If your loved one has decided to take advantage of the benefits of senior living, it may be time to discuss the community’s rates as well as the services and amenities that are included.
Once the monthly fees are known, families will typically create a budget and confirm how best to fund the senior living expenses. There are several sources of funds that can contribute but there are also a few ideas that are often overlooked.
Tips to fund senior living for your loved one
Creating the budget
The first step in funding senior living starts with establishing an accurate budget. Prices can range widely depending on the level of care, amenities offered and even geographic location – so it’s always better to talk directly to the senior living community for their rates instead of relying on general estimates.
When discussing fees with the community of interest, you’ll want to ensure you have a clear understanding of all the services included or if there are any à la carte choices that can be charged separately.
Once you have the monthly total amount for the community, you’re ready to start locating available sources to contribute to funding senior living for your loved one.
Conventional funding sources to consider
Medicare will generally not pay for custodial senior living, including help with daily tasks, but it may cover skilled nursing care, such as physical therapy or wound care, as well as a few preventive services and transportation to medical appointments.
Most senior living expenses are paid from private funds. The following list includes common funding sources:
1. Personal savings
Your parents may have savings to contribute to senior living expenses. When discussing possible funding sources, make sure to include all bank accounts that are applicable. Adult children may also be able to contribute to the fund.
An older parent may have income from a variety of sources that may be available to pay for a portion of the expenses. If your loved one qualifies and is receiving Social Security payments, these benefits could also contribute.
3. Retirement funds
Retirement accounts can also be tapped to fund senior living, such as a 401(k) or Individual Retirement Account (IRA).
Make a list of all possible investments and their values. This might include stocks, bonds, annuities, real estate, or personal property – including collectible automobiles, jewelry or artwork – that could be sold and converted to cash to help fund senior living.
5. Home equity
For many people, their home is their largest asset. Selling the home can free up funds for senior living but there are also other ways to take advantage of the home’s equity. Reverse mortgages or converting a portion of the equity are other possibilities to consider.
Often-overlooked funding sources
The following ideas may also provide a source of funding senior living expenses:
1. Life insurance policies
Families may be unaware that some types of life insurance policies can be utilized to cover senior living expenses. If your parent has a policy, discuss possible options such as cashing out for a lump sum payment or transferring ownership to an administrator to make payments directly to a senior living community.
2. Long-term care insurance
Adult children may be unaware that their parent has purchased a long-term care policy. These policies must generally be taken out before care is needed or before reaching a certain age. There may be qualifying factors to begin payments and the terms and conditions should be verified.
3. Veterans Benefits
If your loved one is a Veteran or the surviving spouse of a Veteran and meets certain health requirements, there may be assistance available including the Aid & Attendance benefit. Other qualifications include financial limitations, military service and medical or personal care requirements.
4. Bridge or gap loans
Families may also be unaware of loans that can bridge the gap while waiting for funds to become available, such as in a sale of the home or the waiting period for some retirement benefits. Proceeds from the loan are usually received quickly and will be repaid when the asset transaction is completed.
Retirement living in Wadsworth, 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.
We also invite you to download our complimentary information, Family Decision Toolkit: How to Choose the Right Senior Living Community.