Paying for an assisted living facility can be challenging. The cost of care can be quite high, and sometimes, it isn’t budgeted for early enough, especially when fixed incomes come into play.
Several options and strategies can make paying for an assisted living facility more manageable,
1. Personal Savings and Retirement Funds
Many people use their personal savings and retirement funds to cover the costs of assisted living facilities. Additionally, they often contribute their pensions to these living costs.
If started early, these savings can cover the majority of facility costs.
2. Social Security Benefits
Another common method is to use social security benefits to cover a portion of costs. While this can cover part of the expenses, people’s typical payments will not cover all costs.
This payment method is best used with another strategy.
3. Long-Term Care Insurance
Long-term care insurance is another great option to help cover some of the costs. This insurance covers things not typically covered by health insurance. It’s perfect to use toward assisted living facilities alongside other senior care options.
It’s crucial to purchase this insurance well before the need arises as policies can become expensive with age or pre-existing conditions.
4. Veterans’ Benefits
The Department of Veterans Affairs may offer Aid and Attendance Benefits to military personnel and their spouses.
5. Selling or Renting Property
As a senior is getting ready to leave their home and move into an assisted living facility, their house is often left vacant. This empty house can become a way to pay for assisted living. Someone can pay for their new living costs by selling or renting out this house.
6. Reverse Mortgage
For seniors who own their home, a reverse mortgage can provide funds by borrowing against the house’s equity. This is only an option if one spouse remains in the home, as the borrower must continue living there to qualify.
7. Family Contributions
In some cases, family members may make contributions to help pay for assisted living facilities. This can be done informally or through more structured arrangements like a family care agreement.
8. Supplemental Security Income (SSI)
For low-income seniors, SSI may provide additional financial support for assisted living, but it usually doesn’t cover all costs.
Reviewing Your Budgeting Options
There is no one or correct way to pay for an assisted living facility, and its often good to choose a few options. Additionally, financial professionals are a great resource to go over options and manage your finances.
Once you have determined how an assisted living facility will be paid for, it’s time to find the right facility. Learn about Palm Cottages.