{"id":1416,"date":"2023-06-30T22:32:13","date_gmt":"2023-06-30T22:32:13","guid":{"rendered":"https:\/\/theclaiborne.com\/shoe-creek\/because-youre-worth-it-your-guide-to-financing-senior-living\/"},"modified":"2025-02-21T18:04:51","modified_gmt":"2025-02-21T18:04:51","slug":"because-youre-worth-it-guide-to-financing-senior-living","status":"publish","type":"post","link":"https:\/\/theclaiborne.com\/shoe-creek\/because-youre-worth-it-guide-to-financing-senior-living\/","title":{"rendered":"Because You\u2019re Worth It: Your Guide to Financing Senior Living"},"content":{"rendered":"
A Claiborne Senior Living Guide<\/div>\n
You don’t have to be rich to find enrichment at a senior living community. You just have to be prepared.<\/div>\n

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Your Best Investment Is Yourself<\/h2>\n
A senior living community is an expense.
\nBut it\u2019s also an investment.<\/div>\n

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Financially speaking, adulthood is all about saving for the future. Wherever you put your money\u2014stocks and bonds, a high-interest savings account, a tax-advantaged retirement vehicle, real estate or an ill-advised shoebox under your bed\u2014you probably put it there for a singular purpose: so that you\u2019d have it someday when you needed it.<\/p>\n

What you might not realize, however, is that \u201csomeday\u201d is today. If you or a loved one is approaching retirement age, or have reached it already, this is the moment you\u2019ve been waiting for. It\u2019s time to decide what you want your golden years to look like, and to set in motion the well-laid plans that will help you make your dreams and goals a reality. Not tomorrow. Not eventually. Not sooner or later. But now. Because if not now, when?<\/p>\n

That\u2019s not to say that cashing in your chips is easy. It isn\u2019t. If you\u2019re like most seniors, you probably feel like you don\u2019t have enough. Saving your money makes you feel secure. Spending it makes you feel anxious. If your retirement goals involve moving to a senior living community, however, you should know that what initially looks like spending your money is actually re-investing it. Like a bank that\u2019s loaning capital to a small business, you\u2019re funding your future in exchange for a promising return. Only your return isn\u2019t principal and interest; it\u2019s health and happiness.<\/p>\n<\/div>\n

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Not tomorrow.
Not eventually.
Not sooner or later. But Now.
Because if not now, when?<\/h3>\n<\/div>\n
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There can be financial returns, too. Although the costs often are incremental and therefore less obvious, aging in place can be deceptively expensive whereas senior living communities can be surprisingly affordable.<\/p>\n

Especially today. Thanks to a \u201cretirement renaissance,\u201d senior housing has proliferated. Forget the nursing home of decades past. Today, there\u2019s an unprecedented array of choices for seniors who want to live their best lives, regardless of their age, health status, retirement income or budget.<\/p>\n

To find a senior living community that meets your needs without exceeding your means, you\u2019ll need to understand the costs involved, then investigate what assets and options you have available. Here\u2019s the good news: There are more assets and options available than you probably realize. Once you have a sense for them, what once felt extremely daunting might suddenly feel entirely doable.<\/p>\n<\/div>\n

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Aging in place can be deceptively expensive whereas senior living communities can be surprisingly affordable.<\/h2>\n

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First, Make a Budget<\/h2>\n
Step one is determining what you have and what you need<\/div>\n
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No matter what kind of senior living community you want to live in\u2014a retirement community with independent living, an assisted living community or a memory care community that offers Alzheimer\u2019s and dementia care\u2014the first thing you need to do is determine what it will cost you to live there.<\/p>\n

The sales counselors at prospective communities can help you estimate your costs. Depending on the community, for example, you\u2019ll have to pay either monthly rent or a larger entry fee that\u2019s akin to the down payment on a house. You\u2019ll also have to consider ongoing expenses like meals, utilities, home maintenance, housekeeping, transportation and entertainment, which communities may or may not offer in exchange for a monthly service fee. And don\u2019t forget health care, including medical needs you have now and those you might have in the future.<\/p>\n

