Searching for financial assistance that can help you or a loved one pay for senior living can be a confusing process. Nowadays, there are a multitude of ways to receive financial aid that can go towards paying for you or a loved one’s room and board in a senior living facility — it is important to consider that all options available may not be applicable or beneficial to every different person looking for financial assistance.
Butler Street Senior Living is committed to helping you and your loved ones navigate the process of receiving financial assistance that can help you pay for senior living. If you or a loved one are curious about the services and amenities we provide, please do not hesitate to contact us — we are more than happy to answer any questions you have about our community.
Veteran Aid & Assistance
Both veterans and spouses of veterans may qualify for aid from the Department of Veterans Affairs (VA), including potentially covering some costs of senior living expenses. While the VA will not pay for room and board directly, it can offer financial benefits that recipients can use to cover some of the costs of senior living
To be eligible for benefits from the VA, at least one of the following must be true:
- You need another person to help you perform ADLs, like bathing, feeding, and dressing
- You have to stay in bed (or spend a large portion of the day in bed) because of illness
- You are a patient in a nursing home due to the loss of mental or physical abilities related to a disability
- Your eyesight is limited
You can also receive a housebound benefit if you get a VA pension and have to spend most of your time in your home due to a permanent disability.
Long-Term Care Insurance
Long-term care insurance, or LTCI, can potentially help cover the costs of different senior living expenses depending on some varying policies. Usually, long-term care refers to the help people with chronic illnesses, disabilities or other conditions will need on a daily basis. LTCI is the most beneficial when it is purchased early on in life rather than during the time when long-term care starts to become a potential option.
To qualify for LTCI, a company will require that certain conditions occur before you start receiving benefits. LTCI companies will mostly look at a beneficiary’s inability to perform activities of daily living (ADLs) to determine when they will start to receive benefits.
Benefits generally begin when a beneficiary needs help with two or more ADLs — things like requiring help with bathing, eating, going to the bathroom, and walking can trigger the beginning of benefits. It is important to be sure of what the beneficiary’s policy includes as ADLs; it is especially important that bathing is included as it is typically the first ADL that becomes difficult to perform with age.
LTCI policies will also include conditions for which they will exclude coverage. The most common LTCI exclusions are drug and alcohol abuse, mental disorders, and self-inflicted injuries. When purchasing LTCI, be careful to ensure that Alzheimer’s disease, heart disease, diabetes, and certain forms of cancer are not exclusionary conditions if any of these issues apply to the beneficiary.
Life Insurance
If you or a loved one already have an existing life insurance policy, you have the option to cash it out early and use the funds to pay for senior care. Making this decision to cash out early on a life insurance policy is usually done so because it ultimately benefits the family and beneficiary involved more than waiting for the funds to be received by heirs when the policyholder passes.
Some life insurance policies have an accelerated death benefit (ADB), which will allow a policyholder to get a tax-free advance on their insurance benefit when they are still alive. Be aware that there may be limitations to how much of the policy’s value can be accessed as an ADB.
Another similar option to cashing out a life insurance policy is a life settlement. This is when a life insurance policyholder sells their policy to a third-party company — the buyer will pay the policyholder a lump sum that can be used to pay for senior care. Consider that the total amount from the sale will not be as large as the full sum of the death benefit in the original policy, so carefully consider whether or not this is the right option for you or a loved one.
Elderlife Financial Services
Elderlife can help provide you or a loved one with a line of credit to help cover the costs of senior living. Elderlife provides information, guidance, and a range of different services meant to provide benefits for seniors who are looking to receive help with the costs of senior living, such as:
- Bridge loans
- Real estate
- Receiving long-term care insurance
- Receiving benefits
- Reverse mortgages
- Receiving life insurance
Other Options
Financing options also vary depending on the senior living community. If you’re having trouble paying for your care, contact Butler Street Senior Living. We’ll work with you to find a solution that fits your needs and budget.
