Have preparing healthy meals, driving to medical appointments or managing medications become more difficult for you or a loved one? Or is a helping hand needed to bathe safely, groom or get dressed?
If any of the answers are yes, you may have considered whether senior living could be the perfect solution. After all, communities provide accessible residences, personal assistance when needed, healthy and delicious dining programs, activities and scheduled transportation.
However, families often assume they can’t afford this high-quality lifestyle. You might be in for a pleasant surprise when you consider all the sources available for funding senior care.
Funding Senior Care: Consider the Sources
When you review all the financial sources, you may discover that a senior living community is an opportunity you can take advantage of. You might want to consider the following options:
Option #1: Income and Personal Savings
Making a list of all available personal funds is a great place to start.
If the individual is still working or receiving Social Security benefits, this amount could contribute to funding senior care. If your loved one has been diagnosed with a disability or dementia, Social Security Disability benefits may also be available.
When helping your parents locate possibilities for funding their senior care, ask about all personal checking and savings accounts, pensions or other retirement plans. There may also be stocks, bonds or investments that can be sold – such as real estate or personal property.
Option #2: Long-Term Care Insurance
If you or your loved one had previously purchased a long-term care insurance policy, this can be a significant contributor to funding senior care. If a policy is not already in effect, it can be difficult to obtain because it usually needs to be purchased before care is needed or prior to a certain age.
Policies typically cover residential care and assistance with daily tasks but the terms can vary. There may also be restrictions that will need to be met. Examples may include requirements of a dementia diagnosis or needing help with a certain number of activities, such as bathing, eating or transferring from a bed to a chair.
Download our complimentary information, A Family Guide to Funding Senior Care & Housing.
Option #3: Life Insurance Policies
If your parent has a life insurance policy, it might be an unexpected financial source. Before taking any action, however, you’ll want to understand the terms as well as the effect it can have on any future death benefits.
Options that may be available include:
1. Selling the policy for its cash value.
2. Converting the policy into a long-term care benefit so payments are made directly to the care provider.
3. Taking out a loan against the policy which allows the person to receive a percentage of the benefit to pay for care. Accumulated interest will need to be repaid before beneficiaries receive any money.
Option #4: Veterans Benefits
If your loved one is a Veteran or the surviving spouse of a Veteran, there may be financial benefits that can be used toward their care.
Known as the Veterans Aid and Attendance program, individuals who meet one or more of these restrictions may be eligible:
- Help required to perform activities of daily living
- A disability requires the person to remain mostly in bed
- The individual is living in a nursing home due to physical or mental incapacity
- Corrected visual acuity is 5/200 or less or there is concentric contraction of the visual field to 5 degrees or less
There are also net worth restrictions, which exclude a primary residence, car and personal effects. A three-year lookback period determines if any assets were gifted or sold below market value to reduce net worth.
Option #5: Home Equity
If your loved ones have accumulated equity in their home, this is often a source of funding senior care. For many individuals, selling their home provides access to their largest asset.
A temporary source of funds, known as a bridge loan, may also be available to cover the amount of money needed for senior living until the home is sold. This loan is then paid off at the time money from the sale is received.
Other options include obtaining a reverse mortgage. However, this possibility is only valid for those who co-own a house and one person will remain in the home, as the property must be owner-occupied.
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, A Family Guide to Funding Senior Care & Housing.
