According to an interview done by BankRate.com, the average assisted living facility in America costs $3500/month, or $42,000/year. However, the average income of someone in assisted living is only $19,000.
These figures cause problems for people who have to pay for assisted living. They either take on the debt or they forego assisted living altogether. If you are facing certain debt, the choice may seem quite obvious.
Heritage Creek sees a lot of people who don’t think they can afford what assisted living has to offer. However, many who simply look around can find options to help offset the cost. There are systems in place by the government and other organizations to help alleviate the financial burden.
We work with many people to find the right solution for your needs. While you are more than welcome to schedule a meeting with one of our financial experts, we also suggest looking at these options to find out how to get into assisted living.
The most common way to get money for assisted living is to get a loan. Some experts suggest getting a bridge loan, which offers temporary help. The loan is meant to be spent in the short term while you can catch up with the financial burden.
See if any assisted living facilities use preferred loan vendors. If they do, you may be able to get a better interest rate on the loan, which lets you afford the right facility for you and your loved ones.
If you are 62 or older and looking at assisted living for any reason, you should consider getting a reverse mortgage. A reverse mortgage allows you to use any equity your home might have seen since you’ve lived there. Furthermore, a reverse mortgage allows you to stop payments on the home until you move.
You can use the equity to pay for assisted living facilities for anyone in your life. The only catch for a reverse mortgage is that you will have to pay off the mortgage at some point. You are not under any time sensitive deadlines while you have a reverse mortgage.
Sometimes Medicaid cannot take care of assisted living costs. When this happens, it may be time to invest in long-term care insurance. This is a type of insurance specially designed to support those who will be in long-term care situations, such as assisted living.
One of the benefits of long-term care insurance is its wide range. It is not an age-dependent insurance plan, contrary to popular opinion. At some point, most Americans will need to have a version of long-term care in their lives. Long-term insurance helps reduce the burden and can help those who need a hand to be able to afford it.
Many people in assisted living use some form of Medicaid to help offset the costs. Medicaid is a program that reduces medical costs with the aid of the state and federal government. Most states allow Medicaid to provide support for services such as assisted living.
To qualify for help from Medicaid, you must prove several things: 1.) That the service you need is medically necessary and the standard of life for those around you will be greatly affected because of it. and 2.) That you or whoever is paying for the assisted living makes no more than $2,130 per month.
If none of the above programs work for you, you can apply for a grant or subsidy to help with the cost of assisted living. There are options on federal and state levels to get tax credits. These credits are not additional income, but they can help reduce the cost of paying for assisted living.
If you are interested in learning more about the Elderly and Disabled Tax Credit, click here for qualification requirements and forms.
If you have any other questions, contact Heritage Creek Assisted Living to learn how to pay for assisted living. Many clients of ours have been in the same place as you and we are eager to help you on your journey towards assisted living.