If you’re considering a move to a senior living community for your parents, chances are that affordability is an important issue. And as you begin to look into the costs of senior living, you’re likely asking yourself the question “How are my parents going to fund this?”
Well, it may be surprising to hear that senior living can actually be quite affordable. The trick is to recognize some savings your parents will achieve by moving and some funding sources that can help them cover their living costs going forward.
Factor in your current living expenses
The monthly fee your parents will pay at most senior living communities covers off many of the expenses they’re paying now in their current home. Things like mortgage/rent, property tax, property maintenance, and utilities.
If they move to assisted living or memory care, meals are provided, which means they won’t have to keep paying for groceries.
The cost of receiving care at home can add up quickly. Moving to a senior living community can help to contain or even reduce these costs.
At Sinceri, our monthly charges benefits include a suite with utilities, 24-hour care, medication management, meals, laundry, activities, and transportation.
Funding the difference
Once you compare your current living expenses with the cost of living in a senior living community, you may find there’s not much difference.
But if the cost of senior living turns out to be higher, there are several sources of funds that can help make up the difference.
- Your parents’ home. What proceeds will come from the sale of their current home? If their place is rented out instead of sold, what rental income could it generate?
- Their savings. Have they put away rainy day funds in a bank account? Do they have stocks, bonds or annuities?
- Their income. Do they receive Social Security or a pension? Are they paid dividends from stocks?
- Veteran’s benefits. Do they qualify for or are they receiving the Aid & Attendance benefit?
- Long-term care (LTC) insurance. Do they have a policy that will pay for some costs?
- Life insurance conversion. Does it make sense for them to convert a life insurance policy into a Long-Term Care Benefit Plan that provides a monthly income?
Want to dig deeper? Check out our free Family Guide to Funding Senior Care and Housing.
Not sure which senior living option will best suit your parents? If you’re interested in exploring senior living communities as an option, check out our free Senior Living Options Guide.