If you or a loved one has suddenly been hit with unexpected costs related to medical or final expenses, there are several ways to cope with these surprises. From charities to government programs and life insurance policy settlements, there are several methods to help families before they become overwhelmed with rising expenses. 
Charities, religious groups, and government organizations State and local governments may offer limited benefits, as does Social Security and state memorial societies. Medicaid and Medicare recipients are allowed to put aside money for final expenses, although these programs don’t provide funds for this purpose. Veterans have an extensive range of benefits pertaining to final expenses and arrangements covered by the Department of Veterans Affairs, including burial plots for them and close relatives.Many religious institutions like churches have a support network for elderly members that includes volunteers, funds, and donations. When members become ill, volunteers and support groups can be a crucial morale-builder and a lifeline providing social interaction for yourself or a loved one. This can include driving patients to appointments, bringing dinner, watching young children, and a host of related services that would cost money if they had to pay out of pocket for them.Life insurance Many elderly or terminally ill patients don’t ask an important question: can I sell my life insurance policy?Depending on the face amount of the policy and the situation, obtaining what’s called a viatical settlement or receiving cash from your policy can provide much-needed relief. There are guidelines and restrictions, some imposed by state regulations that determine how the settlement might be taxed. It’s crucial that the policy is current and paid on-time in order to qualify.This can be a beneficial way to handle medical costs and final expenses if you don’t have a beneficiary counting on a payout. It’s also an easy way to settle debt and make final preparations to reduce the administrative and financial burden that might be placed on loved ones after passing. Some even use a viatical settlement to take the vacation they’ve always dreamt of or cross the last few items off their bucket list, or for philanthropic purposes. Reverse mortgage Not everyone qualifies for life insurance. But for homeowners who spent several years paying off the mortgage on their primary residence, obtaining a reverse mortgage is one way to free up the capital trapped in your home without selling your home outright. House-poor is a term sometimes used to describe seniors unable to make ends meet while living mortgage-free in a home worth hundreds of thousands of dollars.Instead of paying a monthly mortgage fee, a reverse mortgage pays the homeowner a lump sum, tax-free amount (or regular payments in some cases). The loan balance can never be more than the home is worth, and might max out at 60 percent loan-to-value depending on several factors. The lien is then paid off when the home sells, and net proceeds (if any) will go to the estate. There are restrictions and fees to consider, so research this option carefully to make sure it’s right for your family. Life insurance settlements and reverse mortgages can provide the bearer with immediate cash but may limit their ability to provide a planned inheritance to beneficiaries. On the other hand, using these options can lift the burden of debt from one’s estate, giving loved one’s security and peace of mind by covering final expenses and potentially avoiding bankruptcy or extended probate issues.Weigh the options carefully, pay special attention to the details and always ask questions before choosing the right path for your family.
I’m a 20-something stay-at-home mother and wife. I have an amazing husband, a beautiful daughter, two loving dogs, and a lazy cat. I wouldn’t change my life for anything! I love to read, listen to music, cook and blog!
Speak Your Mind