With the rising cost of Assisted Living communities and programs it may be difficult to figure out how to afford the monthly cost. In the United States the average cost per month is around $3,100 per month and in many areas that monthly cost is much higher. Depending on where your elder loved one prefers to live the cost may fluctuate but overall you need to have a plan on how to pay for assisted living. Many people do not think about paying for assisted living until very late in their lives, which is perfectly normal, but when the time does come how are you going to cover the costs?
Many of our senior loved ones need more assistance than you would think. They need assistance with everything from food preparation, laundry and help getting dressed every day. So making sure they can afford an assisted living community that they enjoy and meets their needs is important. Here are 8 ways to pay for assisted living:
- Medicaid – I many states around the Nation you can receive coverage for senior care at assisted living programs through Medicaid. Make sure though not to mix Medicaid and Medicare up when searching if your loved one has coverage because it is only available to seniors that have little assets, so generally it is a last resort option but a great place to start.
- Mortgage Reversal – A reverse mortgage can be a Godsend opportunity to cover monthly fees from assisted living communities. Although you may be thinking “Don’t you need to live in a house and own one to have a reverse mortgage?” Yes that is true but a reverse mortgage is a great option if you have a wife or husband needing to go to an assisted living program.
- Asking Family for Financial Support – Sometimes the children and other family members may need to come together and chip in monthly to cover the monthly fee.
- Selling a Life Insurance Policy – Selling a life insurance policy is known as a life settlement. What happens is you sell it to someone and then they receive the benefits when you die.
- Home Equity – Although this may not be the most preferred way to pay for assisted living it may be the only option. See what type of equity your senior loved one has and it may be the best option to quickly get them placed in a program
- Veteran Benefits – The (VA) has a great assisted living assistance program that may assist you in paying for care who served during wartime in addition to widowed spouses.
- Long-term Care Insurance – This is one of the best option to pay for assisted living programs although only 3% of Americans have a policy it can be one of the best investments made for your later years in life.
Income and Savings – The easiest route to pay for assisted living is from a savings account or recurring income.by