Over the next decade, the number of over 60-year olds will grow more than 50 percent faster than the rest of the world’s population.
What does this mean? More and more Americans will need assisted living as they get older. This doesn’t come cheap either.
If you or a loved one might need to have assisted living one day, then you need to consider how you’re going to pay for it.
Check out our tips for paying for assisted living below. Let’s get started!
1. Do Your Homework Early
You need to do your homework about the different assisted living options available. Most of this can be investigated using the internet.
But, if your loved one isn’t tech-savvy, they may find searching online a challenge. Remember, around ten percent of Americans can’t use the internet.
That’s why it’s important to do the homework about assisted living before it’s too late. You don’t want to be in a rush if things move quickly.
If you haven’t secured your spot on a waiting list or saving up money for your assisted living location, you could find yourself paying over the odds at the late minute.
2. Take Advantage of Your Life Insurance
Over forty-percent of Americans don’t have any life insurance. But, if you have been paying for your life insurance for more than ten years, you could take advantage of this.
Naturally, this could mean that any heirs you have would miss out on the pay-out when you pass away. However, you can withdraw up to your cost basis without paying any tax on this.
There is also an option to cash in everything – but this would require you to pay tax. If you have been paying your premiums for many years, then you shouldn’t be shy about making the most of it when the time comes.
3. Take Out a Loan to Pay
If you can’t afford to pay for assisted living with your current savings, you might need to take out a personal loan in order to pay the bills.
There are many types of loans that could help you get the credit you need. These include the following:
- Home Equity Mortgages
- Personal Loans
- Bridge Loans
If you don’t want to sell your home to pay for assisted living, you might find one of these choices better for your circumstances.
4. Apply for Veteran Benefits
Have you served in the armed forces? Veterans are eligible to apply for Veterans pensions.
If you require assisted living, you might also qualify for additional benefits. There are many benefits available for assisted living financing for veterans.
Of course, there are multiple other requirements as well. You need to make sure you qualify. If you’re surviving spouse of a veteran, you may also be eligible for pensions and other benefits.
5. Negotiate a Better Price
Assisted living services can be really expensive. But, there are many affordable options as well. You just need to know where to look.
Think of all of the items that you can remove from the list of services provided by the assisted living facility.
Everything from 24-hour on-call services to your meal delivery service. You don’t need to sign up for everything.
If there are any services that you won’t require, you could always ask for a more affordable price structure.
6. Write Off the Costs
Are your medical expenses above ten percent of your income? You can deduct anything over this threshold from your income taxes.
This can suddenly reduce the burden of assisted living on your finances. These costs also apply if you’re paying for a loved one or parent in assisted living.
You may not think that anything over the 10 percent limit is much. But, once you realize the cost of assisted living, you’ll think this is a worthwhile tax break.
7. Ask Your Family and Friends for Help
You might need to be in an assisted living facility for your well-being and safety. Nevertheless, you need to remember that your friends and family are still there.
There are many ways that your loved ones can drive down the cost of your assisted living expenses.
Do you need to travel to medical appointments to visit your doctor? You don’t need to pay anyone because your family can do this for you.
There are many ways that your family and friends can get involved to help you afford the best-assisted living facility without the add-ons.
8. Get a Reverse Mortgage
If you own your home, you could get a reverse mortgage. This is when you turn your property into cash.
This could either be in a single payment or with monthly payments. You can borrow up to three-quarters of your property’s value.
You don’t have to pay any of these costs back until the homeowner passes away. However, there are important downsides to this too.
For example, you might have to pay fees in closing costs and mortgage premiums still. That’s why you need to make sure you do your research and make sure this is the right option for you.
How Are You Paying for Assisted Living
If you’re expecting to pay for your or a loved one’s assisted living costs, then you need to consider how you’re going to achieve this. You don’t want to rush to find the money at the last moment.
Do you want to learn more about advice for seniors and paying for assisted living? Check out our blog to discover everything you need to know.