If you aren’t familiar with senior living communities, the pricing structure and financing options can seem especially confusing. Every senior living provider’s pricing is done differently. Because of this, families may struggle to understand the true cost of senior housing and what programs are available to help.
With that in mind, we’ve assembled a few of the most common options for seniors and their families to explore. From veterans benefits to bridge loans, there are resources worth exploring.
Options for Financing Senior Living
While the majority of senior living costs are paid for with personal funds, there are other options some families might qualify for:
- Aid and Attendance Benefit: This program is for qualifying veterans and their surviving spouses. Through the Aid and Attendance program, a single veteran may be eligible for $1,936 a month and a surviving spouse for $1,244. A married veteran might qualify for as much as $2,295 a month. Learn more about the program, including how to determine your eligibility, at VA Aid and Attendance Benefits and Housebound Allowance.
- Life settlement companies: If a senior has a life insurance policy they no longer need, it could help fund their move to a senior living community. A life settlement company purchases life insurance policies from older adults for more than the cash surrender value. Talk with a reputable financial planner or elder law attorney for more advice.
- Short-term bridge loan: Families might not be aware of this option when they are budgeting and planning for a move. The bank or finance company will loan you money on an asset, and you pay the loan off once the asset is sold or liquidated. For many seniors, their house is their most valuable asset. The profit from the sale may be needed to finance the move. Obtaining a short-term bridge loan can give you time to get the house ready to sell and wait for the best offer. These loans can also be helpful if you need to liquidate other assets or investments.
- Long-term care insurance: Finally, don’t overlook what is covered if you or your senior loved one has a long-term care insurance policy. Some people assume they only pay for nursing care centers. Many policies also include coverage for home care services, assisted living, and memory care. Review the policy or call the company to see what is covered.
Learn More about Financing Senior Living in This Free Guide
If a senior living community sounds like a good fit for you or an elder in your family, you might appreciate a resource we created. You can download our complimentary Funding Guide to learn more about budgeting and financing a move to a senior living community.