Funding Solutions to Help Finance Senior Living

For families who are just beginning to explore senior living communities, understanding the pricing structure and options for financing care can be confusing. Each senior living provider structures their monthly fees differently. Some include cost-of-care charges, for example, while others add these separately based on need. It’s no wonder older adults and their families find it tough! 

Equally puzzling is what options are available for financing care. While most senior living is paid for using an older adult’s or their family’s private funds, there are financing programs available. From veterans benefits to bridge loans, here are a few for families to investigate.

Ways to Finance Senior Living

  • Aid and Attendance Benefit: If the senior is a veteran or the surviving spouse of one, they may qualify for the Aid and Attendance program. This benefit helps veterans pay for senior care. The amount is adjusted every few years. In 2021, a single veteran may be eligible for $1,936 a month and a surviving spouse for $1,244. A married veteran may be eligible for up to $2,295 a month. Visit VA Aid and Attendance Benefits and Housebound Allowance to learn more.
  • Short-term bridge loans: Sometimes the timing of a move makes it tough to finance the transition to senior living. The proceeds from the sale of a senior’s home may be needed to finance the move. Or they might have investment accounts that need to be liquidated. This is where a short-term bridge loan can buy time. These loans allow a senior to borrow money against assets and pay them off once they’ve been sold. Talk with the senior’s personal banker to learn more. Or consider working with a financial services company dedicated to older adults. Second Act is one that finances bridge loans exclusively for senior care.
  • Life settlement funding: Older adults often purchase life insurance policies through an employer or at the time of their retirement. For many, this money can be best used to pay for senior living. Life settlement companies purchase life insurance policies from seniors for greater than the cash surrender value. Seek the advice of an experienced elder law attorney or financial advisor to find a reputable life settlement company if this seems like an attractive option for your family.
  • Long-term care insurance: Finally, don’t forget to check and see if your senior loved one has a long-term care insurance policy and what types of care it covers. Some families believe only nursing homes are paid for through these policies. However, many long-term care policies have provisions for home care services, assisted living, and memory care. Review the policy or call the broker to see what is and isn’t included. 

If you and your senior loved one would appreciate guidance as you work through this process, consider utilizing a care advisor. At Rae of Hope Advocacy Center, you can get help every step of the way. There is never any cost to families who use our services! Contact us today to learn more and get started working toward a solution.

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