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Writer's picturePeter Newman, CFA®

3 Questions about Planning and Paying for Alzheimer's Care

Updated: Oct 24

Receiving a diagnosis of Alzheimer's can feel overwhelming, bringing a mix of emotions—fear, uncertainty, and perhaps relief in understanding recent changes in behavior. But after that initial moment, the realization of the journey ahead sets in. Alzheimer’s care demands thoughtful planning, with healthcare becoming a top priority.


To help you prepare for what’s ahead, here are key insights into managing Alzheimer’s care costs and planning for a secure future.

two elderly hands touching on the lap of a woman sitting in a chair

What Does Medicare Cover for Alzheimer’s Care?

Most individuals with Alzheimer's are aged 65 or older, making it essential to understand Medicare's scope of coverage. While Medicare covers hospice care when a doctor confirms the patient is in the late stages of life, hospice isn't just for end-of-life care. Often called comfort care, it provides pain management and emotional support, which can significantly improve quality of life for Alzheimer’s patients.


If Medicare's coverage feels insufficient, consider exploring Medicare Advantage plans. These plans offer the same benefits as Medicare Parts A and B, plus additional perks like prescription drug coverage, vision, dental care, fitness services, and caregiver support—critical features when managing a complex disease like Alzheimer’s.


How Can You Manage Out-of-Pocket Expenses?

Alzheimer’s care can become expensive, and you may need to cover some costs yourself. Downsizing—like selling your home to fund care at an assisted living facility—might be an option. Other resources, such as investment dividends or property sales, can also provide valuable financial support for long-term care.


Being proactive with financial strategies can prevent disruptions in care. For example, you could consider selling a life insurance policy for a lump-sum payout, allowing you to fund essential services like in-home care, medical devices, or home modifications not covered by insurance.


It’s also wise to consider future expenses, such as funeral costs. With funerals typically costing between $7,000 to $10,000, purchasing burial insurance now can help alleviate the financial burden on your family by covering final expenses and any remaining medical bills or debts.


Where Can You Find Good, Affordable Alzheimer’s Care?

  1. Family Caregivers:A family member might step into the caregiving role, which can be both fulfilling and challenging. While this is often the most affordable option, proper training—like CPR or techniques to manage Alzheimer’s-related behaviors—will better equip them for the role.

  2. Professional Caregivers:Hiring a nurse or caregiver experienced in Alzheimer’s care can offer more specialized support. When hiring, be sure to interview candidates thoroughly, check references, and factor in additional expenses like food, mileage, and paid time off.

  3. Assisted Living Facilities:If in-home care becomes unmanageable, assisted living facilities with Alzheimer’s-specific programs are another option. These facilities often come with higher costs, but downsizing and selling assets—such as a home—can offset these expenses. When touring facilities, focus on balancing comfort, care quality, and affordability.


Planning for a Better Tomorrow

Making decisions about Alzheimer’s care can feel overwhelming, especially as memory loss and confusion set in. But you’re not alone—millions of families in the U.S. face these challenges. The key is early planning and open conversations with loved ones. By preparing now, you can ensure your care is in place for the future while reducing stress.


Need Help Planning for Retirement?

At Peak Wealth Planning, we help clients navigate every stage of retirement—including planning for health challenges like Alzheimer’s. Whether you’re looking to safeguard your financial future, manage ESOP shares, or create a long-term care plan, our team provides personalized guidance to meet your needs.




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About the Author

Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind.


Peak Wealth Planning offers personalized concierge services to meet your wealth management needs, including financial planning, investment management, ESOP diversification, retirement income, insurance, and estate planning. As a fee-based financial advisor based in Chicago, Peak Wealth Planning serves a select group of clients in Illinois and across other states.




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