Wondering How to Pay for Assisted Living?
Help is on the way
It’s easy to get lost in “what ifs” of affordability as you balance what is desired and deserved in retirement with the realities of financial assets.
Daily personal routines play a major role in shaping our identity and purpose. While always in flux throughout our lives, familiar routines take abrupt shifts when we reach advanced age. Activities once simple to complete now require more time and thought, and increasingly require assistance from a nearby family member or friend. When a senior reaches the point of needing more help than adult children are at liberty to offer, assisted living communities can step in to with a 24/7 care team ready to lend support.
As pressing health conditions edge in, finances naturally and need fully enter the discussion. Seniors and their adult children must consider how they will cover the cost of retirement and related health care. It’s easy to get lost in “what ifs” of affordability as you balance what is desired and deserved in retirement with the realities of financial assets. Assisted living communities like MorningStar want to help. To that end, we have partnered with the experts at Elderlife Financial Services.
Leverage insurance to cover expenses or accumulate additional funds
Insurance policies come with unique mixes of features to fit different needs. There’s a well-suited policy waiting for everyone. However, making that selection can be complex with so many options stretched before you. That’s where speaking to an impartial expert, like those found at Elderlife, can be a welcome step.
Long-term Care (LTC) Insurance
LTC insurance policies can help cover a variety of activities and costs related to senior communities, including services that aren’t covered through Medicare or Medicaid. With many reputable providers offering different coverage packages and discounts, seniors can shop for policy suited to their particular situation, a policy calibrated to carry them through retirement without financial worries or hardship.
Some LTC plans offer benefits that cover 50% to 100% of daily costs for a specified period. Other policies offer cash benefits instead of cash reimbursement, enabling seniors to pay a smaller fixed amount per month in exchange for a large sum put toward care. Some plans offer immediate coverage with no initial waiting period. Or perhaps you have questions about an existing policy. In any event, Elderlife experts are available to help.
Life insurance policies work by accumulating a cash reserve that, in some situations, can provide immediate cash. These funds can be accessed through conversion actions such as cash surrender, life or viatical settlements, or through selling the policy itself on the open market. Once the funds are received, a senior stops paying monthly premiums and can focus entirely on enjoying residency in a caring and compassionate community and making plans for their next adventure with their nearby family members.
Utilizing the equity in your home
When it’s time to transition to a senior community, many turn to their largest asset: amassed home equity. Selling the family home with its decades of treasured memories comes with unique (and emotional) challenges; several decision-makers are commonly involved. The location and condition of the property factor significantly into the value proposition. You can minimize the challenges and maximize the profit by working with an agent who specializes in representing senior clients. From start to finish, Seniors Real Estate Specialists have vast experience, bringing to bear local resources each step of the way.
Tax benefits can ease the cost of housing and meals
A senior (or family members helping to pay for rent and care) can recoup some of the cost of housing and food through certain federal tax deductions if they have a chronic illness or are unable to live without assistance. A physician must certify that the patient is unable to perform two activities of daily living without assistance for at least 90 days. Activities of daily living include self-feeding, washing, and dressing. Deductions can also apply if memory impairment is involved to the extent that requires supervision.
Veteran benefits to those who gave first
Assisted living communities are proud to welcome Veterans and support them with resources provided by the U.S. Department of Veteran Affairs (VA). If a senior has given his or her service in support of the United States of America (or if a senior is the surviving spouse of a military veteran), they could be eligible for Aid and Attendance (A&A) which provides a tax-free monthly income paid directly to the recipient’s bank account. This is a well-earned reward to help cover living costs and provide a veteran with due thanks.
To receive the A&A pension, a veteran has to qualify for the basic pension by meeting eligibility requirements including a minimum age of 65 or permanent disability and minimum service requirements of 90 days active duty, with at least one day during wartime. Further, a veteran must meet one of the following requirements:
- Need assistance with daily activities like dressing, eating and bathing
- Live in assisted living due to chronic illness or physical inability
- Be bedridden
- Have severe eyesight limitations
For assistance, reach out to Veterans organizations like the American Legion or Disabled American Veterans, or accredited VA agents. Elderlife experts can guide you in this.
Reach out to financial experts for answers
At MorningStar Senior Living, we partner with Elderlife to assist current and prospective residents in coordinating all available resources to help pay for rent and personal care.
Every family’s situation is unique. Elderlife can introduce options not yet considered and explain them in greater detail, revealing financial pathways wider than initially realized, including bridge loans and real estate sales or leasing. If you’re interested in learning more, call Elderlife at 888-228-4500 for a free financial consultation.
MorningStar Senior Living — Assisted Living Community
If seniors are seeking an assisted living community near adult children and their growing families, if they seek the companionship of their peers and a compassionate service team, please consider MorningStar Senior Living. We are dedicated to offering care and hospitality services that meet each resident’s social, emotional, physical and spiritual needs.