If you or a loved one are considering making a move to a Senior Living Community, the decision will lead to a positive new chapter in life. For many people, the question of how to pay for it is often a top priority item. Whether you are interested in joining an Independent Living, Assisted Living or Memory Care Community, there are a number of financial resources that can be utilized. Let’s look at some of the most common methods.
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Utilizing personal funds to pay for a move to a Senior Living Community is an uncomplicated option for some people. Whether it be through savings, liquidating certain assets, or drawing upon investment income, this strategy provides seniors with a payment method that they have the most direct control over.
Working with a financial advisor to plan for this is often beneficial. In addition, many Senior Living Communities have special team members who are experienced in financial matters and can offer assistance as well.
SOCIAL SECURITY & MEDICARE
Social Security payments can be used to help pay for the costs of living in a Senior Community. However, the amount it would cover will depend on the recipient’s monthly benefit. According to U.S. News and World Report, the current average benefit paid is $1,657 each month.
It is important to understand that while Medicare does not cover the actual costs of living in an Independent Living, Assisted Living or Memory Care Community, it does help pay for other critical needs, such as prescriptions, doctor visits, medical equipment and other health care related expenses.
LONG TERM CARE INSURANCE & LIFE INSURANCE
Long Term Care insurance (LTC) is a special type of policy that helps pay the expenses of home care or a Senior Living Community. The amount of benefit available from a LTC policy can vary by such factors as the amount of the monthly payment, as well as the duration of the benefit.
Some life insurance policies can be cashed in for a lump sum payment while the insured is still living under what is known as a Life Settlement arrangement. Policy holders should review their life insurance contracts to see if this feature is available to them.
If you or a loved one served in the military, the U.S. Department of Veterans Affairs (VA) has programs that can help pay for certain Senior Living services. While these don’t pay for direct housing expenses, the VA’s Aid and Attendance benefit is available to veterans that meet certain income requirements and also have difficulty performing activities of daily living (ADLs), such as dressing, eating, bathing, using the restroom, or moving about.
REAL ESTATE ASSETS
If the person thinking about moving into a Senior Community is a homeowner, their house can be a good revenue source. Selling the home, renting it out, or arranging for a Home Equity Line of Credit (HELOC) are all ways to help pay for living expenses at the new residence.
FRONTIER CAN HELP
If you or a loved one are thinking about transitioning to an Independent Living, Assisted Living or Memory Care Community, the highly knowledgeable and experienced team at Frontier is happy to meet with you to discuss your options.
We cordially invite you to visit, take a tour of one of our beautiful properties and speak to our friendly and compassionate staff members.