Assisted living is an excellent option for elderly individuals who want to remain independent but could use some assistance from time to time. Residents can also expect housekeeping, personal laundry services, and regular medical checkups as part of their monthly bills.
If you are looking into assisted living as an affordable, cost-effective alternative to staying in your home, you may have questions about insurance coverage and available financial assistance. Assisted living costs can be pretty inexpensive if you know where to look. Check out this article to learn more about the financial aid and insurance options available for seniors considering assisted living near me.
Ways to Pay for Assisted Living Near Me
1. Long-Term Care Insurance
Long-term care insurance, in most instances, covers assisted living unless stated otherwise. Purchasing long-term care insurance is usually affordable when done during one’s middle age or younger years. However, it could be a lifesaver if your loved one is already covered.
Medicaid is a government-funded health insurance program for individuals with limited incomes. Medicaid can help pay for assisted living if you have no other financial resources to cover these expenses. You must meet certain income and asset requirements to qualify for Medicaid. If you’re considering going to an assisted living near me facility, review your Medicaid eligibility before making the decision.
3. Home Equity
Many seniors opt to sell their homes to fund their care. Those who require assisted living immediately but cannot sell their house may receive rent deferrals they can repay when the house sells.
4. Renting The House
If your loved one needs to move into an adult family home or assisted living facility, renting the house may be a good option. In this approach, the family retains ownership while earning money to cover living expenses.
5. Veteran’s Benefits
Veterans who served during wartime (but not necessarily in combat) may be eligible for VA assistance programs that help pay for care. In addition, assisted living near me communities that focus on caring for senior veterans and their families are also available.
6. Life Insurance Settlements
You can convert an insurance policy into cash through insurance settlement, which can cover long-term care costs. Your life insurance company will repurchase it for 50% to 75% of its face value. The settling company will then pay the premiums until the policyholder dies.
7. Personal Savings
You might be able to pay “out of pocket” if you have adequate income or savings. To ensure your funds will continue over time, consult with an experienced financial advisor.
8. Reverse Mortgage
A person aged sixty-five or older with equity in their home can convert some of their equity into cash payments while still retaining ownership. You can often pay senior living with a reverse mortgage as long as the spouse or another individual listed as a co-borrower on the loan lives in and maintains the home. If the borrower stops living in the house for 12 consecutive months, sells the home, or dies, the loan becomes due.
As you can see, there are many ways seniors can finance their stay at assisted living centers. You don’t have to separate yourself from your assets to pay for assisted living. Instead, you can use several creative solutions to cover the cost of care without depleting your assets. For example, you could use a reverse mortgage loan to pay for assisted living while ensuring that your home stays in your family.