Cost is a primary factor in anyone’s decision to choose senior living for themselves or a loved one.
It’s true that the most common source of funding for senior living is savings. However, there are alternatives you can use to supplement the cost and paying for a move to a senior living community. Below are some of the most common choices.
Tip 1: Make the most of your savings and income first
As already mentioned, your first go-to source for funding should be your own savings and income sources. This could include:
- Personal savings
- Retirement and investment accounts
- Social Security income
- Pensions or retirement income
Of course, careful planning and budgeting ahead of time can help your money stretch even further by the time you need long-term care. Be sure to start planning as soon as possible to make the most of your private funding.
Tip 2: Consider selling your home
Often, those moving to a senior living community will choose to sell their current home and use the proceeds to help pay for senior living. This can be a good option if you don’t have lots of retirement income or assets to cover necessary costs, and an added bonus is it gives you a good excuse to declutter and downsize before you move into your new senior living residence.
Tip 3: If you have long-term care insurance, use it
If you purchased long-term care insurance in your 50s or 60s and you’re now considering a move to senior living, now is the time to see if you can take advantage of your policy. While this type of funding doesn’t typically cover independent living, it usually covers extended periods of assisted living, skilled nursing or memory care.
If you do qualify to use your long-term care insurance, you will need to pay for a set number of days when you first receive care before your insurance kicks in. Unfortunately, you can’t wait until you need care to purchase such a policy; it’s something you have to plan for earlier on in life.
Tip 4: See if you qualify for veterans’ benefits
If you are a veteran of the U.S. military or the surviving spouse of a veteran, you may be eligible to receive VA health care benefits, which can include financial assistance for:
- Skilled nursing
- Assisted living
- Home medical care
- Support for caregivers
These services can be provided in a VA care setting, an approved state or private senior living community, or even your own home. For more information or to see if you qualify, visit the VA.gov website or contact your VA social worker.
Tip 5: Consider a life settlement with your life insurance policy
Another option for paying for senior living is to do what’s called a life settlement. If you have equity in a life insurance policy, you can opt to sell that policy to a third party for a specified price. However, there are some drawbacks to consider.
Life settlements are heavily regulated and often require a 2-5-year waiting period. Typically, you must be 65 years or older, and the price you receive for your policy depends on what your health care needs are and the face value of your policy. There are additional considerations as well.
About Abe’s Garden Community
Abe’s Garden Community is located in the Greater Nashville Area near the suburb of Belle Meade, Tennessee. We offer independent living, assisted living, and residential memory support. We are a nationally recognized leader in dementia design and improving the quality of memory care for our residents and others across the nation.
Looking for senior living for yourself or a family member? We’d love to be included on your list of prospective communities. See our community for yourself. Contact us today to learn more about Abe’s Garden Community and to schedule your tour.