Financial Options to Pay for Independent Senior Living

Everyone has unique circumstances that help determine how they can best afford the costs of independent senior living. Aside from the sale of a home or traditional savings, you may qualify for some of the financial options outlined below.

Investments and Assets

You can consider using retirement funds, pensions, Social Security, and savings and investments to fund senior living. Hiring a property management company and renting out your loved one’s home may be a helpful option. Families also commonly sell assets such as cars, houses, extra furniture, and other valuables.

Long-Term Care Insurance

Should your loved one need to hire a third-party care provider to deliver support in their apartment, you could use long-term care insurance. This type of insurance can cover the cost of specific types of senior living care, which may include activities like dressing, bathing, grooming, and mobility. Policies will vary so make sure you speak with a financial advisor or insurance provider.

Life Insurance

Converting a life insurance policy to a pre-funded account may be a good option when senior care is needed, as you can immediately begin to make tax-free payments. All health conditions are accepted, which may not be the case with long-term care insurance. There are no costs to apply, care limits, premium payments, or waiting periods.

Veterans Benefits

For those seeking assistance paying for care, the VA’s Aid and Attendance Pension benefit is available to Veterans and their spouses, with the potential to provide around $2,700 of additional tax-free monthly income for senior living. To receive these funds, the Veteran and/or spouse must meet four eligibility criteria: wartime service, care needs, income, and net worth.

If you’d like to explore how independent living can work for you, reach out to us today.