Daily Caring shares an overview of 6 ways to pay for assisted living and explain how to get help planning for major care expenses.
When seniors can no longer live independently, home care isn’t possible, or if there are safety issues, it may be time to consider moving to assisted living.
Changing their living situation would get your older adult the care they need and make their living space safer. But the big question is: how does one pay for assisted living? After all, monthly fees can range
from $1,500 to more than $10,000.
6 ways to pay for assisted living
1. Private savings
If your older adult has enough savings, they could pay “out of pocket” using personal savings or income.
Consider speaking with a reputable financial adviser to confirm that your older adult’s savings will last through the years. For a quick ballpark estimate, use this long term care cost estimator.
2. Sell their house
Some older adults have the option of selling their house and using that money to pay for assisted living expenses.
If the house is still on the market, but the move to assisted living needs to happen ASAP, a bridge loan could help until the home is sold. FYI, that’s a short-term loan and could be a risky choice. But it’s something to consider if you’re really stuck.
3. Long-term care insurance
This type of insurance usually covers nursing home care, home-based health care, assisted living care, and other medical services.
Don’t assume it won’t be affordable – check with a reputable insurance agent. Long-term care premiums are based on many factors, including:
Benefit amount and duration
When the company will start paying benefits
Other factors like location
4. Veterans benefits
In some cases, veterans benefits can cover assisted living costs.
To qualify and apply, contact the local Veterans Affairs office
5. Reverse mortgage
This is a special type of home loan where long-time homeowners borrow cash against the value of their home and don’t have to sell their home.
There are three types of reverse mortgage. Speak with a reputable bank to learn about the risks and benefits.
6. Medicare vs. Medicaid
For those who qualify, Medicaid pays for long-term assisted living care.
Medicare doesn’t pay for long-term assisted living, but may pay for short-term rehab stays, typically after an inpatient hospital stay.
Link to the Daily Caring article: