Paying for Senior Living

Using proceeds from the sale of a house is one of the most common ways to pay for senior living. Once the move is made, most seniors find they have fewer worries about climbing the stairs, loneliness, maintenance and other unexpected costs and safety concerns often associated with owning a house. Bridge loans and reverse mortgages are also ways your house can be used to help finance senior living. More on selling a house.

Many people spend their lives saving for retirement so they can enjoy their senior years. When the time comes, assets and sources of income like Social Security benefits, annuities and interest from retirement accounts, stocks, bonds and trust funds can supplement personal savings. More on savings, income and assets 

Long-term care insurance can help pay for services that assist with the activities of daily living (ADL’s) – up to a preselected limit. These services can be delivered in a range of settings. Private health insurance and Medicare may also be used to cover necessary medical costs. Life settlement – selling an existing life insurance policy to a third party – is another way some seniors cover the cost. How to use insurance to pay for senior living.

Some or all the costs of senior living may be tax-deductible depending on the type of community you live in, your state, income level and medical expenses. These tax benefits could mean substantial savings to seniors themselves, or families who claim an aging loved one as a dependent. For more on tax benefits and the most tax-friendly states.

Most Americans are surprised to find out about the wide range of benefits available to veterans and their spouses, especially those that can supplement the cost of care in a senior living community. The Veterans’ Aid and Attendance Program (A & A) and Housebound Allowance are two such programs available to qualifying veterans and their spouses. More on veterans’ benefits.

There are government-funded programs to help cover senior living costs. Medicare, for example, can partially pay for medically necessary care in a skilled nursing or rehab center. Medicaid may pay for long-term care, including assisted living in certain states.  Local or state governments often have grants or other programs for eligible seniors. Benefits vary by state, so it’s important to investigate what your state covers. More on Medicare & Medicaid.