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How To Pay For Senior Living

Determine the best options for your family.

As you begin to figure out the best senior living option for you or your loved one, as well as the associated costs, we’re here to help with some of the most commonly asked questions. And if you’re looking for guidance as you plan for the future, the team at The Crossings at North River is available as a resource for navigating your retirement years.

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Find answers to financial question.


How much does senior living really cost?

The cost of senior living can vary widely and depends on many different factors – including the location, levels of care, and services and amenities. In 2018, the national median costs of care for assisted living services were $4,000 monthly and $48,000 annually, according to a survey by the National Center for Assisted Living.

What types of financial assistance are available?

We can help you determine whether any financial assistance might be available for you or a loved one. United States wartime veterans can qualify for the Aid & Attendance benefit for veterans and their surviving spouses. This monthly benefit is in addition to a veteran’s regular pension and can help cover the costs of assisted living or nursing care. As a “pension benefit,” it is not dependent upon service-related injuries for compensation. The application can take a few months to process, so it’s a good idea to get started ahead of time.

Does Medicare cover senior living?

Families may be unaware that Medicare does not cover senior living costs – outside of 100 days skilled services or rehabilitative care for a qualified stay. What Medicare Part A does cover is hospital stays, short stays in a nursing home for certain kinds of illnesses and hospice care in the last six months of life – all after a standard yearly deductible.

Is senior living covered by long-term care (LTC) insurance?

If you are looking into long-term care insurance for the future, it’s possible to find increasingly flexible policies meeting different needs ranging from adult daycare to assisted living to skilled nursing, with certain options even paying a family caregiver for in-home care. There are even some possible tax benefits. But, it’s also important to realize these premiums can be costly – with prices increasing with age and poor health – and may not be worth it if you haven’t been planning ahead.

What are other ways to pay?

In most cases, Americans’ most valuable asset is their home – so families often first try to pay for senior living costs with the profits made from the sale of a house. Or they also might decide to look into other options, like renting the house out or using the house to qualify for specialized loans. One type of loan is a bridge loan, designed for individuals who need access to funds right away but are waiting for a home to sell. As an interest-only loan, it uses the equity of a house to pay senior living expenses until the house is sold. The borrower then pays off the loan with money from the sale of the house when it becomes available.

Families also may look into funding through certain life insurance policies. “Accelerated” or “living” benefits can be considered if seniors have funds invested in a life insurance policy but find they need financial support while living. Different rules may apply depending on the company and type of policy but typically, the company buys back the policy for 50 to 75 percent of its face value. Another option, known as a “life assurance” benefit or life insurance conversion program, allows seniors to convert the benefit of a life insurance policy directly into long-term care payments.


Additional questions?

If you have additional questions about senior living and how to pay, we encourage you to contact us at The Crossings at North River so we can provide you with the information you need to make the best choice for you or your loved one