What are Some Options to Pay for Assisted Living?
Are you just beginning to search for an assisted living community for a senior loved one? Two initial questions families often have are how much the monthly fees will be, and how to cover assisted living costs. Some adult children wonder if their aging parent’s Medicare will cover the costs (it doesn’t) or if a long-term care insurance policy covers this popular type of care (it might!).
This article will help your family gain a better understanding of the costs of assisted living and the most common types of funding.
How Much Does Assisted Living Cost?
As you begin comparing the costs of one assisted living community with another, one thing that’s important to know is that every company handles fees and pricing a bit differently. To make certain you are getting an apples-to-apples comparison, ask for a list of monthly expenses that are included and what additional costs you are likely to encounter.
Depending on the area of the country your assisted living search takes you to, you’ll find the costs can vary widely. According to a 2021 Genworth Financial survey, the national median cost for assisted living is $4,500 per month. For those who opt for a large apartment or a community with expanded amenities, or have a senior who requires higher levels of care, monthly fees can be much higher.
At Eagle Senior Living communities, the base fee includes:
- Licensed nurse on staff who oversees resident care
- Staff on-site around the clock to lend a hand when needed
- Choice of different-sized apartments and floor plans
- Registered dietician who oversees three nutritious daily meals and snacks
- A variety of daily activities, events and outings
Additional expenses residents should expect depend on the level of care they require, their medication assistance needs and how much support is necessary for personal care.
What are Some Options to Pay for Assisted Living?
While the majority of assisted living expenses are typically paid for from a family’s private resources, there are additional avenues to explore. Here are a few you might want to learn more about before your loved one makes a move:
- Veterans’ benefits: In addition to a veteran’s normal pension, additional funds to finance senior care expenses, known as the Aid and Attendance benefit, are available for those who qualify. You can visit the Pension Benefits section of the U.S. Department of Veterans Affairs website for more information. What Veterans Need to Know About Assisted Living Costs is another good resource to help you learn more.
- Long-term care insurance: If your senior loved one has a long-term care insurance policy, it’s a good idea to review the coverage section to see what is and isn’t covered. Families sometimes mistakenly assume these policies only pay for nursing homes. But many long-term care policies, especially newer ones, also cover home care services and assisted living communities. Call the broker for clarification if you have questions.
- Short-term bridge loans: The timing of a move can also impact financing options. For most older adults, a home is their largest investment. They need the proceeds from its sale to help pay for this new chapter in life. Some seniors might want to make a move now, but wait to liquidate assets until the market is more favorable. In these types of situations, a short-term bridge loan can help. These loans allow a senior to borrow against assets and pay back the loan after investments are sold. The senior’s personal banker or a company like Second Act may be able to assist.
- Life settlement funding: Seniors often have life insurance policies left from an employer or purchased when their children were young. Life settlement companies purchase these types of policies from older adults for amounts greater than the cash surrender value. The senior can then put that money to good use to finance assisted living. If you think this option might be a good fit for your loved one’s situation, ask an attorney or financial advisor you trust for a referral to a life settlement company.
- Medicaid: Some assisted living communities have programs in place that allow them to accept state funding to accommodate low-income seniors. These are generally joint federal and state programs that are administered at the state level. Check with your state’s department of aging for more information.
Contact Eagle Senior Living with Questions About Assisted Living Costs
As a national provider of quality, nonprofit senior care, the team at Eagle Senior Living has the experience needed to guide families like yours throughout the search process. Call the community nearest you to learn more today!