As we age, the reality of requiring additional care becomes increasingly significant. While most don’t want to consider this aspect of life, being prepared can alleviate future stress and financial strain.
Fortunately, senior living care may be more within reach than you initially believe, especially when you consider the various funding sources available. Below, we explore and expand on key financial resources that might help make senior living more affordable for you or your loved one.
Common funding sources for senior living care
Tapping into your home equity
Your home is more than just a place of residence — it can also be an investment for your future retirement. For many seniors, it is their most significant asset. Options like reverse mortgages or home equity lines of credit (HELOC) can unlock this value, providing funds to pay for senior living care without selling your home.
Utilizing income streams
Retirement income, including Social Security and pensions, can play a role in covering senior living care expenses. While these streams might not cover all costs, they can help. Additional income from rental properties, dividends from stocks, or part-time employment can also supplement your primary sources of revenue.
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Savings and investments
The savings and investments, including stocks, bonds, and annuities you have accumulated over the years, can be a lifeline when it comes to affording senior care and housing. While drawing from your nest egg might not be ideal, these assets are a critical part of your overall financial strategy. Adjusting your investment portfolio to more liquid assets can offer the flexibility needed to pay for care when the time comes.
Veterans Aid & Attendance benefits
For veterans and their spouses, the Veterans Aid & Attendance (A&A) benefit can be particularly helpful. This often-overlooked funding source provides eligible veterans with additional monthly income above the standard pension to assist with long-term care costs. If you or your loved one served in the military and require assistance with daily activities, view this website to learn more.
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Life insurance conversion
Life insurance policies can be transformed into a source of funds for senior care through a process known as life insurance conversion. Rather than allowing a policy to lapse or surrendering it for a minimal amount, policyholders can convert their life insurance into a pre-funded financial account designated specifically for covering senior living care services.
Investing in long-term care insurance
Long-term care insurance is designed explicitly to cover the costs associated with long-term care, typically not covered by traditional health insurance or Medicare. By purchasing a policy early on, preferably in your 50s or early 60s, premiums may be more affordable, and you can enjoy peace of mind knowing that you’re prepared for future needs. Be sure to shop around and find a policy that covers your anticipated needs.
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Know your funding options before you start your senior living search
In conclusion, the path to affording senior care may seem challenging, but the journey can be much smoother if one explores and utilizes available financial resources.
Each individual’s circumstances are unique, requiring a tailored approach. Don’t hesitate to consult financial advisors who specialize in eldercare funding. Planning ahead can make all the difference in securing quality care and preserving your financial security as you age.
Find compassionate care and specialized support at Emory Mills
Offering a scenic view of the valley with the convenience of city living, family-owned Emory Mills provides assisted living and memory care to older adults. The comforting, secure, and homelike environment supports each individual with personalized care and the specialized research-based I’m Still Here ® approach to meaningful and purposeful living, also known as The Hearthstone Difference.
Download our financial planning guide to learn everything you need to know about the costs of senior living.
