How to Fund Long-Term Care Without Breaking the Bank

The aging population is growing in the US as seniors get access to better healthcare services. An article by the US Census Bureau shows the older population reached 55.8 million, accounting for 16.8% of the population.

Senior living communities allow your loved one to age while receiving the care needed to make their life more comfortable. While many living options exist in Wisconsin today, many families worry about covering the cost of senior living.

Here, we help you determine how to fund long-term care without struggling financially.

Understand the Cost of Senior Living

Senior living communities offer varying care depending on your loved one's needs. Assisted living homes, in particular, help with everyday activities like:

• Bathing
• Medication management
• Dressing
• Grooming

The cost of assisted living will differ based on the level of care provided to your loved one. It may also depend on the community you choose, its location, and the available amenities.

Many senior living communities in Fond Du Lac will have a specific price for essential services. They may then allow residents to get add-ons a la carte.

Before your loved one joins a Fond Du Lac senior living community, confirm the cost of the services. Visit senior housing websites for such information and contact nearby service providers. Doing so will help you understand the expenses you will incur to simplify budgeting.

Leverage Long-Term Care Insurance

Getting long-term care insurance can help your loved one cover some senior living costs. Ideally, they should get coverage in their 50s or 60s before they need personal care.

However, if your loved one is 70 or older, they can still get insurance to help them manage some costs. While the premiums may be higher, they can still offset a significant portion of assisted living expenses.

Long-term care may cover senior living costs related to:

• Memory care
• Personal care
• Medication management

While long-term care insurance often covers such senior living costs, not all policies do. Always confirm with service providers to ensure you invest in a policy that will be helpful in the future.

Explore Veteran's Benefits

If your loved one is a veteran, they can enjoy the benefits the US Department of Veterans Affairs offers. For example, they may use the VA Aid and Attendance benefits program to get a monthly income. For your loved one to qualify, they must meet the requirements such as:

• Needing help with daily activities
• Being in assisted living due to illness or a disability
• Limited eyesight or blindness

VA Aid and Attendance benefits pay $2,300 per month to single vets who meet any of these criteria in 2024. Married vets receive $2,727 monthly, while spouses of deceased vets get $1,478.

Receiving these benefits can help your loved one avoid financial strain while in assisted living. They may also enjoy veteran's discounts offered by a retirement community in Fond Du Lac.

Veterans over 65 or those with a permanent disability may qualify for a VA pension. The pension is a needs-based benefit, so your loved one must meet income and asset requirements.

The VA pension benefit will be a great source of financial help if your loved one has limited income. When you combine it with other benefits, your loved one will be able to live comfortably in an assisted living community.

Consider a Reverse Mortgage

A reverse mortgage is a loan enabling homeowners 62 and older to convert a part of their home's equity into cash. Unlike traditional mortgages, your loved one will receive a monthly payment instead of making it. They won't have to repay the amount until they sell the home or move out permanently.

Since someone taking out a reverse mortgage has to use the house as their primary residence, the option is often ideal for couples. The spouse who needs personal care can transition into assisted living while the other continues to live in the home.

A reverse mortgage provides the funds needed to cover long or short-term assisted living without having to sell the family home.

When considering this option, it's good to talk to a financial consultant before applying for the loan. The expert will weigh the pros and cons based on your situation and advise accordingly.

Use Savings and Investments

If your loved one planned well for their retirement, they most likely have the following:

• Individual retirement accounts (IRAs)
• A 401-k account
• Investments
• Personal savings

IRAs allow people to save for retirement and enjoy tax advantages to grow their savings. If your loved one has an IRA, they can make monthly withdrawals to cover assisted living costs. They may also use their 401-K, an employer-sponsored retirement account containing funds remitted by their previous employers.

Investments such as bonds and stocks will generate a steady income if managed wisely. The dividends and returns may help your loved one meet monthly senior spending.

If your loved one isn't in a retirement community, you should help them start planning early. During senior budgeting, ensure they factor in rising inflation, which could affect the cost of assisted care in the near future.

Doing so will provide long-term security and help them enjoy passive income in their retirement.

Explore Nonprofit Programs

Many nonprofits in Wisconsin have programs to help seniors afford assisted living. For example, some may offer medical grants to cover personal care and medication management expenses.

The funds nonprofits provide may not cover the entire cost of assisted living. However, they will supplement other assistance and personal savings to prevent financial strain.

Research the local resources available for your loved one based on their eligibility and health condition. Moreover, reach out to nonprofits and work with Area Agencies on Aging (AAAs) to identify the help you can leverage.

Get Affordable Senior Living at LakeHouse Fond Du Lac

The cost of senior living may initially seem overwhelming, but it's manageable with the available resources. Families should help their aging loved ones identify senior income strategies earlier on. They could also work with financial advisors and assisted living providers to maximize assistance.

If you're looking for a compassionate community in Wisconsin, consider LakeHouse Fond Du Lac. We offer affordable assisted senior living and help our residents utilize different aid programs. Contact us for a tour.