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How to Pay for Assisted Living: 8 Financial Resources to Consider

If you’re researching assisted living options, you’re likely asking: How do I pay for assisted living? With rising costs, finding an affordable solution that meets your loved one’s needs can feel overwhelming. Fortunately, there are several financial resources that can help cover the cost of assisted living.

Many families use a combination of these resources to make assisted living more affordable. Below, we outline eight ways to pay for assisted living so you can find the best financial strategy for your situation.

Veterans Aid and Attendance Benefit

If your loved one is a veteran or the surviving spouse of a veteran, they may qualify for the VA Aid and Attendance Benefit. This program provides monthly financial assistance in addition to the standard VA pension for veterans who need help with activities of daily living like bathing, dressing, and eating.

Eligibility Requirements:

• Must be 65 or older
• Served at least 90 days of active duty, with one day during wartime
• Cannot have a dishonorable discharge
• Surviving spouses must have been married to the veteran at the time of their passing and remain unmarried

Life Insurance

There are many ways to leverage life insurance utilizing settlements, benefits and loans. Your insurance counselor or financial advisor can explain if any options are available to you.

Assisted Living Loans

For families facing a short-term financial gap, assisted living loans can be a solution. These loans are designed to cover assisted living costs, helping while you wait for benefits or asset liquidation.

Long-Term Care Insurance

Long-term care (LTC) insurance is specifically designed to cover senior care costs. However, to be effective, the policy must have been purchased before needing care. If you’re considering LTC insurance, look for:

• Monthly premium affordability
• Daily care allowance
• Coverage for non-care expenses (medications, medical equipment)
• Renewal guarantees

Reverse Mortgage

A reverse mortgage allows seniors 62 and older to convert home equity into cash while retaining ownership of their home. This can be a helpful tool if one spouse remains at home while the other moves into assisted living.

How It Works:

• Homeowners receive payments as a lump sum, monthly payment, or line of credit.
• The loan is repaid when the homeowner moves, sells the home, or passes away.

Personal Savings and Investments

Retirement savings, 401(k)s, IRAs, pensions, and other investments can be used to cover assisted living costs. Some seniors also use annuities or bonds to generate a steady income stream.

Social Security

While Social Security benefits alone may not cover the full cost of assisted living, they can help offset monthly expenses. Some seniors also qualify for Supplemental Security Income (SSI), which can provide additional financial support.

Family Financial Support

It’s becoming more common for family members to contribute toward assisted living costs. Some families set up cost-sharing plans where multiple relatives contribute financially, ensuring their loved one gets the care they need.

Need Help Navigating Assisted Living Costs?

Paying for assisted living requires careful planning, but you don’t have to figure it out alone. Financial planners, elder care advisors, and community sales directors can help you explore all available resources and create a strategy that works for your family.

If you have questions about how to pay for assisted living or would like to learn more about senior living options, contact us today. Our team is here to guide you through the process and help you find a solution that fits your budget and needs.

Sources:
NVF.org
Bankrate.com
Payingforseniorcare.com
Reviewcounsel.org