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"Financial Options for Senior Living"
Nov 23, 2024
2 min read
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Senior Lifestyle understands that transitioning to senior living can be difficult for new residents and their families. One of the most difficult aspects is the conversation about how to pay for assisted living. It’s a discussion that caregivers must have when making new arrangements for senior loved ones.
Although talks about paying for senior care can be emotionally charged, they are necessary. Understanding what funds and financial options are available can help streamline the search for senior housing, saving seniors and their families stress and frustration.
How To Pay For Assisted Living
There are a number of ways of paying for assisted living for seniors. Generally speaking, the methods for funding assisted living falls into two categories: Non-subsidized and subsidized.
Non-subsidized
These methods of payment generally come from private funds or loans. There are a number of non-subsidized options for paying for care, including:
Private savings: A large majority of the costs of assisted living is paid for from private funds. More than half of long-term care at nursing facilities is paid for privately.
Reverse mortgages & HELOCs: Reverse mortgages allow senior homeowners to tap into the equity of their homes while they remain occupied. Home equity lines of credit (HELOCs) can be used by seniors or caregivers alike at a lower cost. Check with a financial advisor for more details.
Life insurance policy conversions: Policies offer several options for accessing the cash built up in them. While seniors won’t receive face value, they will typically net more than the policy’s surrender value. Check with a financial advisor for details about payouts and tax considerations.
Home care loans: Home care or assisted living loans are meant for short-term financial gaps, most for periods of less than two years.
Long-term care insurance: This covers the cost of long-term care in certain care facilities, depending upon the policy. Policies may also cover stays in licensed nursing facilities and home health care."
