The ins and outs of financing a move to an assisted living community can be confusing for older adults and their loved ones. While a family’s private funds usually pay for most expenses, there are additional programs and funding solutions that you should explore.
From veterans’ assistance to bridge loans for senior living residents, here are a few funding options you may qualify for.
Long-term care insurance
Don’t assume your senior loved one’s long-term care insurance only covers a nursing home. Some also pay a daily rate to help a policyholder pay for a move to an assisted living community. Check your family member’s policy or call their agent to determine what is and isn’t covered.
Short-term bridge loans
For most seniors, their largest asset is their home. Many older adults need the proceeds from its sale to finance assisted living. But selling the home while still living in it can be stressful. A senior may prefer to move to an assisted living community before they put their house on the market.
In these situations, a short-term bridge loan can aid in paying for care until the house is sold. These loans are also helpful if the senior needs time to liquidate other assets or wait until a more opportune time to sell an investment.
A reverse mortgage can help in situations where one spouse needs additional care and the other wishes to remain at home. A common example would be when a spouse develops Alzheimer’s disease. There may come a point where they are no longer able to live safely at home.
A reverse mortgage allows the healthy spouse to use some of the equity in their home to finance a partner’s dementia care while not being forced to give up their home. Be sure to work with a trusted financial advisor or attorney for assistance choosing a reverse mortgage company.
Life settlement companies
If the senior has a life insurance policy, cashing it in can also help finance assisted living. By working with a life settlement company, a senior can sell their life insurance policy to a third party. They will receive a lump sum payment in return. While the reimbursement won’t be for the full face value of the policy, it is usually much higher than the policy’s cash surrender value.
This avenue for financing also requires the support of an experienced elder care attorney or financial advisor.
Veterans Aid & Attendance Benefit
Another funding option if the senior or surviving spouse is a veteran is a program known as the Veterans Aid & Attendance benefit. For veterans who meet the requirements, the amount can be significant.
Currently, a veteran and their spouse might receive up to:
- Married veteran: $2,230 per month
- Single veteran: $1,881 per month
- Surviving spouse: $1,209 per month
If you need help creating a budget for a move to senior living or have questions about financing options, our partner Elderlife Financial Services can help. An Elderlife concierge can help you design a personalized financial plan so your family can start enjoying the assisted living care, service, and peace of mind you deserve. Call 1-866-506-4244 or visit the Elderlife website to learn more.