A woman gardening in a Pasadena nursing home.

What to Know About Financing Senior Living

February 2, 2021 Category:

The options available on the market for senior living continue to add up, and so do the ways in which you can finance them. Assisted living as an industry changes more rapidly than you might think, so you should always stay up to date on the most recent forms of financing, so you can get the highest quality care with your money. It can be a stressful time for everyone involved, but it’s important to make sure to keep in mind that you shouldn’t be putting extensive financial burden on yourself. In today’s blog we’ll be going over a few of the most common questions asked by people considering the costs of assisted living.

How Much Does Assisted Living Cost?

Like any other business, assisted living costs will vary from facility to facility. Each senior care facility offers different services and amenities as part of their program, so it’s understandable that the costs will vary as well. Thankfully, some senior living homes will allow residents and their families to customize which services they sign up for, giving you a way to control cost. This can help you adjust and personalize the service specifically for your loved one’s needs. Allowing for variation based on geography, type of facility and services provided, assisted living usually costs around $3500-$4500 monthly.

What Options Do I Have to Finance Assisted Living?

Many people who are moving to assisted living or helping a family member make the move apply for a type of loan called a bridge loan. This is a kind of short-term loan that can help you if you plan to sell a home that your loved one has been living in, as it can help you bridge the amount of time between the move to assisted living and the sale of the property. You may also be interested in researching senior living moving or relocation services that can help manage the transition and selling the home. If you’re able to, renting the home your loved one was living in is a great way to help finance the costs of assisted living.

Is your senior loved one a veteran? Then it’s likely that they are eligible for benefits from the Department of Veteran’s Affairs that can help pay for the costs of assisted living. Contact your local VA office and inquire about the Aid and Attendance program to learn more about their eligibility. 

Can I Use Life Insurance to Finance Assisted Living?

Life insurance is another possible way to finance assisted living that you may not be aware of. Some life insurance policies include a “life settlement” item that can be used to pay for senior care. This is similar to a cash surrender of the life insurance policy in that it provides the policy owner a lump sum they can use for in-home care or assisted living payments, but a life settlement usually pays around 8 times more than a cash surrender!

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