One of the first questions people usually have about assisted living cost and how they will pay for it. With the range of monthly costs being $2,000 to $4,000, this question and concern is understandable. The following are some of the ways that people pay for their assisted living housing and communities.
Using Savings to Pay the Cost of Assisted Living
Assisted living cost includes both rent and services. If the person has sufficient savings built up, they are able to use it to pay for this. Of course, this will require quite a bit of money saved to cover this type of housing for long term care.
Some people have long-term care insurance, which is specifically designed to cover assisted living cost. The only problem is that this type of insurance isn’t common, so not many people have it.
And of course, by the time someone needs this type of insurance, it’s often too late to get it. The best time to purchase a long-term care insurance policy is during middle age years.
If someone has been paying on their home for a number of years, he or she probably has a good amount of equity available. Taking out this equity can help pay for the expenses. However, this can be a challenging solution. Since selling one’s home can be quite emotional, most people do not like this option. And creating an equity loan against ones home can feel like your going backwards financially after years of paying off a home mortgage.
Renting Your Home
When selling your house is too stressful, consider renting it out to someone. If you’re able to rent it for more than the mortgage or if your house is paid off, you may be able to bring in enough money to pay for the rent in the community.
Asking Family Members
Those who have a large family may have their loved ones cover the assisted living cost. When the cost is broken up between many people, it’s much more manageable. This is especially true if combined with some of the other options, such as retirement, savings, etc.
Seeking Lower Assisted Living Costs
Since these communities can range in prices depending on where they are located, it might be a good idea to shop around to look for a less expensive option. Once that option is found, the person can use their savings, support from their loved ones, or some other way to pay for it.
Assisted living cost may be covered by Medicaid in some states. Since Medicaid is only available to people who have little to no assets, it’s important to find out if you qualify before seeking this type of housing option.
Turn to ElderCare Connections for your Cost Options for Assisted Living
ElderCare Connections offers older individuals options for elder care services and housing. Contact us today for more information on different assisted living communities in your area. We are a free referral service, and our specialists truly care about your wants and needs when they help you find your new home.