8 Ways To Pay For Senior Housing

Are you wondering how you’ll pay for long-term care or senior housing? Here are some common payment options that should offer some clarity.

1. Out of Your Pocket

It may not be ideal, but paying for senior housing with private funds is quite common. In fact, a whopping 90 percent of assisted living payments come from private funds.

Why do so many seniors pay for housing from their own pockets? Blame it on the fact that there is no actual federal program for assisted living. There are other forms of federal healthcare assistance, however, that can chip in for at least part of the bill, as you’re about to see.

2. Medicare

This health insurance program from the federal government helps people with specific disabilities and seniors over 65. It does so without considering income.

Medicare is broken down into two parts. Part A covers hospital insurance. It can be used for various forms of senior housing, such as nursing facilities, home health agency care, inpatient hospital care, and hospice care.

3. Medicaid

While Medicare does not factor in a patient’s income, Medicaid does. Also from the federal government, Medicaid offers healthcare to families and individuals with minimal financial resources.

If you qualify for Medicaid, you can use it to pay for senior housing at a nursing home, in an assisted-living community, or to receive care at your own house. Should you use Medicaid for nursing home care, it will pay 60 percent of the costs. On the other hand, assisted living will only have 10 percent of the expenses covered by Medicaid, with the rest paid for using private funds.

4. Supplemental Security Income (SSI)

People with financial need who are 65 or older, are disabled, or are blind can receive SSI cash payments from the government each month. Should you need senior housing, you may be able to use part of your SSI check to pay for it.

5. Long-Term Care Insurance

Private insurance companies or employers can offer long-term care insurance. The cost of your policy will depend on a variety of factors, such as:

• Age
• Benefit value
• Benefit period
• Deductible
• Special options

As its name suggests, this type of insurance can help pay for long-term care either at home or nursing facilities.

6. Veteran’s Benefits

The federal government’s Aid and Attendance Program is offered to veterans and their surviving spouses. With it, you can receive benefits each month that can help pay for senior housing in a nursing home, assisted living community, or in your home.

To qualify, you will need to show that you require assistance with completing everyday activities, plus meet other requirements.

7. Life Settlements

Existing life insurance policies can be sold to third parties. The sale’s value must be less than the death benefit and more than the cash surrender value.

You can use the cash from a life settlement to help pay for senior housing and other needs.

8. Senior Living Line of Credit

This popular loan is intended to help families pay for senior or assisted living for their loved ones. It comes in handy in cases where a senior’s home or assets are being sold, or if they are waiting to receive federal benefits. While those moves are being made, the line of credit, usually up to $50,000, can be used to pay for temporary senior housing needs.