Maybe your loved one has been saving most of their adult life with the intention of funding senior care. They may have stocks, bonds or annuities that they long ago hoped would come in handy one day. There could be funds received from Social Security, pensions, or dividends. Unfortunately, many people underestimate the costs that can be involved in funding senior care, or they assume their family members will be there to care for them, which often is not possible. 

Either way, being prepared and having a plan is a smart strategy for peace of mind. At Assured Senior Living, we want you to have the information you need to make the decision that is right for your loved one.

• The Home

People often overlook their home when considering their financial assets. But there’s a lot to be said for using your home to help with funding senior care. The obvious way is to sell your residence and use the proceeds. Of course, if there is someone still living in your house, or you want to hold on to the property, that might not be the best option. Renting your house out is another way to go. Or, have you considered a reverse mortgage?

• Reverse mortgages

A reverse mortgage is a type of home equity loan for homeowners 62 or older and a possible option for funding senior care. The lending bank makes payments in a single lump sum, in monthly installments, or as a line of credit. The loan is called a reverse mortgage because instead of making monthly payments to a lender, as with a traditional mortgage, the lender makes payments to the borrower. The loan does not have to be paid back until the last borrower (often couples will both sign) passes away or moves from the home for one full year. 

Funding senior care with a reverse mortgage is just one possible use of the proceeds. Seniors can also use the equity from their homes to pay off old home equity loans or credit card debt, or to help cover daily expenses.

• Insurance policies

Another possibility for funding senior care is with insurance. 

Life insurance conversion. Anyone with an in-force life insurance policy can transform it into a pre-funded financial account that disburses a monthly benefit to help pay for long-term care needs such as home care, assisted living, skilled nursing and hospice. Unlike life insurance, this account is a Medicaid-qualified asset. If you decide to use life insurance conversion as a source of funding senior care, It’s best to wait until there is an actual need for care first. 

Long-term care insurance. As a source for funding senior care, long-term care insurance helps to pay for the cost of home care, adult day care, assisted living, memory care, skilled nursing and hospice by covering services typically not covered by health insurance, Medicare or Medicaid. Having a long-term care policy helps alleviate or even prevent the pressure on caregivers, so aging adults needn’t fear becoming a burden to their families. 

However, you will want to know if a policy excludes payment for certain conditions, such as certain forms of heart disease, cancer or diabetes.

• Veterans benefits

The VA Aid and Attendance is a Veterans Administration benefit for war era veterans, dependents and surviving spouses. It is a reimbursement for home care, board and care, assisted living and skilled nursing. The benefit is tax-free. Veterans and spouses who need help with some of the activities of daily living like bathing, dressing and mobility, and meet the additional wartime service and financial requirements are eligible. 

This is just an overview of possible sources for funding senior care. Meeting with a trusted advisor can help you make a detailed plan that works best for you.

At Assured Senior Living, we are here to be a source of help. We are dedicated to creating a living environment that’s the closest thing to home, along with cutting-edge senior care. We also offer the convenience of all-inclusive pricing with no hidden fees. We invite you to learn more.  You can see one of our Castle Rock Memory Care Communities here.

We believe home is where people are happiest and healthiest.