Does insurance cover hospice care?
Hospice is another component of end of life care expenses that you may end up needing – and it can be expensive. A patient enters hospice care when a doctor estimates a life expectancy of six months or less.
The goal is to deliver as much quality of life as possible in those final weeks or months. In addition to managing pain and symptoms, hospice care may also include spiritual support. All of these services could take place either at home or at an inpatient center. One report estimates that the final month in hospice care costs an average of $17,845. How much does hospice cost per day? Estimates range from $150 for at-home care to $500 for inpatient care.
Some hospice care costs are covered by Medicare, including medical services and supplies, physical therapy, short-term inpatient care, and inpatient respite care. However, Medicare does not cover things like room and board or any treatments or drugs aimed at curing the disease. It also doesn’t cover emergency expenses like visits to the ER or ambulance rides.
How much does a funeral cost?
Another thing to think about when making end of life care decisions is your final wishes and what they will cost. The average funeral cost is between $7,000 and $12,000. That can add a huge financial burden onto family members, especially if there’s already been a significant amount of debt accrued from palliative and/or hospice care. Plus, health insurance doesn’t cover any of these end of life expenses.
Here’s a funeral cost breakdown of what typically needs to be paid for:
- Funeral home fee
- Transportation of remains
- Embalming and preparation for viewing or cremation
- Hearse
- Casket
- Funeral plot
- Flowers
- Memorial service
- Headstone
There can be a lot of price variation depending on the type of services chosen, where you live, and the price level of the items you choose. But suffice it to say, it’s likely that you will spend at least several thousand dollars on final funeral expenses, which is why it’s something that should be factored into your end of life care decision making.
Does life insurance help with end of life expenses?
There are a few ways life insurance can help with end-of-lifecosts, and it largely depends on the type of policy you have. Insurance policies offered through Ethos allow individuals to apply for either term or whole life insurance. Both offer a lump sum death benefit when the policy holder passes away. Though it can’t be used to help cover palliative or hospice care directly when those needs arise, the money your beneficiaries receive after you die can help settle any outstanding debts that accrued during your illness including medical expenses.
As for funeral expenses, life insurance is frequently used to cover those. In fact, it’s often one of the key reasons why people choose to get a policy in the first place.
If you decide to use life insurance as part of your end of life care plan, your first big decision will be if you want term life insurance or whole life insurance. Term life insurance is available in amounts ranging from $20,000 to $2 million, with terms ranging from 10 to 30 years. If you’re a senior between ages 66 to 85 and want more financial support during your lifetime, you could consider a whole life insurance policy. With whole life insurance, you’re covered until you die as long as premiums are paid. In addition to the death benefit, your policy accrues a cash value. As you age, you can either withdraw or borrow against your accrued cash value.
The downside of whole life insurance, however, is that you’ll pay higher premiums and may get a lower benefit amount.
Get ahead of the cost of end of life care
Now that you know the answer to “what is end of life care?” you’re ready to create an end of life care plan. There are several layers to this process, the first of which is thinking through and documenting your end of life wishes and preferences. This can include everything from whether you want to receive hospice care, the desired location for care, and any specific requests regarding medical treatment, as well as your preferred funeral arrangements, if you want to be buried or cremated, etc.
Once you have a good idea of what your end of life care plan looks like, the next step is to think about how to pay for it. Taking out a life insurance policy to help your final wishes be carried out without any financial burden to your family is a popular option. If you’re not sure how to proceed, speak with a financial advisor who can help you make informed decisions about your life insurance coverage needs and overall financial plan.
If you’re ready to open a term or whole life insurance policy, you can get started today with Ethos.
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