term care, choices regarding how to pay often become more limited. Planning in advance allows time for gathering information, comparing options, and determining which options help achieve what is most important. Regardless of when decisions need to be made, it is important to consider the potential consequences of each financing option for each unique family situation.