Senior Living Costs Today
When you begin to research senior living communities, whether for yourself or for a loved one, you may be concerned about the associated costs and how to find affordable senior housing. Knowing how to pay for senior care now and in the future can feel overwhelming, but there are several options available.
Whether you’re ready to downsize and simplify your life in an independent living community, or need to assist an aging family member in the moving process to an assisted living or skilled nursing facility, chances are you’re curious about paying for senior care. Senior living costs and assisted living costs will vary state by state, and will also depend on the type of community that will meet you or your loved ones’ needs.
How to Pay for Senior Care
Based on your own financial status or your current needs, there are a several different methods for paying for senior care, in particular assisted living or memory care. Here are just a few of the financial options currently available to help cover assisted living and memory care costs at Trail Ridge:
• Long Term Care Insurance (LTCI): Long Term Care Insurance (LTCI) is separate from your current health insurance policy. LTCI covers long term services that may not be covered by private health insurance, and in most cases, LTCI will cover skilled nursing care and assisted living costs, as well as respite care, hospice care, and memory care. However, it’s important to note long term care insurance is generally easier to purchase before any health conditions arise, and preexisting conditions will not be covered by most companies.
• Life Insurance Policy Conversions: You can choose to convert a current life insurance policy into what is called a Long Term Care Benefit Plan instead of allowing it to lapse or be surrendered. All health conditions are accepted and there are no wait periods, making it an ideal choice. Start covering senior living costs immediately by converting your life insurance policy if you have a Term, Universal, Whole or Group Policy with a death benefit of $50,000 up to $1 million.
• Private Health Insurance: Private health insurance usually only pays for short term, skilled care when it is medically necessary. This means you will be covered for hospitalization after an injury or illness, much like the coverage provided by Medicare. In other words, your current health insurance plan probably covers only very limited and specific types of long term care.
• Private Pay: Paying privately can include utilizing your home equity through a Reverse Mortgage, which is a special kind of home equity loan that allows you to receive cash against the value of your home without selling it. Or, you can enter into an annuity contract with an insurance company to help pay for senior care. There are also certain trusts, like Charitable Reminder Trusts or Medicaid Disability Trusts you can utilize. Seniors who have enough of their own income and savings can consider paying privately for the senior living costs associated with independent living, assisted living or skilled nursing care needed.
The sooner you start planning for future senior living the costs, the more prepared you will be. Make sure you thoroughly research all the different payment options for senior living so you know what will be the best option for you or your loved one’s needs, now and in the days to come. For more information about how to pay for senior care and the options available at Trail Ridge, contact us today.