How does one pay for assisted living?
Changing their living situation would get your older adult the care they need and make their living space safer.
But the big question is: how does one pay for assisted living? After all, monthly fees can range from $1,500 to more than $10,000.
Here, we share an overview of 6 ways to pay for assisted living and explain how to get help planning for major care expenses.
6 ways to pay for assisted living
1. Private savings
- If your older adult has enough savings, they could pay “out of pocket” using personal savings or income.
- Consider speaking with a reputable financial adviser to confirm that your older adult’s savings will last through the years. For a quick ballpark estimate, use this long term care cost estimator.
2. Sell their house
- Some older adults have the option of selling their house and using that money to pay for assisted living expenses.
- If the house is still on the market, but the move to assisted living needs to happen ASAP, a bridge loan could help until the home is sold. FYI, that’s a short-term loan and could be a risky choice. But it’s something to consider if you’re really stuck.
3. Long-term care insurance
- This type of insurance usually covers nursing home care, home-based health care, assisted living care, and other medical services.
- Don’t assume it won’t be affordable – check with a reputable insurance agent. Long-term care premiums are based on many factors, including:
- Benefit amount and duration
- When the company will start paying benefits
- Other factors like location
4. Veterans benefits
5. Reverse mortgage
- This is a special type of home loan where long-time homeowners borrow cash against the value of their home and don’t have to sell their home.
- There are three types of reverse mortgage. Speak with a reputable bank to learn about the risks and benefits.
6. Medicare vs. Medicaid
- For those who qualify, Medicaid pays for long-term assisted living care.
- Medicare doesn’t pay for long-term assisted living, but may pay for short-term rehab stays, typically after an inpatient hospital stay.
Get help planning for care expenses from an elder law attorney
Paying for assisted living and other long-term care costs can be expensive and complex. That’s why it may be worthwhile to consult an elder law attorney.
An elder law attorney should be able to answer important questions like:
- Could dad qualify for Medicaid so it will pay for his care?
- How do we protect Mom’s house and assets, but still afford the care she needs?
- How do we make sure mom will have money left after all of dad’s care expenses are paid?
These are complicated questions and the answers will be different in each state and for each unique situation.
A reputable elder law attorney may be able to help figure out how to afford the care your older adult needs. The lawyer fees could be well worth it if they could save your older adult a significant amount of money.
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By DailyCaring Editorial Team
Image: Lincourt Manor
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