For seniors, assisted living communities offer a number of benefits. They provide a safe living environment and ensure adults have the support they need to perform daily living tasks as well as opportunities to make friends, learn new things and get out into the community.
Cost doesn’t have to be a barrier to reaping these benefits, as there are many ways you can pay for care. Here are some options to consider.
Many seniors have spent their lives saving for a rainy day. Funds in certificates of deposit, savings accounts and investment accounts can provide money to cover the cost of an assisted living community. Compile a list of your savings and contact the financial institutions that hold them. In some cases, penalties for early withdrawals can be waived if the money is being used for long-term care.
Seniors who have regular income can put money toward the cost of an assisted living community. Sources of income for seniors may include Social Security, pension payouts, stock dividends and distributions from annuities.
Many costs of living that older adults have when living on their own are eliminated after moving into a senior living community. Often, meals, utilities, cable, internet and housekeeping services are part of the total cost. As a result, seniors may not need as much of their monthly income to cover expenses.
Some private health insurance plans will pay for some of the costs of living at an assisted living community, particularly those related to medical care. If your loved one has Medicare Part C or another private health insurance plan, contact the insurance provider to learn more.
Long-term care insurance is a type of insurance that provides money if a person moves into a qualified long-term care community. Some employers provide free long-term care insurance coverage to employees or make it available as an optional benefit. Check to see if your loved one has any long-term care insurance as you weigh your options for paying for assisted living costs.
Permanent life insurance policies sometimes include long-term care riders, add-ons that allow the policyholder to receive some of the death benefit from insurance before they pass away to cover the cost of long-term care, such as life at an assisted living community.
Even if your life insurance policy doesn’t include this type of rider, you still may be able to use it to help pay for assisted living costs. Many insurance companies allow you to borrow against the cash value of the policy. This type of loan never needs to be repaid. Instead, the life insurance company takes the amount owed from the death benefit when the insured person passes away. You may also be able to sell your life insurance policy through a life settlement.
Seniors who own their own homes and don’t have mortgages can consider selling and using the money to help pay for life at an assisted living community.
The Colorado Association of Realtors offers a search tool to help you find real estate agents in the area. Contact a few and ask questions about their commissions, marketing practices and services to choose the right one to sell your or your loved one’s home.
Reverse mortgages can provide a lump sum of money that seniors can use to help cover the costs of an assisted living community. With a reverse mortgage, you get a loan for up to a certain percentage of your home’s value. While you can make monthly payments on the loan, you’re not required to. Once you pass away, the lender will be repaid from the sale of your home.
Retirement accounts like 401(k) plans and IRAs can be used to fund assisted living care. Most plans allow people aged 65 and a half or older to make withdrawals without penalties. Younger people may also be able to take money out of retirement plans penalty-free to cover long-term care costs in some cases.
Veterans of the U.S. military may qualify for benefits that directly cover the cost of long-term care or provide income that can be put toward assisted living costs. You can apply for veterans benefits online at the U.S. Department of Veterans Affairs website.
Called Health First Colorado, Colorado’s Medicaid program may help cover the cost of an assisted living community for seniors who are low-income and don’t have assets available to pay for care. You can apply for Medicaid online.
Unfortunately, Medicare doesn’t cover many of the costs of long-term care. In some cases, costs associated with skilled nursing may be partially covered by Medicare Part A, but generally, original Medicare and Medicare supplement plans (Medigap) won’t pay for assisted living costs.
As a nonprofit senior living community, ViewPointe in Colorado Springs, CO, is fully committed to putting the well-being of our residents first. If you or your loved one could benefit from life in an assisted living community, we can help you explore your options for paying for care. Contact us today for more information.
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555 S. Rockrimmon Blvd.
Colorado Springs, CO 80919
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