Learn About Your Options
You may be overwhelmed by determining the best senior living option for yourself or a family member, particularly when trying to find the best way to pay for it. We’re here to help with answers to some of the most common questions about how to finance senior living. You can always contact us if you’re looking for more resources when making a financial plan for your own future or your loved one’s senior care.
How much does senior living really cost?
There are several factors that can drive the cost of senior living, including location, type of care and the level of services and amenities. Senior living apartments without care services generally cost less than assisted living, memory care or skilled nursing.
Is there financial assistance available?
You can start by researching different resources available to you or a loved one. The team at Highpoint can help you determine whether financial assistance is available. U.S. wartime veterans often qualify for the Aid & Attendance benefit for veterans and their surviving spouse — a monthly benefit in addition to a veteran’s regular pension to help cover the costs of assisted living or nursing care. As a “pension benefit,” it is not conditional on service-related injuries for compensation. Most veterans in need of assistance qualify; however, we recommend that you allow plenty of time for the application process.
Is senior living covered by Medicare or Medicaid?
One factor seniors and family members are often unaware of is that Medicare does not cover long-term care. After a standard yearly deductible, Medicare Part A only covers hospital stays, short-term stays in a nursing home for certain types of illnesses and hospice care in the last six months of life. Medicaid coverage is not accepted at our community; however, you can look into some of the additional options we’ve shared to find assistance.
Is senior living covered by long-term care (LTC) insurance?
Long-term care insurance can be a valuable resource when it comes to covering the cost of services like assisted living or nursing home care. While the details vary by policy, the first step is understanding what your specific plan covers and how to make the most of it. These policies are beneficial when planned for in advance, as costs typically rise with age or declining health. That’s why experts often recommend exploring options between the ages of 52 and 64. If you’re considering long-term care insurance now, you’ll find today’s plans are more flexible than ever — many cover a range of services, from adult day programs to in-home care, and some even reimburse family members who provide care. In some cases, there may also be tax advantages that make this option even more beneficial.
What are other ways to pay?
In many cases, Americans’ most valuable asset is their home, so families often first try to pay for senior living costs with the profits made from the sale of their home. They might also consider other options, like renting or using the house to qualify for specialized loans. One type of loan is a bridge loan, designed for individuals who need access to funds right away but are waiting for a home to sell. Because it is an interest-only loan, it uses the house’s equity to pay senior living expenses until the house is sold. The borrower then pays off the loan with money from the sale of the house when it becomes available.
Some life insurance policies may also offer options to help pay for long-term care. In certain cases, you can access funds from a policy before death by exploring what are called “accelerated” or “living” benefits. This means the insurance company may buy back the policy for a portion of its value — often between 50% and 75% — depending on the type of policy and the provider’s guidelines. Another option to consider is a “life assurance” benefit or a life insurance conversion program, which can turn your policy’s value into direct payments for long-term care services.
More questions?
If you have additional questions about senior living and financial options, contact us at Highpoint at Cape Coral. We are happy to talk through it with you and provide the information you need to make the best choice for you or your loved one.