Nearly 70 percent of older adults 65 or older will require some type of long-term or senior care services, so it’s important to plan for the costs and know what funding sources are available.
Medicare only pays for services that require skilled or rehabilitative care – generally, only for a short period of time. Medicaid does pay for long-term care services, but only for seniors whose income falls below a specific level according to their state guidelines.
That leaves us with four main categories of funding sources for senior care. Learn more about each option in this blog from Golden Bell Senior Living.
Funding sources for long-term care and senior living
Here are the four primary funding sources that may be available to you for senior care and housing:
Consider selling or renting your home as a funding source for senior care, or you can see if you qualify for a reverse mortgage.
- Reverse mortgage – A reverse mortgage is a type of home equity loan for homeowners age 62 or older. This type of mortgage typically works best for those who don’t plan to move and can still pay for the upkeep and tax expenses but want to access their home’s equity to help pay for senior care services.
Couples, where one spouse requires care, may benefit from this type of funding source. It’s also important to keep in mind that the loan needs to be repaid when the borrower passes away, sells the home, or moves out permanently.
- Bridge loan – A bridge loan is a short-term loan that bridges a gap between funding sources. They are a quick solution when a source of funds is needed during a transitional period, such as before the sale of a home but the proceeds are needed for a move to senior living. With a bridge loan, a bank or finance company loans a homeowner money on an asset (usually the home), and the loan is then paid off once the asset is sold or liquidated. Most loans are provided as a line of credit but can be provided as a lump sum.
2. Your savings
Some seniors choose to use their savings to pay for long-term care services, including money earned from investing in stocks, bonds, and annuities.
3. Your income
The income you earn from Social Security or a pension can be used toward senior care. You can also consider using dividends you earn from stocks.
4. Other options
Other funding options include the Veteran Aid & Attendance benefit, life insurance conversions, and long-term care insurance.
- Veteran Aid & Attendance benefit – Wartime veterans or a surviving spouse with limited income may be eligible to receive a non-service connected monthly pension to help pay for senior care services, like assisted living, skilled nursing, or home health care.
- Life insurance conversion – You can transform an in-force life insurance policy into a pre-funded financial account that disburses a monthly benefit to help pay for senior care services.
- Long-term care (LTC) insurance – Depending on your plan’s policy, older adults with long-term care insurance may use it to help pay for the cost of home care, adult day services, assisted living, memory care, skilled nursing, respite care, and hospice.
5. Considering senior living options
When you’re considering senior living communities, make sure to talk to the marketing and sales team about the costs. Find out the monthly fees and any additional charges you can expect to incur. Most communities, like Golden Bell Senior Living, have an experienced staff that will provide you with guidance and resources when planning for the costs of your care.
Life at Golden Bell Senior Living
Senior living communities like Golden Bell provide the comforts of home with the added benefits of supportive care, engaging activities, and a maintenance-free lifestyle. With your daily needs met, your loved one will live more independently and have opportunities to meet friends, discover new interests, and live each day to the fullest.
Golden Bell Senior Living offers a full continuum of care, including independent living, assisted living, and respite care. Residents have personalized care plans, are treated like family, and are greeted by name in a warm, welcoming environment.
Amenities and activities include:
- Beautiful accommodations
- Landscaped grounds and gardens
- Community outings
- Recreation and social activities
- Chef-prepared meals
- Scheduled transportation
- Beauty and barber shop
- Housekeeping and maintenance services
Please contact us to learn more about our communities or set up a tour. We’d love to hear from you and are happy to help answer any questions you have about senior living. For more information about choosing senior living, download our complimentary Family Decision Toolkit.