When deciding which senior living community is right for you or a loved one, all the different factors to consider can become exhausting. But there is one consideration that stands out and affects us all – how do you pay for it? The average cost of assisted living in America is $4,500 per month and the average cost of memory care in the United States is $6,160 per month, both following a steady pattern of growth over the years. Unfortunately, of Americans aged 60 and older, 80% do not have the financial resources to cover long-term care services. Remember Me Senior Care created a guide that gives you practical ways to cover care costs.
Understanding Different Price Structures
Depending on the community, you will find that there are different pricing structures throughout senior living. This can also lead to unexpected fees or an increase in cost due to a change in care. When transitioning into senior living, consistency can make all the difference in your care journey.
Level of Care Fees
Some pricing structures base monthly payments on the level of care a resident requires, which can cause fluctuations in cost. As care needs increase, the cost of living may rise, and this is also the case when transitioning from assisted living to memory care. This type of pricing can create uncertainty for residents, making it difficult to budget for both short- and long-term care.
A La Carte
A La Carte pricing, similar to other care-based structures, creates a fluctuating monthly cost depending on the services you need or request. While this model gives residents more control over which services to include, it can place additional stress on those managing finances.
Know Your Financial Options
With our all-inclusive rates, you can now begin to determine how you’ll consistently pay your monthly expenses. Although it may feel like you are on your own when it comes to affording care, there are multiple financial options available to potential and current residents.
Long-Term Care Insurance
These policies are designed specifically to cover the costs associated with long-term care services, which are often not covered by standard health insurance or Medicare. Once the policy is activated, it can provide a daily or monthly benefit, which can be used to cover a wide range of care options, including assisted living, memory care, home health services, and nursing home care.
Life Insurance Policies and Other Financial Assets
Life insurance policies with a cash value can be a valuable asset for residents transitioning into long-term care. In addition to life insurance policies, other financial accounts, such as IRAs and CDs, can also be repurposed to help pay for care. It’s wise to speak with a financial advisor to explore how existing financial assets can be optimized.
Federal and State Benefits
For some Americans, federal benefits are available to help pay for senior housing. Certain programs are specifically designed to help veterans and their spouses, such as the VA’s Aid and Attendance benefit. At RMSC, we are proud to waive our move-in fees for Veterans.
Financial Planning Today
One of the most critical aspects of affording senior living is proactive financial planning. Long-term care is a significant financial commitment, and without careful preparation, it can quickly overwhelm both seniors and their families. By planning early, individuals can take advantage of multiple financial tools and resources to ease the burden of care costs later in life.
Navigating the costs of long-term senior living care can feel overwhelming, but with proactive financial planning and a clear understanding of your options, you can obtain quality care without exhausting your resources. Ready to start planning? Contact us today to learn more about how RMSC can be your next home.