Once you have a grip on how much money you\u2019ll need to live in a senior living community, it\u2019s a good idea to take inventory of what resources you have to help you cover the costs. This includes not only savings and income\u2014Social Security and pensions, for example\u2014but also assets like your home, vehicle, investments and even valuables like art, antiques, jewelry and collectibles. Some of your assets might be liquid while others might take more time and effort to convert into cash. Talking to a financial advisor can help you understand what money you have and how to best access it for purposes of funding senior housing.<\/p>\n

Your timeline should figure prominently. Do you want to move immediately or a few years down the line? Understanding when you will need money is just as important to your calculations as understanding how much you\u2019ll need.<\/p>\n<\/div>\n

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It\u2019s a good idea to take inventory of what resources you have to help you cover the costs.<\/p>\n<\/blockquote>\n

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Making Aging Affordable<\/h2>\n
There are more ways than you think to fill the gap.<\/div>\n
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If your budget reveals a shortfall between what you have and what you need, don\u2019t fret. There are myriad ways to finance your move to a senior living community. Here are a few of the most common that you might consider.<\/p>\n

REAL ESTATE<\/span><\/h4>\n

If you own your home, it\u2019s probably your biggest asset. That means it might also be your easiest ticket to a senior living community.<\/p>\n

If you have enough equity, you might consider selling your home outright, in which case you\u2019ll basically be exchanging one home for another. In fact, proceeds from a home sale may cover all or most of the entry fee at a senior living community that charges one. And the money you\u2019ll save on real estate taxes and future home repairs can be directed instead toward monthly service fees and various other daily living expenses.<\/p>\n

Of course, home sales can take a while. If time is of the essence, a bridge loan might be helpful by giving you short-term capital with which to finance your move to a senior living while you wait for your home to sell; when it does, you can use the proceeds to repay the loan.<\/p>\n

Of course, all of this assumes that you can sell your home quickly and for a fair price. If you can\u2019t, there are other options. You might look into a reverse mortgage, for example, wherein you sell your home a little bit at a time back to the bank, which cuts you a monthly check in exchange for your returned equity. Or, if your home is in good shape and your local rental market is strong, you might consider renting your home until you\u2019re ready to sell it. Although being a landlord can be quite onerous, a good property manager typically can do everything for you.<\/p>\n<\/div>\n

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Proceeds from a home sale may cover all or most of the entry fee at a senior living community that charges one.<\/p>\n<\/blockquote>\n

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Insurance<\/span><\/h4>\n

If you have a life insurance policy that you no longer need, you may be able to sell it to a life settlement company in return for a lump sum that you can apply toward your entry fee at a senior living community or other senior housing costs. Although the company won\u2019t purchase it for the policy\u2019s full value, you typically can get more money than you otherwise would if you were to simply surrender the policy or allow it to lapse. Before you go this route, however, you should be certain that you want to give up your life insurance\u2014you may not be able to qualify for a new policy if you decide later that you want one\u2014and should be prepared to shop your policy around to different companies to ensure you\u2019re getting a fair price.<\/p>\n

Before you sell your life insurance, there are other options to consider. You should check with your insurer, for example, to find out whether you can borrow against your policy. If you\u2019re ill, you might also be eligible for accelerated death benefits that cover the costs of a longterm, catastrophic or terminal illness while you\u2019re still alive.<\/p>\n

If you have long-term care insurance, that might also come into play. Depending on both the policy and your health status, you may be able to access benefits to help you pay for the cost of an assisted living, memory care or skilled nursing community.<\/p>\n<\/div>\n

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Veterans Benefits<\/span><\/h4>\n

If you or your spouse is a veteran who served in active duty during wartime, you may be able to receive a federal benefit known as the Veterans Aid & Attendance benefit. Provided above and beyond a veteran\u2019s regular pension, it can be used to cover your care in an assisted living, memory care or skilled nursing community.<\/p>\n

You may be eligible for this benefit if you receive a VA pension and meet at least one of these requirements:<\/p>\n