Are you planning for your future in an assisted living facility?
Are you wondering how you are going to pay for assistive care over the long term?
You are not alone. Every year, hundreds of thousands of Americans begin to establish financial plans for shifting into an assisted living setting.
Fortunately, there are plenty of good options to help support you as you do financial planning for your future.
In this article, we will talk about how to plan for paying for an assisted living facility. Read on and you can learn how there are several unique options for securing financial assistance.
Planning Early
One of the most important things you can do as you are preparing for a transition into an assisted care setting is to start your financial planning early.
The earlier you begin to think about saving for this period of your life, the less stressful it will become.
If you’re reading this, and you still have plenty of years before retirement, you are still ahead of the game and it is not too late to set aside money for assisted living in the future.
You may also want to talk to close family members to get an understanding of how your overall family plans to pay for this portion of your life. Some people are fortunate to have close relatives who are willing to assist them financially in their later years.
Government Funding
If you are planning for a more immediate transition to assisted living, there are a few sources of funding that you may not have thought about.
Many people wonder if they are eligible for funds from Medicare or Medicaid.
While Medicare is designed to assist elderly individuals with paying for health benefits, Medicare does not pay for assisted living. They will pay for medically necessary skilled nursing when appropriate, but they do not pay for room and board.
Medicaid is a similar situation, however, they may have some options available for incapacitated or low-income individuals.
Veterans who are looking for support from the Veterans Affairs department will not be eligible for receiving ongoing benefits specifically for assisted living, however, they can apply for special funds eligible through Aid and Attendance benefit.
This will allow them to use this credit toward assisted living costs.
Other Options: Life Insurance Settlements and Reverse Mortgages
There are other options for securing additional funding too.
Many families will seek a life insurance settlement to create more liquid funds. This usually involves having a third party assume the policy with the obligation to pay ongoing premiums.
In exchange, the insured will receive funding that can be used for assisted living costs. When the insured passes away, the death benefit from the policy will go to the third party.
It is also possible to use a reverse mortgage to apply the equity on your home toward your assisted living costs.
Financing Assisted Living Options
There is no doubt about it. The cost of assisted living facilities is not cheap. It is best when you have begun to prepare for this period of your life well in advance through your retirement plan.
However, you may be planning for a more immediate transition to an assisted living facility. Fortunately, there are sources of funding available.
At Heidi’s Haven, we are committed to providing the utmost compassionate care to all of our residents. We truly care about those we serve and want them to thrive in our facility. If you are interested in learning more about assisted living costs and financial planning, please contact us today.
