How Do I Pay for My Parent’s Senior Living?

How Do I Pay For My Parent's Senior Living?

Once you have done your research and found the perfect facility for your parent, it is now time to start talking about financing and payment. This is very important because you do not want to overpay or be stuck in debt just because this is the best solution for your parent. There are ways to pay for senior living services that will help you out.

How much will it cost?

The cost of living in an assisted living facility may be more than you expect or would like to pay. Based on the level of care and the location of the home, the cost may range from $800 to about $5,000 a month for private pay facilities. There are usually also add-ons to to rent or lease, so make sure you pay attention to these extra costs, which can include:

Medical Assistance

Laundry

Transportation (doctors or shopping)

Security Deposit

Make sure you check for any others that may be added

You will also want to research how often the fees rise and how much notice they will give you before these raises occur. You want to learn as much as possible about payment because these charges can add up and may be a nightmare.

How will we pay?

Most assisted living communities will want some financial assurance, in the form of a net worth statement, which shows that your parent will be able to afford to live there for a projected future. If you have decided that you want to take responsibility for this home, you should make sure to take charge of their finances. It may be an awkward conversation, but it will need to happen. If your parent or loved one is moving into a home, this usually means they cannot take care of certain everyday tasks, such as managing finances.  This will require you to do extra work on top of your daily life activities. There are many different options that will be able to help you with the costs of your parent living in these communities.

First, if your parent is a veteran or a spouse of one, visit the Veterans Administration office to see if they are eligible for ongoing benefits, such as senior living.

Also, long-term care insurance can be very helpful. It helps pay for costs that private medical insurance may not cover. This can help minimize the impact of long-term health care needs. In general, this will cover the cost of long-term home care, assisted living, adult daycare, respite care, hospice care, nursing homes, and other care facilities. Many will not insure if you have a preexisting condition, so buy before issues arise.

Third, you can get reverse mortgages. This type of loan is for homeowners over the age of 62 that turns the equity saved up in a home into cash. If someone receives a reverse mortgage, they can use the money while living in and retaining the home. The big disadvantages of this type of loan is that the closing costs are relatively high, but are worth it is you cannot make a payment on a normal loan.

Lastly, life insurance settlements can help with payments. A life settlement is the sale of an in-force life insurance policy by the policy owner. This allows the person to receive cash that can be used for medical bills and care community payments. Instead of continuing to pay the premiums for an insurance policy, the party that purchases it will be responsible for the payment. Life settlements can offer the highest payment possible.

Make sure that you check all of the costs before you move forward and remember your options for ways to pay for assisted living and other types of care.

If help is needed in these decisions, call Senior Living Advisors at (303) 457-1450 today. Come in for a consultation and we will help you get to a comfortable spot.

contact-an-advisor-nowview-related-articles

 

 

 

About Senior Path:
We are a professional, senior housing advisory service which provides personal attention to Seniors and their families. We employ a staff of talented, caring Advisors who have vast experience helping Seniors and their families through this transition. Our Advisors have extensive backgrounds in the Senior Care industry enabling them to understand what Seniors want and need.