How to Make Senior Living More Affordable

If you are considering a move to a senior community, as an independent resident or in assisted living, you may be worried about the cost. After all, a private, one-unit apartment in an assisted living community in Georgia runs about $3,863 per month. Nationally, the average is $4917. So, you’re wise to think about finances, but chances are good you will be able to handle it.

Certainly, the best time to start planning for comfortable living in your senior years is when you’re young. But no matter your age, even if you are already retired or you’re getting close, there are things you can do to make your senior living experience more affordable. Without sacrificing all-around livability. Keep in mind that your monthly payment will include more than rent – utilities, maintenance and repairs, maybe even meals.

Everyone’s circumstances are different, but here are five popular strategies that might help you pay for senior living:

Reverse mortgage
A reverse mortgage reduces your out-of-pocket costs in the near term, so it can also be a good option in cases where only one spouse needs to move to assisted living because it allows the other spouse to remain in the home.

You make no monthly payments with a reverse mortgage, but you can receive monthly payments, a lump sum or take out an equity line of credit and then use that money as needed. However, the mortgage loan balance will continue to grow over time because you aren’t making monthly payments.

You must repay the reverse mortgage when the remaining spouse permanently leaves the home, whether they also move into assisted living or they pass away. At that time, you will have to sell the home and use the proceeds to pay back the reverse mortgage, or your heirs can repay the loan. Most people end up selling their home in order to pay back the reverse mortgage, but at this point the net proceeds may not be sufficient for a couple to pay for future care needs.

Home equity line of credit (HELOC)
This is a form of revolving credit that uses the equity in your home as collateral. You can borrow this money to pay for anything, including living or care expenses. You will have to make monthly payments on the money you borrow, but the terms may be more favorable and more flexible than with other types of loans.

A HELOC can provide additional money for couples when one spouse doesn’t need to move into assisted living but is unable to care for their spouse at home. A line of credit may offer an alternative if you aren’t eligible for or don’t want a reverse mortgage.

Long-term care insurance
Many people use long-term care insurance to pay for assisted living and skilled nursing care. Unfortunately, this insurance can be expensive, especially if you are older when you purchase it. The average premium cost for a 55-year-old couple is now about $2,808 per year for a $165,000 policy.

Benefits for veterans and surviving spouses
Vets do not need to be disabled or injured to receive benefits. If you served during specified wartime periods, even if you never saw action or were injured, you may be eligible for what is known as the Veterans Aid & Attendance Benefit. This aims to help eligible senior veterans and their surviving spouses cover the costs of Personal Care or Assisted Living. The benefit applies to couples where both spouses are veterans and also to those where just one spouse is a vet.

Applying for these benefits can be complicated. We suggest you talk to our staff at Magnolia Manor or contact the Veterans Benefits Administration for more information. The VBA is a service of the Veterans Administration responsible for helping vets obtain their benefits.

Consider a nonprofit, faith-based community
Most senior communities are owned and managed as for-profit businesses. Magnolia Manor is a nonprofit, faith-based senior living community, committed to providing quality care at an affordable price.

Because we don’t need or expect to make a profit, our residents in multiple ways. We don’t charge high buy-in fees. We don’t have a long-term lease for you to sign. We do have nine wonderful campuses throughout southern Georgia that offer a variety of care options. Each one sits in a uniquely beautiful setting where older adults enjoy a quality lifestyle that fills their spiritual, social, physical, and mental needs in a caring atmosphere.

No matter your financial situation, moving to a senior living community can be a surprisingly positive and uplifting experience. We encourage you to contact us online, so we can help you explore the many financial avenues that may be available.