Published On: August 20, 2024
Categories: Uncategorized
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Money Matters: Top Tips for Financing Senior Living Costs

Paying for senior living: just what funding options do you have? Here’s a look at several possibilities on how to give yourself, or your older loved one, an outstanding quality of life and excellent care.

5 tips for paying for senior living

1. Do not assume it will cost more than living at home

It’s easy to conclude that paying for senior living is just too expensive; staying home would wiser. But first consider the total cost of living at home, beyond the mortgage and rent costs: food, utilities, home maintenance, property taxes, insurance and entertainment. And be sure to include what might be the biggest consideration: quality of life.

2. Think outside the box

For many, paying for senior living means tapping into their savings or investments. But there are other sources as well. For instance: insurance policies, real estate holdings, and programs for Veterans are just a few. Do not limit your thinking to only what is in the bank.

3. Explore all your options

Here are a few options for paying for senior living worth exploring:

VA Aid & Attendance benefit

Veterans eligible for a pension who need assistance can apply for the U.S. Department of Veterans Affairs’ Aid and Attendance benefit. Aid and Attendance is an addition to the monthly pension. To be eligible, you must meet one or more of the following criteria:

  • You need assistance to perform daily living tasks, such as bathing or eating.
  • You are bedridden and must remain in bed when not undergoing medical treatment.
  • You are a nursing home resident due to a mental or physical disability.
  • You have a visual impairment that renders your eyesight to 5/200, or your visual field to 5 or fewer degrees.

Long-term care insurance

Long-term care insurance can cover all or a portion of long-term care needs. It’s one of the best funding options, because a small investment over time pays off in the form of affordable care. If you’re still relatively young, consider investing in long-term care insurance now. However, if the senior in your life needs care now, but doesn’t have insurance, insurance is no longer an option.

Selling a life insurance policy

Anyone with an in-force life insurance policy can transform it into a prefunded financial account that disburses a monthly benefit to help pay for long-term care needs such as home care, assisted living, skilled nursing and hospice. Unlike life insurance, this account is a Medicaid qualified asset. There are no application fees or obligations to apply, and the typical enrollment time is 30-45 days. Once the owner converts the policy, the long-term care benefit payments begin immediately, and the enrollee is relieved of any responsibility to pay anymore premiums.

Reverse mortgage

A reverse mortgage is a type of home equity loan reserved for seniors 62 and older. Unlike

traditional loans, borrowers don’t have to repay the money until they move and sell the home. So, if one parent still lives in the home, or if you’re considering in-home care, this might be a viable option. If your parent never sells their home, the estate will have to repay the loan. Otherwise, the borrower may be able to take possession of the home.

4. Understand the limitations of Medicare

Medicare covers a stay of up to 100 days in a nursing home. The community must be certified by

Medicare, and your older loved one must meet other eligibility options. Because Medicare never pays for retirement or assisted living communities, it is a funding option of last resort.

5. Consult with your financial advisor

Talk with your family and trusted financial advisor about options for paying for senior living and consult a senior living professional to be sure you have considered everything. You also might suggest seeking the counsel of an elder law attorney, who is dedicated to handling the legal needs of seniors.

At Carriage Crossing, we’re not just senior care professionals—we’re senior lifestyle partners

Our goal is to make a difference in the lives of seniors, and their families.

Whether or not you choose to make Carriage Crossing your home, our experienced team is always here to help you explore your options and answer any questions.

Explore the Carriage Crossing difference. Contact us to learn more and to schedule your tour.