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Financial Options for Senior Housing Services

The Laureate Way

Articles to Help Families and Older Adults Manage the Challenges of Aging

Financial Options for Senior Housing Services

Financial Options for Senior Housing Services

Many adult children are unaware of their parents’ financial situation. So, when a parent suddenly needs to make the move into an assisted living community, figuring out how to finance the transition can be challenging. Even if your parent is in a very comfortable financial situation, you might need to explore some interim financing options until their funds become available.

This blog post will help you to understand some of the financial resources available to offset the costs or bridge a gap when paying for senior living. Then you can begin exploring options that may be appropriate to your situation. We strongly suggest that families consult with their financial advisor, accountant or attorney when exploring any of the options below.

Accessing a Line of Credit – HELOC

It is not uncommon for a senior to need to move out of their home before it sells. A Home Equity Line of Credit or HELOC is an option to eliminate this obstacle. It can be used to pay monthly charges in a senior living community while waiting for the house to sell.

Life Insurance

The Accelerated Death Benefit (ADB) is a provision in some life insurance policies that allows a person to receive a portion of their life insurance money early — to use towards long-term care benefits. There are different types of ADBs each of which serves a different purpose. Consult the insurance carrier to see if there is a provision and whether it covers long term care.

Another alternative would be to sell your life insurance policy to a third party for cash. The payment would typically be more than the surrender value of the policy but less than the death benefit amount. This third party continues paying the premiums and becomes the beneficiary of the policy. When the insured dies, the third party receives the death benefit.

Veterans Benefits

A veteran and/or their spouse may be able to qualify for financial assistance from the government to help cover the costs of home health care, assisted living or nursing home expenses. The veteran must have served a minimum of 90 days of active duty, with at least one day during an active time of war. To be eligible for this benefit which is called Aid and Attendance, the individual must be financially and medically qualified.

The best first step is to contact the Department of Veteran Affairs: Milwaukee County, 414-266-1234 and Waukesha County, 262-548-7732.

Long-Term Care Insurance

Some long-term care insurance policies will help pay for the cost of assisted living services. If your parent has a long-term care insurance policy, contact the insurance carrier to discuss the coverage provided under that policy. Senior care consultants can provide the paperwork needed to get benefits started.

Affordable Housing

Those with very limited resources may think that senior living is out of reach for them. However, some senior housing facilities offer affordable options for low-income seniors. These programs generally provide reduced rents, or rent based on ability to pay.

Low-income housing options provide very little in the way of services, and do not include assisted living. In order to qualify, individuals must have very low income, generally 50-60% of the area median income. Contact your local housing authority office to learn more.

Family Care

This is a government funded program to help pay for the cost of assisted living services. Seniors who are already eligible for the program, may be able to use these funds to pay for assisted living. You must qualify financially and medically.

The local Aging and Disability Resource Centers in Milwaukee or Waukesha, who administer the program should be contacted for more information.

Everyone has a unique financial picture and circumstance. If you would like to discuss senior housing and financial options further, please contact a Laureate Group community near you.