Get To Know Your Options
How much does senior living really cost?
The cost of senior living varies significantly depending on several factors, including location, type of care and the level of services and amenities needed. According to a survey by the National Center for Assisted Living, the national median costs of care for assisted living services were $4,500 monthly and $54,000 annually in 2023.
What financial assistance is available?
U.S. wartime veterans and their surviving spouses may qualify for the Veteran’s Aid & Attendance benefit, which can help cover the costs of assisted living or nursing care in addition to a veteran’s regular pension. While most veterans in need of assistance qualify, some restrictions do apply. We also recommend allowing plenty of time for the application process.
Does long-term care (LTC) insurance cover senior living?
Depending on the policy, long-term care insurance benefits can be applied to assisted living care and/or nursing home costs. Be aware that premiums can be costly and increase in price with age and poor health, so experts recommend individuals begin planning between the ages of 52-64.
Does Medicare cover senior living?
Families are often surprised to learn that Medicare does not. Medicare does not cover assisted living costs outside of 100 days of skilled services or rehabilitative care for a qualified stay. Medicare Part A covers hospital stays, short stays in a nursing home for certain kinds of illnesses and hospice care in the last six months of life after a standard yearly deductible.
What are other ways to pay?
Many families’ first option is to pay for assisted living costs with the profits from the sale of a house, but they may also decide to look into other options, like renting the house or using the house to qualify for specialized loans.
A bridge loan is designed for individuals who need access to funds immediately but are waiting for a home to sell. These interest-only loans access the home’s equity to pay senior living expenses until the home sells, and then the borrower pays off the loan with money from the sale of the house.
For seniors who have funds invested in a life insurance policy but need financial support now, there are “accelerated” or “living” benefits. The company that initially issued the policy repurchases it for 50 to 75 percent of its face value. Another option, known as a “life assurance” benefit or life insurance conversion program, allows seniors to convert the proceeds of a life insurance policy directly into long-term care payments.
Do you have additional questions about senior living and how to pay for it? Contact us at Longleaf Liberty Park – we are here to help and can assist you in creating a financial plan that will work for you or your loved one.
