This post is for informational purposes only and does not constitute financial advice. Consult a financial advisor.  

Choosing the right senior living community for a loved one is a big decision, and understanding the financial aspects can add complexity to the process. We believe this journey should be as smooth as possible. That’s why we’re dedicated to guiding you through every step. This post will explore many ways to fund assisted living, empowering you to make informed choices for your loved one’s care.

Figuring Out the True Costs of Senior Care

When looking at the pricing of senior living and senior care for the first time, there can be an initial reaction of sticker shock. However, a deep dive into current costs and the costs of long-term in-home or round the clock care (even if coming from a family caregiver) can shed light on the value of senior living.

A Financial Comparison of what your loved one is currently paying for and what is covered by the costs of senior living is the first step in figuring out the cost of senior living and how to pay for senior care.

Ways to Pay for Senior Care

How can you ensure your loved one receives the care they deserve? While private funds, such as savings, pensions, and retirement accounts, are often the first point of consideration when planning for assisted living, they’re not the only financial avenues available. The good news is that there are a variety of resources and programs designed to help offset the cost of senior care. Let’s delve into some of the most utilized options.

• Veterans Benefits: Wartime veterans and their spouses may qualify for the VA Aid and Attendance Pension, a program specifically designed to help offset the costs of assisted living or memory care. This is a great resource to explore for veterans seeking financial help.

• Long Term Care (LTC) Insurance: This form of insurance helps cover the costs of daily living assistance when you can no longer care for yourself. This includes help with bathing, dressing, and other activities. The need for LTC is significant: nearly 70% of people turning 65 will require some form of long-term care in their lifetime.

There are two primary types of LTC insurance:

• Traditional long-term care insurance is a dedicated policy focused solely on covering long-term care costs.

• Hybrid long-term care insurance combines long-term care coverage with either life insurance or an annuity, offering both care benefits and financial protection.

• Home Equity: If your loved one owns a home, tapping into its equity can be a possibility. This can be done through a reverse mortgage, a loan that allows homeowners to access a part of their home’s value while keeping ownership of the property. Be sure to partner with a trusted financial advisor to fully understand the implications of tapping into home equity.

• Home Sale: The equity of a home may be a part of the overall financial plan for providing for your loved one’s care in the future. If selling a home is part of that plan, a Senior Real Estate Specialist (SRES) designated realtor can help navigate the special needs of downsizing and selling a senior’s home. A Bridge Loan may be helpful in providing funds for immediate living and care needs while waiting for the sale of a home to happen.

• Social Security: Social Security benefits may not cover the entire cost of assisted living, but they can contribute significantly to making it more affordable. Additionally, programs like Supplemental Security Income may offer further help for adults with disability, blindness, and little income.

Strategies to Stretch Your Senior Living Budget

Even with careful financial planning, assisted living expenses can add up. Here are some practical tips to help stretch your budget:

• Consider Companion Living: Sharing a room with another resident, often called companion living, can be a cost-effective option for some seniors. This can also provide socialization and combat loneliness, which is especially helpful for seniors receiving dementia care. You can read about the benefits of companion living in another of our posts.

• Explore Senior Benefit Programs: There are various programs that offer discounts on essentials like groceries and prescriptions, helping your free up funds for assisted living.

• Seek Expert Advice: A senior move manager or a financial advisor can be invaluable resources. They can help you explore financing options, plan for moving costs, and optimize your budget. Radiant Senior Living communities’ partner with Elderlife Financial Services, a free resource for guiding families through financial resources for senior care. Connect with a community near you today to find out more.

At Radiant Senior Living, we provide exceptional care while being mindful of financial limitations. Our team is here to guide you through the process of exploring payment options and finding the best fit for your loved one’s needs. We encourage you to contact us today for a personalized tour.