How To Pay For Assisted Living
When it comes to finding the right senior care, one of the most important factors is figuring out how to pay for it. If you or a loved one are looking for assisted living in Arizona, you may be wondering about the different payment options available to you. In this article, we’re going to cover four options for paying for assisted living, as well as a bonus tip at the end.
Private Pay
The most straightforward way to pay for assisted living is through private pay. This means paying out of pocket, either from savings accounts or retirement accounts. Some people may choose to sell an asset, like a home or a car, to cover the costs. Others may borrow against life insurance policies or purchase annuities. If you own a home, you could consider a reverse mortgage. This is a type of loan that allows you to convert some of your equity into cash. Another option could be renting out your home. Phoenix is a great market for renting single-family homes, and depending on the area of town, you could rent it out fairly quickly. It’s important to note that the rental income likely won’t cover the entire monthly cost of assisted living, but it can cover a portion of it. The benefit to renting your home is that you can hold onto the equity and sell your home at some point in the future, if need be.
Long-Term Care Insurance
If you have a long-term care insurance policy, it may cover a portion or all of your assisted living costs. It’s important to check your policy’s terms and conditions to see what’s included. These types of policies are designed to cover long-term care, which often includes assisted living. However, to use long-term care insurance, you’ll need to have a policy already in place. If you’re actively looking for assisted living and don’t have a long-term care policy in place, you won’t be able to use this option to cover your care. If you’re planning for your care needs in the future, it might be a good idea to look into long-term care insurance policies.
Medicaid
The Arizona Long-Term Care System (ALTCS) program is a Medicaid program that can help pay for assisted living. To be eligible for ALTCS, you must be an Arizona resident and over the age of 65. Your income and assets will be reviewed to see if you qualify for the program. They’ll also determine if you’ll need to pay some money toward the cost of care, which is referred to as “share of cost.” If you qualify for ALTCS and have enrolled in the program, you’ll need to find an assisted living community that accepts ALTCS. It’s not a requirement for assisted living communities to accept ALTCS. Once you’ve found a community that accepts ALTCS, you’ll need to make sure that the community is contracted with your provider. If you’re eligible for ALTCS, you’ll be required to pay a certain amount toward the cost of your care. The amount you’re required to pay will be determined based on your income and assets. ALTCS will cover the rest of the cost of your care.
Veterans Benefits
The VA has a special program called Veterans Aid and Attendance Pension that can be useful for covering some or all of your assisted living costs. There are some eligibility requirements that you’ll have to meet, including having served in the military for a certain amount of time and being honorably discharged. To apply for this benefit, it requires an application and providing some documentation of your past military service. You’ll also need to provide financial information to determine your eligibility.
Bonus Tip: Bridge Loans
Another way to pay for assisted living is through bridge loans. This type of loan is a short-term solution to bridge the gap between now and a future payout, such as the sale of a home or the payout of an insurance policy. It’s important to consult with a financial advisor when considering any type of financial instrument, such as a loan or an insurance policy. However, a bridge loan can be a creative way to access funds when you need them.
Paying for assisted living in Arizona can be challenging, but there are options available. Private pay, long-term care insurance, Medicaid, Veterans benefits, and bridge loans are all potential sources of funding. It’s important to research each option and determine which one is the best fit for your situation.
At Valley Senior Advisors, we’re committed to helping you find the best care in Phoenix at no cost to you. If you or a loved one needs assistance, please don’t hesitate to reach out to us. You can contact us at 480-331-8855, email us at office@valleysenioradvisors.com, or visit our website at valleysenioradvisors.com. Thank you for watching, and we look forward to hearing from you soon.
Check out our YouTube video where we discuss ways to pay for assisted living: