Have you chosen to move to a senior living community? One where a helping hand is waiting to make the day easier?
A community that supports residents to spend quality time with family and friends instead of on basic tasks or caregiving needs?
A community that offers a wide choice of social events, activities and opportunities to make new friends?
A community that provides healthy meals to enjoy without the work of planning and preparing?
If so, you may be ready to begin creating your financial budget. The good news? Many families are surprised to learn how many funding sources are available – and often overlooked.
5 tips for paying for senior living expenses
Take a look at the following helpful suggestions that might help you pay for senior living expenses:
Tip #1: Begin with personal savings and income
The best place to start is to make a list of all personal funds and income that may be available.
Consider all bank accounts, savings, retirement plans and other investments. Include pensions, profit-sharing, individual retirement accounts (IRAs) and annuities. There may also be investments that could be sold for cash, such as stocks, bonds, real estate or personal property.
If the individual is still working, a portion of that income might be available, or Social Security payments may contribute to funding if the person is receiving benefits. If the individual has been diagnosed with a disability or a form of dementia, Social Security Disability Insurance benefits may also be available.
Tip #2: Review life insurance policies
If you or your loved one has a life insurance policy, this can be an often-overlooked source of funds to help pay for senior living.
You will want to be familiar with any restrictions, but it may be possible to convert a policy into a long-term care benefit. This requires transferring ownership to an administrator who will make payments directly to the senior living care community.
Another option to receive funds is to sell a policy for its cash value. It’s important to understand any specific conditions and to recognize that there will no longer be a death benefit payable to any heirs.
Some companies allow for loans to be taken out against a policy, allowing an individual to receive a percentage of the death benefit to pay toward care.
Tip #3: Check if a long-term care policy is available
If you are helping your parents consider their financial options, be certain to ask if they had purchased a long-term care policy earlier and whether it is still in effect. If not, this possibility is typically not available after a certain age or if care is already needed.
Each policy can have specific terms that govern when residential care or help with daily tasks will be covered. There may be restrictions that are required to be met, such as whether the individual has been diagnosed with dementia or needs assistance with certain activities or tasks, such as bathing, dressing or transferring.
Tip #4: Verify eligibility for Veterans benefits
If you or a loved one was a Veteran or is the surviving spouse of a Veteran and meets certain medical or personal care requirements, eligibility may be met to receive financial benefits from the Veterans Aid and Attendance program.
There are also financial restrictions that impact qualifying, including not exceeding the limit set for net worth, which excludes a person’s car, personal effects and primary residence. There is also a three-year lookback period to determine if any assets were gifted or sold below market value in an effort to reduce net worth. If this is found, benefits can be delayed or denied.
Tip #5: Consider sale of home or equity conversion
As the largest asset owned for many people, selling their home is often a primary means to pay for senior living, if equity has accumulated.
Other options might include renting the home and using the monthly payments to contribute to financing senior living. A reverse mortgage may be another consideration for a married couple when one spouse will be remaining in the home, as the property is required to be owner-occupied.
Bridge loans may also be available to pay for senior living if the individual is waiting on the funds from the sale of a home. This loan will be paid off at the time the money from the sale is received.
→ Curious About Affording Senior Living?←
Take Our Quick Survey!
Retirement living in Waukegan, Illinois
Galloway Senior Living, locally owned and operated, provides luxury and quality care for families in our community.
Assisted Living at Galloway Senior Living offers beautiful and contemporary private residences that range from alcove studios to two-bedrooms and include high-end stainless-steel appliances, maple hardwood cabinets, cultured marble countertops and thoughtfully curated décor and colors.
Our Memory Care community offers a family kitchen, dining room, walking garden, and lounge.
Our services include:
- 24-hour certified nursing assistants, on-staff licensed nurses, medication management, and on-site physician visits
- COVID-19 safety protocols
- Assistance with daily tasks
- Readily available safe transportation
- A fall-reduction program
- In-unit emergency response systems including an electronic monitoring system for exit doors
- On-site entertainment and activities personalized to reflect the residents’ preferences
- Housekeeping and linen services including personal laundry
Amenities you’ll find at Galloway Senior Living include:
- Country Café and Convenience Store
- Salon and Spa
- Theater with 85″ television
- Activity and Craft Center
- Game Room
- Library and Business Center
- Fitness Center
If you or your family is considering retirement living in Wadsworth, Illinois, we hope you will visit our community at Galloway Senior Living. We are a trusted resource and are here to answer any questions.