Understanding the Cost of Senior Living
The cost of senior living has changed dramatically in recent years. Senior living prices have increased due to the COVID-19 pandemic. In planning a move into senior living, you should keep this increase in pricing in mind. Now more than ever it is vital to plan ahead financially and take advantage of any assets you may have to help fund your senior living.
According to Genworth, the median cost of senior living in 2021 was $4,500 a month with minimal amenities and extra services. Depending on the additional needs of the resident, prices may be higher. It also depends on the type of care the senior receives. Assisted living and independent living communities are at the lower end of the pricing scale, while long-term care from a skilled nursing facility is almost double the average (around $8,000 a month). If the resident requires additional care services, such as physical therapy or memory care, additional fees will apply.
Planning for the Rising Costs of Senior Living
The rising costs of senior living can be intimidating. You may be thinking that you or your loved one will never be able to afford necessary care. Fortunately, there are several options that can help. It is important to look into all the options available to you and know the ins and outs of financing senior living.
Here are some examples of ways to pay for senior living:
- Life Insurance: Some life insurance policies will cover long-term care and can be converted to pay the senior living community directly.
- Long-Term Care Insurance: These insurance plans provide seniors with financial assistance in the case that they need home healthcare or need to stay in a nursing home.
- Reverse Mortgage: This is a home equity loan. Based on the senior’s credit, income, assets, and the home meeting FHA guidelines, monthly payments are made to the home owner. The loan will need to be repaid once the home is sold or the borrower passes away.
- Medicare and Medicaid: Some federal and state programs offer assistance with paying for skilled nursing care. Medicare typically only cover short-term stays, while Medicaid will cover an extended stay if the senior has limited income and resources.
- Individual Private Funding: Paying for senior living out of pocket with personal savings or other assets.
At Heather Hill Healthcare Center, we recognize that paying for senior living, especially with the recent increase in costs, can be a challenge. We want every senior to be able to afford the care they need, so we offer a wide choice of financial options for aspiring residents. Click here for more information.