Assisted Living: How to Plan Financially

Meeting the costs of assisted living requires financial planning and evaluation. Elder care costs continue to rise and health insurance companies rarely cover more the total bill, unless your loved one procured a long term care insurance policy. Taking a look at families financial assets and evaluating what they will be able to afford can be an emotional and sometimes intimidating process, but one that needs to be done. If you need to, ask a professional and objective financial planner to help you perform a cost benefit analysis.

Before you start assessing your options, you need to answer two questions about your situation. Where will your loved one receive care? What are their needs now and in the future? Knowing the answers to these questions will help you evaluate which option is best for your loved one. Will your loved one benefit from staying at home and hiring in-home caregivers? Should they move into the primary caregiver's home or have the caregiver move into the loved one's home? Or would a retirement community, independent or assisted living community or nursing home be able to provide the best care?

Making a list of pros and cons will be helpful when evaluating your options. How much will their immediate needs cost, and how will their needs evolve with time? What are your financial resources and what type of income does your loved one have? Do you have financial alternatives or other assets?

After you have assessed your loved one's needs, compiled a list of financial information and decided who should be in charge of the assets, the last and final step is to plan a strategy of how and when to sell or change assets to maximize their return on investment for the future. Make sure to plan for any dependents and hidden costs, including taxes. The most important part is to know that you are not alone in making these decisions and that there are people willing to help.
There are financial benefits for assisted living; they include financial assistance from the Veterans Administration, a specific program called "Aid and Attendance". You may qualify for assistance to help cover the costs of assisted living.

If you are a United States Veteran or surviving spouse of a veteran, you may qualify for the Aid & Attendance Program and receive monthly benefits to help cover the costs of assisted living care. Aid & Attendance is a Federal benefit that was added onto a need-based pension offered through The Department of Veteran Affairs. It provides benefits for veterans and surviving spouses who need assistance with their activities of daily living and meet specific requirements. Care provided in an assisting living facility qualifies.

There are institutions that provide senior living loans to families and seniors interested in financing their senior living or assisted living costs. The services are designed specifically to help seniors move into the assisted living community of their choice, or to supplement their move while waiting for the sale of a home or other benefits to kick-in. These institutions will offer low monthly payments for a quick and easy move.