A transition to senior living can be a blessing for an aging adult. It provides them a safe and comfortable setting in which to pursue their hobbies and interests or discover new ones. They can also access the level of care they need and combat isolation with meaningful new friendships. However, the decision to make this move is often accompanied by financial concerns. Upon further examination, most people find that the cost of senior living is not nearly as daunting as it first appears. It can even be less expensive than their current living situation.
What’s more, there are many things that seniors and families can do to plan financially for senior care. Abundant resources are available for both education and financial assistance. Below are five tips for making the goal of senior living a reality while reducing financial strain.
- Compare Current and Potential Costs
The initial price tag of a senior living option may seem steep at first glance. However, this is often because it is not viewed in comparison with all the existing costs it stands to replace. For example, selling the senior’s current home could contribute significantly to future rent payments and doing so would eliminate numerous existing costs such as a mortgage, homeowners insurance, home maintenance, cable & internet, lawn care and more.
- Life Insurance Living Benefits
Did you know that many life insurance policies offer “living benefits” that allow policyholders to access a portion of their benefits while they are still alive? Be sure to talk with their insurance provider to see if this is possible as some require qualifying factors such as a terminal illness. If living benefits are not possible, policies can often be sold to third-party companies in exchange for “life settlements” or “senior settlements” that can yield around 50-75% of their value.
- Home Rental
If the senior or their family do not wish to sell their current home, for instance if it will be passed on to a future generation, renting it out can be an extremely helpful option. The monthly rent payments can then be put towards the monthly costs of senior living, easing payments significantly.
- All-Inclusive Senior Living Option
Finding a senior care provider that offers all-inclusive pricing can be quite helpful in financial planning. Some communities will offer an up-front cost during the sales process only for a family to find that there are hidden costs for additional care, services or amenities – costs for which they had not planned. This can be avoided by finding an all-inclusive pricing model that ensures there will be no surprises down the line.
While Medicare does not pay directly for assisted living, Medicaid can. Medicaid benefits vary by state, as do the requirements for potential recipients. Nevertheless, it is a helpful resource for many. Use this online eligibility test to see if you qualify.
If you would like to learn more about how to pay for senior living, call Heartfelt Residential Care today at (800) 379-3860.