Ways to Pay for Assisted Living
Mike McClernonJan 18th, 2021
Financial & Legal Considerations
When considering Assisted Living, several questions come up: What types of apartments are available? What types of amenities are available? What is the staff-to-resident ratio? There’s one question, though, that may be the most important of them all: How do you pay for it?
Many people assume that health insurance or Medicare will cover Assisted Living services, but unfortunately, this is not the case. Fortunately, there are other ways to help you and your family pay for Assisted Living.
Assisted Living Locators of Long Island is a senior care placement service that helps families find the right Assisted Living and Memory Care Community. While we are not a financial institution, we can help you find all the ways to finance senior living costs.
Please remember that everyone’s financial situation is different, and it is recommended that you speak with family and/or a financial advisor before making any decisions.
What is Included in the Cost of Assisted Living?
When people see the cost of Assisted Living and Memory Care Communities, especially on Long Island and the Greater NYC area, they are often a little taken aback. However, it’s important to remember that Assisted Living costs include more than just a place to live.
All the additional services and amenities provided—like 24/7 personal care, housekeeping, meals, physician availability, and activities—are typically included in the monthly cost. Some people even find that the price of Assisted Living and Memory Care Communities ends up being comparable or even more cost-effective than continuing to live at home.
How Families Pay for Assisted Living
With that being said, Assisted Living can still be pricey for some families, especially without the help of insurance and Medicare. Here are some other ways to finance a senior care home that aren’t straight out-of-pocket.
Seniors often have $2,000 - $5,000 or more in monthly income. Pensions, Social Security, Monthly Annuity payouts can easily pay for half - or more - of the cost of Assisted Living or Memory Care. Long-term care insurance covers services and support that are needed over an extended period—including assisted living as well as memory care services.
The cost of long-term care policies varies based on your age, health, income, and other factors.
Read our article, “Paying for Assisted Living and Memory Care with Long-Term Care Insurance,” or visit AARP or the New York Health Department website for more information on long-term care insurance.
Supplemental Incomes and Annuities
Many older adults receive a monthly social security payment, but it usually isn’t enough to cover the cost of senior care homes. However, some states offer supplemental social security for adults with disabilities or certain financial eligibility. Seniors can use this extra income to help pay for Assisted Living or other expenses.
An annuity is another popular way that older adults can fund Assisted Living and retirement in general. Purchasing an annuity will provide you with periodic payments that guarantee you will not outlive your savings.
Selling Your Home and Other Assets
Moving into an Assisted Living and Memory Care Community is an opportune time to consider selling your loved one’s home. Selling a house, especially on Long Island, can provide extra revenue to put toward Assisted Living costs. You can also use this opportunity to downsize and sell some of your assets that you may not need anymore, such as an additional car, furniture, or other items of value.
Many people often don’t take advantage of Veterans Benefits, but they can provide substantial support to veterans and their spouses. The Department of Veterans Affairs does provide long-term services, such as a benefit called Aid and Attendance, but there are specific requirements for eligibility. We encourage you to visit the VA website for more information.
Understanding Your Options
Once you research your options, you’ll find that there are countless resources available to help turn your family’s dream into a reality. From insurance options and benefits to additional income, there are several important ways to make high-quality Assisted Living or Memory Care affordable.
Plus, Assisted Living or Memory Care Communities remove excess expenses like maintenance, grocery shopping, transportation, and more, potentially saving you money in the long run.
Assisted Living Locators of Long Island is a senior care advisor that matches older adults with the right senior care home. We offer personalized assistance to families living on Long Island and in the Greater NYC area. If you’re interested in learning more about how we can help your family find an Assisted Living or Memory Care Community, contact us today!