A Breakdown of the Financial Aspects of Assisted Living
As you consider moving into an assisted living community, it’s important to know all of the facts. While this is an exciting transition for you, the financial aspects matter, too.
Here’s what you need to know about the financial side of assisted living and how to best prepare for it.
How Much Does Assisted Living Cost?
Your assisted living community's cost will depend highly on your location. On average, you can expect to pay around $4,500 a month (the national median).
Your specific costs will depend on the cost of living in the area, the community’s policies, and the care you receive.
Additional One-Time Fees
There will likely be one-time fees, especially when you first move into an assisted living community. These fees cover the cost of medical care and help secure your spot in the community.
For example, you may have to pay a deposit for your residential space before you move in. This ensures that the community doesn’t lose money if you back out of the agreement before you move. Some deposits are refundable, depending on community policy.
Most assisted living communities perform a physical health evaluation before you move in. This could be charged as a one-time fee or become a revolving yearly expense.
Check with your community’s administrative staff to determine how often you need paid medical evaluations.
Included Amenities and Services
Amenities are meant to make your living arrangements comfortable and entertaining. Things like dining options, swimming pools, and fitness centers are classified as amenities.
Many amenities and extra services are included in the monthly or yearly price of assisted living. However, you should always check with your community to see what’s included and what’s not.
If finances are a major concern for you, try to find an assisted living community that covers most amenities and services. This will save you as much money as possible while still granting you access to these convenient luxuries.
Who Pays for Assisted Living?
Residents usually use their funds to pay for assisted living. This would include retirement savings, pensions, and investment funds.
Health Insurance
In some cases, insurance will cover part or all of the expenses incurred at assisted living facilities. Check with your insurance provider and read your state’s laws to determine what your plan will cover.
Personal Assets
Once you’re ready to move to assisted living, you can sell some of your assets to gain the necessary funds. Many seniors use home equity, life insurance cash-outs, and IRA funds to pay for assisted living.
Make the Best Assisted Living Decisions for Your Family
You and your loved ones should devise a long-term plan to cover the financial aspects of assisted living. The convenience, luxury, and security of these communities are well worth the costs.