OCTOBER/NOVEMBER 2010
is one consideration. This can be implemented now when you are a little younger or later when you need it. But if you wait too long and need the money immediately, in today’s real estate market, it may not be a quick sale. In that case, you may need to take out a bridge loan to finance your immediate needs. A second consideration is to take out a reverse mortgage. You will sacrifice a percentage of your home’s equity to enjoy a lump sum payment or monthly income. This can be helpful for a homeowner who needs to fund assisted living costs for their partner as they remain at home. Be careful of the fees associated with a reverse mortgage, which can be excessive. Medicaid is available, but it has asset and income restrictions that may leave you unqualified to apply. And, it does not pay for everything in long-term care. It does not cover room and board in an assisted living facility, which can be 75-80% of the monthly fees, which will be up to you to pay. It covers only the service expenses of the facility. It is a marginally reliable source to depend upon for financing your assisted living. One hint is to not spend all your savings to qualify for this assistance. Medicare and Medicare supplement insurance do not pay for assisted living. For veterans there is help with assisted living. The VA will help with long-term care costs after passing a medical qualification test. One program for non-service related health issues will provide around $1,900 a month for married veterans, $1,600 for single veterans, and
IDAHO SENIOR INDEPENDENT PAGE 15
$1,000 per month for a surviving spouse. Long-term care insurance is probably the best option because it is designed specifically for paying most costs for assisted living. The earlier in life it is taken out and the healthier you are, the lower your premium will be. A single man in his 60s who first applies for long term care insurance may pay a $100 per-month premium. The younger you start, the lower the premium. Here are the living expenses that should be included in the monthly cost of assisted living: • Monthly mortgage or rent • 24-hour security service • Three meals/day plus snacks • Utilities • Housekeeping services • Daily health aid visitations • Transportation to off-site activities and appointments • Personal care • 24-hour emergency call system, as well as many small things. Assisted living, both the research and the financing, is something that should be thought about and planned for now, not Sometimes we all need later. The transition will be much smoother! ISI
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