Most people yearn for the day when they can leave the 9 to 5 behind for the world’s longest coffee break. After all, retirement is the ultimate life goal—a time to sleep in, play golf, travel the world, and check things off the bucket list. But a life of seven-day weekends doesn’t come for free, and one of the biggest challenges is determining how to finance senior living.
Long-term housing is a major component in financial planning. While some prefer to stay in the family home, many others favor the convenience that senior communities provide. Some seniors are no longer able—or willing—to care for a home and yard, while others simply want to enjoy their golden years with new friends and neighbors.
Making your senior living dreams come true doesn’t have to be complicated, but it does take some planning. Following are some common questions and answers about financing senior living.
What Types of Senior Living Are Available?
Outside of skilled nursing, there are two types of living options for seniors: assisted living and independent living. Assisted living is for those who need help with day-to-day care, such as medication management, transportation and meals. Independent living is for those who want the comfort of their own home or apartment without the headaches of home ownership, such as maintenance and housekeeping.
Does Insurance Cover Senior Living?
The short answer is no. While some health plans, including Medicare, have limited coverage for skilled nursing care, they do not always cover assisted living or independent living. However, some veterans and their spouses are eligible for assisted living benefits, and those with long-term care insurance may also qualify for benefits.
How Do I Pay for Senior Living?
There are numerous options to consider when financing senior living. For independent living facilities, residents pay out-of-pocket, just as they would any other type of housing. Some residents use the proceeds from the sale of the family home towards their senior living expenses. Others rent out the family home and use the monthly income to pay for their new homes. Many draw from their retirement investments and put Social Security or disability benefits towards their expenses.
Are There Any Other Financing Options?
Yes! More and more seniors are using reverse mortgages to pay for senior living. Reverse mortgages allow those 62 and over who own their homes outright to withdraw their home’s equity without being taxed on the proceeds. Another option is to convert a life insurance policy to a long-term care benefit. While there are pros and cons to both options, they are worth looking into.
Financing Senior Living at Cumberland Village
Any financial decision, including paying for senior living, should be well thought out, preferably with input from a professional financial advisor. Regardless of your decision, Cumberland Village is sure to have a senior living option that meets your needs. From its carefree patio homes to its resort-style apartments and personalized care of its assisted living facilities, the next step in your home journey is waiting for you here.