While most of us hope we, or our loved ones, can live out our days in our own home, that is unfortunately not always what happens. When it's time to choose an assisted living facility, we also must deal with the inevitable costs of that decision. Assisted living facilities can be expensive, and if you aren't prepared for the price, you may wonder how you will pay for them. Here is some information to help you decide how to pay the costs associated with assisted living.
Average Cost of Assisted Living
The average monthly cost of assisted living is approximately $4,500. That estimate was reported in Genworth's 2021 Cost of Care Survey. Prices are variable depending on the location of the facility, the services they offer, available amenities, and the type of room you choose. Most seniors aren't prepared to pay between $30,000 and $100,000 in a year for their living arrangements.
Many seniors attempt to pay the costs of assisted living on their own. They use their savings, Social Security benefits, money from pensions, and retirement account money. Government programs are available to help pay for the cost of assisted living. Seniors should be encouraged to take advantage of any assistance available to them.
While Medicare doesn't pay for assisted living costs, Medicaid does offer some assistance with paying for home and community-based services. The coverages are dependent on the state. However, Medicaid doesn't pay for room and board like it does for nursing homes.
Long-term Care Insurance
Long-term care is an insurance policy that subscribers purchase through a private insurance company. The premiums for long-term care policies vary depending on the age of the insured, their health, and how much coverage they have. If someone wants to use long-term care insurance to pay for future care, they need to plan and purchase the policy when they are still in relatively good health because coverage can be denied for certain health conditions.
Some eligible veterans and their surviving spouses who have limited assets qualify for benefits through the US Department of Veterans Affairs. Many veterans and their families are unaware of the Aid and Attendance benefit, a monthly pension from the VA. The benefit is a higher pension designed to help pay for personal care services such as feeding, toileting, bathing, and dressing. Personal care services are part of the services provided by assisted living facilities.
Existing life insurance policies can sometimes be converted into life settlements to pay for long-term care. With life settlements, a third party will purchase the policy for less than the death benefit but more than the policy's surrender value. That third party becomes responsible for paying the premiums, and in return, they become the beneficiary who receives the death benefit upon the insured's death.
Someone who owns their home without a mortgage or lien on it can convert the equity in the home into cash payments while they still own their home. The loan comes due when the borrowers no longer live in the house for an entire year, sell the house, or die. Reverse mortgages are only an option for paying for assisted living if the patient's spouse or someone else is a co-borrower and continues to live in the home.
Assisted living can be expensive, but there are options for assistance paying for the cost. Some options require planning, while others can be accessed when needed. LiveWell Placements can help you find the perfect home for the seniors in your life - because the right home really matters. We work with you to find the right placement, whether it is Fort Lauderdale senior living, Delray senior living, assisted living facilities, memory care facilities, or even independent living communities. Check out our website to learn more about what we do and our unique approach. Learn more about LiveWell Placements on this page, or click here to learn about our personalized approach.