Paying for Assisted Living
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How will you be paying for assisted living. In most cases, it is out of your own pocket. These are some helpful programs:
- Long Term Care Insurance - With people living longer, the younger generations are beginning to consider having long term insurance for paying for assisted living, but, unfortunately, most of the present generation of baby boomers do not have this to help offset assisted living costs. The general feeling is why pay for something I may never need. But today people are living longer and there is more chance that you will need to pay for assistance in your senior years.
Seek the advice of a financial planner or insurance provider especially if you are single or have a long term illness such as diabetes or Alzheimer's.
- Veterans Benefits - The military has some great benefits for those who were in the military in war years and surviving spouses and meet qualifications. The VA Aid and Attendance Program has been around since 1951, yet many military who are eligible do not know about it.
Seek out a financial planner who knows about this program or the Veterans Administration. See our article here about the program.
- Low Income Housing - There is assistance for those of low income who need it through HUD and private builders of affordable assisted living facilities that are restricted to those who meet the income guidelines. There are long wait lists for most of these communities or facilities.
Is assisted living paid by Medicare?
Most people think that assisted living facilities will be paid by medicare if they run out of money--unfortunately, no. You pay for assisted living out of your own pocket.
Further, you must be able to afford the costs and your income and assets will be taken into consideration by the assisted living facility to determine if you qualify for the monthly fee.
This is good news about assisted living:
Most facilities are on a month-to-month rental basis so that it is easy to move out should your circumstances change. Remember that the costs increase if you need more services as you age. See our article on Assisted Living Costs for more information.
Are you concerned about how you are paying for assisted living?
If you are, you are not alone--this is one of the top 3 concerns of seniors. People are rightfully concerned about what will happen in their "old age." Somehow we all seem to muddle through. But many are working longer today to bulk up their savings in the event they will need an assisted living facility some day. This is due to the increased lifespans we are seeing as well as the economy.
Your options
- If you have limited income, there are facilities that are available to those who meet the income restrictions either through HUD or private builders of low income properties. But if you make more than the low income guidelines, you cannot gain admittance, and you must be audited every year to see that you still meet the low income requirement. These communities usually have long waiting lists, so if you think you qualify, you should get on wait lists early.
- Do a cost comparison of facilities you like. The all inclusive fee communities are the best value wise, but the facilities with fewer services, under 5, generally cost less.
- If you can relocate, some areas of the United States assisted living facilities and services cost much less than other areas. You can download a list, by state, of average assisted living costs on the Met Life Website Download Market Survey and go to page 20. Compiled by Met Life, you can see that some regions the average cost is higher than other regions of the United States.
- See if you qualify for any of the benefits mentioned above.
- Take advantage of home maker services in your own home for companionship, meals and help.
The state with the most retirees is Pennsylvania due to taxes and other reasons.
Again, paying for assisted living is paid for by you from your own resources.
In general, an assisted living facility will cost a little more than it costs to live in your own home. You can do a comparison sheet which is available at facilities to compare how much it costs to live in your home with how much it costs to live in a facility. The facility will be a little more but includes your meals, shelter, activities, services and amenities and sometimes transportation. All the necessities of life with the added conveniences and easier living.
Compare the costs at different facilities to get the best value for you. See our article on assisted living costs.
A financial planner may be able to help if you seek help early on in retirement before your money runs out, and they may be able to help to prevent that from happening with some planning.
Please verify all information in Paying for Assisted Living. Consult with financial planners and other professional advisors. This article is for information only--please do thorough investigations of all information.
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