As we age, we may require assistance with daily living activities, such as bathing, dressing, and eating. Assisted living communities provide a solution for older adults who need some support but don’t require 24-hour medical care.
In this article, we’ll discuss how to determine if you have the financial resources to pay for assisted living costs, including assessing your income and assets, and exploring other funding options. We hope this information will help you make informed decisions about your long-term care needs.
Evaluate Your Assets
In addition to income, you should also evaluate your assets to determine whether you can afford assisted living costs. Assets can include savings, investments, real estate, and any valuable personal property.
To evaluate your assets, calculate the total value of all assets and subtract any outstanding debts, such as a mortgage or car loan. The amount that’s left over can potentially be used to pay for assisted living.
Consider Other Sources of Funding
If your income and assets aren’t enough to cover the cost of assisted living, there are other sources of funding that you can consider. For example, you may be eligible for Medicaid, a government program that provides assistance to low-income individuals and families. However, not all assisted living communities accept Medicaid, so it’s important to check with the specific community you’re considering.
Another option is to consider a reverse mortgage, which allows you to borrow against the equity in your home to pay for assisted living. However, this can be a complex financial arrangement and may not be the best option for everyone.
Know the Difference between Medicare and Medicaid
Medicare, a federal health insurance program for people who are 65 or older, is also for people with certain disabilities and illnesses.
In general, Medicaid is available to people with income below a certain level, which is typically set at or below the federal poverty level. Medicaid covers a wide range of medical services, including doctor’s visits, hospital stays, long-term care, prescription drugs, and mental health services.
Determine the Cost of Assisted Living
Our studies show that the average cost of assisted living is $4,500 per month. However, this depends on the location and your needs, and you may pay less or more than the estimated cost per month. This is a good point to start once you have an idea of how much you are likely to spend on a monthly basis in a retirement community. Contact us to ask us about the rates of our retirement community and we are happy to answer any questions about the cost of assisted living.
Living in an assisted living community can be affordable for several reasons. First, many communities offer shared living arrangements, which can help lower the cost of rent and utilities. Additionally, some communities offer subsidized housing for seniors with limited financial resources. Another way that assisted living communities can be affordable is through the provision of bundled services. Instead of paying for each service individually, such as transportation or housekeeping, residents can often pay a monthly fee that covers all of their needs.
Finally, some states offer financial assistance programs for seniors who need help paying for assisted living. By exploring these options, seniors can find an assisted living community that meets their needs and fits their budget.
