Planning for senior assisted living in Durham, NC, can be a daunting task, especially when you are considering the financial aspects. However, with a variety of financing options available, transitioning to a retirement community can be more manageable than it may seem. Here are several strategies for couples considering this move.
Long-term Care Insurance
Long-term care insurance is designed to cover the costs of services that aren’t covered by regular health insurance, including assisted living. Policies can vary widely in what they cover, so it’s essential to read the fine print and understand what is included. Keep in mind, though, that long-term care insurance typically needs to be purchased well in advance of when care is needed.
Life Insurance Policies
Some life insurance policies can be used to pay for assisted living. Depending on your policy, you might be able to sell it for a lump sum or borrow against the cash value. Some policies also offer accelerated death benefits, which can be used to pay for long-term care. Be sure to consult with your insurance agent or a financial advisor to understand how these options might affect your benefits and tax situation.
Reverse Mortgages
For homeowners, a reverse mortgage can provide a way to finance assisted living. This type of loan allows homeowners to convert part of the equity in their home into cash, which can be used to pay for care. The loan doesn’t need to be repaid as long as the borrower lives in the home. If the couple moves to assisted living, the loan would become due, typically paid from the sale of the home.
Veteran’s Benefits
If either member of the couple is a veteran, they may be eligible for benefits that can help cover the costs of assisted living. The Aid and Attendance benefit is a program for veterans and surviving spouses who need help with daily activities. The benefit is paid in addition to monthly pension and can go a long way in covering assisted living costs.
Selling or Renting Out Your Home
Selling your home can provide a significant source of funds to pay for assisted living. If you’re not ready to sell, or if the market isn’t favorable, renting out your home can provide a steady income stream that can be used towards living expenses.
Annuities
Annuities are another financial tool that can help pay for assisted living. When you purchase an annuity, you pay a lump sum or in several payments and, in return, receive regular disbursements, which can be used to cover your living expenses.
Exploring Your Options
Financing senior assisted living in Durham, NC for couples can seem overwhelming, but there are numerous resources and options available. It’s essential to discuss these options with a financial advisor or elder law attorney who can help guide you through the process and assist in making the best decisions for your situation. Planning for this transition in advance can ensure you and your loved one can enjoy your golden years with peace of mind, knowing you’ve made sound financial decisions.
