According to Where You Live Matters, the average cost of assisted living in Wisconsin is $5,730 per month.
With costs continuing to rise, many families struggle with how to pay for assisted living.
Today we're taking a closer look into the best ways to manage assisted living expenses, from personal savings and insurance options to government aid and family contributions.
The cost of moving into an assisted living community can vary greatly, depending on location, level of care, and services offered. These costs typically fall into three main categories:
Most communities charge a monthly fee that covers housing and basic personal care services. It includes help with daily activities like bathing, dressing, and mobility assistance. Some communities may offer additional services for extra fees, so it's important to understand what is included in the base cost and what may come at an added expense.
Beyond basic personal care, medical expenses can be significant. They may include routine medical check-ups, medication management, and specialized care for conditions such as dementia.
Many communities offer varying levels of medical support, and higher care levels will come with higher costs. Knowing what medical services are included and what might require outside help is key when evaluating costs.
Some communities provide meals, housekeeping, and social activities as part of their monthly fees, while others charge separately. It's essential to factor these extras into your overall budget, as they can increase the total cost over time. Having a clear understanding of what's covered in your monthly payments helps you avoid unexpected expenses later on.
Personal savings are often the first source people rely on when planning for assisted living. Careful budgeting and saving can make a significant difference in covering the costs of senior care. Starting early and being mindful of financial habits can ease the burden later on.
One of the most effective strategies is to set up a dedicated savings account specifically for assisted living expenses. Having a separate account helps keep track of the funds and ensures they are not spent elsewhere. Even small contributions over time can grow into a substantial amount that will come in handy when needed.
Creating a realistic budget is another important part of preparing for future costs. It's essential to account for all potential expenses, including housing, medical care, and any additional services.
The budget should be reviewed and adjusted regularly, especially as circumstances or care needs change. A well-planned budget gives a clearer picture of what will be required financially and can help prevent surprises.
Adjusting current financial strategies is also a key consideration. It could mean reducing unnecessary spending or finding new ways to save, like downsizing a home or cutting back on more expensive items.
Long-term care insurance is designed specifically to cover the cost of senior care, including assisted living. Policies can vary widely in terms of coverage, so it's important to review the details carefully.
Some may cover all types of care, while others may only cover specific services or settings. While this insurance can be expensive, it provides valuable protection against the high costs of long-term care.
Life insurance is another option that can be used in certain cases. Some life insurance policies offer riders or benefits that allow policyholders to access funds for assisted living expenses. The policies are not as common, but they can be helpful if they include such provisions. It's worth checking with your provider to see if this option is available.
Health insurance, including Medicare, usually covers some medical expenses for seniors but does not typically cover long-term care or assisted living. However, supplemental insurance plans can sometimes help offset costs for medical services that might be needed while living in a senior community.
Veterans Affairs (VA) benefits are a valuable resource for those who have served in the military. Veterans and their spouses may be eligible for aid to help cover assisted living expenses. The Aid and Attendance program, for example, provides financial support to veterans who need help with daily living activities.
Supplemental Security Income (SSI) is available to seniors with limited income and resources. It provides monthly payments that can be used to help cover the cost of care. While SSI benefits are often modest, they can still be an important part of a financial plan for those who need assistance with paying for assisted living.
For many seniors, home equity can be an important resource when it comes to paying for assisted living. One option is to sell the family home, which can free up significant funds. It's often a good choice for those who no longer need to maintain a larger home and are looking to simplify their living situation.
Another option is to consider a reverse mortgage. A reverse mortgage allows homeowners to borrow against the value of their home while continuing to live in it.
It can provide steady cash flow to cover the costs of assisted living without requiring an immediate sale of the home. However, reverse mortgages come with fees and interest, so it's important to weigh the long-term costs before making a decision.
Both selling a home and taking out a reverse mortgage can provide valuable financial support, but they should be considered carefully based on individual circumstances. These options can help make assisted living more affordable, but they come with significant trade-offs.
Planning how to pay for assisted living requires a mix of personal savings, insurance, and family support.
At LakeHouse Fond du Lac, we create tailored care plans for each resident. Our Assisted Living community is proud to provide compassionate care in a beautiful setting. A full-time licensed nurse is on call 24 hours a day, and we provide outings for dining, attractions and entertainment.
Get in touch today to find out how we can help your loved one!