At HarborChase we would love for you to be a part of one of our assisted living communities and we would love it even more if you did not have to worry about finances to live there. According to a Genworth’s Cost of Care Study the monthly average cost of assisted living in America is $3,628. This cost can vary greatly depending on which region you live in, community amenities, and individualized care needs. If you have relatively low care needs and a lifetime of savings you can pay for your cost of living out of pocket. If you have investment portfolios, you cash them out to cover costs, for example, IRAs. You can also turn to family to help share the burden of costs or share a room with a friend to split the costs. If you solely cannot afford private pay by itself, do not fret, you can combine it with other available resources.
Home Owner Options
If you own your home outright, you can consider the sale of your home and use this for future assisted living costs. If selling your home is not exactly an option, or you just want to keep it in the family, another option is renting. You can rent out your home and use the residual income as a means to help pay for your living expenses. If you have not completely paid off your mortgage or a family member needs to remain in the home, another option is a reverse mortgage, or a home equity loan. This is the action of releasing your ownership but allowing payments to be deferred. In other words, you are borrowing funds on the equity of the length of your ownership.
Long-Term Care Insurance
Long-term care insurance is very much like health insurance and can be bought from a private insurance company. Some of the long-term care policies cover very specific communities only, such as licensed assisted living only. Be very careful as to which policy you purchase in that it will fit your personal needs. The pricing of these policies also varies depending on numerous factors, such as your medical health. If you have a chronic illness or serious medical condition, you may be denied coverage. A good portion of insurance policies also have extreme requirements, such as you must need assistance in at least two daily tasks like cooking and bathing.
If you are a veteran and you are making a move to live in an assisted living communities, you could qualify to benefit from the Veteran’s Administration's Aid and Attendance policy. This is an increase in your current, ordinary pension. If your spouse is a veteran, this alone could qualify you as well. There are other Aid and Attendance benefits for veterans, especially if you were injured on duty. To find out more details on benefits and requirements for veterans, you can visit this page.
There are various ways to pay for assisted living through investment options, which are high risk and should be avoided if possible. A life settlement is converting your life insurance policy into income used to cover necessary care costs. With this option, you are taking away the payments that would go to the policy’s beneficiaries and give it back to the company; the company then makes payments as needed. With this option, your original policy loses value, but it can cover costs if necessary. There are also options for converting your life insurance plan to another type of insurance to cover living costs.
You can also turn to an annuity, or insurance company contract, to cover assisted living costs. In this agreement, there are various ways to complete payment at different amounts and different times. If you have a decent amount in your savings account, this may be a good option for you, but it is still a moderately risky investment. The third type of investment are bridge loans or temporary loans. These loans can become useful if you are in the process of liquidating your assets, but there is an urgent need to move into an assisted living community. Once your assets are liquidated the loan will need to be paid back.
Investing options can be hazardous so luckily there are still government support options to help you pay for assisted living. Medicare can help pay for temporary assistant needs, but it can be insufficient. Medicaid can be more beneficial to pay for assisted living costs; it is a federal program accessible if you have limited assets and a small income. These programs can help in some instances but they vary state by state so be sure to check your state’s federal programs.
When it comes time for you to figure out just how to pay for assisted living costs remember you do not have to choose one funding option. Many HarborChase resident’s combine payment options such as paying out of pocket, veteran benefits, and a reverse mortgage. If you are thinking of utilizing an investment source, remember they are high risk and be sure to consult a trusted financial advisor beforehand. Keep in mind, the government offers various options for funding those in need, but it does vary by state. HarborChase is here to help if you want to know how these sources coincide with our communities, contact us today.