Financial Planning for Assisted Living: Tips for a Smooth Transition
If you are planning to move into assisted living soon, you might wonder what to do with your money and belongings. One of the most important parts of preparing to transition into assisted living is financial planning. Take a look at these essential tips for navigating finances to ensure your transition into assisted living is as smooth as possible.
How Are You Paying for Assisted Living?
The first thing you need to figure out before the move is how you’re paying for assisted living. You probably have some sort of retirement fund, investment account, or general savings. Which do you plan to use to pay? Once you’ve assessed how you’re paying for your living arrangements, you can start planning accordingly.
For Homeowners: Selling Your Home for Extra Funds
If you have home equity, chances are you’re planning to take advantage of it before you move. Make sure you set aside plenty of time to list and sell your home. Family members and other loved ones can help you throughout this process as well.
Consider Medicare and Medicaid Plans
Medicare is a federally sponsored health insurance plan for older adults. It’s important to note that Medicare doesn’t explicitly pay for assisted living. Some senior services are covered under Medicare plans, but it’s unlikely that your actual living expenses will qualify. Medicaid works with both federal and state programs to provide health insurance to people with lower incomes. Check your state Medicaid policies to determine whether Medicaid will cover your assisted living expenses.
You should also ask each assisted living community that you tour whether they accept Medicaid. This is important information that will help you find the best community for you.
Is Long-Term Care Insurance Right for You?
Long-term care insurance helps cover living expenses that Medicaid and other forms of insurance may not. If you’re planning to move to an assisted living community, this type of insurance could ease your financial burden.
These insurance plans often cover a fixed dollar amount in care expenses related to senior living. For example, you may find a policy that insures you for up to $300,000. This can provide you with the boost you need to foot the bill for your long-term care.
Long-term care insurance is designed for older adults who have trouble with activities of daily living (ADL). You will need medical documentation to receive coverage, so it’s best to communicate with your healthcare providers throughout the process.
Make Your Move Stress-Free With Financial Planning
Planning your financial transition into assisted living in advance will make things much easier for you in the long run. By using these tips, you can make sure your move is as seamless and stress-free as possible.