What Are the Financial Options for Senior Living

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Affordable housing is a basic need everyone strives for. For seniors, housing and assisted care are often integrated—making the monthly costs of living too expensive for a fixed income. Assisted living communities aim to provide an improved quality of life and care for senior living. However, this quality care isn’t without cost. If you’re a senior needing the care of an assisted living community, it can be scary to be faced with the inability to cover these costs.

If you’re in a situation where you can’t afford the assisted living you need, don’t fret. There are many financial options for senior living available to you. Continue to enjoy senior living at an affordable price with these options.

Long-Term Care Insurance

Unlike traditional healthcare, long-term care insurance is specifically designed to help pay for costs that are associated with long-term care. These insurance policies reimburse the policyholder a daily amount for services and support that assist them with daily living. This includes assistance with regular tasks, such as eating, bathing, and dressing. These policies have a range of options and benefits available that are suited to your specific needs.

Most policies are comprehensive and allow you to receive your coverage in a variety of settings. This can include your home, adult day service centers, respite care, and senior living options such as assisted living. This means that long-term care insurance might be the solution to covering your assisted living expenses.

There are a variety of options for long-term care insurance, from traditional to hybrid policies. If you need help assessing the risks and benefits of either or deciding whether long-term insurance care is the best option to finance your senior living, the American Association of Long-Term Care Insurance is available to assist. They can help you navigate through any questions and concerns you have.

Veteran’s Benefits

Veterans and surviving spouses make up more than a third of the American population over 65. If you or your loved ones fall within this category, you may qualify for Veteran’s Aid & Attendance benefits.

A VA pension is supplemental income that is provided through the Veterans Pension and Survivors Pension benefit programs. It’s available to US veterans or their widowed spouses. If you’re eligible for this pension and also require the aid of another person, then you may qualify for additional monthly payments above your normal pension amount. If you or a surviving spouse require additional care, you can apply to Aid & Attendance.

The Aid & Attendance pension benefit is tax-free and pays qualifying individuals up to $2,230 monthly for a veteran and their spouse, $1,881 for a single veteran, and $1,209 for a surviving spouse who qualifies.

These VA Pension benefits can be used to help pay for the costs of assisted living. Similar to long-term care insurance, VA pensions cover a multitude of senior care options, such as independent living, adult day services, in-home care, assisted living, and memory care. Whatever your senior living need, your VA pension may help cover these costs.

When applying for Aid & Attendance, monthly medical expenses can be deducted from countable income. This includes senior care costs. In essence, senior care is considered a medical expense, and your pension can be applied to the cost of senior living.

Bridge Loans

A bridge loan is a short-term loan taken out for anywhere from two weeks to three years. Typically, bridge loans are used to finance a new home before selling your current house. However, this concept now applies to senior living. Elderlife Financial Solutions is an organization that offers a bridge loan specifically designed for senior living.

The Elderlife Bridge Loan acts as a line of credit. It’s a short-term loan designed to create a bridge until more permanent, long-term financing is received. These loans are highly convenient because the funds are given directly to the assisted living community, protecting seniors from the funds being misused. It’s even possible with this bridge loan for the family to acquire cash to cover any unexpected or incidental costs as well as fees related to relocating their loved one to a senior living community. Additionally, up to six family members can share the loan—splitting the cost of their senior’s care.

Cover Costs While Waiting for Other Assistance

A Bridge Loan can also assist with costs while waiting for veterans’ benefits. Though the VA pension and Aid & Attendance benefits can provide thousands of dollars a month, the wait time for approval can be long—delaying the much-needed financial assistance for your senior living. Application processing averages nine months but can take as long as eighteen months. These may be crucial months of delayed care while waiting to receive benefits. This loan enables you to bridge the gap and start getting assistance while waiting.

This type of loan can ease the burden of the costs of care while family members are trying to figure out other financing options, such as liquidating other assets like CDs or stocks or selling a home. It’s also a great alternative to a reverse mortgage. Though a reverse mortgage is another viable option for financing long-term care, it only works if one homeowner remains in the home. If you’re unable to remain in your home and need the additional assistance of senior living or memory care—or both homeowners move into the community—a reverse mortgage is not an option. The Elderlife Bridge Loan may be the best of financial options senior living for those looking for a simple financial option.

The Mission at Agua Fria Can Help

At The Mission at Agua Fria, we’re committed to serving our residents. We believe in helping seniors maintain their dynamic lifestyles while aging with dignity. Our senior living is comprehensive and caring, including services such as assisted living and memory care.

If you or a loved one has memory care needs or simply wants to maintain independent living while in a thriving community, our caring and certified staff can help tailor the best care for your needs. If you need help learning about the financial assistance that is available to you, please contact us. We’re happy to serve and help you navigate affordable senior living.

So don’t fear if you need additional care at a senior living community but are living on a limited or fixed income. There are many financial options available that make senior living both affordable and enjoyable.

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