Even with the help of Medicare or Medicaid, assisted living costs can run well into the thousands for individuals who are considering such facilities. When personal funds and government assistance don’t cover the complete price tag, however, there may be additional options.
According to research from scientists at Harvard University, as many as 72 percent of seniors may find themselves impoverished after funding only a single year of assisted living. For many, the costs are higher than they had anticipated, due to physical or mental needs that require specialized care. Consider statistics from Genworth Financial, suggesting that the price tag for a year of assisted living with a private room averaged $83,950 in 2012.
How can seniors and their families avoid finding themselves with costs well beyond their means? One source of funding for assisted living of which many people are unaware is a long-term care insurance (LTCI) coverage plan. By investing in a long-term care insurance (LTCI) coverage plan, individuals and families alike can be better prepared for the cost of housing, either for themselves or for a loved one who experiences physical or mental conditions that would make living alone unsafe or impossible.
A Place For Mom reported that LTCIs can help older people retain their assets and keep financial obligations separate from those of their family members. For people with stable accounts, it can provide more options in terms of facilities and amenities, or allow them to choose a more expensive location. It can also help prevent family members or other loved ones from having to take on caregiver responsibilities.
Because there are many LTCI options, it may be helpful to contact a financial advisor who is well-versed in the subject. He or she can guide seniors and their family members through the process to find an insurance policy for assisted living that is right for them.