Answering Your Questions About Senior Care Cost
Planning for senior care requires a lot of preparation. First and foremost, you need first to figure out what type of community is best for your loved one, and second, understand your financial options are part of making that decision. As you get started, here are some common questions to ask:
How do I pay for senior care?
There are plenty of options when it comes to paying for your senior care. This includes personal financing, long-term care insurance, and reversed mortgage insurance. Learn about the different options here.
How much does senior care usually cost?
Different types of senior care come with varying values of dollars attached to them. Based on a 2018 cost of care survey, the National Center for Assisted Living estimates that the average cost of assisted living communities in the United States is $4,000/per month. However, this price varies dramatically depending on levels of care, location, services, and amenities.
Can I use my life insurance to pay for senior living?
Yes. Depending on your life insurance policy, you may be able to convert your life insurance policy into a deferred annuity with a long-term care rider. Money will then be withdrawn monthly, tax-free and without IRS penalties, and paid directly to the senior community. Talk with a qualified financial advisor or elder law attorney to learn more.
What is included in the monthly fee?
Usually, the basic monthly fee covers what is necessary for your loved one to live comfortably. Standard services and amenities included in the monthly fee include assistance with daily living activities (bathing, dressing, and grooming), three daily meals, utilities, maintenance, housekeeping, and laundry, organized social events, cultural and educational activities, and 24-hour staffing. Some communities also offer medication assistance and transportation for offsite activities for an additional fee.
Do Assisted Living fees to cover medical services or prescription costs?
In most states, Assisted Living communities are not allowed to provide any medical or skilled nursing services. However, many of them do have relationships with local medical professionals who can provide care conveniently onsite.
What upfront fees should we expect?
Most senior living communities charge a community fee. A community fee is a non-refundable, one-time fee paid by seniors to senior living communities before move-in. Community fees typically range from $1,000 to $5,000 or more. Many senior living communities use these fees to cover the costs of preparing an apartment to rent. Keep in mind, each community will charge according to the services they provide, the level of care, the type of assistance your loved ones will receive, accommodations, location, etc.
Is the monthly fee a set rate, or does it change?
Depending on the type of lease the community offers, your monthly rates are fixed. However, this may change due to increased levels of care depending on the resident’s needs. In addition, most Assisted Living communities will increase their fees every year to adjust for living costs.
While the thought of paying for senior care seems daunting, there are many options that can be tailored to suit your needs and ensure your loved one gets the best possible care. To learn more about Calson communities, visit https://calsonmanagement.com/.