Financing assisted living can be tricky. Many retirement communities require an advance deposit, and most operate on a month-to-month rent payment schedule (as opposed to a long-term arrangement). Before you sign your lease, be sure to review the agreement carefully. Discuss the contract with the Community Director, clarify obscure details, and ask any questions you have. In addition, if you haven’t prepared for the full cost of senior living care, use the information below for help.
Financing Assisted Living
The cost of assisted living varies based on the specific residence, apartment size, and other offered services. Housekeeping, laundry, and meals may cost extra. Over half of assisted living communities use a tiered pricing model, so that residents requiring little assistance pay less. You may also come across all-inclusive pricing models or à la carte services. To learn more about the financial arrangements at your preferred retirement community, contact the Community Director.
Although several government subsidies are available to help fund assisted living, remember that these programs are limited and come with restrictions. For example, neither Medicare Part A nor Part B covers comprehensive and ongoing long-term care. Many states offer some assisted living coverage under Medicaid, but eligibility requirements and coverage amounts vary. Finally, housing subsidies are available for seniors with low incomes, and the Department of Veteran Affairs provides financial assistance to veterans and spouses who qualify.
You might also consider selling your house, renting your house, using a reverse mortgage (a loan taken against your home’s equity), or a bridge loan (which can help you bridge the gap between moving into assisted living and selling your house). Some life insurance policies can provide financial assistance during life if you request to cash out the policy. The proceeds are sometimes called “living benefits” or “accelerated benefits.” Ask your lender if this is a possibility under your life insurance policy.
Finally, if you have sizable savings but you’re concerned about outliving your funds, consider purchasing an annuity. You will pay a lump sum of money, and the underwriters will send you regular payments for a specified period of time (typically the rest of your life). This is a great way to stretch your savings and protect yourself financially. Sometimes annuities are more beneficial than simply paying out of pocket. For more information, consult an accountant or financial advisor.
Preparing for Retirement
If you’re decades away from retirement, you may be tempted to ignore the costs on the horizon. However, remember that if you begin saving now, your money will have lots of time to grow before you move into a retirement community. You may also wish to invest in long-term care insurance for peace of mind. Finally, all seniors and adults should encourage their young loved ones to save for the future.
Financing assisted living requires preparation and research, so we urge you to start early and consider all of your options. In addition, if your loved one is struggling to pay for assisted living, explore your resources carefully as you aim to find a solution. For example, perhaps you and your siblings could pool your funds to support your parents in their time of need. Finally, if you’re struggling to find a solution to your financial woes, consult a financial advisor. Good luck!
Are you looking for an assisted living community in Tennessee? If so, be sure to check out Hearthside Senior Living Place, located in Bartlett, Tennessee. We would be happy to schedule a tour for you so that you can explore the community, meet some of the residents, and ask any questions you might have. For more information, please call 901-854-6590. We look forward to meeting you!