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FInancial Assistance: How to Pay for Senior Care

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Financial Guidance: How to Pay for Senior Care

There are so many options in senior care today available. Because of the increased amount of assisted living and senior care options, the average cost varies on a wide array of factors. Geographic location, the type of provided amenities and services offered are often some of the most important factors to those who are looking at senior living communities. The size and location of an apartment in a senior care community, as well as the provided care to ensure wellness in a loved one, are also crucial to consider.

While cost may not be the single most important factor when considering senior living, people are often surprised to find that senior care is more affordable than other alternatives. In this article, Elmcroft will provide several examples of how to pay for assisted living, including the below Cost Comparison Worksheet to help with financial planning.

Cost Comparison Worksheet

Who Pays for Assisted Living & Senior Care Facilities?

In some instances, financial planning for assisted living includes a senior’s family members sharing in the costs of moving their loved one, together. In others, seniors will pay for senior living through a combination of retirement funds and savings. Ultimately, when considering how do the elderly pay for assisted living, it is important to remember that it is unique to each individual, as well as their resources and family’s support.

Traditional Payment Options: Personal Savings and Investments

Personal savings and investments can provide the means necessary to cover the costs of senior assisted living. For many seniors, their home is a nest egg and can also provide the finances necessary for paying for senior assisted living once it is sold. Personal loans are also available to help bridge the funding gap until the home sells or other assets are made available. 

Elderlife Financial Services

To help seniors and families navigate the many payment options available for financing assisted living, Elmcroft is happy to partner with Elderlife Financial Services. Elderlife can help you:

  • Connect with real estate specialists who can assist you with selling your home
  • Work with Veterans Administration experts to apply for assisted living benefits, including Aid and Attendance
  • Convert your life insurance policy into a long-term benefit
  • Explore and learn about the various financial options that exist, such as an unsecured line of credit or secured lending options like a home loan
  • Develop a personalized financial plan specific to your needs

Home Equity & Reverse Mortgage Options

The equity in real estate can also provide funding for senior living. While many seniors will decide to sell their home in order to move to a senior living community, others will choose to borrow against the equity in their home in order to pay for the costs of senior living. Home equity loans, or reverse mortgages, enable owners to use the equity in their home as collateral on the loan to pay for assisted living and senior care. 

Does Long Term Care Pay for Assisted Living?

Long term care insurance can also help defray the costs of senior living. This product covers care received in various senior housing settings, including assisted living, dementia care communities, and skilled nursing facilities. Insurance premiums will vary based upon the age of the insured, the type of coverage desired, and other factors. For seniors owning whole life insurance policies, a life settlement product may afford an avenue to convert the value of the whole life policy into funds to defray the cost of senior living. 

Financial Support From Your Family

Many individuals might wonder how do you pay for assisted living before beginning the journey to a senior living facility. As mentioned above, a senior’s family members may be able to pool financial support to help pay for senior living. If family members are interested in paying for their loved one’s senior living expenses, Elmcroft recommends organizing a family meeting to develop a collaborative plan for how to cover the cost together. Everyone’s financial situation is unique, which is why it’s important to establish an open dialogue focused on meeting the needs of your aging loved one. 


In some states, Medicaid is available for seniors with little to no resources to cover the costs associated when paying for assisted living. A senior would qualify for Medicaid if they have a low income and few assets besides their home. Medicaid is funded partly by the government and partly by the states, and qualifications for an individual to receive this type of coverage varies. That said, almost all state Medicaid programs will cover some assisted living costs for eligible residents. Please visit our Medicare/Medicaid & Senior Living guide for more information.

Veteran’s Aid

The Veteran’s Administration also offers a benefit that can assist in covering the costs of senior living. This benefit is available to veterans and surviving spouses who qualify.

All of these financial options for paying for senior care must be tailored to each individual’s needs. We urge you to seek independent financial advice as you explore those options for yourself or a loved one. For more information, please visit our Veterans Aid & Attendance Benefit page.

Additional Financial Options to Pay for Senior Living

Shared Suites:

Elmcroft offers semi-private accommodations for residents to benefit from the companionship or another at reduced rates.

Tax Deductibility:

Please note, that while Elmcroft cannot give tax advice, we understand that there may be some tax benefits available to Elmcroft residents and their family members. For more information, please refer to this Tax Deductibility Sheet.

To learn more about paying for senior living at Elmcroft communities, contact us today at the community nearest you.


This article is provided as general information and is not a substitute for personal financial or legal advice from a qualified expert in the areas of financial planning. Because each individual’s situation is unique, please speak with your financial planner for more information about the information provided here.

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Veteran's Benefits

Many veterans and their surviving spouses are unaware of a veteran’s benefit for senior housing. It is called the Aid & Attendance Benefit. Continue reading as Elmcroft helps explain in more detail.

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Tax Benefits

Understanding the ever-changing tax regulations isn’t easy! If you are a caregiver, one deduction you may be overlooking is for a loved one’s senior care. 

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