Paying for assisted living: it’s a challenge that so many older adults and their families will face at some point in time and, for some, it might bring feelings of anxiety. Yet, it’s vital to be aware of all the possible sources of funding that are available, so that you can make the choice that best suits your family.
It’s quite possible that after having considered these options, you’ll find the lifestyle you want is more affordable than you think. At The Herrick House, we are here to help answer your questions as you begin this journey.
Paying for Assisted Living: Make a Plan
The first step we recommend as you consider Assisted living in Beverly, Massachusetts, is having a plan.
A plan is always a good idea when you are facing a big decision or a choice that will affect your future for years to come. A plan for paying for assisted living can get you started in the right direction, helping you do your research, carefully consider options for Assisted Living living in Beverly, Massachusetts, and be ready to act if circumstances suddenly change (such as a change in health).
Sources of Funding: 4 Options to Consider
- Long-term care insurance. According to NerdWallet, a long-term care insurance policy helps cover the costs of that care when you have a chronic medical condition, a disability or a disorder such as Alzheimer’s disease. A medical doctor must certify that the senior needs help with activities of daily living (ADLs) such as eating, toileting, and grooming. Once the senior is deemed eligible for benefits, reimbursements are subject to daily and lifetime caps as defined in the policy.
However, waiting until you need care to buy coverage isn’t feasible. You won’t qualify for long-term care insurance if you already have a debilitating condition, and long-term care insurance carriers won’t approve most applicants over the age of 75. The majority of people with long-term care insurance with the intention of eventually paying for assisted living buy it in their mid-50s to mid-60s.
- Veterans benefits. The VA’s Aid and Assistance benefit provides up to $2,170 monthly to cover the cost of nursing homes, assisted living, adult day services, and in-home care. To be eligible, Veterans must have served on active duty for at least 90 consecutive days, including at least one full day during a time of war; already qualify for the basic VA pension; and require assistance with activities of daily living. Widowed spouses of eligible veterans may also qualify if they meet the clinical and income requirements and have not remarried.
- A reverse mortgage. Many seniors find that a reverse mortgage can help ease the financial burden of senior care. This is more frequently the case when one spouse needs assisted living or memory care, and the other spouse is able to remain in the home. Money received from a reverse mortgage is tax free and does not interfere with Social Security retirement benefits or Medicare benefits.
However, according to the Consumer Financial Protection Bureau, a reverse mortgage loan is not free money. It is a loan where borrowed money + interest + fees each month = rising loan balance. The homeowners or their heirs will eventually have to pay back the loan, usually by selling the home. Again, consulting with a financial advisor is wise before making a decision.
- Life insurance settlement. A life settlement is a way to sell your life insurance policy for cash. The purchaser takes over payment of the premiums. Policy value generally has to exceed $50,000. These funds are put into an irrevocable trust, which makes payments to the community. When proceeds of a life settlement are used for paying for senior care, tax deductions may apply.
Do your homework and get the facts
You have more than one choice for Assisted living in Beverly, Massachusetts, just as you have more than one funding option to consider. At The Herrick House, we know the path to a major life transition is much smoother when you have a trusted advisor on your side. As the North’s Shore’s most trusted and referred to assisted living community, we are here to help you.
We are your friends, your supporters, and your trusted advisor on assisted living. Contact us to learn more and to schedule your tour.