Sometimes life's biggest setbacks end up being just the spark needed to inspire us to accomplish something life changing.
When my grandfather, a Navy veteran of three wars, required long-term care, he thought he was prepared for the expense. Over the years, he had paid $100,000 in premiums for long-term care insurance.
His careful planning was unnecessary, however. There was another way to cover the long-term care costs for him; we just didn't know about it.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
My grandfather was eligible for VA benefits, which include coverage for long-term care, from the U.S. Department of Veterans Affairs. This benefit is designed to financially assist war-time veterans and their spouses with their assisted living, nursing home or care-in-the-home expenses.
When I later learned about this benefit—and that my grandfather had been eligible—I decided to do what I could to make sure others didn't miss out and, in 2012, launched the Veteran Benefit Project. Since then, the project has helped at least 1,000 veterans qualify for the benefits they deserve.
My grandfather wasn't unusual. Although what's known as the Veterans Aid and Attendance benefit has been around since 1951, many veterans don't know about it, or don't think they qualify.
It's not that the vast majority of veterans are ineligible. In fact, the qualifications are fairly simple. Here are a few of them:
- li>90 days of military service, of which at least one day was during wartime
- No dishonorable discharge
- At least age 65 or disabled
- Need assistance with at least one activity of daily living (ADL)
By meeting these criteria, the veteran and his or her spouse, or the surviving spouse if the veteran is deceased, are eligible for up to as much as $25,488 a year in benefits, according to the Department of Veterans Affairs.
How much they can receive varies depending on their situation. Here's how it breaks down:
- Veteran without dependent – $1,788 monthly
- Veteran and spouse – $2,120 monthly
- Widow/widower – $1,149 monthly
- Veteran with dependent – $1,404 monthly
These tax-free benefits are paid directly to the veteran or surviving spouse, according to the Department of Veteran Affairs.
What I have found over the last few years is that probably 95% of the veterans I talk with have never heard of this benefit.
That means a lot of people who could be helped by the money aren't claiming what's rightfully due to them.
Anyone with a family member who has had the need for long-term care understands that the costs can be staggering. A Genworth Financial Cost of Care Survey 2016 pegged the national median expense at $43,539 per year for assisted living, $82,125 a year for a semi-private nursing home room and $92,378 per year for a private nursing home room.
Most people are in no position to take on that kind of expense in retirement.
That's why it's so important to get the word out to veterans. They earned this benefit. They need to take advantage of it.
Andrew McNair is the president, Investment Adviser Representative and Insurance Professional of SWAN Capital, which he founded in 2012. In the same year, he established the Veteran Benefit Project, an organization that helps veterans qualify for VA benefits. He specializes in the fields of retirement income, long-term-care, wealth preservation and has a strategic partnership with an attorney for estate planning services.
Andrew McNair and SWAN Capital are not affiliated with the U.S. Department of Veteran Affairs or any other governmental agency.
Investment advisory services offered through AE Wealth Management, LLC.
Rozel Swain contributed to this article.
-
The Most Tax-Friendly States for Investing in 2025 (Hint: There Are Two)State Taxes Living in one of these places could lower your 2025 investment taxes — especially if you invest in real estate.
-
Want To Retire at 55? See If You Can Answer These Five QuestionsWho said you can’t retire at 55? If you say yes to these questions, you may be on your way to an early retirement.
-
Potential Trouble for Retirees: A Wealth Adviser's Guide to the OBBB's Impact on RetirementWhile some provisions might help, others could push you into a higher tax bracket and raise your costs. Be strategic about Roth conversions, charitable donations, estate tax plans and health care expenditures.
-
One Small Step for Your Money, One Giant Leap for RetirementSaving enough for retirement can sound as daunting as walking on the moon. But what would your future look like if you took one small step toward it this year?
-
This Is What You Really Need to Know About Medicare, From a Financial ExpertHealth care costs are a significant retirement expense, and Medicare offers essential but complex coverage that requires careful planning. Here's how to navigate Medicare's various parts, enrollment periods and income-based costs.
-
I'm a Financial Planner: Could Partial Retirement Be the Right Move for You?Many Americans close to retirement are questioning whether they should take the full leap into retirement or continue to work part-time.
-
From Mortgages to Taxes to Estates: How to Prepare for Falling Interest RatesAs speculation grows that the Federal Reserve will soon start lowering interest rates, now is a good time to review your financial plans for housing, estate, taxes, investing and retirement to make the most of potential changes.
-
This Is How Lottery Winners Build Lasting Legacies, From a Financial ProfessionalWinning a massive lottery jackpot, like the recent $1.4 billion Powerball, requires seeking immediate legal and financial counsel, protecting your identity and winnings and planning your legacy.
-
I'm an Investment Strategist: This Is How the Fed's Next Rate Move Could Impact Your WalletInterest rate cuts might be coming, which could affect everything from your credit card debt to your mortgage. It's smart to prepare now — here's how.
-
I'm a Retirement Planner: These Are Three Common Tax Mistakes You Could Be Making With Your InvestmentsDon't pay more tax on your investments than you need to. You can keep more money in your pocket (or for retirement) by avoiding these three common mistakes.
