Financially Prepare For Assisted Living

Today's topic is a guest post by Hazel Bridges (hazel@agingwellness.org). Planning for the future is important to most of us living with Kennedy's Disease, but also for any family with senior citizens liiving at home. Thanks, Hazel.

7 Things You Can Do to 

Financially Prepare For Assisted Living

By Hazel Bridges

Medicare is useful in many ways. However, Medicare doesn’t cover very much when it comes to assisted living. As a result, you will need to be prepared for whatever circumstances you might run into in the future. Here’s how you can plan financially for you or a loved one so you can be prepared for whatever curveballs life might throw your way.

Figure Out Which Kind of Housing Is Necessary

As pointed out by a recent Forbes article, when most people think of long-term care, their first thought is nursing homes. However, there are a variety of assisted living facilities that also provide substantial benefits. The trick is finding out which ones are best. Assess your loved one’s needs and see which facilities suit it best. Try to get it right the first time, since moving from home to home can be difficult.

Upgrade Parts of the Home

When it seems like assisted living might be part of the inevitable future for your loved one, consider ways that you can upgrade the home they live in to help them maintain a little bit of independence and keep things easier for everyone. Do small things like installing grab bars in bathrooms, removing loose rugs or carpet on the floor, or installing a chair lift. This helps your loved one live in their home a bit longer, which can free up money for care.

Leverage Life Insurance

Some life insurance plans can be used for what are called advanced death benefits (ADBs), which can help in paying for your loved one’s care. The US Department of Health and Human Services describes ADBs as life insurance features that allow a tax-free advance on your life insurance policy while you are still alive. If you’re unfamiliar with your insurance policy or aren’t sure about the terms of ADBs, talk with your provider about the details of the benefits.

Talk to a Financial Advisor

Many seniors wonder where they can get sound financial advice that can help them or their families financially prepare for an assisted living scenario. A couple of good resources to consider are banks, community center events, and the AARP, all of which will likely have financial advisors who can assist for little to no cost.

Look Into What Tax Breaks You Can Take

Tax breaks are available to seniors whose medical expenses, including some of their assisted living costs, exceed 7.5 percent of their adjusted gross income. If you care for your loved one, you should look into some of the tax benefits that you qualify for because of your role.

Consider Government-Assisted Programs

There are programs like Section 202 Supportive Housing for the Elderly that provide subsidized housing options where seniors can get assistance with tasks like cooking, cleaning, and transportation. One disadvantage of many of these programs is that they have lengthy waiting lists, so if you’re looking into it, get on them now.

Consider a Reverse Mortgage

If your loved one owns a home, they might be able to afford some long-term care by using a reverse mortgage. A reverse mortgage allows the homeowner to borrowmoney against the equity that they have in their home. This money doesn’t have to be paid back to the bank until a future time. However, the amount due on the loan must be paid if your loved one dies or changes their primary residence. A reverse mortgage isn’t right for everyone, so be aware of the financial implications of receiving one and get familiar with the unique contract wording.

It’s important to secure your future. Change can come eventually, or it can come tomorrow. Work regularly to do what you can to ensure you or your loved one’s financial security so you can live worry-free. 

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