So you’ve decided to consider an Assisted Living community. Here in Minnesota, you’ve got some great choices. You’re probably trying to decide where you want to live, determining the amenities you want, and which community can best meet your needs. But let’s face it, the biggest concern you have is: “How am I going to pay for this?”
With the average cost of assisted living falling between $2000-5000 per month, and the average Social Security benefit paying roughly $1300 per month, you’ve probably realized Social Security probably won’t cover the whole cost. Here are seven of the most common ways people pay for senior living.
1. Long Term Care Insurance
Do you have long-term care insurance? Most policies cover assisted living. Whether you've got an employer sponsored plan, or a plan you purchased on your own, find out which care settings are eligible for coverage and what costs your policy covers. You could save a bundle! Call your agent to find out more.
2. Veterans Benefits
Did you or your spouse serve during wartime? You may be eligible for benefits. Some assisted living communities even offer special programs for vets. Contact your county veteran's office for more information.
3. Savings, Checking Accounts, CDs, Bonds and Other Investments
These assets may generate interest, gains, and dividends that you can spend on your expenses. Or you may need to use your savings and sell your investments to pay for your living expenses.
If you receive a pension from a former place of employment, union, or other membership organizations, this monthly income can be used for assisted living.
5. Life Insurance Policies
Do you have money invested in life insurance? You can use your life insurance policy as a source of cash if you have a change in your health status or living situation. Cash surrender, death benefit loans, accelerated death benefits and life or viatical settlements are all options for converting your policy to cash--depending on the type of policy you have and how long you've owned the policy. Contact your insurance agent to find out more.
An Annuity allows you to pay a sum to an insurance company in exchange for regular payments over time. This is a great solution if you have assets like cash, stocks, bonds, and other investments, but are worried about outliving your resources.
7. Your Home
You can sell your home and use the money for your assisted living expenses. Or you can get a Reverse Mortgage, which will generate cash, but still allow your spouse to remain in your home.
These are just a few of the many ways to finance your stay in an assisted living or memory care community.
At Aurora on France, we know that everyone's finances are different, and so are their needs. Please explore these funding sources with an estate planner, financial advisor, attorney, or other qualified person as you consider your move.
Remember, we are here to help! Feel free to call us to walk through other resources available as you think through options.
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Aurora Senior Living is managed by Ebenezer, Minnesota’s largest senior living operator. Ebenezer is the senior housing division of Fairview Health Services and has 100 years of experience serving older adults.