Ways to Pay for Assisted Living

Making a move to assisted living can come with many questions especially regarding finances. Pricing can vary by community depending on factors such as amenities and levels of care. Knowing your loved ones’ monthly income and available assets is valuable information to know beforehand.

Many assisted living communities require private pay. Private pay means funds come from “private” sources like checking or savings accounts, retirement accounts, stocks, pensions, social security income or from selling a home.

Other options to pay for assisted living housing and care include longterm care insurance, veteran’s aid, or life insurance.

Long-term care insurance can assist in paying for a percentage of the monthly fees depending upon the policy coverage. This type of insurance pays a pre-determined amount per day if certain care requirements are met. Care requirements could include needing help bathing, assistance with medications, or a dementia diagnosis. The policy may also have a waiting period before the plan will reimburse, which can vary from 30 days to a few months.

Veteran’s aid, also known as Aid and Attendance benefit, is available for qualified veterans and surviving spouses. The veteran must meet medical and financial eligibility qualifications. This benefit is for individuals who need help in performing daily activities like bathing, dressing and feeding. Details on these criteria can be best explained by an expert at the local VA office from a Veterans Benefit Advisor.

Life insurance is a potential option if your policy allows you to cash out the value to pay for long-term care. Some insurance companies will do a buy-back on the policy at a percentage of its value. Or it may be possible to sell your policy to a third-party company as a “life settlement.” According to Forbes, the seller typically gets more than the cash surrender value of the policy, but less than the amount of the death benefit. It is always best to consult with a financial advisor before considering these options.

Some assisted living communities accept the Medicaid waiver and typically have a limited number of apartments to lease under that payor source. Not every community accepts the Medicaid waiver. Medicaid benefits vary from state to state and are a combination of state and federal funds. Specific functional and financial criteria must be met for individuals to be approved for Medicaid and it involves an application process. ~

Editor’s Note: This article was submitted by Erin Berge, Regional Marketing Director with Volunteers of America National Services and may be reached by email at eberge@voa.org or visit the website at voaseniorliving.org. See ad on Inside Back Cover.