Different Options to Pay for an Assisted Living Community
When a person begins to search for different senior housing options, one of the main issues that immediately comes to mind is how to pay for whatever type of senior housing is needed. Whether it be in-home senior care, independent living, assisted living, a CCRC, nursing home, or a memory care community- each one will accept different types and methods of payment, payment terms, insurance, billing options, etc. As every senior housing option and facility operates to their own standards in terms of offerings and services, so will the terms in which they accept payments for the senior housing and services.
Assisted Living Costs-
Assisted living facilities and assisted living communities will all vary in terms of rates being charged for housing and services. This is due to the type of community, amenities and perks, services, location, etc. The national average for senior assisted living costs starts in the vicinity of anywhere from $4-5k monthly to start, potentially going as high as $15-20K per month depending on the assisted living community.
Paying for Assisted Living-
Generally speaking, assisted living is not cheap or an outright affordable option for a lot of seniors and the elderly. However, a lot of people are not aware of the many free resources, government and community based programs, financial assistance programs that are available. These programs can be combined and used with normal funding sources such as savings, social security, pensions, retirement payments, plus many other financial asset options.
Listed below are some of the additional options a new resident can use to help pay for assisted living-
How to Pay for the Costs of Assisted Living
Medicare and Assisted Living
In most cases, Medicare will not cover any assisted living housing options, and if any, services provided by an assisted living community.
Medicaid and Assisted Living
Medicaid, which is a hybrid state and federal program, in some cases, can cover some of the different types of senior housing costs and associated costs for services. Once again, every state is different in terms of what would be covered under Medicaid insurance and assisted living. If some of the assisted living costs are not covered in a specific state, there are usually other options provided through Medicaid community service programs.
LTCI Insurance and Assisted Living
LTCI, or long term care insurance, is one of the better options to look into especially before a person gets into their senior years. LTC is basically a type of insurance policy that can cover future elder care expenses, including assisted living. LTC policies are similar to other types of insurance policies in that there are certain criteria that are factored into the cost equation of the insurance policy. Some of these factors include age, overall health, type and extent of overage, etc.
Military VA Benefits and Assisted Living
For those that receive VA benefits, there are some additional options and programs that are available. One of these programs is known as the Aid and Attendance program that can provide additional monthly benefits for those that are in need of assistance on a daily basis with daily tasks and chores, with assisted living communities providing these types of services.
Leveraging Life Insurance for Assisted Living
An established life insurance policy can also be used to fund living at an assisted living community. The way it works is the life insurance policy is converted into a life insurance settlement that is sold for a cash price to a 3rd party, typically above the policy surrender amount and below the death benefit payout.
Reverse Mortgage and Assisted Living
A reverse mortgage can also be used to help pay for an assisted living community. If the potential new resident already owns a home completely or only has a small mortgage remaining on the current home, then a reverse mortgage may help with using some of the equity to help pay for at least some of the associated assisted living expenses. In most cases however, if a reverse mortgage is going to be used to help pay for assisted living, the new resident’s spouse or other co-borrower on the loan still have to live at the home. The reverse mortgage becomes due when the last borrower no longer lives at the house for a period of 12 months in a row, sells the home, or passes on.
Annuity Income and Assisted Living Costs
Another option that can be used to pay for assisted living is annuity income. In most cases, an annuity income is paid by an insurance company to a person, specific financial assets, a trust, etc. Some of this income can be used or leveraged to help pay for assisted living either in lump sum payments or as a normal payment plan.
Bridge Loans and Assisted Living
The last and final option on the list of how to pay for assisted living is bridge loans. A bridge loan is basically a short term loan that can be used to help pay for assisted living while the new resident awaits their funding sources to finalize. An example of waiting for funding to finalize could be that the new resident is waiting to sell or close on their home. A bridge loan could help span the financial gap while the new resident awaits the closing or final sale of their home. Bridge loans can be considered a risky move in some cases as they are typically a short term 6-12 month financial instrument.
Need Help With Navigating How to Pay for Assisted Living?
One of the most important point to keep in mind is that multiple sources of funding can be used to help pay for an assisted living community. This means that you can use financial assistance and other funding sources pooled together to cover all of the costs associated with assisted living and assisted living communities.
Considering moving into an assisted living community in NYC, NJ, or CT? For more information about Assisted Living Advisers free senior assisted living community placement services in NYC area, please call 1-347-826-1689 or contact us for more information- https://assistedlivingadvisers.com/contact/
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