Overall assisted living costs can be an important factor when considering a community that provides supportive services and care. So be sure to check these sometimes-overlooked financial resources.
INCOME AND ASSETS
Many people use income from social security, a pension, or investments to pay for senior care. Some sell their home or other assets, or use their savings. Annuities and life insurance policies with accelerated death benefits or life settlements, which provide cash payouts that are less than the full benefit of the policy, can also be leveraged.
LONG-TERM CARE INSURANCE
Assisted living and in-home care are sometimes covered, as well as costs for hospitalization and skilled nursing facilities beyond what is covered by Medicare and Medicaid. Since policies differ, it’s a good idea to review your specific policy with your insurance agent.
Aid and Attendance Benefits provide tax-free aid to qualified veterans and spouses.
MEDICARE AND MEDICAID
While it may cover the costs of skilled nursing care for a limited number of days and some in-home care following hospitalization, Medicare generally doesn’t cover long-term care. Medicaid, on the other hand, sometimes can but varies by state.
Many states offer tax deductions for assisted living. Contact your tax advisor or financial planner to see if you qualify.
BRIDGE LOANS FOR ASSISTED LIVING
No-interest and low-interest loans can temporarily cover the costs of moving into a community while other assets (like home or investments) are being sold. Ask your banker or financial planner about the options available to you.