4 Ways to Help You Pay for Assisted Living
It's not always the easiest of conversations, but elder care can be an expensive necessity that comes toward the end of life. If you or a loved one is struggling to pay for assisted living, there are options that can help you overcome the financial hurdles. Keep reading for four alternatives to affording assisted living.
If you qualify for Medicaid, it is an option worth exploring to pay for assisted living. Note that there are qualifying income limits. The type of assistance Medicaid offers varies from state to state, but typically it will help you pay for a portion of assisted-living fees, although some state Medicaid programs may not account for things such as room and board. Look up your state's policy when it comes to Medicaid. When you apply for assistance through Medicaid, be prepared with a history of financial transactions that prove your level of need. Note that many will not be able to get Medicaid to pay for assisted living, however, so don't rely on it automatically.
There are a few different options for veterans who need help paying for assisted living. You can apply through the VA office for funding for assisted living, and if you are a veteran who sustained a service-related injury, your chances of funding are even greater. There is also something called Aid and Attendance, which offers financial assistance to service members and their spouses who are disabled and have a low monthly income.
Cashing in a life insurance policy
If you purchased a life insurance policy at one point in your life, now might be the time to use it if you need help paying for assisted living. There are several options when it comes to cashing in a life insurance policy, but most of the time, the policyholder will buy back the coverage at about 50 to 75 percent of the policy's value. If the original policyholder won't buy it back, you can usually find a third-party company that will agree to buy it.
The third option is called "life assurance," and when leveraging this option, the policy's value is converted directly into funding for long-term care. An individual could use what's left on the policy (though it's typically only 15 to 50 percent of the policy's value if you seek a life assurance deal) to pay for a certain amount of years in an assisted-living community.
Paying for assisted living with bridge loans
If the need for care for you or a loved one is a sudden occurrence and you're lacking the funds to pay for assisted living immediately, a bridge loan specifically designed for elder care is a good option. These loans are typically distributed to cover you for no more than two years, often while the family is selling a house to raise the funds. The loan can be distributed directly to a nursing home, assisted-living agency or a beneficiary.
It is always advisable to meet with a professional care manager to get more insight into these financing options. Give us a call today for information regarding professionals who can help.