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Six Convenient Options to Help Pay for Assisted Living
Assisted living rates can vary greatly based on location, level of assistance needed and more. In general, however, you can expected to pay anywhere from $2000 to $5000 per month. Even for well-off individuals, that is a lot of money. Many people think that Medicare will pay the assisted living costs, but that is not typically the case. If you’re looking for ways to help pay the costs of an assisted living community for yourself or a loved one, consider the following seven options.
If the individual going into the assisted living facility has limited funds available to pay for it, the Medicaid program may be able to help. This typically means having around $2000 per month or less in income and $2000 or less in assets (excluding your home and car). This program may also be available if a ‘healthy’ spouse will be remaining home while the other is going into an assisted living community.
Medicaid is a government program that is funded at both the Federal and State levels. The program is means-based and will cover medical costs for those who qualify. Even Medicaid, however, won’t typically cover all your costs.
Long Term Care Insurance
If you have a long term care insurance policy already in place, this is the ideal option. While every policy is a little different, they will typically pay most or even all of the costs associated with an assisted living facility. If you don’t already have a policy, however, it may not be an option. You will typically need to have an active policy for at least 90 days before using it, and to qualify you will often have to have a health assessment completed.
Veterans Aid and Attendance
Veterans of wars and their spouses can often get financial assistance for assisted living homes through the Aid and Attendance benefit. To qualify you or a spouse must meet several requirements such as serving during specific dates, serving at least one day during wartime and having been honorably discharged. In addition, you will need to have a documented need for at least two daily living activities (bathing, dressing, grooming, incontinence, ect).
The rent at the facility must also exceed one’s monthly income. This program can provide as much as $1,758 per month to a veteran and $1,130 for a surviving spouse. The combined total cannot exceed $2085.
Life Insurance Policy
If you have an active whole life insurance policy you may be able to cash out its value. In some cases the insurance company itself will pay you the cash value. If that is not an option there are many third party companies that offer this service, known as ‘life settlement.’ They will normally buy back a policy at about 50% of its face value depending on specifics such as the amount of the policy, your age and other details.
A bridge loan is a short-term loan for up to $50,000. This is a good option if you are planning on selling your home or another large asset because it will give you the money you need to get settled into the assisted living community without having to rush a sale. This can help you to maximize the amount of money you can get from selling something. It can also buy you the time you need to secure veterans benefits or find other ways to free up the needed funds.
If you are in a situation where one spouse needs to move to an assisted living facility but the other wants to stay home a reverse mortgage may be the perfect solution. This option is only available to those 62 and older. If you qualify, you can cash out the value of your home’s equity as a lump sum or monthly payment. The spouse can remain in the home until their death, even if the balance exceeds the home’s worth.