The financial responsibility for senior housing can be a difficult obstacle to overcome. Senior housing can be expensive. Many senior living communities cater their lifestyles to the adult child who is doing the searching. Not all seniors want an exuberant lifestyle, but a comfortable one. It is important to allow your senior loved one the option to choose where they will be living out their life.
10 Common Ways to Pay for Assisted Living
- Income and Savings – Using one’s own personal income and savings. This could be difficult if your senior loved one has not had the ability to establish this
- Long-Term Care Insurance – If your loved one has long-term care insurance, in most cases it covers assisted living, although it depends on the specifics of the policy. Please be sure to look over, making sure the LTC covers the type of senior living you’re searching for.
- Veteran’s Benefits – The Department of Veterans Affairs (VA) has assistance programs that can help to pay for care for older veterans who served during wartime, and for their spouses. Certain restrictions may apply to each individual situation.
- Home Equity – While not always the preferred option, many seniors sell their homes to pay for their care.
- Selling a Life Insurance Policy – Not always the best way, although an option if and when the time arises.
- Pooling Family Support – A senior who cannot afford assisted living often relies on some financial support from children or other family members.
- Using a Reverse Mortgage – Not a preferred method, although an option if and when the need arises.
- Renting the Home – Renting the current home to help cover some of the expense is an option. It allows your senior loved one to maintain ownership while creating income to cover expenses for senior living.
- Considering Location – Just as in real estate, location can play a key factor in the cost of senior living. Look at other locations if one is out of the budget.
- Medicaid – This may be an option if you live in a state that accepts Medicaid for senior living. You will need to see if your state does accept Medicaid for payment.