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 I describe below.
Accessing a line of credit
It is not uncommon for a senior to need to move out of their home before it sells. Laureate Group partners with a company called Elder Life Financial Services, which is a lending institution that provides a line of credit to eliminate this obstacle. It can be used to pay monthly charges in an assisted living community while waiting for the house to sell or to help to cover expenses while the family waits for VA or other benefits to begin.
Other families consider using this line of credit to cover a gap – between what a parent can afford and the cost of care at a desired location. Multiple family members can share in these expenses easily with this type of service.
If an older adult has a life insurance policy in place, rather than maintaining a life insurance policy for a benefit at death, using the policy to cover senior living expenses can be a smart move for some families. The death benefit of a life insurance policy can be converted into a long term care benefit and paid directly to the senior community. Life Care Funding Group, is a company that helps families assess their options when it comes to in-force life insurance.
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, 414-382-1753 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.
Low income set aside apartments
Laureate Group's Wauwatosa community have apartments set aside for seniors who are income qualified. The current income limits (2017) are $25,350 annually for a single person or under $29,000 for a married couple. When looking at a senior community, ask the counselor what programs they might have in place for those with low to moderate incomes.
This is a state financed 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 benefits to pay for assisted living. With the program undergoing some recent changes, our 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. Laureate Group communities offer a wide range of financial tools to help cover the costs of their loved one's care.