Issue 28.12
Everyone has a unique set of needs and circumstances to consider when contemplating how to best finance their stay in an assisted living community. There are a myriad of financial options out there to choose from. Each option has its benefits, drawbacks, and legal requirements. There may also be important tax breaks associated with assisted living care that are available to both seniors and their caregivers.
Below are a few of the most common options utilized to finance one’s stay in an assisted living community.
TRADITIONAL OPTIONS
401(k)’s,
Cash
Savings & Investments
CD’s
Pensions
Social Security
Loans
Family Support
Home Sale
Home Equity Loan
Reverse Mortgage (Some seniors elect to take out a reverse mortgage which allows them to remove equity from their home to pay for assisted living services for their loved one until they decide to sell or leave their home).
INSURANCE OPTIONS
Long-Term Care Insurance – Long-term care insurance is a product that provides funds for long-term care in situations that are not typically covered by normal health insurance or Medicare, such as assisted living.
Life Settlements – Life Settlements are a popular way for seniors to raise the funds to pay for assisted living care. This is typically done by selling a life insurance policy. These settlements can be done directly with their life insurance company or with a third party (called a viatical settlement). There are a numbers of terms and conditions that are associated with this option so we encourage you to consult with your financial advisor.
GOVERNMENT OPTIONS
Medicare – Medicare coverage is generally only available for short-term care needs. Such care is typically provided in a skilled nursing facility or nursing home. It often times covers hospice care as well.
Medicaid – Medicaid is a program available to lower income seniors. Specific income and asset conditions are required. We encourage you to talk to your local Medicaid office to determine whether you qualify.
Veteran’s Benefits – The Veteran Aid & Attendance Program can be an excellent financial source to help supplement the costs of assisted living care.
The options outlined above are for general informational purposes only. We ask that you contact your personal financial or tax advisor if you have any further questions about these products.
Please feel free to call us at 435-256-8900 or check us out on the web at www.SunRiverAssistedLiving.com to learn more about our brand new community!