How to Afford the Cost of Senior Living: A Comprehensive Guide

Paying for the cost of senior living should be a part of every family’s plan. But who will pay for the costs of moving into a senior living community and how will they fund it? Luckily there are options out there besides paying privately and out of pocket – check out this comprehensive guide to how you can manage the cost of senior living stress free.

How Should You Handle the Cost of Senior Living?

The first thing you need to do when considering how you’re going to handle the cost of senior living is to plan. It’s critical to have a plan in place before you or your loved ones reach the stage where it’s time to transition into a senior living community. Waiting until the last minute to plan this new phase of life can lead to stress, increased costs, and issues finding the right community for your needs. Have a plan in place – this guide is a great place to start!

6 Ways to Pay for Senior Living Costs

When it comes to senior living costs, you’ve got more options than paying out of pocket. Here are some of the ways families handle the cost of senior living in 2024.

Option #1: Private Pay

When you opt for private pay, it means that you’ll cover the cost of senior living out of your own bank account. If you’re going to go this route, it’s important to plan ahead. You’ll need to anticipate the possible costs to ensure you have the money saved and ready to use when it’s time to transition into your new phase of senior life.

Option #2: Private Health Insurance Policies

Did you know you can purchase private insurance policies to help cover senior living costs? Check your current health insurance policy to see if it offers any benefits for senior living costs and care. Typically, these policies will cover medically necessary care and skilled nursing costs in the community. Keep in mind that most insurance providers don’t cover the cost of personal care assistance – you’ll need a long-term care policy for that. You should also check with the senior living community you’re considering making sure they accept private insurance. Again, this is a situation where it’s critical to plan ahead.

Option #3: Veteran’s Benefits

If you or your loved ones are veterans or veterans’ spouses, you could be entitled to some coverage through veteran’s benefits. There’s a special pension program operated through the Department of Veteran Affairs to help cover the cost of senior living. You’ll need to apply, be deemed eligible, and review the benefits to make sure they’re a fit, so be sure to research this route well ahead of your transition to senior living.

Option #4: Public Assistance

Public assistance or Medicaid is another way to handle the cost of senior living. Medicaid will help to offset costs of medical assisted living costs for low-income senior residents who qualify. It’s a state-regulated program, so like with veterans benefits, you’ll need to apply and be deemed eligible. Also, keep in mind that coverage will vary from state to state. You’ll also need to ensure the community you’re considering accepts Medicaid. Some communities don’t, and in that case, you may be able to apply for a waiver to assist with costs.

Option #5: Personal Assets

A final option for paying for the cost of senior living is using your personal assets. We’re not talking about the money in your bank account, but rather life insurance policies and other assets.

• Your life insurance policy may offer long-term care coverage, so be sure to explore your options.
• Life settlements is the process of selling your life insurance policy to a broker for a cash price.
• You can also use home equity to help pay for senior living costs. You can sell or rent a home, as well as use a mortgage as an asset.
• Your social security benefits can also offset senior living costs and make your situation more affordable.

Option #6: Other Benefits

If you have a pension plan, have worked for the federal or state government, or been employed by the railroad, it’s worth looking into. You may have earned benefits that will help pay for the cost of senior living when it’s time to move into this new phase of life.

We also recommend doing some extra research ahead of time. You can ask senior living communities about incentives and special pricing, compare the cost of a la carte services and all-inclusive living, and look for tax credits to help you recoup your costs. You can also look into hiring a senior move manager to help you explore all of your avenues and plan accordingly.

The key takeaway? No matter how you plan to pay for the cost of senior living, it’s imperative that you plan for it. Waiting until the last second can lead to large amounts of stress in what should be an exciting period of your life.

Let Evolve Senior Living Help You Plan Today

Ready to consider your new phase of senior life and how you’ll pay for it? We’ve got expert advice – contact us today and let’s get started.