Find answers to financial question.
How much does senior living really cost?
The cost of senior living can vary widely and depends on many factors, including location, services, amenities and the level of care. In 2024, the national median cost of assisted living care was $5,350 per month and $64,200 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 is available for you or a loved one. United States veterans and their surviving spouses can qualify for the Veterans Aid & Attendance program. 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 several months to process, so it’s a good idea to get started in advance.
Does Medicare cover senior living?
Families may not realize that Medicare does not cover senior living costs outside of 100 days of skilled services or rehabilitative care for a qualified stay. Medicare Part A does cover hospital stays, short stays in a nursing home for certain kinds of illnesses and hospice care in the last six months of life after a standard yearly deductible.
Is senior living covered by long-term care (LTC) insurance?
If you are considering long-term care insurance for the future, you’ll find that today’s policies can be pretty flexible. Many plans now cover a wide range of support, including adult day programs, assisted living, skilled nursing care and even in-home care provided by a family caregiver. Some policies may also offer tax advantages. However, it’s important to keep in mind that premiums can be expensive, and they typically increase as you get older or if you have health concerns. Long-term care insurance can be beneficial, but it is most cost-effective when planned for early.
What are other ways to pay?
In most cases, a person’s home is their most valuable asset, so many families choose to use the proceeds from selling a house to help pay for senior living. Some families may also consider other approaches, such as renting the home or using it to qualify for a specialized loan. One option is a bridge loan, which is designed for people who need funds right away but are still waiting for their home to sell. This type of loan is interest-only and uses the home’s equity to cover senior living expenses until the sale is complete. Once the home is sold, the loan can be paid off with the proceeds.
Families may also explore using specific life insurance policies to help with costs. Some policies offer accelerated or living benefits, which allow seniors to receive a portion of their life insurance payout while they are still living. The details can vary by company and by policy, but in many cases, the insurance provider buys back the policy for about 50–75% of its face value. Another option, called a life assurance benefit or life insurance conversion program, allows seniors to convert the value of their 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