After careful thought and consideration, you and your family have arrived at the decision that your loved one could benefit from an assisted living community to help them thrive in a nurturing and safe environment.
You may think that financing senior living is out of reach, but there are ways to make it more affordable and communities that offer affordable rates. While there are several options to provide additional care for your loved one, assisted living communities offer one of the best settings for older adults because they provide assistance for daily living as well as opportunities for social engagement and many other activities that can enhance your loved one’s quality of life.
Although many families use private funds such as personal savings, social security or pension payments to pay for their loved ones’ assisted living accommodations, there are additional options out there to help make assisted living more affordable.
What payment sources are available when financing senior living?
Long-Term Care Insurance
One method of financing assisted living is a long-term care insurance policy, also known as nursing home or senior care insurance. This type of policy is purchased through private insurance and is intended to cover the costs of care for older adults such as assisted living costs. This policy works similar to home or car insurance where you pay premiums for as long as the policy is in effect and make claims if you need to use the covered services. Just like car and home insurance, different plans have different coverage, so make sure you know what your plan will and will not cover.
Medicaid
While Medicare does not cover assisted living costs, Medicaid does cover some portion of expenses for assisted living in many states if your income is below a certain level. According to AssistedLiving.org, “If assisted living services aren’t covered by a state’s standard Medicaid program, there may be a Medicaid waiver program that does.” It is important to note that Medicaid benefits vary by state, and you should research what the state you reside in offers in terms of assistance. The American Council on Aging compiled more information on state specific Medicaid eligibility requirements you can review on their website.
Veteran’s Benefits
Veterans and their spouses may qualify for benefits from the Department of Veterans Affairs (VA). For those that qualify, the VA Aid and Attendance benefits will help pay for assisted living and offset long-term care costs. The Aid and Attendance benefit is an often-overlooked benefit but it provides a monthly, needs-based payment above the pension a veteran is already receiving. Eligibility varies, contact your local Veteran Affairs office to help determine if you or your loved one qualifies for this benefit.
Life Insurance
Older adults who have life insurance policies can also opt to cash out their policy early to help pay for long-term care. Some policies have what is referred to as an accelerated death benefit (ABD) that allows the policyholder to receive a tax-free advance on their insurance benefit. This will reduce the amount paid out to their families upon death, but it may be another option to help pay for assisted living expenses.
What Factors Impact the Cost of Assisted Living?
The cost of assisted living varies, depending on several factors, including the location, the level of care needed, the size of the living space, and the amenities provided. It can also be higher in certain areas of the country like major cities and affluent suburbs.
Here are some factors that impact the cost of assisted living include the following:
- Level of care. The level of care a resident requires can greatly affect the cost, and communities may charge different rates based on the level of care required.
- Type of residence. Some communities offer various types of accommodations, from shared rooms to private apartments. Private rooms or apartments are generally more expensive than shared rooms. The size and layout of the living space can also influence the price.
- Amenities and services. Assisted living communities provide a range of amenities and services. The more comprehensive the amenities and services, the higher the cost is likely to be.
- Community reputation. Assisted living communities with a good reputation for quality care and customer satisfaction may charge higher rates.
- Contract terms. The terms of the contract or lease agreement can affect the cost. Some communities may require a long-term commitment or have entrance fees, while others offer month-to-month options with more flexibility.
Assisted living costs can change over time, and financing senior living can be tricky. Therefore, contacting assisted living communities in the desired location to get current pricing and information is wise. It’s also a good idea to consult with financial advisors and elder care experts to explore your financial situation and determine the best payment options for assisted living.
What is Included in Assisted Living Costs?
Living in an assisted living community may be more affordable than you thought. Consider that some assisted living communities such as Dayspring Villa are all-inclusive. In addition to your apartment, the cost of meals, housekeeping, assistance with activities of daily living, and transportation for shopping and other outings are included. If you consider the individual cost of food, electricity and a nurse or care provider to help you or your loved one with activities of daily living, the costs can quickly add up to as much or more than an assisted living community in some cases.
Affordable Senior Housing in Denver
Not only is the financial aspect important to think about, but the social and life quality benefits of living in an assisted living community are important to take into account as well. Residents of Dayspring Villa not only enjoy a robust events calendar, but through the Rhythms Life Enrichment program they enjoy daily programming that honors each person as a unique individual. Life Shines Brighter at Dayspring Villa, where we offer all the amenities of apartment living and the extra support needed to enjoy life to its fullest. Have questions or are ready to schedule an in-person tour, please contact us and we will be happy to help!
