If you've recently retired and are looking to downsize your home, or if you've decided you'd rather live in a retirement community than by yourself, you may be investigating your various living options. There are now a number of communities that offer independent living arrangements, allowing you to live your own life while still surrounded by caring resources. However, you may be wondering whether your retirement income will be sufficient to fund a lifestyle in one of these communities. Read on to learn more about the independent and assisted living options available to you, as well as a few ways you can help pay for these living arrangements.
What are your assisted living options?
Although the term "assisted living" is often used as a
Independent living is often the first transition from owning one's home to moving into a smaller community with greater resources. Most independent living facilities will provide you with your own apartment or
Assisted living facilities are similar to independent living facilities, but you may be offered more help from staff for activities like cooking, cleaning, and grocery shopping. Staff may also be able to provide you with minor medical care, including the disbursement of medication.
Once you require more assistance than an assisted living facility is equipped to provide, you may be transitioned to a skilled nursing facility. In a nursing facility, you generally have only your own room, and round-the-clock nurses and physicians are available to help you with your daily needs.
How can you pay for assisted living?
- Long-term care insurance
Depending on the terms of your policy, it may pay only for any physical assistance or medical care you receive while staying there, or it may help pay for everything -- even rent or the purchase price of the unit.
If you're still debating a move to an independent living facility, it may be worthwhile to go ahead and invest in a long-term care insurance policy. These policies generally require you to pay premiums for a few years before they'll pay benefits, but once you qualify, you'll find that this insurance can significantly defray your monthly costs.
- Life insurance policies
Whether you were gifted a whole life insurance policy by a parent or relative, or purchased it in your younger days to help protect your family in the event of your untimely death, now may be the time to cash in this policy. If you're about to start getting a pension or Social Security income, you can also borrow from your whole life policy now and pay these funds back later when your income increases. One advantage of borrowing from this policy rather than cashing it in is that borrowing won't terminate the policy -- just reduce the amount received if you do die. To find out more, speak with a business like Carriage Oaks Retirement Community.