Common Questions about Financing Senior Living

Over the last few decades, senior living has changed dramatically and there are more choices than there have ever been before. There are also a number of options for financing senior living. However, there are some common questions among families of seniors regarding the costs associated with these options.  

The most common questions about financing senior living are listed below:

1. How can you pay for assisted living? 

•  Bridge Loans – This loan can help if you have decided to sell your senior loved one’s home to pay for senior living. It is a short-term loan and you can easily pay for Assisted Living until the home sells. 
• Renting the Home – You can also consider renting your senior loved one’s home and the rental payments can help you in covering the cost of senior living. 
• Veterans’ Programs – If your senior loved one is eligible to receive a VA pension, they can use the benefits to pay for Assisted Living.

2. Can a life insurance policy be used to pay for senior living? 

Many times, life insurance can be taken advantage of. One way is by using a life settlement. This is the sale of an existing life insurance policy to a third party. It is typically sold for more than its cash surrender value to the insurance company, but less than its net death benefit. Here are some pros of this type of policy -

• In a life settlement policy, a large lump sum is often issued to pay for the senior’s home improvements, in-home care, or assisted/senior living.
• There are no restrictions on how funds are used and they pay up to seven times more than the surrendered cash value.
• You don’t have to make any premium payments and there are tax deductions available for long-term care usage. 

3. Are you sure that Long-Term Care (LTC) insurance covers Assisted Living or not? 

LTC insurance policies cover people who have chronic conditions or disabilities requiring them to seek help for the basic daily living activities. Policies differ but may help pay for care at home, in an assisted living community, or in any other long-term care center.

You need to consider a number of factors when it comes to LTC for financing senior living, including its benefits, which may be used in a home setting, assisted living or a long-term care center. They typically don’t cover the entire cost of care, but makes the senor care more affordable for you.

Want to learn more? Contact Always Best Care. Their care coordinators can help you find the right Assisted Living Community In Central Ohio. For more information, call them at (614) 284-6764.