The cost of senior living and confusion about how to finance it often top an adult child’s list of questions and concerns in the search for a senior living community. Understandably so. There are many myths and stereotypes about senior living expenses that make it difficult for families to obtain accurate information.
To help you get the answers you need, we created this list of frequently asked questions. Here you will find answers to the questions our team members hear from families most often.
FAQ: Answering Family Questions About Financing Senior Living
Q: Will Medicare pay for an assisted living community?
A: Families are often surprised to discover the answer to this question is an unfortunate “no.” Medicare is designed to help with health care expenses, and assisted living does not meet that criteria.
Q: Can a life insurance policy be cashed in to pay for senior living costs?
A: This is one to talk to a certified financial planner or an attorney about. There are life settlement companies that will purchase life insurance policies from older adults. While the senior won’t receive the policy’s full face value, the generally receive an amount that is greater than the surrender value. But there are some unscrupulous companies out there waiting to scam seniors. So it is important to find a credible company to work with. Make certain you get recommendations from people you know and trust.
Q: Does long-term care insurance also help pay for assisted living expenses?
A: Many families overlook this potential funding solution when a loved one moves to an assisted living community. In fact, some long-term care insurance policies do help pay for assisted living, and not just a nursing home. Make sure you review your senior loved one’s policy or call the company if you need further clarification.
Q: Are there any programs that help military veterans finance senior living?
A: Yes, there is a program that can provide financial assistance to veterans who qualify. It is called the Aid & Attendance benefit and is designed to help with senior care expenses for veterans and their surviving spouse. The veteran does have some conditions that must first be met.
If they qualify, a veteran or their spouse can be eligible for up:
- $2,127 per month for married veterans
- $1,794 per month for single veterans
- $1,153 per month for a surviving spouse
Q: Do banks or other lending institutions offer short-term loans to help pay for senior living expenses?
A: We know seniors often have a home to sell or other investments that must be liquidated to cover the cost of senior living. But in many instances, the older adult wants to move before these assets are sold. The good news is that a growing number of banks and financial organizations offer short-term bridge loans to fill the gap.
Talk with your bank or that of your senior loved one to see what they might offer. In addition, Five Star Senior Living has a partnership with Elderlife Financial. Their Financial Concierge team members can help seniors and their families explore their short-term funding options.
Download our Senior Living Funding Guide
Interested in learning more? Download the free Your Complete Guide to the Cost of Senior Living e-book! It’s packed with helpful information and resources for families to explore.