According to the U.S. Census Bureau, adults aged 65-and-older are one of the fastest-growing populations in the United States. Aging baby boomers and an increase in life expectancy are contributing factors.
As people live longer many will eventually need long-term care, including assisted living. Many seniors are shocked once they realize how expensive assisted living communities will cost.
According to Genworth’s 2021 Cost of Care Survey, the median annual cost for an assisted living community is $54,000, and this cost can be substantially more depending on where you live.
Fortunately, there are several resources seniors can use to cover the cost of an assisted living community. If possible, meet with a financial advisor to help you sort through and evaluate all of your options.
The following tips are a great place to start to help pay for living in an assisted living community.
For seniors who have a pension, this is an excellent way to help pay for living in an assisted living community.
If you’ve contributed to a 401k plan, now is the time to use funds to cover long-term care costs.
Individual Retirement Accounts (IRAs) are also excellent ways to assist with assisted living costs.
Social Security benefits and personal savings are common ways seniors pay for assisted living.
Long-term care insurance is a type of policy purchased through a private insurance company to cover your long-term health care needs.
If you have a long-term care insurance policy, these policies will usually cover some if not all assisted living expenses.
Although these policies are a good option, there are rules and requirements, as with any insurance policy. Make sure you meet with your insurance professional before assessing long-term care benefits.
If you or a spouse is a wartime veteran, federal benefits may be available to help pay for some senior living expenses.
For example, the VA Aid and Attendance Benefit may provide an additional monthly payment to the amount of a monthly VA pension for qualified Veterans and survivors who need help with assisted living expenses.
You may consider selling your home and using the equity to pay for assisted living costs if you own a home.
Another option for homeowners is a reverse mortgage. A reverse mortgage is a loan homeowners take out against the value of their home.
Homeowners must be married, and the spouse must remain in the house. You can choose to receive payments in a lump sum, monthly installment, or line of credit.
In addition to death benefits, life insurance policies can be cashed out to help pay for an assisted living community. Consult with your insurance agent to make sure you understand the pros and cons before cashing out a life insurance policy.
Are you interested in finding out more about Notre Dame Health Care’s senior living options? Schedule a tour or call us at (508) 852-5800.