Financial Options for Affordable Senior Living
Deciding to move to a senior living community is a big, yet exciting, step in life. You can live a maintenance-free lifestyle with access to social opportunities and care when you need it. As you prepare for this next chapter, you may wonder how you will pay for it. Many financial options exist to fit the needs of any resident’s situation.
At Senior Living Management our properties are here to help guide you. Our trusted financial experts at ElderLife Financial and AidandAttendance.com work with you and your family to determine which resources are available to you and the best options for moving forward. Below you can learn about some of the financial solutions families leverage to pay for senior living.
When you don’t have immediate access to all the funding you need for moving into a senior living community, there are many financing options that can help.
Bridge Loans: When transitioning to senior living, it’s not uncommon to have a short waiting period before long-term resources are available to pay for increased care. A few common examples of this period are waiting for the sale of a home, VA benefits to be awarded, the elimination period for a long-term care insurance policy to end, or the liquidation of stocks or other assets. A delay before receiving these funds does not mean you need to delay your move into a community. The ElderLife Bridge Loan can help “bridge” the gap between your move-in and when the funds become available. ElderLife Financial has helped tens of thousands of families in this situation for over 22 years. With a single phone call to ElderLife Financial, you can complete your application within 10 minutes and get potential approval within an hour. ElderLife Financial funds many of its Bridge Loans within 24 hours — allowing you to move into your desired community within a day. Once your other resources are available, you pay back what you borrowed and use the remaining funds to pay for care long-term. If you have money tied up in other assets, but need care right away, ElderLife Financial can solve your cashflow issues.
Home Equity Conversion Mortgage: A reverse mortgage is a type of loan that gives adult homeowners ages 62 and over financial options for using the equity in their home. There are a few kinds of reverse mortgages, and a Home Equity Conversion Mortgage (HECM) is the most common type. It is federally regulated to ensure the lender engages in fair practices. People who want to access an HECM also go through a required counseling session to learn if and how this loan is right for them. If at least one homeowner plans to remain living in the home, a reverse mortgage or HECM could allow you to leverage the equity in your home to pay for care. If you think an HECM reverse mortgage may be a financial solution for you, consult with a federally approved lender in your state.
There are other ways to access funding to pay for senior living that are not paying out-of-pocket or financing. Below are some ways that people can get help paying for senior care, including Medicare and Medicaid.
Medicare: Medicare is federal health insurance that is available to certain populations of people, including individuals age 65 and over, certain younger people with disabilities, and people with end-stage renal disease. It covers the cost of healthcare services. While Medicare typically does not cover certain senior care services, it may under certain circumstances. You may be able to use your Medicare health care plan to help cover some costs of senior living, depending on your unique situation. Consult with your Medicare plan provider to determine if and which costs Medicare can cover.
Medicaid: Medicaid is a health insurance program that is jointly regulated at the federal and state levels available to certain people with low income. This means that the U.S. government creates certain rules that apply to all state Medicaid programs while allowing each state to make individual choices about the programs they provide to their residents. Certain senior living communities accept Medicaid as payment, while others do not. If you have Medicaid, or want to learn if you’re eligible, you can contact your state’s Medicaid office to learn more. You should also consult with your senior living community to learn if they accept Medicaid as payment. Do you have questions about the difference between using Medicare and Medicaid to pay for senior care? This guide can provide more details.