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FAQs About Financing Senior LivingFebruary 17, 2020 0 Comment Category: Assisted Living
Senior living options have evolved greatly in the past decade, and the payment and financing methods have changed as well. In fact, the senior living industry is rapidly changing every year. These changes mean you may need a refresher on the financing options available for elder care. This way, you can ensure that your loved one gets all the services they need in the right senior living facility without causing undue financial burden on you. Below are some of the commonly asked questions about senior living financing.
What Options Do I Have to Pay for Senior Living?
You can easily pay for assisted living by applying for a bridge loan. Such a short-term loan will be very beneficial if you are planning to sell your loved one’s house. You can also seek the assistance of senior living relocation specialists and sell the property when your senior family member is ready to move to an assisted living community. If you are not planning to sell the home, then the best option will be to rent it. You can cover the expenses of senior living using monthly rental payments.
If a senior is eligible for a Veteran’s Administration pension, then they may receive benefits from the VA to pay for senior living as well. You can contact the regional office of the US Department of Veterans Affairs to see if their Aid and Attendance Program covers the expenses of assisted living for your loved one.
Is it Possible to Use Life Insurance to Pay for Senior Living?
If the life insurance policy of your senior family member has ‘life settlement’ included in it, then you can use that to pay for assisted living. Life settlement schemes issue a big lump sum to the policy owner for in-home care, senior living, or home improvements. There are no restrictions on how the funds issued by the program are used either. What’s more, a life settlement can pay up to around 7 times more than what the cash surrender value can cover.
The funding from life settlements may be eligible for tax deductions as well when it is used to pay for long-term senior care. There is no need to make premium payments anymore either. However, this may make you ineligible for Medicaid and transfer the death benefits to the new policy owner. You may also need to pay taxes on the settlement amount as a capital gain.
Can I Use Long-Term Care Insurance to Pay for Senior Living?
Long-term care or LTC insurance policies cover individuals who have chronic health conditions or disabilities, which require them to seek help for their basic daily living needs. The specific terms and conditions of LTC insurance policies may differ, but it can be generally used to cover home care, assisted living, or long-term care expenses in a specialized facility.
The most striking benefit of using LTC insurance for financing is that it gives you many options to choose from to provide care for your senior family member. The benefits can be used for moving to an assisted living, providing care at home, or cover the costs of a long-term care center. Although LTC insurance does not cover the full expenses of senior care, it can make it much more affordable. However, most LTC insurance policies have restrictions on their payment terms and amounts. The premiums can increase as well.
How Much Does Senior Living Cost?
The cost of senior care will vary from facility to facility. If you choose assisted living, it will depend upon the services and amenities provided by the community as well. Some assisted living communities allow you to customize the services based on the actual needs of your loved one. This may help you to cut costs. In general, the monthly costs of senior living would be around $3000 – $3500, but this may also vary from region to region.
To learn more about the pricing and costs for The Falls Home: Contact us today!