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Understanding Your Insurance Options for Paying for Senior Living

Nearly 70 percent of us will likely require some form of long-term care as we age, so it’s important to learn the expected care costs and plan how to pay for them. There are a few insurance options to help pay for senior living that you should know.

We explore those insurance options and also dispel common myths about Medicare and Medicaid in this blog from Golden Bell Senior Living. Keep reading to learn more about the topic, and feel free to contact us if you have questions or need further assistance.

What Types of Insurance Can Pay for Senior Living Care?

Long-Term Care Insurance

Your long-term care insurance policy may help pay for the cost of senior living care that health insurance, Medicare, or Medicaid don’t typically cover.

Long-term care insurance may cover some of the costs of the following services:

  • Home care
  • Adult day services
  • Assisted living
  • Memory care
  • Skilled nursing
  • Respite care
  • Hospice
  • Homemaker services

Once an assessment determines that you require assistance with two or more Activities of Daily Living (ADLs), your insurance company will approve a Plan of Care.

There will be an elimination period, usually between 30 to 90 days, where you will be responsible for covering the costs of your care. Once the period ends, your benefit will trigger, and you will start receiving service payments.

It’s important to note that many policies will pay up to a pre-set daily limit until your lifetime maximum is reached.

Related: Funding Sources for Senior Care and Housing >>

Life Insurance Conversion

You can convert an in-force life insurance policy into a pre-funded financial account that disburses a monthly benefit to help pay for long-term care costs for home care, assisted living, skilled nursing, and hospice.

When you convert your life insurance policy, you transfer ownership to an entity that acts as the benefits administrator. The benefits administrator then acts as the owner, including assuming all responsibility for paying the monthly premiums to the insurance company and paying out a series of monthly payments based on the value of your policy.

There are pros and cons to converting your life insurance policy. Please talk to a financial advisor and consider the following before making your decision:


  • You can convert any type of life insurance plan.
  • Monthly payouts don’t count against qualifying for Medicaid coverage.
  • A special fund is set aside for future funeral expenses.
  • Monthly payout amounts are adjustable based on how many months you want to receive payments.


  • You must have an immediate need for long-term care services because monthly payments are made directly to your provider, not to you.
  • Individuals with smaller policies, typically $10,000 or less, may want to consider holding on to their plan or giving it up for the cash surrender value.
  • Individuals with larger policies, typically $100,000 or more, may want to consider taking the cash value.

Common Myths About Medicare, Medicaid, and Other Health Insurance

Myth 1: Medicare will pay for long-term care services.

Medicare only pays for long-term care if you require skilled services or rehabilitation for a maximum of 100 days after an eligible 3-day hospital stay.

Myth 2: Medicaid will pay for senior living care for anyone over 65.

Medicaid will pay for the largest share of long-term care services if you meet income and state eligibility requirements.

Myth 3: My private or employer health insurance plan will cover all my senior living care services.

Private or employer health insurance policies typically cover similar limited services as Medicare. If long-term care is covered under your policy, it is usually only applicable to short-term skilled care.

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 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 Funding Senior Care and Housing Guide.

At Golden Bell Senior Living, we understand that some questions require more personalized support. If you have any queries or need further assistance, please feel free to contact us. We’re here to assist you with any individual needs and ensure you feel supported every step of the way.

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