Paying the Refundable Accommodation Deposit RAD less $1,000

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Paying the Refundable Accommodation Deposit RAD less $1,000

I have heard third hand that it has been recommended to pay the negotiated RAD fee less $1,000.
However, I have not been able to pinpoint any percieved benefit by doing this.
Are you able to elaborate on why this practice takes place?
(Great site!)
 
YT

agedcare101

Hi YT,

Thanks for your question.  I think I understand what you are asking.  You mean, if the RAD for a nursing home is $300,000 and you can afford to pay the whole $300,000 as a RAD is there any benefit of in fact paying $290,000 instead of the full amount? 

If this is your question, then it all depends on your individual financial circumstance.  I too have heard of some cases where a full asking RAD was paid after selling the family home and then the person lost their pension which they were heavily relying on.

The finances around aged care is incredible complex and the nuances change from person to person.  We really couldn’t recommend it enough that you seek council from an Aged Care Financial Advisor.  They will be able to look at your financial situation and provide the best recommendation picking things up like what happens if you pay a full RAD.

We hope this helps,
the agedcare101 team

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