Tips For Paying For Assisted Living

The decision to move your parent into a senior independent living community is a difficult one, but one that could provide him or her with the help needed. Before moving into the facility, you and your family have to make a plan for paying the costs. Here are some ideas that could potentially help with the costs. 

Veterans' Benefits

If your parent is a veteran, he or she is most likely to receive benefits that would help with covering the cost of moving into an assisted living facility. There are several benefit programs available. Talk to a counselor at the Veterans Administration (VA) to determine which programs your parent would be eligible for. 

To qualify for benefits, your parent will need to meet certain income requirements. Depending on the program, your parent might also need to show that any disability that he or she has is connected to an injury received during service. 

Before contacting the VA, you need your parent's Social Security number, his or her income documentation, and a list of assets that he or she has. You also need a copy of any insurance your parent has. By having this information ahead of time, you can avoid a delay in processing his or her documentation for assistance.

Reverse Mortgage

Some people use a reverse mortgage to help cover the costs of an assisted living facility. A reverse mortgage gives your parent the cash value of his or her home in a lump sum or monthly payments. The money owed to the lender is not due until after your parent has passed away. At that point, your family can choose to sell the home to pay the balance. 

There is a catch to a reverse mortgage though. A homeowner has to remain in the home. Some families choose to add a family member to the home's deed and he or she move into the home while the elderly parent is allowed to move into the assisted living facility. 

If the family member wants to continue to live in the home after the parent has passed away, he or she will need to pay back the balance of the loan. Using any funds received from the life insurance policy is an option that is available. 

There are many other options available for covering the costs of assisted living. Consult with the financial aid counselor at the facility you are considering to learn which options would work best for you and your parent. 

Contact a center like Mayfair Village Retirement Community for more information.