Assisted living is residential care that provides personal assistance, support, meals and daily activities to those who need more care. The idea is to help individuals maintain as much of their independence as possible while receiving the medical and physical assistance they need. These facilities provide a range of services, from basic assistance with daily activities such as dressing and bathing, to more complex medical care.
While the cost of assisted living varies depending on the type of services provided, it’s typically more affordable than nursing home care. To get an idea on how much assisted living might cost, this article in Forbes by Molly Wigand says: “In the Midwest, for example, the base cost of assisted living ranges from $3,500 to $8,000 per month, according to Minter.”
Private pay
The first and obvious answer to paying for assisted living is private pay, out of pocket. This option is exactly what it says. The patient pays the expenses and fees of assisted living from their own finances and assets.
Private pay can come from anywhere in the patient’s assets, including bank accounts, pensions, IRAs, the sale of a home, etc. If you’ve been saving for this, preparing for this, you might very well have the financial resources to cover your assisted living expenses.
Options if you can’t afford traditional assisted living fees
The cost of assisted living can be expensive many people might find it out of reach using their own financial means. The good news is, there are other options available if one can’t afford traditional assisted living fees on their own.
These options include government-funded programs, private pay services, and other community-based initiatives that help seniors who need help with their daily activities.
If the sale of a home is involved, a reverse mortgage can help you pay the facility fees while your house is being sold.
Using long-term care insurance
Long-term care insurance can be a great way to cover the cost of assisted living, but It is important to understand how this type of insurance works, so that you can make an informed decision on whether or not it is the right choice.
The right long-term care insurance policy will include the cost of staying in a nursing home or assisted living facility, and other options for those who are requiring additional care. Since most health insurance policies don’t include long-term care costs, long-term care insurance might be a vital part of your retirement plan.
You won’t want to wait too long before pursuing this. Long-term care insurance does not cover pre-existing health conditions, and certain health conditions can disqualify you.
Using interest bearing accounts to accumulate funds for assisted living expenses
This option assumes you’ve done some planning ahead for your future. Interest bearing accounts can be a great choice for aging adults who are looking to save up funds for assisted living expenses. These accounts offer a safe and secure way to accumulate money over time, allowing individuals to save money knowing it will be there when they need it.
These accounts can be a great way to earn more on your savings without taking on any additional risk. In addition, many of these accounts offer tax advantages which can help reduce the cost of assisted living expenses even further. Interest bearing accounts provide an easy and effective way to ensure you have the funds you need when you need them most.
How to plan ahead
Planning ahead for this is one of the best ways to make sure you’re able to cover the costs of assisted living if that time comes. It’s always a good idea to talk with a financial planner, an expert in elder law and other experts who can help you put a plan together.
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