How to Pay for Assisted Living
As you begin the next stage of your life, you’re probably wondering how you’re going to pay for it all. Luckily, assisted living can be much more affordable than nursing homes or long-term home care. If you or your loved one doesn’t need close medical supervision, assisted living could be the perfect fit. Although Medicare is not designated for assisted living, there are other benefits that can help cover some of the cost.
Long-term Care Insurance
One way you could get help paying for assisted living is through long-term care insurance. Long-term care insurance allocates a daily benefit that can be used in a variety of settings including assisted living communities. These policies have designated benefits for nursing home or home care that can pay for assisted living. There are some stipulations to long-term care insurance, including the assisted living community must be certified. If you’re interested in long-term care insurance, note that it’s generally more affordable the younger and healthier you are at time of purchase so the sooner you sign up, the better.
If you or your spouse is a veteran, you may qualify for benefits that can help pay for assisted living. If you have service-related injuries or disabilities, you immediately qualify for benefits. However, there is other aid available for veterans or a surviving spouse who is disabled (service-related or otherwise) whose income is below a specified limit. The veteran must have served at least 90 days on active duty and/or at least one day during wartime.
Some life insurance policies can provide benefits while the person is still alive. Ask your insurance agent about accelerated or living benefits. In this case, the insurance company buys back the policy for 50% – 75% of its face value, depending on the policy amount, monthly premiums and the policyholder’s age and health. Some policies are more flexible than others on the circumstances in which the policy can be cashed out so be sure to ask your agent.
If you plan to sell your house once you move into an assisted living community, a bridge loan can help cover expenses in the meantime. This type of short-term loan can be up to $50,000 and can finance assisted living while you’re waiting for your house to sell.
If you want to move into an assisted living community but keep your home, a reverse mortgage could be an option to help cover some of the cost. These mortgages are available to homeowners who are 62 or older and let you convert some equity in your home into cash. You can cash out in a lump sum or a series of monthly payments and the value is determined on various factors including how much the home is worth, interest rates and the applicant’s age.
Though Melrose Meadows is a private-pay community, there are many ways to get help paying for assisted living. As you shop for a new community, be sure to note which services are included in rent and which are a la carte. At Melrose Meadows, all of our assisted living services are included in rent.
Melrose Meadows is a certified assisted and independent living community in Iowa City, Iowa. We pride ourselves in providing a senior living community that supports an independent lifestyle in a vibrant all-inclusive setting. Schedule a tour today and let us help you navigate the options for your future.