Having an assisted living option often gives families peace of mind. These residences provide elderly loved ones an appropriate level of independence while not sacrificing safety and security. However, Medicare does not cover the monthly costs associated with assisted living, and therefore it may seem out of financial reach. Don’t give up! The following budget tips have been written to help make the assisted living solution financially feasible.
Money-Saving Budget Tips
Many families postpone the assisted living search until the last minute, which can cause undue stress and anxiety. Given that this facility will be your loved one’s new home, the decision should be taken seriously. If a senior is not involved in the decision or rushes their choice, they often have more trouble settling in. This causes them to move several times, which can get expensive in and of itself.
Taking your time and educating yourself about your options can help significantly over the long term. You may also be able to save some money by placing your loved one on a waitlist for down the road, as making emergency moves can be expensive.
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- If possible, visit several facilities with your loved one. While some assisted living facilities may still restrict visitor access, most are willing to schedule a tour to show you the residence and talk to the staff. Decide which amenities are essential, and don’t compromise on them if they are important to the happiness of the future resident. For instance, if your mom loves art, be sure that art classes are offered. If your dad still works out a few times a week, look for a fitness center.
- Ask if there is a potential for negotiation. You can ask about move-in specials or if the monthly fee can be negotiated based on payment schedules. Some facilities may be able to waive entrance fees. You should also ask about various room layouts and configurations, as a different room may carry a different monthly fee. The current vacancy rate and the number of potential residents on the waitlist will potentially affect your negotiation ability.
- Ask about lesser-known programs. Several options may be a bit more obscure but may assist with paying for the residence. The administration at the assisted living facility may be able to provide information on these programs, such as veterans benefits available through the Department of Veteran’s Affairs. There are also short-term bridge loans that may be utilized to cover assisted living costs while selling a home or liquidating other assets. Reverse mortgages use current home equity to allow a spouse to remain in the family home while generating the required funds.
- Life insurance policies can be cashed in. Seniors may no longer require life insurance once they move into assisted living. These policies can be sold to a third party, which will provide money for expenses while retaining the death benefit. Seniors may also surrender the policy to the insurance company for cash value, although they will also surrender the death benefit.
- Long-term care insurance is possible but not used very often. This option is only used by about 10% of the American elderly. However, experts expect this option to become more popular as life expectancies are extended.
- Ask about pricing options. Speak with the assisted living administrator regarding any pricing options you may have. For instance, the monthly fee may include housekeeping, night-time assistance, meals, and social events. However, you may be able to choose which of those services you want and which you do not. This option is not available at all facilities.
A Banyan Residence welcomes any questions you may have about making a move to assisted living. We provide an engaging and fulfilling lifestyle for your loved ones to live. Call today for a tour and a consultation with our staff.
