Moving to an assisted living community can be a big decision with financial concerns. This is why financial planning for assisted living is essential. It allows seniors and their families to understand all the payment options available to them so that they can choose the one that best suits them. The team at Encore Communities has compiled this financial planning guide to help you and your family best plan for assisted living.
Financial Planning for Assisted Living
One of the best ways to financially plan for assisted living is to start saving, especially if you don’t have access to other options to alleviate costs. Meeting with a financial advisor can help determine your expenses and where you can start saving. They can also consider whether selling certain assets can help cover the cost. Meeting with your local Agency on Aging can also help you plan for the costs associated with assisted living.
Setting an assisted living budget that includes savings, other resources, and any money the family is willing to contribute can help you better plan for the move. You can see exactly what you must work with to find an option that fits your budget.
How to Pay for Assisted Living
There are many different options available when it comes to paying for assisted living. Not all of the options below may be available to everyone. So, it’s best to look at your financial situation to explore what is available to you.
Out-of-Pocket
Many seniors pay for assisted living from their private accounts. This can include savings accounts, investments, and retirement plans. If you have any of these accounts, you can contact a financial advisor to see what funds are available and how best to allocate them.
Veteran Benefits
If you or your spouse are veterans, you may be eligible for veterans’ benefits to help cover some assisted living costs. Anyone looking to take advantage of these benefits must live where necessary services are available, have approval from the Department of Veterans Affairs for the care, and have signed up for VA health care. For more information on veteran benefits, contact the Department of Veterans Affairs.
Medicare
Medicare does not cover the actual cost of living in an assisted living community but will pay for services a senior may receive while they live there.[1] Seniors must understand this because many assume Medicare will cover their assisted living costs. Seniors with Medicare still have to pay for the cost of living in one of these communities.
Medicaid
Medicaid services are decided state-by-state, with each area setting its guidelines. It’s best to contact your local Department of Social Services to see what Medicaid will cover when it comes to assisted living in your state.
Long-Term Care Insurance (LTCI)
Some seniors have long-term care insurance that can cover their assisted living needs depending on the type of policy they have.[2] However, some policies only cover the services received at a facility, not the actual cost of living there. If you have a long-term care insurance policy, check your coverage to see what it includes as you explore assisted living options.
Life Insurance
If you have a life insurance policy, you may be able to convert it to a pre-funded account to cover assisted living costs. While you may not receive face value for the policy, you can receive more than the policy’s surrender value. Check with a financial advisor who can guide you if this is the route you choose to take.
Bridge and Home Care Loans
A bridge or home care loan can help cover the costs of transitioning to senior living. The loan will need to be repaid once the cash becomes available. Some people cover these costs by selling the family home or cashing in investments. These types of loans help ensure seniors have the funds to make the move without waiting too long.
How to Get the Most Out of Your Financial Planning for Assisted Living
If paying for assisted living is proving to be a financial burden, there are several things you can do to try to ease the impact:
Ask about Price Flexibility
Some communities may offer discounts if they are trying to fill space or may offer flexible payments. Ask about all available options to make assisted living more affordable.
Consider a Roommate
Seniors can lower the cost of assisted living by having a roommate. If this is an option, it can make assisted living more affordable for those who may not have money saved.
Look for Senior Discount Programs
Some seniors may be eligible to receive funds through senior benefit programs to cover assisted living costs. According to The National Council on Aging, there are several benefit programs that low-income seniors can apply for to help save money on energy bills and healthcare.
Assisted Living at Encore Communities
Encore Communities offers assisted living options in two communities to best suit your needs.
Our Laurel Cove Community in Shoreline allows seniors studio or one-bedroom apartments. Basic rates include daily social and recreational engagement, regular wellness checks, 24-hour call systems, and a 24-hour onsite care team.
Another option is our Clearbrook Inn facility in Silverdale. Here, seniors will find studio, one-bedroom, and two-bedroom apartments. Licensed nurses are onsite daily, and residents have access to restaurant-style dining and healthy meals. All utilities are included except for phone and cable. Basic service consists of an emergency alert system with pendants upon request, apartment maintenance, and much more!
All of Encore Communities provide activities for our assisted living residents to remain active and social. To learn more about what Encore Communities offers, call us today or contact us online to schedule a tour and see which community best suits you.
Sources:
[1] https://www.ncoa.org/article/does-medicare-pay-for-assisted-living
[2] https://www.nerdwallet.com/article/insurance/long-term-care-insurance
Dan is Vice President, Marketing of the Alumus family of companies. A Seattle native, he earned his BA in Humanities and Political Science at Evergreen State College. He started his career as a newspaper columnist, eventually transitioning into marketing and tech writing for Microsoft and several other startups. He later launched a successful creative agency focused on branding, digital marketing, and content production in Los Angeles, where he worked for several nursing and behavioral health clients, eventually becoming the National Marketing Director for one of them.
He has taught Vipassana mindfulness meditation and MBSR and spends whatever free time he has with his son snowboarding, hiking, and camping in the mountains.
