Common Questions About Paying For Senior Living

What Your Family Needs To Know

You may feel overwhelmed when trying to determine the best senior living option for yourself or a family member, especially when searching for the most effective way to pay for it. We’re here to help answer some of the most common questions about how to finance your retirement years.

How much does senior living actually cost?

Several variables can drive the cost of senior living, including location, type of care, and level of services and amenities. According to a survey by the National Center for Assisted Living, the national median costs of care for assisted living services were $5,900 monthly and $70,800 annually in 2024. Senior living apartments without care generally cost less than assisted living, memory care or skilled nursing.

Is there financial assistance available?

We can help you determine whether financial assistance is available for you or a loved one. U.S. wartime veterans and their surviving spouses may qualify for the Veteran’s Aid & Attendance benefit, which can help cover the costs of assisted living or nursing care, in addition to a veteran’s regular pension. While most veterans in need of assistance qualify, some restrictions apply. We also recommend allowing plenty of time for the application process.

Another option is that if you or your loved one falls below a certain income level, Medicaid may help cover a portion of the costs of a senior community or nursing home. Each state has its own set of rules for qualifying, so be sure to look into Medicaid assistance specific to Alabama.

Does Medicare cover senior living?

It often comes as a surprise to seniors and their families that Medicare does not cover assisted living costs, except for 100 days of skilled services or rehabilitative care for a qualified stay. The services covered by Medicare Part A include hospital stays, short stays in a nursing home for certain types of illnesses and hospice care in the last six months of life after a standard yearly deductible.

Is senior living covered by long-term care (LTC) insurance?

Depending on the policy, long-term care insurance benefits can be applied to assisted living care and/or nursing home costs. Be aware that premiums can be costly and increase in price with age and poor health, so experts recommend that individuals begin planning between the ages of 52 and 64.

Can a life insurance policy be used?

For seniors who have funds invested in a life insurance policy but need financial support now, there are “accelerated” or “living” benefits. The company that initially issued the policy repurchases it for 50 to 75 percent of its face value. Another option, known as a “life assurance” benefit or life insurance conversion program, allows seniors to convert the proceeds of a life insurance policy directly into long-term care payments.

What are other ways to pay?

Most Americans consider their home their most valuable asset and for many families, it is their first option for paying for senior living costs. However, they may also decide to explore other options, such as renting out the house or using it to qualify for specialized loans. A bridge loan is designed for individuals who need immediate access to funds while waiting for their home to sell. These interest-only loans utilize the home’s equity to cover senior living expenses until the home is sold, at which point the borrower pays off the loan with proceeds from the sale of the house.

More questions?

If you have additional questions about senior living and how to pay, reach out to us at Redstone Village so we can provide you with the information you need to make the best choice for you or your loved one.