How to Pay for Assisted Living

May 1, 2023 | Assisted Living
how to pay for assisted living

When you or a loved one decide to move to an assisted living community, it’s an exciting first step toward a journey of wellness, purpose and an enhanced lifestyle. However, many people may be hesitant to begin their senior living journey for one reason alone – the cost. 

Unlike a mortgage or standard rent payment, it’s important to understand the care, amenities and services that are typically included in the cost of an assisted living community. In addition, there are various ways to cover costs when determining how to pay for assisted living for yourself or someone you love.

When it comes to senior living options in Indianapolis, Astral at Franklin is here to help you discover purposeful and active living. We’re sharing helpful information about the benefits of assisted living communities and different payment options so that you and your family can make the best financial choices when deciding how to pay for assisted living. 

Where to Start?

Before you start looking at communities, it’s important to gather your financial information to develop a budget. Find out which funds are available through savings accounts, insurance and even contributions that family members are willing to provide. 

Private Pay

You or your loved one have likely spent decades saving up for retirement, which can contribute to the cost of senior living care. Many families and individuals use private funds to pay for assisted living, including personal savings, retirement accounts, pension funds or some combination of all three. 

Private pay is typically the most widely accepted form of payment for assisted living care, but additional options may be available based on the community and level of care needed.

Insurance Options

Many people rely on health insurance to help pay medical costs, whether for medication, procedures or hospital stays. Depending on the kind of insurance you have, some aspects of medical care related to assisted living may be claimed. 

For example, most long-term care insurance policies allow you to use them to pay for assisted living, memory care or various other care options.

“If you obtain a long-term care policy to pay for assisted living, it’s important to keep in mind that the [community] won’t accept the policy directly. Rather, when you need the funds, you’d trigger the policy to make them available so you can use them to pay the assisted living [community] (U.S. News).”

Home Equity

If you or your loved one owns a home, you might be able to use home equity to cover assisted living costs. Bridge loans can be used to pay for assisted living while waiting for a home to sell. However, you must ensure that someone can continue to make the loan payments while waiting for a house to sell. This option is typically used when a person or family member needs to move to an assisted living quickly due to a change of needs or care.

A reverse mortgage allows family members to remain in a home, tapping into home equity so that a borrower can receive the money either as a lump sum or as needed. When choosing a reverse mortgage, keeping an eye out for scams is crucial. Many scammers target older adults who are interested in using a reverse mortgage to pay for senior living, so it’s important to go through a reputable and trusted bank. 

When Choosing a Community

When it comes to planning for assisted living costs, it’s vital that you and your family fully understand your budget. Depending on your situation, speaking with a financial advisor may be beneficial to ensure no payment options or assets are overlooked.

When choosing an assisted living community, you also want to make sure you fully understand what is included in the monthly cost and ask questions that allow you to plan for the future, such as:

  • How often due monthly rates increase?
  • How much of an increase can be expected?
  • Are there any other factors that would impact my monthly cost?

The goal of assisted living is to provide support and peace of mind, not add financial stress. When determining how to pay for assisted living, remember to speak with each community you are considering and explore the various options available.

Astral at Franklin offers purposeful assisted living in the Indianapolis area, and we’re excited to help you take this first step toward wellness and achievement.

We invite you to contact our team to learn more about pricing and our Franklin senior living community.

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