Many seniors use various insurance options, including life insurance conversions and long-term care insurance policies, to help cover the costs of senior living. This blog, curated by the Emory Mills Senior Living team, examines how insurance can help offset the expenses associated with senior living care and services.
Insurance options that can help pay for senior living costs
Long-term care insurance
Most people purchase long-term care insurance in their 50s to early 60s. It’s important to remember that the longer you wait, the higher the premiums will be. Additionally, insurance companies may deny coverage if you postpone your decision for too long.
Long-term care insurance helps pay for various services, including home care, adult day services, assisted living, memory care, skilled nursing, respite care, and hospice. These are services typically not covered by health insurance, Medicare, or Medicaid.
Policies often include coverage for homemaker services, such as meal preparation or housekeeping, as long as they are provided alongside personal care services.
How it works
Your benefits begin when an assessment shows that you need assistance with two or more activities of daily living or have cognitive impairments. After this assessment, the insurance company will approve a care plan and start paying benefits following an elimination period, which usually lasts between 30 to 90 days.
Your policy will cover your expenses up to a specified daily limit or until you reach a lifetime maximum.
Get 5 tips on paying for senior living >>
Life insurance conversion
If you have an active life insurance policy, you have the option to convert it into a long-term care benefit plan. This plan provides a monthly benefit to help cover your care needs. You can use a pre-funded financial account to pay for various services, including home care, assisted living, skilled nursing, or hospice care.
How it works
When you convert a life insurance policy, you transfer ownership from the original holder to an entity that acts as the benefits administrator. The benefits administrator is responsible for paying the monthly premiums and agrees to provide the previous policyholder with a series of monthly payments based on the policy’s value.
These payments are made directly to the long-term care provider. You can convert any type of life insurance plan, including whole, term, or universal life insurance.
Explore the VA Aid and Attendance benefit and how it can help pay for senior living >>
If you’re researching senior living options, discuss costs and insurance benefits with the community’s sales and marketing team. Like Emory Mills, most communities are happy to help you navigate your senior living journey.
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 and research-based I’m Still Here ® approach to meaningful and purposeful living, also known as The Hearthstone Difference.
Download our financial planning guide to discover ways to pay for senior living that you may not have considered yet!
