If you or a loved one is thinking about moving to a senior independent living community, you may also be concerned about how to fund the move. The topic of finance is typically one of the most important considerations for seniors who are thinking of moving. Thankfully, there are various funding options depending on the type of care that you or your loved one needs. Read on to find out more about the different options you can use to fund senior independent living.
Expenses Covered in Senior Independent Living Communities
Senior independent living communities usually charge a monthly fee that covers various expenses like housing, meals, utilities and transportation. The price varies across different communities, and some elements that affect price include location, size of housing and the services required.
If you or your senior loved one has sufficient savings, can cash in their 401K plan or has enough funds from the sale of their house, then you can pay for senior independent living community without having to borrow funds. An increasing number of senior living communities are also making monthly payments more convenient by setting up an Automated Clearing House (ACH) debit option.
Also known as senior line-of-credit, this is a short-term, interest-only loan where the borrower is only required to pay interest for a certain period, and then pays off the loan with a balloon sum. This loan helps to fund the costs of independent living communities for seniors who are waiting to receive federal benefits or waiting on the sale of their house.
Deferred Annuity with Long-term Care Rider
Many seniors are considering this option due to the continuous rise of long-term insurance premiums. You will have to pay a lump sum into a deferred annuity instead of making monthly payments. The benefits are that you can withdraw the money to pay for senior independent living tax-free and avoid any Internal Revenue Service (IRS) penalties. The coverage may be double or triple the amount of the original investment and can be funded by another annuity, cash, or a life insurance policy. However, to activate the long-term care rider, you usually have to be medically assessed to require long-term care.
Life Settlement Accounts
Seniors who have a life insurance policy can consider selling your life insurance to a third party in return for a lump sum payment. This payment is usually lesser than the face value of the life insurance policy, but it is more worthwhile than the policy’s cash surrender value.
Benefits for Veterans
United States veterans as well as surviving spouses of veterans should look into the benefits provided by the Department of Veterans Affairs (VA). Some senior veterans may qualify for monthly benefits to help with paying for senior living communities, depending on the level of care they need and the type of community they are in.
Discovery Village At Sugarloaf Is Your Best Choice
Now that you know about the different options you can use to fund senior independent living, it’s time to start looking for the right place. At Discovery Village At Sugarloaf, we offer three types of senior living options, including independent living, personal care, and SHINE® memory care. If you want high-quality facilities, well-curated lifestyle programs and personalized care services, then Discovery Village At Sugarloaf might just be the right choice for you. To learn more about our senior living programs, contact us today.