Common Questions About Paying For Senior Living.

U.S. wartime veterans and their surviving spouses may qualify for the Veteran’s Aid & Attendance benefit, which can help cover assisted living or nursing care costs in addition to a veteran’s regular pension. While most veterans who need assistance qualify, some restrictions apply. We also recommend allowing plenty of time for the application process.

Another option is Medicaid, which may help cover part of the costs of a senior living community or nursing home if you or your loved one falls below a certain income level. Each state has its own rules for qualifying, so be sure to look into Georgia-specific Medicaid assistance.

Does long-term care (LTC) insurance cover senior living costs?

Depending on the policy, long-term care insurance benefits can be applied to senior living care and/or nursing home costs. Premiums can be high and increase with age and poor health, so experts recommend starting to plan between ages 52 and 64.

Does Medicare cover assisted living costs?

Families are often surprised to learn that Medicare does not cover assisted living costs outside of 100 days of rehabilitative care or skilled services for a qualified stay. Medicare Part A covers hospital stays, short stays in a nursing home for certain illnesses and hospice care in the last six months of life, after a standard yearly deductible.

Can a life insurance policy be used to pay?

For seniors with funds invested in a life insurance policy, “accelerated” or “living” benefits may provide financial relief sooner than expected. Through this option, the original insurance company repurchases the policy for 50 to 75 percent of its face value. Alternatively, a life insurance conversion program, sometimes called a “life assurance” benefit, allows seniors to convert a life insurance policy directly into long-term care payments.

What other options are available?

Many families’ first option is to sell their loved one’s home and use the proceeds to pay for senior living costs. They may also consider renting the house or using it to qualify for specialized loans. A bridge loan is a good option for families who need funds right away while waiting to sell a home. These interest-only loans draw on the home’s equity to cover senior living expenses. Once the home sells, the proceeds pay off the loan.