When it comes to long-term care options, assisted living offers various levels of care tailored to individual needs. When planning for the future, understanding the cost of assisted living is important for both you and your loved ones. In this blog, we will talk about how to pay for assisted living.
Do Your Research
Figuring out how to afford assisted living can be overwhelming, but there are lots of resources available to help you learn and manage assisted living costs. And while this blog will outline how to pay for assisted living, we encourage you to reach out to your own financial advisor. They will be able to help you navigate options that best fit your financial situation.
We understand that it can be daunting to know exactly where to start. To provide some clarity, we’ve listed below just a few of the ways that seniors today are paying for assisted living.
Personal Savings
Many seniors today are able to pay for assisted living services with their own personal savings. These funds typically come from a combination of:
- Savings
- Social Security
- Pensions
- Retirement accounts like your 401(k), 403(b), or an IRA
- Stocks
Selling of Assets
Most seniors moving into an assisted living community decide to sell their home or other large assets. The proceeds from the sale of these assets can be a fantastic way to pay for the monthly fee in assisted living.
If you are local to the West Michigan area and looking for a realtor, Sunset Senior Communities recommends Miedema Realty. With over 25 years of experience, the team at Miedema Realty is ready to help you transition to the next stage of life.
Long-Term Care Insurance
For those who are planning ahead, long-term care insurance might be a good option to invest in right now for the future. A long-term care insurance policy removes the burden of having to pay for 100% of care costs with your own personal funds by helping to supplement the monthly payments.
Many experts suggest investing in this type of coverage before the age of 55 as part of an overall retirement plan. It’s important to note that premiums paid on long-term care insurance may be eligible for an income tax deduction.
Life Insurance Policy
While life insurance is primarily designed to provide financial protection for your beneficiaries after you pass away, some policies allow you to use the cash value of the policy to pay for long-term care.
You may also be able to sell your life insurance policy to a third-party company in what is called a life settlement.
Before making any decisions with your life insurance policy, we highly recommend consulting a financial advisor.
Family Assistance
In some circumstances, family members want to contribute to the cost of assisted living care. While this is certainly not something to plan on, oftentimes adult children who’ve come into wealth offer to supplement assisted living costs, simply because they want the best possible care for their parents. If you have family assistance, that is almost better than any other way of assistance.
Making financial decisions about your future does not have to be a cause of stress. With careful consideration of available options and financial planning, you can make a wise decision that ensures you receive the best care when the time comes for assisted living.
We offer assisted living services at all four of our communities! For more information or to schedule a tour, please fill out our website contact form.