Funding Sources for Senior Care and Housing
There are several reasons older adults may consider the benefits of senior living. Perhaps it’s assistance with the tasks of daily living or an accessible private residence that will support aging well while providing privacy and independence.
Having easy access to activities, healthy dining, opportunities to meet and make new friends or to take advantage of scheduled transportation and a maintenance-free lifestyle might provide a few additional motivations.
However, many families find themselves hesitant because they’re concerned about how they would fund senior care.
Sources for funding senior care
There is good news when it comes to funding senior care. In fact, senior living is often much more affordable – and obtainable – when the many sources of funding are considered.
If you are researching the benefits of community life, take a look at how funding senior care could be accomplished:
1. Income and personal savings
A great place to begin is by creating a list of all accounts and balances that may be available to pay for senior living. Include all checking, savings, Money Market accounts and Certificates of Deposit. Some families discover long-forgotten accounts that still carry a balance and were left open but haven’t been used in years.
If the individual is still working, there may be employment income or benefits received from Social Security that can contribute to funding senior care.
2. Retirement benefits and investments
List all retirement plans and pensions that may have been accumulating over the years. Talk to your parents about any 401(k)s, Individual Retirement Accounts, stocks, bonds or other investments they might own.
Some individuals have also invested in real estate or personal property such as jewelry or artwork that can be sold to help contribute to senior living expenses.
3. Life insurance policies
An often-overlooked source, life insurance policies may be sold for their cash value to be used for funding senior care costs. You may have a policy that can be converted into a long-term care benefit policy, which transfers ownership to an administrator who will then make payments directly for senior care.
Loans may also be taken out against a policy but you’ll want to make sure you understand any restrictions or conditions and how any remaining benefits may be affected.
4. Long term care insurance
If you or your loved one purchased a long-term care policy previously and it’s still in effect, this could be an excellent source for funding senior care. This type of insurance typically must be purchased prior to reaching a certain age or before care is needed.
Policies can vary and restrictions may need to be met before expenses will be covered. Examples could include whether the individual has been diagnosed with dementia or is unable to perform a number of activities of daily living, such as bathing, dressing or eating.
5. Veterans Benefits
If you or a loved one is a Veteran, or the surviving spouse of a Veteran, and meet certain medical or personal care restrictions, there may be eligibility to receive financial benefits from the Veterans Aid and Attendance program.
There are also financial restrictions that must be met to qualify, which includes a set limit for net worth. When funding senior care with Veterans Benefits, a three-year lookback period is enforced to ensure assets weren’t gifted or sold below market value in order to reduce an individual’s net worth.
6. Home equity
For a majority of people, their home is their largest asset. Depending on the amount of equity that has accumulated, once sold this may be a good source of funding senior care. If proceeds are needed before they’re received from the sale, a bridge loan may be available to cover the gap, which is repaid when the sales funds are available.
Obtaining a home equity loan or renting out the home is another option to provide money. If married and one spouse will remain in the home, obtaining a reverse mortgage might be possible.
Life at a Milestone Community
If you’re looking at options for retirement living, we invite your family to visit one of our Milestone communities – designed to support your loved ones to live their highest quality of life.
We offer studio and one-bedroom private apartments for our assisted living residents as well as private or shared memory care suites for those living with Alzheimer’s or dementia.
Our memory care residents are cared for by our compassionate and specially trained team – who meet them wherever they are in their journey with patience and kindness. The residents also have access to customized activities, programs and an elevated secured courtyard.
Our amenities and services encourage our residents in assisted living to engage with others, remain as independent as possible and be reassured that help is available whenever needed.
In addition to our personalized services, we offer:
-
Chef-prepared meals
-
Full-service dining room and bistro/bar
-
Clubroom with large screen and theater style seating
-
Family gathering room
-
Rooftop courtyard including outdoor kitchen and firepit
-
Resident accessible chef’s kitchen garden
-
Senior-inspired fitness center
-
Hair and nail salon
-
Resident-shared laundry rooms
-
Elegantly designed common areas
-
24-hour on-duty care staff
-
Scheduled transportation
-
Secured community
-
Direct access to adjoining walking paths and parks
If your family is considering retirement living, we hope you will visit one of our communities. We are a trusted resource and are here to answer any questions. Please contact us with any questions you may have or to arrange a personal tour.